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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
MAY 28, 1998
North American Palladium Ltd.: First Quarter 1998 Results
THUNDER BAY, ONTARIO--North American Palladium Ltd. (TSE "PDL"),
today released the financial results for the three months ended
March 31, 1998. The Company reported a net loss of $8,040,000 or
$0.67 CDN per share (1997-loss of $5,869,000 or $0.50 CDN per
share), for the period which included depreciation and
amortization of $547,000 (1997- $560,000). The net loss for the
three months ended March 31, 1998 included a loss on foreign
exchange of $1,948,000.
/T/
NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT
(Canadian Funds in Thousands of Dollars Except Shares and Per
Share Amounts)
Three Months Year Ended
Ended December 31,
March 31,
1998 1997 1997
---------------------- ------------
Revenue from metal sales 5,102 3,784 19,188
Loss from mining
operations (4,214) (3,292) (22,152)
Net loss (8,040) (5,869) (70,248)
Average shares
outstanding 11,906,528 11,796,150 11,824,542
Net loss per share (0.67) (0.50) (6.07)
Figures in parentheses are losses
/T/
The Company operates a platinum group metals property located
approximately 55 miles north-northwest of Thunder Bay, Ontario.
Fixed assets, mining leases and deferred expenditures, net of
depreciation and amortization, at March 31, 1998 total
$35,801,000, $11,995,000 and $4,848,000 respectively.
The financial statements for the period ended March 31, 1998
include the accounts of the Company and its wholly owned
subsidiary Lac des Iles Mines Ltd.
In commenting on the financial results, Mr. Keith C. Minty,
President and CEO, stated that the Company is still in a state of
transition. Since the beginning of the year the Company has
developed a new pit design, new operating standards and a series
of cost cutting measures. While operating costs are now within
the new budgeted structure, the Company did not realize the effect
of the cost cutting measures during the first quarter of 1998.
In addition, several key personnel have yet to be located thus the
Company is still utilizing the services of consultants. The
Company also incurred respective one-time severance expenditures
as a result of the company wide reorganization.
The Company reports notably increased production during the first
quarter over the same period in 1997 with pit production at
approximately 86 percent of the new pit scheduling and the mill at
approximately 95 percent. Pit operating costs during the quarter
were excessive due to a high waste stripping program to develop
the open pit following the new design. The Company reports that
pit production is back on schedule with a normal stripping ratio.
Revenues for the quarter are not fully being satisfied as the
Company is currently reducing the forward sale contracts on its
products. As at March 31, 1998 the Company reduced the forward
sale contracts to 15,985.65 ounces Compared to 33,048.92 ounces at
year end.
/T/
PRODUCTION STATISTICS
First Quarter
1998 1997
-------- --------
Palladium (troy oz.) 18,028 9,253
Platinum (troy oz.) 1,229 651
Gold (troy oz.) 1,277 637
Copper (lbs) 350,227 174,122
Nickel (lbs) 285,450 139,685
Tons Ore Mined 270,341 89,443
Tons Ore Crushed 234,135 144,447
Tons Ore Milled 234,135 137,177
/T/
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FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd.
Joanne Kerr
(807) 345-4479
(807) 345-7796 (FAX)
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