Tomahawk, WI 06/03/2014 (Basicsmedia) – North American Palladium Ltd (USA) (NYSEMKT:PAL)’s stocks rallied up by 6.25% in May, dramatically soon after the Palladium’s prices surged up to a 33-month high, governed by extensive supply concerns. The metal faced unprecedented supply concerns across the South African markets. Moreover, there has been a significant rise in the utility of Palladium for pollution control devices and jewelries, resulting in an escalation of demands!
Supply Concerns Hike Price!
Reports are rife that there might be global palladium production deficits for the next three decades. In this regard, the US and the EU have connived together to tighten sanctions upon Russia, a premier Palladium supplier, on the Ukraine issue! As the sanctions’ threats loom near, anticipations are rife that Palladium’s prices may shoot higher in the forthcoming days, thereby benefitting PAL!
Palladium Production During Q1 Witnessed A Surge
North American Palladium Ltd (USA) (NYSEMKT:PAL) had a fairly strong first quarter, wherein it fervently produced voluminous amounts of Palladium, at a far reduced cash-cost per ounce produced. The company notched up higher productions than the anticipated company’s guidance. In Q1, PAL produced around 42,641ounces Palladium, at a cost of production at $492/ounce, below the company’s yearly guidance of $550/ounce.
The lowliness of the cash cost was censured by dropping operating costs, higher rate of mill recoveries, better underground grade, and so on! PAL could successfully offset $2.7 million, for power and propane costs, required owing to extreme weather conditions in Q1. Moreover, PAL announced procuring underground productions of 3,065 tons/day during the last quarter, which evolved higher than the aggregate operating guidance, from the company’s perspectives. During the Q1, North American Palladium Ltd (USA) (NYSEMKT:PAL) successfully mined 530,139 tonnes of the Palladium Ore and 275,845 tonnes from myriad other underground sources.
Q1 Incomes And Revenues
The company decided a selling price of $739/ounce for Palladium, by consensus, resulting in an operating margin at $147/ounce. PAL notched up net revenues of $48.7 million and adjusted EBITDA of $9.8 million in Q1.
Exploration Holds The Key To Better Accomplishments!
North American Palladium Ltd (USA) (NYSEMKT:PAL) had incurred capital investments estimating at $2.9 million, holistically. It also expended $0.8 million for the purposes of exploration. PAL accomplished a whopping $32 million financing in the last quarter itself. On the basis of recent financing, PAL has increased its net production spending estimates to $10 million during the remaining quarters in 2014. The company is adamant on expanding its available resources and reserves with rigorous exploration activities for FY 2014.