Monday May 29, 1:14 pm Eastern Time
Company Press Release
North American Palladium Ltd. Announces First Quarter 2000 Results
THUNDER BAY, Ontario--(BUSINESS WIRE)--May 29, 2000--North American Palladium Ltd. (TSE:PDL - news) 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.
First Quarter
March 31,
(thousands of Canadian dollars, except per share amounts)
2000 1999
-------- --------
Revenue from metal sales 23,302 9,851
Income from operations 12,409 313
Net income (loss) 9,092 (1,565)
Operating cash flow(a) 14,005 3,303
Net Income (loss) per share 0.63 (0.23)
(a) prior to changes in non-cash working capital
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.
PRODUCTION STATISTICS
First Quarter
March 31,
2000 1999
---------- ----------
Palladium(oz) 20,372 17,144
Platinum(oz) 1,270 1,085
Gold(oz) 1,285 966
Copper(lbs) 277,306 219,050
Nickel(lbs) 200,687 157,018
Ore Tonnes Milled 219,705 206,563
Ore Tonnes Mined 331,663 258,230
Waste Tonnes Mined 1,003,711 1,147,489
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.
NORTH AMERICAN PALLADIUM LTD.
CONSOLIDATED BALANCE SHEETS
(Canadian Funds in Thousands of Dollars)
(unaudited)
March 31 December 31
2000 1999
---------- ----------
ASSETS
CURRENT ASSETS
Cash $ 2,339 $ 157
Accounts receivable 236 307
Concentrate inventories awaiting
settlement, net 39,721 30,513
Inventories 2,341 2,784
Prepaid expenses and other assets 11 211
---------- ----------
44,648 33,972
Mining interests, net 56,509 57,013
Expansion Project 6,819 -
Mine closure deposit 480 430
Deferred foreign exchange loss 1,429 787
---------- ----------
$ 109,885 $ 92,202
---------- ----------
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 2,594 $ 1,464
Advances on palladium settlements 19,185 15,946
Taxes payable 905 549
Current portion of obligations
under capital lease 906 818
---------- ----------
23,590 18,777
Provision for mine closure costs 616 587
Obligations under capital leases 1,609 1,905
Notes and interest payable
- Kaiser-Francis Oil Company 123,241 119,730
---------- ----------
149,056 140,999
---------- ----------
SHAREHOLDERS' DEFICIENCY
Capital stock
Outstanding: 12,441,516 common shares
(1999 - 12,224,504) 31,308 30,774
Outstanding: 10,000,000 Series A
preferred shares 50,000 50,000
Deficit (120,479) (129,571)
---------- ----------
Total shareholders' deficiency (39,171) (48,797)
---------- ----------
$ 109,885 $ 92,202
---------- ----------
NORTH AMERICAN PALLADIUM LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Canadian Funds in Thousands of Dollars
Except Share and Per Share Amounts)
(unaudited)
Quarter Ended March 31
2000 1999
Revenue from metal sales $ 23,302 $ 9,851
Deduct: smelter treatment,
refining and freight costs (1,511) (1,037)
---------- ----------
Net revenue from mining operations 21,791 8,814
Operating expenses
Production costs including overheads 6,983 6,563
Amortization 2,016 1,808
Administrative expenses 354 103
Provision for mine closure costs 29 27
---------- ----------
Total operating expenses 9,382 8,501
---------- ----------
Income from mining operations 12,409 313
---------- ----------
Other income (expenses)
Interest income 31 10
Gain on palladium forward contracts - 1,415
Gain (loss) on disposal of capital
assets - (4)
Interest (256) (67)
Interest on long-term debt (2,657) (2,082)
Amortization of deferred foreign
exchange loss (66) (517)
Foreign exchange gain (loss) (322) (579)
---------- ----------
Total other income (expenses) (3,270) (1,824)
---------- ----------
Income (loss) before income taxes 9,139 (1,511)
Income taxes (47) (54)
---------- ----------
Net income (loss) for the period 9,092 (1,565)
Deficit, beginning of period (129,571) (124,421)
---------- ----------
Deficit, end of period $ (120,479) $ (125,986)
---------- ----------
Net income (loss) per share $ 0.63 $ (0.23)
---------- ----------
Weighted average number of shares
outstanding 12,369,889 12,024,170
---------- ----------
NORTH AMERICAN PALLADIUM LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Canadian Funds in Thousands of Dollars)
(unaudited)
Quarter Ended March 31
2000 1999
---------- ----------
Cash Provided by (used in)
Operations
Net income (loss) for the period $ 9,092 $ (1,565)
Operating items not involving cash
Amortization 2,015 1,807
Amortization of deferred foreign
exchange loss 66 517
Foreign exchange loss on interest
payable 146 -
Loss on disposal of capital assets - 4
Provision for mine closure costs 29 28
Gain on palladium forward contracts - (172)
Unpaid interest expense -
Kaiser-Francis Oil Company 2,657 2,684
---------- ----------
14,005 3,303
Changes in non-cash working capital (7,176) (8,197)
---------- ----------
6,829 (4,894)
---------- ----------
Financing Activities
Mine closure deposit (50) -
Advances on palladium settlements 3,238 7,136
Obligations under capital leases (208) (251)
Issuance of common shares 534 68
---------- ----------
3,514 6,953
---------- ----------
Investing Activities
Additions to plant and equipment (15) (457)
Expansion Project (6,650) -
Mining claims, exploration and
development costs (1,496) (642)
Proceeds on disposal of plant and
equipment - 2
---------- ----------
(8,161) (1,097)
---------- ----------
Increase in cash 2,182 962
Cash, beginning of period 157 966
---------- ----------
Cash, end of period $ 2,339 $ 1,928
---------- ----------
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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Contact:
North American Palladium Ltd.
Keith C. Minty - President & C.E.O.
Tel: (807) 624-0960 Ext. 14 Fax: (807) 624-0961
or
George D. Faught - Vice President Finance & CFO
Tel: (416) 219-1914 Fax: (416) 207-9288
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