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NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: NORTH AMERICAN PALLADIUM LTD.
TSE SYMBOL: PDL
MAY 29 2000 - 12:41 EDT
North American Palladium Ltd. Announces First Quarter 2000
Results
North American Palladium Ltd. announces financial and operating
results for the First Quarter ended March 31, 2000. The Company
reported a net income for the three months ended March 31, 2000
of $9,092,000 or $0.63 per share on revenue from metal sales of
$23,302,000 compared to a net loss of $1,565,000 or $0.23 per
share on revenue from metal sales of $9,851,000 for the
corresponding period a year earlier. The increase in revenue from
the prior year was due to a significant improvement in palladium
prices combined with a 19% increase in palladium production as a
result of processing higher grade ore and increased mill
throughput. The net income per common share includes accrued and
unpaid dividends on the Series "A" preferred shares of $1,354,000
for the first quarter of 2000.
Cash provided from operations (prior to changes in non-cash
working capital) was $14,005,000 for the first quarter 2000
compared to cash provided of $3,303,000 for the first quarter
1999. The improvement in cash flow from operations was primarily
due to higher metal prices.
/T/ First Quarter
/T//T/ March 31,
/T//T/ (thousands of Canadian dollars, except per share amounts)
/T//T/
/T//T/ 2000 1999
/T//T/ -------- --------
/T//T/
/T//T/Revenue from metal sales 23,302 9,851
/T//T/Income from operations 12,409 313
/T//T/Net income (loss) 9,092 (1,565)
/T//T/Operating cash flow * 14,005 3,303
/T//T/Net Income (loss) per share 0.63 (0.23)
/T//T/
/T//T/ * prior to changes in non-cash working capital
/T/
OPERATIONS
During the first quarter, the mine produced 331,663 tonnes of ore
and stripped 1,003,711 tonnes of waste. Waste production
decreased by 13% for the quarter as mining continues to depth in
Phase II of the Roby pit. Waste production will continue to
decrease as Phase II mining continues.
The concentrator processed 219,705 tonnes of ore during the first
quarter of 2000 resulting in 20,372 ounces of palladium being
shipped to the smelter compared to 17,144 ounces in the first
quarter 1999. The increase in production is the result of higher
grade material being processed as Phase II mining continues at
depth. Cash costs to produce palladium, net of other metal
credits and royalties, were lowered by 23% to US$209 per ounce in
the first quarter of 2000 compared to US$271 per ounce in the
first quarter 1999.
/T/ PRODUCTION STATISTICS
/T//T/
/T//T/ First Quarter
/T//T/ March 31,
/T//T/ 2000 1999
/T//T/ ---------- ----------
/T//T/Palladium(oz) 20,372 17,144
/T//T/Platinum(oz) 1,270 1,085
/T//T/Gold(oz) 1,285 966
/T//T/Copper(lbs) 277,306 219,050
/T//T/Nickel(lbs) 200,687 157,018
/T//T/
/T//T/Ore Tonnes Milled 219,705 206,563
/T//T/Ore Tonnes Mined 331,663 258,230
/T//T/Waste Tonnes Mined 1,003,711 1,147,489/T/
The Company's Annual and Special Meeting of Shareholders will be
held on Wednesday, June 28, 2000, at 10:30 a.m. at The Toronto
Board of Trade (Downtown Club).
North American Palladium's Lac des Iles Mine is Canada's only
primary producer of platinum group metals and one of the largest
platinum group metals deposits in the world. Palladium
consumption is expected to remain strong in 2000 following a
record demand in 1999, which saw a 20% increase in autocatalyst
use as reported by Johnson Matthey in their Platinum 2000 review.
/T/ NORTH AMERICAN PALLADIUM LTD.
