North American Palladium Ltd. (fka PALDF)

[JD400]

North American Palladium Reports Q3 2019 Record EBITDA¹
November, 07, 2019
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TORONTO, Nov. 07, 2019 (GLOBE NEWSWIRE) -- North American Palladium Ltd. ("NAP" or the"Company") (TSX:PDL) (OTC PINK:PALDF) today announced financial and operational results for the three and nine months ended September 30, 2019.

Third Quarter Highlights

Record revenue: Based on 59,611 ounces of palladium sold at an average palladium price of US$1,587, revenue for the quarter increased to $149.9 million compared to $93.6 million for the same period in 2018. This is the highest quarterly revenue in the Company’s history. Revenue for the first nine months of the year was $413.8 million based on 172,507 payable ounces of palladium sold.
Strong growth in net income: Net income was $41.4 million, or $0.70 per share, compared to $22.9 million, or $0.39 per share, reported for Q3 2018. Year-to-date net income was $107.5 million, or $1.83 per share.
Solid free cash flow1: Free cash flow for the quarter was $37.3 million, an increase from $18.2 million in Q3 2018; with year-to-date free cash flow at $127.9 million.
Record EBITDA: Adjusted EBITDA increased to $82.0 million, up from $38.0 million in Q3 2018. For the first nine months of the year, adjusted EBITDA was at $216.6 million.
Record production: Underground production averaged 7,410 tonnes per day (“tpd”) for the quarter, the highest in the Company’s history. This is a significant increase compared to the 6,144 tpd produced in Q3 2018.
On October 7, 2019, NAP entered into a definitive arrangement agreement (the “Arrangement Agreement” with Impala Platinum Holdings Limited (“Implats”) pursuant to which Implats will acquire 100% of NAP’s issued and outstanding common shares for a total cash consideration of approximately C$1.0 billion (the “Transaction”). A special meeting of shareholders has been called for December 4, 2019 to approve the Transaction.

“We are pleased to report a fourth consecutive quarter of record revenue, resulting in our highest-ever adjusted EBITDA of $82 million,” said Jim Gallagher, President and CEO.

“North American Palladium and our Lac des Iles Mine also set new records in Q3 2019 by marking 365 days (and still counting) without a Lost-Time Injury and winning the distinction of the President’s Award for Health and Safety Excellence in Mining from Workplace Safety North. We are proud that our commitment to safety has been recognized by the industry.”

Implats Acquisition

During the quarter, NAP entered into a definitive Arrangement Agreement with Implats pursuant to which Implats will acquire 100% of NAP’s issued and outstanding common shares for total cash consideration of approximately C$1.0 billion. The Transaction delivers attractive value to NAP shareholders and reflects the five years of hard work the NAP team has dedicated to realizing the potential of LDI and the Company’s other exploration assets.

The Transaction will require approval by at least 66 2/3% of the votes cast by NAP shareholders present at a special meeting of NAP shareholders, which will be held on Wednesday, December 4, 2019. In connection with the Transaction, Implats has entered into customary voting support agreements with Brookfield as well as each of NAP’s directors and executive officers. In addition to shareholder approval, the Transaction is subject to the receipt of certain other customary regulatory, court and stock exchange approvals.

Under the terms of the Arrangement Agreement, shareholders of NAP other than Brookfield (defined below), will receive C$19.74 per NAP common share (the “Minority Shareholder Consideration”) in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively “Brookfield”), as the majority shareholder of NAP, will receive C$16.00 per NAP common share in cash. The Minority Shareholder Consideration represents a premium of 15% to NAP's 30-day volume-weighted average price and 23% to NAP's 60-day volume-weighted average price on the Toronto Stock Exchange (“TSX”) as of October 4, 2019, the last trading day prior to the announcement of the Transaction.

Dividend

The Board has discontinued the quarterly dividend as a result of and in connection with the previously announced Transaction.

see the whole report here

https://www.nap.com/investors/news/news-details/2019/North-American-Palladium-Reports--Q3-2019-Record-EBITDA/default.aspx