NAP mired in red

A production shortfall at its Lac des les mine, near Thunder Bay, Ont., contributed to a net loss in 1999 for North American Palladium (PDL-T).

The loss amounted to $5.2 million on revenue of $44.6 million, compared with a loss of $17.5 million on $28.2 million in the previous year. The 1999 loss includes $5 million in dividends owed to holders of Series A preferred shares.

Cash flow between the years jumped to $12.9 million from $5.1 million, reflecting higher metal prices and lower operating costs.

The Lac des les mine, NAP’s sole producer, cranked out 64,441 oz. palladium, or 23% less than in 1998. The reduction reflects lower headgrades, which, in turn, were partially offset by higher throughput.

Despite a poor year, NAP turned a small profit in the final quarter, earning $3.5 million (or 17 per share) on $15 million. This compares with a net loss of $2.4 million (or 30 per share) on $10.2 million a year ago.

NAP recently tabled a study that calls for a six-fold increase in daily milling rates at Lac des les to 15,000 tonnes. Starting in mid-2001, the mine is expected to produce 248,900 oz. palladium, 24,200 oz. platinum and 19,100 oz. gold, plus copper, nickel and cobalt credits (T.N.M., May 1/00).