North American Palladium increases production and income

TORONTO, ON—North American Palladium reported a sharply improved first quarter in 2018 compared with last year in terms of both operational and financial results.

Earnings before interest, taxes and depreciation totalled more than $28 million compared with just under $7 million in the first quarter of 2017.

Net income was $5.6 million compared with a net loss of $3.8 million a year ago.

The amount of ore that was mined at the Lac des Iles palladium mine north of Thunder Bay totalled more than one million tonnes, well over twice last year's level. 

In reporting the results on Friday, North American Palladium president and CEO Jim Gallagher said "Underground production has become consistent, reliable and predictable, and should continue to gradually increase this year as we bring more of the lower grade reserves in the upper part of the mine back into production. This quarter we began initial production from the Sheriff Pit, which is expected to produce higher grade material in the second half of this year. Total mill throughput also continued to increase this quarter."

Gallagher said all of this points to further performance improvements throughout 2018.

He added that recently announced drill results from Lac des Iles and other regional exploration programs highlight the quality and quantity of the company's mineral claims.

Gallagher said the company remains "focused on the discovery of another Lac des Iles-type palladium deposit."