Canadian Mining Journal


PALLADIUM: NAP returns to profitability in Q2

The headframe at the Lac-des-Iles palladium mine. (Credit: North American Palladium)

TORONTO – This year’s second quarter marked the return to profitability for North American Palladium (NAP) since financial restructuring in mid-2015. Net income was C$7.9 million due to higher metal production (up 41%) and improved prices (up 43%) compared to a loss of C$9.9 million in Q2 2016. Net income for the first half of 2017 was C$4.1 million compared to a net loss of C$23.0 million for the same period a year earlier.

NAP said revenue for the quarter was $70.3 million, an increase of $30.4 million or 76% compared to Q2 2016. All-in sustaining costs fell to US$644 per oz. palladium rather than the US$699/oz. recorded a year earlier.

“At just over 5,000 tonnes per day, the underground mine achieved its highest ever quarterly production, said president and CEO Jim Gallagher. “This is largely attributable to the success of the conversion to the sub-level shrinkage mining method at depth. We expect the underground production rate to increase to over 6,000 tonnes per day before the end of the year as we bring into production the new B2 zone in the upper part of the mine.”

Payable production for the first six months of 2017 was 90,474 oz. of palladium. Third quarter production will be slightly impacted by planned rehabilitation work at the underground ore bins over a period of three weeks.

During the second quarter the company received the necessary permits to raise the height of the South tailings dam, and full milling operations will be resumed by the end of the year. Also, overburden removal has begun from the small Sherriff open pit where production is to start early next year.

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