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To: gg cox who wrote (232775)	1/8/2014 12:02:16 PM
From: gravityz	Read Replies (1) \| Respond to of 312906

Optimism With North American Palladium's 2H, Will Struggle For Investment – CIBC Wednesday January 8, 2013 9:23 AM Canadian bank CIBC says North American Palladium Ltd.’s (TSX: PDL) second half of 2013 turnaround is positive, but CIBC believes the company will have trouble obtaining financing, which the bank says the company needs. “North American Palladium’s story remains one of a seemingly good asset, but one that continues to need more money,” CIBC says. “We believe the financing risk remains too high to justify investment at present.” The company released its production guidance, expecting to produce roughly 170,000 ounces of palladium with capital expenditures around $30 million, which is $20 million lower than CIBC’s initial forecast. “The big difference, however, is on costs; full-year guidance is $550 per ounce versus our previous $413 per ounce forecast,” CIBC says. “The higher costs, we believe, more than offset the lower capex estimate, which still leaves the company with a significant funding shortfall of some $50 million, based on our estimates.” CIBC says “the company is looking at various options to fund the shortfall, but given the company’s poor delivery track record and continued future uncertainty -- longer-term production plans still being assessed -- further funding would likely be very costly, in our view.”