North American Palladium Ltd. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2013; Provides Capital Expenditure and Operating Guidance for the Fiscal 2013; Announces Resignation of Greg Struble as Vice President and Chief Operating Officer, Effective May 15, 2013
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.