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

To: Bobby Yellin who wrote (178)	1/5/1998 1:55:00 AM
From: Jason Marcotte	Read Replies (1) \| Respond to of 976

From what I hear the tonnage for December was close to a record month. Considering that in the past December has been one of the worst months, due to winter freeze up, this is very encouraging. The new crushing circuit is paying big dividends. PDL is now approaching 83,000 to 84,000 tons per month (or 250,000 tons per quarter). Given the 1996 tonnage was 707,000 (approx) and the 1997 tonnage will be about 730,000 tons for the year, if Lac des Iles mine is indeed processing at a rate of 1,000,000 tons per year, they have achieved a 30 to 35% increase in capacity. As I have pointed out, the price being received for Pd is now in the $170US range and likely going to level out at about $185 to $190 by the end of May.Given that the price realized at the beginning of 1997 was about $110 USD, PDL has probably averaged about $140 to $145 for 1997. Also, the grade from the mine is rising steadily, albeit slowly. So, with a 35% increase in production (thus revenue)due to tonnage increase, an anticipated 15% to 20% increase in production (thus revenue) due to increased grade from the mine and a 25% to 30% increase in revenue due to improved pricing for product, I would not suggest to anyone that they dump PDL just yet. Jason