/T//T/ CONSOLIDATED BALANCE SHEETS
/T//T/ [Canadian Funds in Thousands of Dollars]
/T//T/ [unaudited]
/T//T/ March 31 December 31
/T//T/ 2000 1999
/T//T/ ---------- ----------
/T//T/ASSETS
/T//T/
/T//T/CURRENT ASSETS
/T//T/Cash $ 2,339 $ 157
/T//T/Accounts receivable 236 307
/T//T/Concentrate inventories awaiting
/T//T/ settlement, net 39,721 30,513
/T//T/Inventories 2,341 2,784
/T//T/Prepaid expenses and other assets 11 211
/T//T/ ---------- ----------
/T//T/ 44,648 33,972
/T//T/
/T//T/Mining interests, net 56,509 57,013
/T//T/Expansion Project 6,819 -
/T//T/Mine closure deposit 480 430
/T//T/Deferred foreign exchange loss 1,429 787
/T//T/ ---------- ----------
/T//T/
/T//T/ $ 109,885 $ 92,202
/T//T/ ---------- ----------
/T//T/
/T//T/LIABILITIES AND SHAREHOLDERS' DEFICIENCY
/T//T/
/T//T/CURRENT LIABILITIES
/T//T/Accounts payable and accrued
/T//T/ liabilities $ 2,594 $ 1,464
/T//T/Advances on palladium settlements 19,185 15,946
/T//T/Taxes payable 905 549
/T//T/Current portion of obligations
/T//T/ under capital lease 906 818
/T//T/ ---------- ----------
/T//T/ 23,590 18,777
/T//T/
/T//T/Provision for mine closure costs 616 587
/T//T/Obligations under capital leases 1,609 1,905
/T//T/Notes and interest payable
/T//T/ - Kaiser-Francis Oil Company 123,241 119,730
/T//T/ ---------- ----------
/T//T/ 149,056 140,999
/T//T/ ---------- ----------
/T//T/
/T//T/SHAREHOLDERS' DEFICIENCY
/T//T/Capital stock
/T//T/ Outstanding: 12,441,516 common shares
/T//T/ (1999 - 12,224,504) 31,308 30,774
/T//T/ Outstanding: 10,000,000 Series A
/T//T/ preferred shares 50,000 50,000
/T//T/Deficit (120,479) (129,571)
/T//T/ ---------- ----------
/T//T/Total shareholders' deficiency (39,171) (48,797)
/T//T/ ---------- ----------
/T//T/
/T//T/ $ 109,885 $ 92,202
/T//T/ ---------- ----------
/T//T/
/T//T/ NORTH AMERICAN PALLADIUM LTD.
/T//T/ CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
/T//T/ [Canadian Funds in Thousands of Dollars Except Share and Per
/T//T/Share Amounts]
/T//T/ [unaudited]
/T//T/ Quarter Ended March 31
/T//T/ 2000 1999
/T//T/
/T//T/Revenue from metal sales $ 23,302 $ 9,851
/T//T/Deduct: smelter treatment,
/T//T/ refining and freight costs (1,511) (1,037)
/T//T/ ---------- ----------
/T//T/Net revenue from mining operations 21,791 8,814
/T//T/
/T//T/Operating expenses
/T//T/Production costs including overheads 6,983 6,563
/T//T/Amortization 2,016 1,808
/T//T/Administrative expenses 354 103
/T//T/Provision for mine closure costs 29 27
/T//T/ ---------- ----------
/T//T/Total operating expenses 9,382 8,501
/T//T/ ---------- ----------
/T//T/Income from mining operations 12,409 313
/T//T/ ---------- ----------
/T//T/
/T//T/Other income (expenses)
/T//T/Interest income 31 10
/T//T/Gain on palladium forward contracts - 1,415
/T//T/Gain (loss) on disposal of capital
/T//T/ assets - (4)
/T//T/Interest (256) (67)
/T//T/Interest on long-term debt (2,657) (2,082)
/T//T/Amortization of deferred foreign
/T//T/ exchange loss (66) (517)
/T//T/Foreign exchange gain (loss) (322) (579)
/T//T/ ---------- ----------
/T//T/Total other income (expenses) (3,270) (1,824)
/T//T/ ---------- ----------
/T//T/
/T//T/Income (loss) before income taxes 9,139 (1,511)
/T//T/Income taxes (47) (54)
/T//T/ ---------- ----------
/T//T/
/T//T/Net income (loss) for the period 9,092 (1,565)
/T//T/
/T//T/Deficit, beginning of period (129,571) (124,421)
/T//T/ ---------- ----------
/T//T/Deficit, end of period $ (120,479) $ (125,986)
/T//T/ ---------- ----------
/T//T/Net income (loss) per share $ 0.63 $ (0.23)
/T//T/ ---------- ----------
/T//T/Weighted average number of shares
/T//T/ outstanding 12,369,889 12,024,170
/T//T/ ---------- ----------
/T//T/
/T//T/ NORTH AMERICAN PALLADIUM LTD.
