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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
NOVEMBER 26, 1998
North American Palladium Ltd. - Third Quarter Financial
Results
THUNDER BAY, ONTARIO--North American Palladium Ltd. - (TSE-"PDL")
is pleased to announce the unaudited financial results for the 3rd
Quarter ending September 30, 1998. The Company reported net
earnings for the quarter of $706,000 or $0.05 CDN per share, which
included depreciation and amortization of $2,482,000 (1997 - loss
of $7,392,000 or $0.62 CDN per share including depreciation and
amortization of $2,856,000). For the year to date the Company
reported a net loss of $15,169,000 or $1.60 CDN per share which
included depreciation and amortization of $5,824,000 (1997 - loss
of $18,851,000 or $1.60 CDN per share which included depreciation
and amortization of $6,055,000). Cash provided by operating
activities for the 3rd quarter totaled $3,276,000 with the year to
date cash expended totaling $6,767,000 (1997 - $19,296,000
expended for the quarter with a year to date total expended of
$31,135,000).
The Company has deferred a foreign exchange loss of $6,621,000 for
the year. This reflects the deferred non-amortized variance in
the foreign exchange rate with respect to the term note payable to
Kaiser-Francis Oil Company.
/T/
NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT (Unaudited)
(Canadian Funds in Thousands of Dollars Except Share and
Per Share Amounts)
Quarter Ended Year to Date
September 30, as at September 30,
1998 1997 1998 1997
Revenue from metal sales 8,128 5,055 19,257 13,342
Income (loss) from
mining operations 47 (4,035) (8,275) (10,393)
Net Profit (Loss) 706 (7,392) (15,169) (18,851)
Average shares
outstanding 11,964,510 11,831,040 11,934,652 11,815,782
Net Profit (Loss)
per share(x) (0.05) (0.62) (1.60) (1.60)
(x) The loss per share reported includes deferred dividends not
booked of $1,281,000 for the quarter and $3,906,000 year to date.
/T/
Fixed assets, mining leases and deferred expenditures, net of
depreciation and amortization, at September 30, 1998 totaled
$38,160,000, $11,218,000 and $14,186,000 respectively.
Lac des Iles Mines Ltd., the Company's wholly owned subsidiary,
operates a Platinum Group Metals (PGM) mine northwest of Thunder
Bay, Ontario. The principal metal produced is palladium in
concentrate.
SUMMARY
The Company is pleased with the improvement in the financials for
the 3rd Quarter of 1998. Improvements continue to be made in the
areas of mine operating costs, productivity, offsite smelting and
refining charges. All hedging programs have been fulfilled, and
the Company is looking forward to realizing higher metal prices.
North American Palladium Ltd. explores for PGM's in North America,
through its wholly owned subsidiary Lac des Iles Mines Ltd.,
operates Canada's only primary PGM mine, which is the world's
largest open pit PGM producer.
Forward Looking Statements - Some statements contained in this
release are forward-looking and, therefore, involve uncertainties
or risks that could cause actual results to differ materially.
Such forward-looking statements include comments regarding metal
prices, operating costs, productivity and offsite smelting and
refining charges. Factors that could cause actual results to
differ materially include metal price volatility, economic and
political events affecting metal supply and demand, fluctuations
in ore grade, ore tons milled, geological, technical, mining or
processing problems, availability of financing and possibility of
lack of operating capital. The Company disclaims any obligation to
update forward-looking statements.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd.
Keith C. Minty
President and C.E.O.
(807) 624-0960
(807) 624-0961 (FAX)
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