North American Palladium Ltd. (fka PALDF)

[C C]

I understand your rational

2013 had lower grades of tonnes
part of the increase in $$$$$$$ is due to mining 50% more underground tonnes as stated in the Q-4 year end report of 2014

In 2013 they had expenses they now dont' have such as:

1...Capital expenditures totaled $109.5 million with $91.8 million spent of the LDI mine expansion
2...an additional $20.5 million spent primarily on the tailings management facility

2013 was a transition year
they sunk the shaft and completing related infrastructure while
developing infrastrucure.....2013 financial results would not be directly comparable to the prior or future years.

Which has increased production capabilities of 2014


1...year ended December 31, 2014, revenue increased 44% to $220.1 million compared to $153.2 million in 2013. Income from mining operations for the year ended December 31, 2014 was $21.9 million compared to a loss from mining operations of $0.8 million in 2013.
2...The capital expenses offset the revenue stream for 2014 and were taken in 2014
3...What we saw in 1st 3 quarters of 2014 were batch runs compared to running the mill full time throughout the fourth quarter.
4...We now have a shaft to bring ore to surface compared to ramping up ore to surface. This will save the company much $$$$$$$ in production costs...granted they still have to tweek the shart before it is in full production....but....accordingly they ran it in the last Q of 2014 and increeased production consoderably.
5...Production costs per tonne milled in 2014 were $49 compared to $52 per tonne in 2013...which accounted to a $ 50.00 an ounce revenue stream to PAL......after tweeking the shaft production more for 2015 the costs should go down further
6...They brought in $ 56 million more for palladium sales in 2014 campared to 2013....a total of $ 67 million more for all ores in 2014 or an increase of 44% compared to 2013 primarily due to 29% more ounces of palladium sold at 11% higher realized prices

As per your statements of a buildup of inventory of aboveground ore increases the ore count for each quarter. I agree with you but they have that each Quarter. They allways bring ore to surface beginning the first month of the Quarter till end of the quarter.
That is part of each quarter monitary value.

I understand your view.... but I see a future for PAL
expenses are not over....but....a larger percentage of them have been done....appears they are fine tunning production requirements for 2015 to allow for better production and lower mill costs which is how I see them being able to make the statement below:

The Company expects cash flows from operations to be sufficient to support the Company’s normal operating requirements, including capital expenditures and debt service payments, for the next 12 months

information came from the Dec. Q-4 report of 2014




cc