North American Palladium Ltd. (fka PALDF)

[MjLee2000]

BUY Some Today (20K)..BUY Some More Tomorrow (20K)...Getting Ready for PAL to take off fast. Rising pressure is high. It could rise fast any day now.

RBC Capital Markets comments on North American Palladium
According to RBC Capital Markets:

North American Palladium (TSX:PDL) - $21MM in Additional Financing Secured from Brookfield

Sentiment Indicator: neutral

Monday, December 02 2013

North American Palladium, Underperform, C$1.25 Price Target

Bottom-Line: PDL announced an additional $21.4MM financing from Brookfield, which involves a $15MM addition to the current loan facility and a refund of the $6.4MM in interest that had formerly been paid, in favor of a 4% increase in the base rate of 15% p.a. (optionality which was embedded in the original loan agreement).

PDL had $18MM in cash at the end of Q3 with $25MM in capital spending required in Q4 and management believes the 2014 capex budget could be below $30MM.

While this provides some near term liquidity relief, the additional debt further limits future financial flexibility and the company cautions additional funding would be required to achieve sustainable operations.

- PDL notes they are actively engaged in discussions to secure additional financing.

- Interest Payments: As a result of deferring interest payments, the rate increases to 19%. The rate would revert to 15% when PDL begins to make cash payments.

- Total Amount Outstanding: The loan facility now stands at $169.7MM which comprises $148.9MM principal, $12.7MM in accrued and capitalized interest, and an $8.1MM of a capitalized amendment fee.

- At an annual production rate of 140koz palladium, we believe PDL's interest payments would represent roughly $200/oz.

Read more at http://www.stockhouse.com/companies/bullboard/t.pdl/north-american-palladium-ltd?postid=21961392#mkDPdCYCGGCMMpqR.99