Replies to post #7795 on North American Palladium Ltd. (fka PALDF)

[Leirum]

Based on what I read they actually should become profitable with the present spread.

In 2013 their cash cost per ounce was $ 560.-- (in 2014 should come down to 450/470)
The realized Palladium selling Price was $ 724..-- giving an operating marging of $ 164.-- or $ 22.2 Mio

In 2014 I guess the operating marging would be approx. $ 280.--
or $ 38 Mio (or higher if they increase production)

Last year they had a loss of $ 46 Mio. Based on the expected spread for 2014 ( 38 Mio versus 22 Mio ) an improvement of $ 16 Mio. Then in 2013 they had an item which was a one time item of 11 Mio. Then I expect that the Exploration costs would be lower as they did the most in 2013 so maybe a reduction of 50 % = $ 6 Mio.

Taking These amounts of 16 Mio, 11 Mio and 6 Mio we get $ 33 Mio
which still would call for a loss of 13 Mio for 2014. Then they showed a Forex loss of 7.3 Mio which is huge compared to other years and I assume in 2014 rather closer to what we saw in the past around $ 700.000, which would mean roughly 6.5 Mio less loss bringing us down from 13 Mio to roughly 7 Mio.
Now we get to the largest item: Depreciation and Amortization which was 6 Mio higher than in 2012 and I assume as well that this amount will be sharply reduced. So having said all this, PAL could become breakeven at present Prices or if they really cut into various cost items even become profitable.