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It's Broke, ran outta cash last month, can't pay the bills. Pal pumpers blabbering about irrelevant nonsense going to lose it all when the news of the insolvency hits the fan.
Early January News Blackout as Company Recapitalization coming
Oh, oh lookin badder than bad
News they didn't want to tell you is ready.... Oh oh time to bail
Gigantic Dilution news after close or Bankruptcy ?
They like to take all the bag holder money they can...they don't want worthless shares.
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2013 Total Compensation Info From May 30, 2014 NAP Notice of AGM
Phil Du Toit President, CEO.........................$ 1,034,328.00
Dave Langille CFO.......................................$ 645,089.00
Tess Lofsky V.P. General Counsel................$ 500,953.00
Jim Gallagher COO.......................................$ 467,257.00
Kevin Small Director Technical Services.......$ 431,218.00
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SEDI (System for Electronic Disclosure by Insiders) website Jan 11 2015, Same as insider share data from Ink Research Jan 10 2015....Share holdings, direct, indirect, common & restricted.
CEO, Du Toit 20,672
CFO, Langille 53,958
COO, Gallagher 91,325
VP, Peck 26,315
VP, Lofsky 22,438
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In total senior management holds only 214,708 of the 386.51 million shares outstanding. Management obviously has no confidence in PAL, only a pittance of holdings, absolutely no skin in the game.
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Why does Senior management hold only 214,708 shares ?
5 - Senior management 214,708
51 - Institutionals 19,306,743
Bag holders 368,000,000
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Data from NASDAQ and SEDI websites.
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They issue millions of options to themselves that expire year after year, worthless.
Senior management holds only 214,708 shares WHY ?
5 - Senior management 214,708
51 - Institutionals 19,306,743
Bag holders 368,000,000
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Data from NASDAQ and SEDI websites
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Sentiment: Strong Sell
PAL Broke. September cash is long gone. Bankruptcy in the cards. Early Jan. news promised, but now delayed.
PAL broke, they need cash now, they burn millions a month more than they bring in. They have limited choices, shareholders are facing a doomsday scenario. Wake up !
Is it Early January yet ?
That's when they promised the update. Early January must be in February
Senior management holds only 214,708 shares
5 - Senior management 214,708
51 - Institutionals 19,306,743
Bag holders 368,000,000
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Data from NASDAQ and SEDI websites
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Sentiment: Strong Sell
"News" they promised early January
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It's really, really, really BAD news folks, Dump It now, time has run out !
SEDI (System for Electronic Disclosure by Insiders) website Jan 11 2015, Same as insider share data from Ink Research Jan 10 2015.
Share holdings, direct, indirect, common & restricted.
CEO, Du Toit 20,672
CFO, Langille 53,958
COO, Gallagher 91,325
VP, Peck 26,315
VP, Lofsky 22,438
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Total 214,708 PAL shares @Jan 9, 2015 value @.1475 = $ 31,669.
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Management obviously has no confidence in PAL, only a pittance of holdings, absolutely no skin in the game.
Share data from Ink Research Jan 10 2015.
Share holdings, direct, indirect, common & restricted.
CEO, Du Toit 20,672
CFO, Langille 53,958
COO, Gallagher 91,325
VP, Peck 26,315
VP, Lofsky 22,438
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Total. 214,708 PAL shares as of Jan 9, 2015 value @.1475 = $ 31,669.
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Management obviously has no confidence in PAL, only a pittance of holdings, absolutely no skin in the game.
PAL Broke Again, No Money in the Kitty
New 2015 Tranche 3 of $150,000,000. @ .14 = 1,071,428,500 of new shares = gargantuan dilution
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Sentiment: Dump It
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$67,000,000.00 share raise all gone, Broke Again !
