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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
MAY 18, 1999
North American Palladium Ltd. - 1st Quarter 1999 Results
THUNDER BAY, ONTARIO--North American Palladium Ltd. today released
the results for the 1st Quarter ended March 31, 1999. The Company
reported a net loss for the quarter of $1,565,000 or $0.23 CDN per
share, which included depreciation and amortization of $ 2,325,000
(1998 - loss of $8,040,000 or $0.67 CDN per share including
$2,443,000 depreciation and amortization). Cash provided by
operating activities for the quarter totaled $2,242,000. This
compares to 1998 cash used in operating activities, for the same
quarter of $6,347,000. The Company has deferred a foreign
exchange gain of $570,000 for the quarter. This reflects the
deferred non-amortized variance in the foreign exchange rate with
respect to the term note payable to Kaiser-Francis Oil Company.
Fixed assets, deferred expenditures and mining leases and royalty
interest, net of depreciation and amortization, at March 31, 1999
totaled $37,853,000, $4,647,000 and $10,769,000 respectively.
/T/
NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT
(Canadian Funds in Thousands of Dollars Except
Share and Per Share Amounts)
Quarter Ended Year Ended
March 31, December 31,
1999 1998 1998
Revenue from metal sales 9,851 5,102 28,149
Income (loss) from mining
Operations 1,831 (4,227) (5,901)
Net Profit (Loss) (1,565) (8,040) (17,529)
Average shares
Outstanding 12,024,170 11,906,528 11,939,882
Net Profit (Loss)
per share (0.23) (0.67) (1.90)
Note: The net loss per share includes accumulated dividends
in arrears on 10,000,000 Series "A" Preferred Shares
March 1999: $1,218,750 March 1998: Nil
December 1998: $5,156,250
/T/
OPERATIONS
During the first quarter the mine produced 284,650 tons of ore,
(of which 13,512 tons of lower grade material was stockpiled) and
1,264,889 tons of waste. Compared to the first quarter of 1998,
ore production increased by 5.3 percent from 270,341 tons, and
waste production increased by 73.1 percent from 730,530 tons.
This reflects an increase in waste stripping in order to release
ore for future Phase II mining.
The concentrator processed 227,696 tons during the first quarter
of 1999 resulting in palladium production of 17,144 ounces.
Compared to the same time period in 1998, palladium production
decreased by 5.1 percent. Reduced palladium production in the
first quarter is the result of processing lower grade ore from the
upper portions of Phase II. The primary source of ore for 1999
will continue to be from Phase II. It is anticipated that grades
for Phase II ore at depth will be similar to those grades reported
in Phase I in 1998. Palladium production is expected to be lower
in 1999 as opposed to 1998 but prices realized from palladium
sales are expected to be higher.
/T/
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PRODUCTION STATISTICS
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First Quarter Percentage Year Ended
Ended March 31, Increase December 31,
1999 1998 1998
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Palladium
(troy oz) 17,144 18,028 (5.1) 84,228
Platinum
(troy oz) 1,085 1,229 (13.3) 5,535
Gold (troy oz) 966 1,277 (32.2) 5,079
Copper (lbs) 219,050 350,227 (60.0) 1,229,309
Nickel (lbs) 157,018 285,450 (81.8) 914,030
Ore Tons
Milled 227,696 234,135 (2.8) 947,924
Ore Tons
Mined 284,650 270,341 5.3 963,332
Waste Tons
Mined 1,264,889 730,530 73.1 4,325,169
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/T/
The diamond drilling and metallurgical testing programs
previously announced in the March 9, 1999 Press Release are well
underway. These programs are scheduled for completion by the end
of the second quarter. Analysis of program results will be
undertaken and a decision made during the third quarter of 1999
whether to proceed with a detailed feasibility study on the
proposed expansion.
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, feasibility study,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
(807) 624-0961 (FAX)
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