North American Palladium(AMEX:PAL)- PGM Producer Message Board

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Gold/Mining/Energy : North American Palladium(AMEX:PAL)- PGM Producer

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To: Sleeper who wrote (455)	2/16/2000 12:50:00 AM
From: Elizabeth Andrews	Read Replies (1) of 976

It's going to be a lot better than that. It should show a profit. This is due to the fact that the NSR changes disproportionately as metal prices rise as cost are fixed pretty much in the short run. When Pd, which now accounts for about 85% of revenue, was at US$335 revenue would have been in the C$35 million area. With Pd at US$600 revenue should approach C$48 million most of which goes to the bottom line because costs don't change. This implies that cash flow could be in the C$15 million range or over C$1.25 per share. So, this is a highly leveraged situation due to the price rise of all the metals and the leverage provided by the balance sheet. Thus the move to C$11 or so. The property also has the potential, at 15,000 tonnes per day, to produce a lot of Pd but it also could produce 5000 mt of Ni which would be worth US$40 pre smelting charges. Poly-metallic it is! I beleive that the stock has peaked for now and I shorted a bit this morning, just to get wet.

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