/T//T/ CONSOLIDATED STATEMENTS OF CASH FLOWS
/T//T/ [Canadian Funds in Thousands of Dollars]
/T//T/ [unuadited]
/T//T/ Quarter Ended March 31
/T//T/ 2000 1999
/T//T/ ---------- ----------
/T//T/Cash Provided by (used in)
/T//T/
/T//T/Operations
/T//T/Net income (loss) for the period $ 9,092 $ (1,565)
/T//T/Operating items not involving cash
/T//T/ Amortization 2,015 1,807
/T//T/ Amortization of deferred foreign
/T//T/ exchange loss 66 517
/T//T/ Foreign exchange loss on interest
/T//T/ payable 146 -
/T//T/ Loss on disposal of capital assets - 4
/T//T/ Provision for mine closure costs 29 28
/T//T/ Gain on palladium forward contracts - (172)
/T//T/ Unpaid interest expense -
/T//T/ Kaiser-Francis Oil Company 2,657 2,684
/T//T/ ---------- ----------
/T//T/ 14,005 3,303
/T//T/Changes in non-cash working capital (7,176) (8,197)
/T//T/ ---------- ----------
/T//T/ 6,829 (4,894)
/T//T/ ---------- ----------
/T//T/
/T//T/Financing Activities
/T//T/Mine closure deposit (50) -
/T//T/Advances on palladium settlements 3,238 7,136
/T//T/Obligations under capital leases (208) (251)
/T//T/Issuance of common shares 534 68
/T//T/ ---------- ----------
/T//T/ 3,514 6,953
/T//T/ ---------- ----------
/T//T/
/T//T/Investing Activities
/T//T/Additions to plant and equipment (15) (457)
/T//T/Expansion Project (6,650) -
/T//T/Mining claims, exploration and
/T//T/ development costs (1,496) (642)
/T//T/Proceeds on disposal of plant and
/T//T/ equipment - 2
/T//T/ ---------- ----------
/T//T/ (8,161) (1,097)
/T//T/ ---------- ----------
/T//T/
/T//T/Increase in cash 2,182 962
/T//T/
/T//T/Cash, beginning of period 157 966
/T//T/
/T//T/ ---------- ----------
/T//T/Cash, end of period $ 2,339 $ 1,928
/T//T/ ---------- ----------
/T/
For further information contact:
Keith C. Minty - President & C.E.O.
/T/Tel: (807) 624-0960 Ext. 14 Fax: (807) 624-0961 /T/
or
George D. Faught - Vice President Finance & CFO
/T/Tel: (416) 219-1914 Fax: (416) 207-9288/T/
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, technical, mining or processing problems, exploration
programs and future results of exploration programs of the Lac
des Iles Mine, future profitability and production. The Company
disclaims any obligation to update forward-looking statements.
North American Palladium Ltd.
Thunder Bay, Ontario P7B 5J9
P.O. Box 3386
website:www.napalladium.com
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