Tranche 1: Jan. 31 - Feb.10 2014. $32,000,000. Share raise @ C$ 0.635 / share
Tranche 2: Apr. 11 - Apr. 17, 2014. $35,000,000. Share raise @ C$ 0.4629 / share
All your money is gone, PalSucksBucks right outa yer pockets... What is the share price now? What a great investment ! A billion new shares going to be printed up for new PAL suckers to buy and lose more money. Thing is, they have to announce the Reverse split next week of 1 new for 50 old shares before they start scamming folks out of more of their money. New PAL Suckers born every minute, Ha, Ha, Ha, Ha, Ha, Ha, Ha, Ha, Ha, Ha, Ha... This is so Hilarious Ha, Ha, Ha, Ha, Ha, Ha, Ha... Buy more, lose more Suckers...
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Sentiment : Dump It
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Pump & Dump.
Buy some more, lose more of your money.... PAL pumping only very selective numbers, hiding the "all in" cost number and if there's any "cash" remaining In the kitty. They getting ready to dump a billion new shares on you ! PAL loses money on every oz. , PAL share holders lose on every share they buy. PAL only continues to exist by digging deeper into debt and deeper into your pockets. They lose more than $600.00 on every oz. , you will also lose 100% of your money when it goes BK next month.
Only thing sky high are salaries these clowns pay themselves from a dwindling treasury, you would think they would have larger share holdings in PAL than their present pathetic holdings. Obviously they have no confidence in any future for PAL as they know the present share structure is doomed. They know there is no value in holding the shares. Institutional holdings are also being liquidated. Nasdaq reports another 7 institutions have sold out their positions as of end of Q3.
INK Research data from SEDI filings Nov. 25, 2014.
Total remaining shares held Direct, Indirect and Restricted.
CEO = 770,672
Director Douchane = 143,538
COO = 91,325
VP Exploration = 26,315
Tess Lofsky = 22,438
CFO = 21,657
2013 Total Compensation Info From May 30, 2014 NAP Notice of AGM
Phil Du Toit President, CEO.........................$ 1,034,328.00
Dave Langille CFO.......................................$ 645,089.00
Tess Lofsky V.P. General Counsel................$ 500,953.00
Jim Gallagher COO.......................................$ 467,257.00
Kevin Small Director Technical Services........$ 431,218.00
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Owner Name Date Shared Held Change (Shares) Change (%) Value (in 1,000s)
FMR LLC 09/30/2014 0 (835,100) Sold Out
WOLVERINE ASSET MANAGEMENT LLC 09/30/2014 0 (205,911) Sold Out
SPOT TRADING L.L.C 09/30/2014 0 (151,300) Sold Out
SCOTIA CAPITAL INC. 09/30/2014 0 (101,400) Sold Out
NOMURA HOLDINGS INC 09/30/2014 0 (98,200) Sold Out
CREDIT SUISSE AG/ 09/30/2014 0 (50,698) Sold Out
FIERA CAPITAL CORP 09/30/2014 0 (21,100) Sold Out
PAL Target $0.00
Bankruptcy is the end of shareholders and $0.00
No Fleet Replacement
PAL Transcripts Q2 : Complete fleet of 10 or 11 surface trucks to be replaced by 5 smaller trucks
PAL Transcripts Q3 : Only Partial surface & underground fleet replacement through 2015
Cat has a huge inventory of equipment available. It seems Cat will only agree to trickle in the fleet units over time in fear they don't get paid and equipment gets stuck in a mine seizure by creditors.
They mined the 20,000 oz. of Pd at a $38,000,000.00 LOSS
Only thing that's falling is the share price of PAL. Folks with their head stuck in the sand can't see that it's a good time to sell at these sky high prices. It's soon to be trading at sub penny levels. Time to take your profits before you lose it all...
Pal ran out of operating cash last month, unpaid invoices from supply and services are piling up. Mechanics liens to be filed against the mine coming soon. Pal will not be around next year, let alone in 6 weeks. It's broke again. Shortages to resupply are drastically cutting into production, inefficiencies are building up . A complete disaster. Bag holders pined on false hopes of a miracle in a few weeks not coming. Nobody is going to be the saviour of little Pal people. This stock is valueless and should be trading at zero very very soon.
