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Gold/Mining/Energy : North American Palladium(AMEX:PAL)- PGM Producer -- Ignore unavailable to you. Want to Upgrade?

To: Dundee Maples who wrote (469)	2/22/2000 6:05:00 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 976

Dundee, The debt of C$125 millions is growing by almost 8% per year which comes up to some $C9 millions for 1999. The dividends on the prefered is approx $C4.8 millions per year. So the first $C14 millions of cash flows from current operations do not belong to the shareholders. With a price of US$750 per ounce, you may expect cash flows of $C25 millions per year leaving $10-$11M of free cash flows to pay down the debt which will be paid in 10 years base on current production and current metal prices. BUT... if they complete the proposed expansion, than all debts including capital costs for the expansion would be paid in less than 2 years. Under this scenario PDL is a sleeper. The big question is: "Are Pd current prices sustainable or will they get back much lower?"