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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
MAY 13, 1999
North American Palladium Fourth Quarter 1998/Year End
Results
THUNDER BAY, ONTARIO--North American Palladium Ltd. today released
the results for the 4 the quarter ended December 31, 1998. The
Company reported a net loss for the quarter of $2,360,000 or $0.30
CDN per share, which included depreciation and amortization of
$2,353,000 (1997 - loss of $51,397,000 or $4.34 CDN per share
including $40,213,000 depreciation, amortization and write-down of
capital assets and deferred expenditures). For the year to date
the Company reported a net loss of $17,529,000 or $1.90 CDN per
share which included $8,177,000 depreciation, amortization (1997 -
loss of $70,248,000 or $ 6.07 CDN per share which included a
$46,294,000 depreciation, amortization and write-down of capital
assets and deferred expenditures). Cash used in operating
activities for the quarter totaled $4,712,000 with the year to
date cash expended totaling $11,479,000. This compares to
$4,624,000 expended for the same quarter in 1997 with a year to
date total of $35,759,000. Fixed assets, deferred expenditures
and mining leases and royalty interest, net of depreciation and
amortization, at December 31, 1998 totaled $38,669,000, $4,606,000
and $11,162,000 respectively.
The Company has deferred a foreign exchange loss of $6,262,000 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
(Canadian Funds in Thousands of Dollars Except Share
and Per Share Amounts)
Quarter Ended Year to Date
December 31 Ended December 31
1998 1997 1998 1997
Revenue from
metal sales 10,212 5,846 28,149 19,188
Income (loss) from
Mining operations 2,374 (49,351) (5,901) (59,744)
Net Profit (Loss) (2,360) (51,397) (17,529) (70,248)
Average shares
outstanding 12,002,558 11,861,602 11,939,882 11,824,542
Net Profit (Loss)
per share (0.30) (4.46) (1.90) (6.07)
Note: The net loss per share includes accumulated dividends in
arrears on 10,000,000 Series "A" Preferred Shares
1998: $5,156,250
1997: $1,530,000
/T/
OPERATIONS
During the fourth quarter the mine produced 219,464 tons of ore
and 1,139,214 tons of waste. Compared to the fourth quarter of
1997, ore production decreased by 5.5 percent and waste production
increased by 263.9 percent. Additional waste was mined from the
open pit in preparation for Phase II ore production.
The concentrator processed 249,686 tons during the fourth quarter
of 1998 resulting in 19,770 ounces of palladium being shipped to
the smelter. Compared to the same time period in 1997, palladium
production decreased by 12.1 percent. Lower grade ore was
processed during the last half of December 1998 which accounts for
the reduced palladium production for the quarter.
/T/
PRODUCTION STATISTICS
Fourth Percentage Jan.1 Percentage
Quarter Increase to Dec 31 Increase
1998 1997 1998 1997
Palladium
(troy oz) 19,770 22,165 (12.1) 84,228 66,086 27.5
Platinum
(troy oz) 1,315 1,419 (7.9) 5,535 4,588 20.6
Gold
(troy oz) 1,250 1,314 (5.1) 5,079 4,323 17.5
Copper
(lbs) 305,299 345,473 (13.2) 1,229,309 1,133,565 8.4
Nickel
(lbs) 228,120 254,084 (11.4) 914,030 864,093 5.8
Ore Tons
Milled 249,686 248,730 0.4 947,924 803,189 18.0
Ore Tons
Mined 219,464 231,593 (5.5) 963,332 912,575 5.6
Waste Tons
Mined 1,139,214 431,673 263.9 4,325,169 1,878,844 230.2
/T/
The company is looking positively towards the challenges in 1999
by continuing to focus on the Exploration Program. Prospecting,
geophysical methods and diamond drilling are in progress to locate
and delineate additional resources both on and off the minesite.
The Company is optimistic that the exploration program will be
successful, thereby resulting in increased shareholder value.
North American Palladium Limited, through its wholly owned
subsidiary Lac des Iles Mines Ltd., operates Canada's only primary
PGM mine and 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
profitability, operating performance, metal prices and markets,
costs of production, fluctuations in ore grade, ore tons milled,
geological, exploration programs, technical, mining or processing
problems, future profitability and production.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd.
Keith C. Minty
President and C.E.O.
(807) 624-0960 ext. 14
(807) 624-0961 (FAX)
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