Penny stock miner ignoring their financial, cost and production problems in Q3 reporting confirms impending bankruptcy. Wasting time blabbering about exploration activities is a further confirmation the end is near. Typical scam play, deflecting attention from the real crisis, duping little retailers to hold onto their shares until they are worthless while the treasury runs dry.
Sentiment: Dump It
Pal has no cash left and their payables are greater than receivables. They are down to robing peter to pay Paul, juggling to many unpaid invoices, as soon as they drop the ball, supplier will lien the mine. If they default on the (LOC) line of credit at the bank, the bank seizes the receivables as the bank has them as security. The writing is on the wall and the end will come quickly without notice. There will be no time to bail out your share holdings as the stock will be either halted or drop like a stone to zero in minutes when news leaks. The end is very near.
Mackie Research: Sell rating and $0.00 target price for PDL
According to Mackie Research:
November 5, 2014
NORTH AMERICAN PALLADIUM LTD. – SELL
TARGET: $0.00 (from $0.20)
Will Debtors Allow PDL To Survive?
DETAILS – Q3/14 Should Have Been Better
3Q/14 production light due to lower grade: PDL reported Q3/14 production of 32,560 Koz of payable palladium, which was well below our estimate of 43,505 Koz entirely due to lower- grade material supplied from underground. Operating costs were $589/oz sold, or by our back calculation, ~$650/oz produced. In 3Q/14, ounces sold were 36,430 Koz, allowing for EPS loss of $0.05 and cash flow of $0.01, which were roughly in-line with our forecast. For the year, PDL are holding to annual guidance which means 4Q/14 underground production needs to be at record tonnage levels at grades of ~4.1 g/t.
All about the balance sheet and level of debt: In 3Q/14 PDL made a special total interest and fee payment of $32.2 million, allowing the annual interest rate on a senior secure loan to fall from an accrued rate of 19% to a cash rate of 15%. At quarter-end this debt amount was $179.9 million out of $220.2 million total debt. Including retirement obligations and capital leases, total long-term debt is $247.2 million, of which $10.9 million is current. In addition there is a current facility (secured by receivables) of $25.1 million. At quarter-end working capital was $24.8 million, of which $11.8 million was cash. While at quarter-end PDL was in compliance with all loan covenants, we recognize the total amount of debt is too high and too expensive. Just to service debt interest seriously hampers PDL’s operating flexibility, requiring development expenditures to be seriously restricted. The future of PDL is entirely within debt holders’ control, and for PDL to remain a going concern, a refinancing/recapitalization needs to occur, perhaps by 1Q/15 at the latest.
IMPACT – Negative. Poor Quarter Erodes Development Flexibility
Poor quarter hurts: Light operating cash flow in 3Q/14 eroded PDL’s flexibility, negatively affecting development flexibility.
ACTION – SELL
We have amended our valuation basis to strictly NAV based on discounted cash flow net of debt. Based on this valuation basis, there is no value attributable to equity shareholders, and we have therefore lowered the target price from $0.20/sh to $0.00/sh. While underlying operations have improved, there is insufficient confidence that debt holders will allow PDL to survive, and it is difficult to see value.
Upcoming Events
Exploration results – ongoing
Operational updates - ongoing
+$3,000,000.00 Pal class action settlement. "in the Ontario Superior Court of Justice (“Court”). This action alleges that during the Class Period the Defendants misled the Class about the economic or operational viability of the LDI Offset Zone Project." .... "The lawyers for the Class Members will ask the Court to approve legal fees in the amount of 25 percent of $2,400,000, plus disbursements, plus taxes. "
Monday: PAL .23
You could of got out for .25 today. Next week it will be below .23 and headed to .20 then all the way down to nothing when it closes up because they run out of cash again and can't pay the bills. Dump It as soon as possible, you are going to lose everything ! This outfit is hopeless ....
