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

To: Ptaskmaster who wrote (541)	4/4/2000 6:48:00 AM
From: Sleeper	Respond to of 976

All current shareholders will be diluted down, including Pat Sheridan. But he does have that increase in his NSR for consolation. I can't tell you how relieved I am to learn that Pat Sheridan is going to be okay! <g> Would suspect that the banks prefer the Pd not be hedged, as the prior experiences with it has been negative, and long term prospects for the metal are strong. Kaiser Frances is clearly the guarantor on this note and the cost overruns, if any, would be borne by them with presumably additional shares compensating them. While the expansion is good news, the dilution is not. I haven't seen the conditions of the secondary yet but presume it will almost double the float. More on this as information becomes available. Sleeper

To: Ptaskmaster who wrote (541)	4/4/2000 11:41:00 AM
From: Elizabeth Andrews	Read Replies (1) \| Respond to of 976

I think you have to be a little careful when using the term dilution. The coming equity financing means that there will be more shares issued but it is not dilutive and is very positive in my view. If you check out the balance sheet of 09-30-99 you will find a sick company that few serious investors would buy. This is only for the faithful and believers in miracles at this point. The book value is negative $52.4 million or over $4 per share. How can selling new treasury shares at more than this negative value be considered dilutive? If the company were able to sell shares at C$8 or so it would be viewed as highly positive and actually transfers some of the projects future value to the balance sheet today. This helps me as a shareholder. My bet is that new investors will look much more positively on these shares if that were to happen. It ain't bad and it ain't dilutive to the current shareholders. It is the reality of the balance sheet that has to be fixed to go forward.