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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 (542)	4/4/2000 10:05:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 976

Ptask, IMO, its good. I am pleased that they were able to get that much financing from banks. It shows the strenght of the project. This will limit dillution to 6 million shares or so. It could have been a lot worse. OTOH, PDL will end up with C$325 millions in debt when the expansion reaches commercial production, a very heafty debt. But if palladium prices remain above $400-$500, we will be talking annual cash flows of $75-$100 millions per year. What will this do to the stock..? well all will depend on palladium prices. We have to keep in mind that Pd was selling for $110 a few years down the road. But if supplies remain tight and PD prices remain above $400, PDL will trade higher over the years. So the key here is really palladium prices. That is why I prefer gold and silver projects that are profitable with current silver and gold prices. Cause, silver and gold has nowehere to go but up over the long term.