PAL is soon to be out of cash. They announced at the Q2 conference they have to replace the entire surface and underground mobile mining fleet as it is obsolete, unreliable and unproductive ! Where in the world are they going to get the tens of millions of dollars to do this ? Another share issuance ? Not looking good folks ... They said this was an unforeseen expenditure that they didn't budget for. Such competent management !
Summary
North American Palladium released its second quarter results with production down 8% quarter to quarter, and warned about weak production for the third quarter.
As expected in my previous article PAL is now dangerously low in cash after repaying $23.4 million to BAM. It raises the somber prospect of another equity financing in 2014.
PAL may have to reduce its 2014 production forecast depending on how low production is the next quarter.
North American Palladium (NYSEMKT:PAL) released its second quarter results. Shareholders were again surprised by the weakness in production and the low-level in cash remaining after the payment of $23.4 million to BAM in order to reduce the debt interest to 15% from 19%.
What is the debt after second quarter 2014?
Today C$ = 0.9172 $US
This is what every shareholder should consider first before investing in this company. The debt level is unsustainable and time is running out.
1 - The bulk of the money owed comes from the Brookfield's (NYSE:BAM) loan (06/07/2013). The amount due is now $173.2 million at an interest going of 15%.
Here is an excerpt of the last press release concerning the repayment of the debt:
The outstanding balance under the senior secured term loan is approximately US$173.2 million on July 1, 2014.
2 - C$43M ($39.44 million) in debenture at 6.15% due September 2017.
3 - $37.1 million of a $60 million operating line of credit due July 4, 2015. From the last PR release:
As of June 30, 2014, the company's credit facility availability was limited by the borrowing base to US$42, 8 million of which US$37. 1 million was utilized.
Interest at approximately 5.5%
4 - $17.32 million in operating leases and finance leases (I presume at 10%?) Finance lease obligations $11.646 million, Operating leases $4.137 million and Purchase obligations $1.534 million. These numbers are from the last 6K. In addition, from the 6K:
5 - $27.44 million in asset retirement obligations and letter of credit as financial surety for future outlays.
The Company also has asset retirement obligations at March 31, 2014, in the amount of $14.6 million for the LDI Mine. The Company also has contractual obligations reflected in accounts payable and has obligations related to its credit facility and long-term debt. The Company obtained letters of credit of $14.4 million as financial surety for these future outlays.
6 - $2 million estimated, left from the two convertible debentures at 7.5% due January 2019. The total cash was around $70 million in two separate offerings in Q1 and Q2 2014. Most of the amount has been converted to shares, and the full interest was paid immediately. Shares Outstanding after the conversion was 362,800,866 shares, however, it will be close to 400 million shares and a huge amount of warrants at around $0.547.
As of April 30, 2014, $31.7 million and $27.4 million of the Tranche 1 Debentures and Tranche 2 Debentures respectively had been converted into 164,462,733 common shares.
Note: It is very difficult to estimate a real number here until Q3 results.
7 - 4,200 oz palladium warrants (12,000 palladium warrants) still outstanding.
In conjunction with a $72.0 million term loan issued in 2011 and repaid in June 2013, a palladium warrant consisting of 0.35 of an ounce of palladium at a strike price of US$620 per ounce was issued with each $1,000 convertible debenture representing an aggregate of 25,200 ounces of palladium. As at April 30, 2014, 12,000 palladium warrants were outstanding representing 4,200 ounces. On the exercise of the palladium warrants, in certain circumstances the Company has the option of settling the warrants with either cash or common shares.
8 - Estimated 39 million shares outstanding, options and warrants.
In addition, there were options outstanding pursuant to the Amended and Restated 2013 Corporate Stock Option Plan entitling holders thereof to acquire 3,110,086 common shares of the company at a weighted average exercise price of $1.78 per share.
16.8 million share warrants at a strike price of $0.72 adjusted to 0.547 after Tranche 2, which are related to Tranche 1.
18.9 million share warrants at a strike price of 0.547 related to Tranche 2.
