North American Palladium Ltd. (fka PALDF)

[JD400]

Besides $PALDF Blistering Hot 3Q* it's what their going to do with the capex. that might be our next news and judging by the price movement this maybe more than just a good quarter. the whole company looks rejuvenated .I've added back in the 4s.glad I did

Outlook

The Company's previously stated 2017 guidance of palladium production between 180,000 and 190,000 ounces of palladium at an average AISC cost of US$700-720 per ounce remains unchanged. Payable production for the nine months ended September 30, 2017 was 143,592 ounces.

Management expects that cash flows from operations will be sufficient to fund capital expenditures, service debt and to repay the principle amount of US$15 million due on December 31, 2017 under the Company’s term loan.

*

Production and Profits Increase at North American Palladium with the Announcement of its Third Quarter 2017 Financial Results
Nov 03 2017
Download this Press Release PDF Format (opens in new window)

TORONTO, Nov. 03, 2017 (GLOBE NEWSWIRE) -- North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) today announced financial and operational results for the three months ended September 30, 2017.

Q3 2017 Results Summary

Adjusted EBITDA1 for the third quarter was $22.0 million, compared to $10.1 million for the same period in 2016 and net income was $11.0 million compared to a loss of $1.6 million, for the same period in 2016.
Underground production was 500,560 tonnes (5,441 tonnes per day) at an average grade of 3.8 grams per tonne, an increase of 44% compared to 348,709 tonnes (3,790 tonnes per day) at an average grade of 3.3 grams per tonne in the third quarter of 2016.
The Company recorded a daily production rate milestone of 8,229 tonnes of underground ore, with an overall average production rate of 6,461 tonnes per day during the month of September 2017.
Underground mining cost per tonne delivered to the mill in the third quarter decreased to a low of $39.68 compared to $44.43 in the same period in 2016.
The Company produced 53,118 ounces of payable palladium at an All-Inclusive Sustaining Cost1 ("AISC") of US$720 per ounce compared to 33,165 ounces of palladium in 2016 at an AISC of US$784.

"We are pleased to report another profitable quarter driven by record underground production and continued strength in palladium prices. In September, we returned to full-time mill operations several weeks ahead of schedule, contributing to an additional 184,285 tonnes milled this quarter compared to the same period in 2016,” said Jim Gallagher, President and CEO.

“The Company met and exceeded the targeted underground production rate of 6,000 tonnes per day, ahead of the original 2017 production plan. The higher level of output reflects the production from several additional mining areas in the upper part of the mine, including the new B2 zone, and the continued success of the sub-level shrinkage mining method in the lower part of the mine. We expect the underground production rate to remain above 6,000 tonnes per day for the remainder of the year and into 2018.

There was also significant progress made on our exploration strategy this quarter, including positive drill results from the Offset South zone. This zone is located adjacent to the low cost sub-level shrinkage mining zone and has the potential to significantly add to the resources currently being mined in that area. Further, our recent exploration initiatives have demonstrated that numerous opportunities exist for another Lac des Iles-type deposit within 30km of site.

These positive production results were achieved when the mill was still operating on a 2-week per month batch process for the majority of the quarter. As we move forward with a full-time mill run, higher underground production and a sustained strength in palladium prices, we expect to continue improving on our financial performance,” continued Mr. Gallagher.

Operations Update

During the quarter, the mill processed 704,287 dry metric tonnes of ore at an average head grade of 2.9 grams of palladium per tonne and a palladium recovery rate of 82.3%, producing 6,101 tonnes of concentrate with an average grade of 276 grams of palladium per tonne.

Construction continued in the quarter on the center-line raise of the Company’s South Tailings Management Facility, which will be available to receive tailings in November 2017. This is expected to supplement the remaining capacity in the Company’s East Tailings Management Facility and meet operating requirements well into 2018. The next phase of the tailings dam construction includes downstream raises at both the South and East Tailings Management Facility. The Lac des Iles mine has completed the required consultations and submissions and expects final permits in the near future. Stripping of the Sheriff Pit is largely complete and initial production is expected before year end.

