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PALDF North American Palladium Records a Profitable 2017 and Announces Initiation of a Strategic Alternatives Review

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Feb 21 2018
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TORONTO, Feb. 21, 2018 (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 and year ended December 31, 2017. The Company also announced its board of directors (the “Board”) has initiated a process to explore, review and evaluate a broad range of potential strategic alternatives focused on maximizing shareholder value, including a potential sale of the Company or a secondary sale of securities.

Fourth Quarter and Year End Highlights

Adjusted EBITDA1 for the quarter increased to $36.9 million, compared to a loss of $0.7 million for the same period in 2016. For the year ended 2017, adjusted EBITDA1 was $86.2 million, compared to $4.7 million in 2016.
Net income for the quarter was $15.2 million, compared to a loss of $12.9 million for the same period in 2016. Net income for the year ended 2017 was $30.3 million compared to a loss of $37.5 million in 2016.
Revenue for the quarter increased to $87.1 million compared to $46.0 million for the same period in 2016, which reflects an increase of 89%. Revenue for the year-end increased 63%, to $272.4 million compared to $166.9 million for the same period in 2016.
Cash provided by operations was $94.3 million for the year, an increase of $103.7 million over 2016. Cash employed during 2017 included $60.5 million for capital investments and a reduction in total debt of $23.2.
This quarter, the Company produced 58,000 payable palladium ounces compared to 37,979 payable palladium ounces produced for the same period in 2016. The Company produced 201,592 payable palladium ounces for the year, representing a 35% increase over the 149,563 payable palladium ounces produced in 2016.
Underground production for the quarter increased to 578,249 tonnes (6,285 tonnes per day) at an average grade of 3.5 grams per tonne compared to 405,736 tonnes (4,410 tonnes per day) at an average grade of 3.5 grams per tonne for the same period in 2016. Underground production for the year increased to 1,897,114 tonnes (5,198 tonnes per day) at an average grade of 3.9 grams per tonne compared to 1,367,458 tonnes (3,736 tonnes per day) at an average grade of 3.8 grams per tonne in 2016.
Production cost per tonne milled for the quarter decreased to $42, compared to $62 for the same period in 2016. Production cost per tonne milled for the year decreased to $57, compared to $67 in 2016.
The All-Inclusive Sustaining Cost (“AISC”) for the quarter was US$734 per ounce, compared to US$780 for the same period in 2016. The AISC was US$694 per ounce for the year, compared to US$701 in 2016.

“2017 was a year in which the Lac des Iles mine began to demonstrate its full potential. We met and exceeded the targeted underground production rate of 6,000 tonnes per day, ahead of the original 2017 production plan. The mill returned to full time operations in the fourth quarter, at an average rate of 11,270 tonnes per day with the addition of low-grade surface stockpiles. This enabled NAP to surpass the previously stated 2017 guidance of 180,000-190,000 palladium ounces for the year,” said Jim Gallagher, President and CEO of North American Palladium.

“These excellent production results, combined with strong palladium prices resulted in full year earnings of just over $30 million and an adjusted EBITDA of over $86 million. In 2017, we invested over $60 million of capital in equipment, infrastructure and development, setting the operation up for long-term success. We also paid down $23 million in debt during the year, paying attention to the balance sheet as well as operations. The fourth quarter results of $15.2 million in earnings and $36.9 million adjusted EBITDA are strong indicators of the financial performance to be expected in 2018. The mill will continue to operate on a full-time basis, at a rate that is expected to rise to approximately 12,000 tonnes per day. Mill feed will come from underground production, at a rate just above 6000 tonnes per day, supplemented by the small Sheriff open pit, which has already started production, and the low-grade surface stockpiles. Guidance for 2018 is 230,000-240,000 payable ounces at an average AISC of US$640 to US$660 per ounce. 2018 will be the first full year where the true value of the Lac des Iles mine will be demonstrated,” continued Mr. Gallagher.............continues...

Check out the full report here

http://www.nap.com/investors/news-releases/news-releases-details/2018/North-American-Palladium-Records-a-Profitable-2017-and-Announces-Initiation-of-a-Strategic-Alternatives-Review/default.aspx