BAM Debt 15%
$ million
(1)
Debenture 6.15%
$ Million
(2)
LOC
5.1%
$ Million
(3)
Leases at 10%?
$ Million
(4)
Asset retirement Obligation and letter of credit
$ Million
(5)
Warrants left from old debt.
oz
(6)
Debenture
Left after conversion of Tranche 1 and Tranche 2
$ Million
(7)
Corporate Options
(8)
Warrants from Tranch 1 and Tranche 2 Debenture 7.5%
(9)
Debt 173.2 39.44 37.1 17.32 27.44 - 2 - -
Options and warrants - - - - - - 3.1 million shares at $1.78 35.7 million shares at $0.547
Palladium warrants - - - - - 4,200 oz - -
The total debt is $269 million, excluding all obligations, options and warrants indicated in the table above. The total interest on the debt is now approximately 11.7% or $31.7 million per annum.
Comparison Quarter to Quarter.
Production results YTD Q2 2014 Q1 2014 Change QTQ %
Palladium Production
Payable oz
81,864 39,223 42,641 -0.08
Cash cost $ 501 510 492 +3.7
Production from Offset zone in TPD 2,983 2,900 3,065 -5.4
Grade Gr/T 3.2 3.1 3.3 -6.1
Milling Palladium recovery % 84.1 83.6 84.5 -1.1
Financial results Quarter to Quarter.
Financial results July 2014 Q2 2014 Q1 2014
Cash on hand $ Million 19 44.305 21.921
Shares Outstanding 362.801 349.556 232.874
Loss in $ Million - 9.957 26.666
Total revenues $ Million - 50.497 48.736
On July 7, 2014, the Company announced that it had paid US$23.4 million to its senior secured term loan lender representing US$16.2 million of accrued interest and US$7.2 million of associated pre-payment fee. Effective June 30, 2014, the Company reverted to a 15% annual interest rate on the senior secured term loan and the Company's cash balance, after reflecting the payment, was approximately $19 million.
Commentary:
Definition of "hiccup"
A slang term for a short-term disruption within a longer-term plan, goal, or trend. A hiccup can be used to describe the business actions of a particular company, a stock price downturn, or the stock market as a whole. Generally, a hiccup is not indicative of a larger trend, but is considered an aberration.
Source: Investopedia
The second quarter results were again disappointing with an 8% drop in palladium production despite the palladium spot price increasing significantly. The scary part is that production per ton per day (TPD) is going down to now 2,900 TPD with a cash cost increasing nearly 4% from quarter to quarter. The company is still confirming that it will be able to reach 5,000 TPD by the end of 2014. However, we have to wonder how this goal can be possibly attained?
Furthermore, it is becoming more evident that the production forecast for the whole year 2014, which is between 170koz to 175koz, is very difficult to achieve, after the company indicated that the third quarter will be another lackluster event.
Let's look at the tables above. Production for the first six months was 81,864 oz of palladium. It means that the combined production for the two remaining quarters of 2014 should total an amount equal or greater than 88,136 oz. Assuming a better hosting in Q3 at around 3,500 TPD for August and September and 2,000 TPD for July due to the unfortunate fatality. PAL will be producing the same amount as the first quarter or slightly less, in my opinion. Production will be around 40k oz again at best.
Here's what the company said:
The fatality at the mine site, which was previously reported on July 11, 2014, has impacted production for the first few weeks of July and is expected to result in lower production in the third quarter of 2014. Production is returning to normal and remediation steps are being implemented.
The total production estimated for the first nine months of 2014 will be roughly 122K oz, which means a minimum production for Q4 around 48K oz.
Assuming that the mine is prone to "recurring hiccups" the probability of a new disruption(or disruptions) in the production line until December is almost a certainty. Thus, it is highly improbable that the company will be able to meet the 2014 forecast. Production between 162k oz to 165k oz is more reasonable.
The cash remaining after paying part of the BAM debt is a source of great concern and presents extra risks or an unnecessary gamble. The company indicated that it has roughly $19 million left on July 7, 2014, and the LOC has been drawn almost totally ($5.7 million left).