Operating Metrics Three months ended September
30,
2017 2016
Ore mined (tones)
Underground 500,560 348,709
Surface 279,070 273,392
Total 779,630 622,101
Underground Mining Cost per Tonne 39.86 44.43
Mined ore grade (Pd g/t)
Underground 3.8 3.3
Surface 1.0 1.0
Milling
Tonnes milled (dry metric tonnes) 704,287 520,002
Palladium recoveries (%) 82.3 81.1
Palladium concentrate grade (g/t) 276 305
Tonnes of concentrate produced 6,101 3,524
Production cost per tonne milled1 $ 57 $ 59
Payable production
Palladium – ounces 53,118 33,165
Other results1
AISC per ounce of palladium produced (US$)1 $ 720 $ 784
Cash cost per ounce of palladium sold, net of by-product revenues (US$)1 $ 516 $ 603


Third Quarter 2017 Financial Results

Net income for the quarter was $11.0 million or $0.19 per share, compared to a loss of $1.6 million or $0.03 per share in 2016. Adjusted EBITDA1 for the quarter was $22.0 million, compared to $10.1 million in the third quarter of 2016.

Revenue for the quarter ended September 30, 2017 was $70.7 million compared to $48.5 million in the third quarter of 2016. The higher revenue in the quarter was primarily due to an increase in payable palladium sold. Quarterly palladium revenues were generated on sales of 52,709 ounces, compared with sales of 33,540 ounces in the comparable period in 2016.

Total production cost for the quarter was $40.0 million compared to $30.8 in the third quarter of 2016, whereas production per tonne milled was $57 and $59, respectively. Cash provided by operations prior to changes in non-cash working capital for the nine months ended September 30, 2017 was $47.7 million compared to $5.0 million for the same period in 2016.

The AISC per ounce of palladium produced decreased to US$720 per ounce for the quarter, compared to US$784 per ounce in the third quarter of 2016. The US$64 decrease in unit cost was attributable to increased payable palladium produced and partially offset by the strengthening of the Canadian dollar.

Sustaining capital expenditures in the third quarter was $10.9 compared to $3.8 in 2016, whereas project capital expenditures were $7.9 and $9.6, respectively. The increase in sustaining capital expenditures is related to a year-over-year increase in underground development and capital equipment purchases. The majority of project capital in both periods was related to the tailings management facility.

Financial Liquidity

As at September 30, 2017, the Company had cash and cash equivalents of $12.9 million compared to $9.0 million, as at September 30, 2016. During the quarter, the Company extended the term of its US$60 million credit facility to June 30, 2018.

At quarter end, the Company had total debt of $105.7 million compared to $90.7 million for the same period of 2016, an increase of $15.0 million. The Company's US$50 million term loan was fully drawn as at September 30, 2017.

Exploration

Exploration expenditures were $1.3 million for the quarter, compared to $1.0 million for the same period in 2016. The year-over-year increased costs are attributable to a moderate increase in Greenfields exploration expenditures and the addition of the Sunday Lake property. Exploration expenditures for the fourth quarter are estimated to be $3.8 million. The increased investment in exploration reflects the Company’s commitment to translating exploration opportunities into new resources on a condensed timeline.

A total of 11,000 metres of exploration drilling are planned for the fourth quarter. Eleven infill and extension drill holes have been laid out for the Offset South Zone in order to follow up on the positive results received in the third quarter. Some of these holes will extend past the Offset South Zone into untested parts of the Camp Lake block to the south of the Camp Lake fault. One surface drill will continue to test the up-dip, near-surface portion of the Camp Lake block in the vicinity of historical, copper-nickel sulfide occurrences at the south end of the mine property. At Sunday Lake, two surface drills will complete a six hole, 5,000 metre program to better establish the continuity and lateral extent of the Main Zone disseminated sulfide mineralization. Guided by surface and borehole geophysical surveys, this drilling will also begin the search for higher-grade massive sulfide mineralization within and external to the Sunday Lake intrusion. At Legris Lake, one surface drill will complete three holes on the recently delineated electromagnetic anomaly and one hole on the adjacent, high-intensity magnetic anomaly.

Further updates on exploration activities will be provided as significant, new results become available.

http://www.nap.com/investors/news-releases/news-releases-details/2017/Production-and-Profits-Increase-at-North-American-Palladium-with-the-Announcement-of-its-Third-Quarter-2017-Financial-Results/default.aspx