North American Palladium Ltd. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported income from mining operations of CAD 5,124,000 compared to CAD 7,825,000 a year ago. Loss from continuing operations before taxes was CAD 5,357,000 compared to income from continuing operations before taxes of CAD 147,000 a year ago. Loss from continuing operations was CAD 5,357,000 or CAD 0.03 per basic and diluted share compared to income of CAD 147,000 or CAD 0.00 per basic and diluted share a year ago. Loss and comprehensive loss for the period was CAD 2,848,000 or CAD 0.02 per basic and diluted share compared to CAD 928,000 or CAD 0.01 per basic and diluted share a year ago. Cash provided by operations was CAD 3,165,000 compared to CAD 7,645,000 a year ago. Additions to mining interests were CAD 38,068,000 compared to CAD 37,210,000 a year ago. EBITDA was CAD 2.9 million compared to CAD 5.0 million a year ago. Adjusted EBITDA was CAD 7.5 million compared to CAD 8.2 million a year ago. Revenue was CAD 47,090,000 against CAD 41,580,000 a year ago. The increase in revenue was primarily due to greater quantities of payable metals sold, more favourable exchange rates and higher realized prices for palladium. Adjusted net loss was CAD 0.8 million in the first quarter, compared to adjusted net income of CAD 3.3 million in the same quarter last year.

In the first quarter of 2013, the company's LDI mine produced 38,654 ounces of payable palladium at a total cash cost of USD 490 per ounce. During the first quarter, 540,694 tonnes of ore were mined at LDI, of which 245,656 tonnes came from underground sources and 295,038 tonnes came from surface sources (with an average palladium grade of 2.4 grams per tonne). LDI mill processed 503,585 tonnes of ore at a combined average palladium mill head grade of 3.3 grams per tonne, at an 80.1% palladium recovery rate, and at a total cost of USD 57 per tonne milled.

For the fiscal 2013, the company believes that the low end of the 150,000 to 160,000 ounce production guidance will be difficult to achieve, and could potentially decrease by about 10% to 15%. As a result of decreased underground production levels and lower head grade of mill feed, cash costs are expected to increase. These estimates are indicative only, remain subject to the ongoing review of the mine plan and are contingent on the successful completion of a financing.

The management expects that capital expenditures in 2013 could be up to 35% higher than the prior guidance of CAD 105 million. The company is looking at, potentially CAD 140 million of capital expenditure for the year or thereabouts.

The company also announced that Mr. Greg Struble has resigned as Vice President and Chief Operating Officer, effective May 15, 2013, to pursue an opportunity as Chief Executive Officer with another public company in the industry.