Until now, PAL was not paying the BAM interest. However, this will change in the third quarter, and the company will have to pay roughly $6.5 million extra interest per quarter. PAL will have to pay two times this amount before the end of 2014, which will eat up the cash on hand.
This fact makes it hard to imagine PAL avoiding another equity financing early in Q4 or even during Q3 depending on the palladium spot-price.
Conclusion:
North American Palladium is going the wrong direction and quarter after quarter results are confirming this fact. I wonder what really could save this company as it is, now?
This company reminds me of King Sisyphus, punished for deceitfulness by being forced to roll a large boulder up to a hill, only to watch it roll back down the slope, and to repeat the task forever.
The cash on hand left after the recent BAM payment is only $19 million for the remaining of the year, which is evidently insufficient and will require another equity financing in all probabilities. This is another dilution that will push the stock price into new low territory and may precipitate the PAL collapse.
As I have written in my preceding article, the payment to BAM was not a smart idea at all and should have been postponed to Q4 or even 2015. The company used the "costly borrowed cash" to pay off $16.2 million to BAM at an incredible cost.
First, PAL had to pay the "commitment fees" or an extra $7.2 million to BAM. However, the cash used was from the Tranche 2 which cost another terrible dilution to shareholders. I remind all that the debenture at 7.5% could be converted in shares immediately with the whole five years interest paid upfront, not counting the warrants at 0.547.
At last, the company will have to pay $6.5 million per quarter now in interest to BAM alone, which will drain the remaining cash on hand.
Risks of dilution are very high as I explained above, and the stock price will eventually dive well under 0.20 depending on the palladium spot price. This situation may be the beginning of the end for the company as it is. Due to an amount of shares outstanding now close to 400 million and a low stock price, the NYSE may force the company to reverse split 1:10, which will be even more damaging.
"SELL rating with a target around 0.15 or less, assuming that PAL can avoid bankruptcy?" Seeking Alpha
More conference call excuses from PAL on failures: Ore handling upgrades completed but still unable to produce muck/ore as much of it is over sized. Significant amount of ore/ muck still being trucked to surface as new ore handling modifications were deficient. New stope mining plan to be implemented over many months to reduce muck size causing bottle necks. Under ground and surface mining fleet causing additional bottle necks as the equipment is old and unreliable and are to be completely replaced with new equipment as a capital expense that was not budgeted for.
Buy on Rumor, Sell on News ! That's the way she goes folks. Most interesting that volume has been falling off over the past few weeks. They say two thirds of trading volume is just machine trading. PAL volume at such low levels suggests the machines are having trouble generating interest in this stock. It's becoming illiquid, going to be difficult to bail out if this trend continues. This will make the situation subject to a very sudden drop to new record lows very high on the potential index. Sell on the news could be a death blow for little bag holders. Best to not hold for the news, bail out before it's to late. Not looking good folks. If Q2 were to be a better quarter the market would rise before news. It's not happening. Good news always finds a way out. It's not looking promising folks. Stock is dead, diminishing volume is a clear indicator of problems in the mine.
Stock is overbought at these high price levels, it's a good time to take profits. Buy back in after the Q2 news release at lower levels below .15
NDP Calls For Action In Wake Of Seventh Mining Death
Publish Date: Thursday, 17th of July 2014
by NDP
QUEEN’S PARK – Today in question period, New Democrats called on the Liberal government to take action to address workplace deaths, in the wake of the death of Pascal Goulet, the seventh Ontario miner killed on the job this year.
“One death is too many, but seven is an outrage. Miners and their families have a right to expect that they will come home safe at the end of their shift,” said Algoma-Manitoulin MPP Michael Mantha. “What will this minister do today to ensure that not one more miner is killed in this province, and that their workplaces are safe?”
Yesterday, Mantha, the NDP’s Northern Development and Mines Critic, called for a moment of silence yesterday to honour Goulet. The 38 year old miner was killed last Thursday in an accident at a North American Palladium mine near Thunder Bay, leaving behind his wife and two daughters.
“Last year, the Premier rejected an inquiry into mining deaths and instead chose to review health and safety. But at the first public hearings, the government didn’t even advertise to invite participants,” said Taras Natyshak, NDP Labour Critic. “While we eagerly await the review’s findings, miners in this province continue to die.
Natyshak, MPP for Essex, called on the Liberal government to follow the example set by Nova Scotia, where the government recently decided to create a special prosecutor to enforce workplace safety standards. The new office is based on the Westray law, and its creation was supported by the United Steelworkers, who represent miners across this country.
“Will the minister act today on the appalling seven mining industry deaths this year and create a special prosecutor to enforce workplace safety standards in the province of Ontario?” asked Natyshak.
"Vale Canada Limited Fined $1,050,000 After Two Workers Fatally Injured. September 17, 2013 3:30 p.m.Ministry of Labour. SUDBURY, ON - Vale Canada Limited Vale Canada Limitée ("Vale"), a Toronto-based company which owns and operates an underground mine in the City of Greater Sudbury called the Stobie Mine was fined $1,050,000 after two workers were fatally injured. On the night shift of June 8, 2011 two workers were working at an ore pass on the 3000 foot level of Stobie Mine. They were in the process of transferring muck (broken rock and ore) from above the 3000 foot level to below that level through a transfer gate. The workers were operating the gate using a remote control pendant. Although there was a protected area for workers at that location, in order to view the movement of muck and use the remote pendant, the two workers had to position themselves such that they were in front of and fully exposed to the transfer gate. There was a sudden and uncontrolled release of muck, sand, and water. This run of muck erupted through the transfer gate, burying one worker and hitting the other. Both workers died from massive crush injuries, multiple blunt force trauma, suffered in the run of muck. A Ministry of Labour investigation found that there had been a hang-up of wet muck in the ore pass. The wet muck was a result of Vale not dealing with water issues in the mine. Vale Canada Limited Vale Canada Limitée pleaded guilty to three counts: Failing to prevent the movement of material through an ore pass while hazardous conditions (the hang-up) existed. Failing to maintain the drain holes at the 2400 level of the Stobie Mine, leading to the accumulation of water, creating wet muck which then hung up Failing to ensure that water, slimes and other wet material was not dumped into the ore pass at the 2600 foot level of the mine. Vale was fined $350,000 for each count for a total fine of $1,050,000. This is the highest ever total fine levied by a Court in Ontario for contraventions of the Occupational Health and Safety Act. As well, the Coroners Act, a statute administered by the Office of the Chief Coroner, makes a coroner's inquest mandatory for all mining fatalities. The fine was imposed by Justice Randall Lalande. In addition to the fine, the court imposed a 25-per-cent victim fine surcharge, as required by the Provincial Offences Act. The surcharge is credited to a special provincial government fund to assist victims of crime."
CBC NEWS: One person is dead following an incident at North American Palladium's Lac des Iles mine north of Thunder Bay.
OPP said a 38-year old man died after being pinned under a rock. Police said the mine employee was using a load haul machine to haul rocks 825 metres below the surface.
Police said the mine rescue team responded, but the worker was pronounced dead at the scene. No name is being released pending notification of next of kin.
The company reports the accident happened around 2 p.m. yesterday.
North American Palladium said it would not release any more information and noted the Ministry of Labour, police and union officials are investigating.
The Ministry of Labour reported stop-work orders have been issued for the underground location where the fatality happened, and for the equipment involved.
Two other workplace orders have also been issued:
That the ground conditions of the workplace are to be examined for dangers and hazards and, if required, made safe;
And the employer must establish procedures to ensure employees are in a safe location when equipment is being operated or moved.
The ministry has not yet decided whether charges are warranted under workplace health and safety legislation.
North American Palladium said the company is offering grief counselling to its employees.