North American Palladium Reports 3rd Quarter Results

North American Palladium
North American Palladium
North American Palladium
North American Palladium

THUNDER BAY – MINING – North American Palladium Ltd. (“NAP” or the “Company”) (TSX:PDL)(NYSE MKT:PAL) today announced the operating, development, and financial results for the third quarter ended September 30, 2014 (“Q3”).

“Taking a view on the progress from 2013 to where we are today, we are pleased with what has been achieved during construction in 2013, commissioning and production build up in 2014 and the related financings,” said Phil du Toit, President and Chief Executive Officer. “Although the third quarter presented challenges on grade due to mining sequence, equipment availability and the unfortunate incident of a mine fatality, the fourth quarter is off to a good start and we remain on track to meet our longer-term objectives.”

“The exploration results so far in 2014 are very encouraging. We will keep the market apprised of progress,” added Mr. du Toit.

“Management continues to implement a number of strategic initiatives to help achieve the production ramp up,” said Jim Gallagher, Chief Operating Officer. “On October 1, 2014 we began a trial implementation of a full-time mill run compared to our previous 16 day batch process. This initiative, plus improvements to the underground ore handling system, aided by an end of September underground ore stockpile of several days production, has resulted in October production of approximately 20,000 ounces of payable palladium.”

“With these positive October results and the continuing underground ramp up which saw September and October average approximately 3,800 tonnes per day, with a number of days achieving more than 4,500 tonnes per day, we expect to be at or marginally below the lower end of our guidance of 170,000 payable palladium ounces for 2014,” added Mr. Gallagher.

Cumulative Pd Ounces Year to Date

North American Palladium
Q3 2014 Results Summary

Sold 36,430 ounces of payable palladium at a cash cost per ounce(1) of US$589. Year to date cash cost per ounce is US$527.

Revenue of $46.4 million was an increase of $13.1 million or 39% compared to the same period in 2013 due to more favorable exchange rates, higher palladium ounces sold and higher palladium prices.

Adjusted EBITDA(1) of $8.3 million for the quarter and $28.5 million year to date.

Realized palladium selling price of US$860 per ounce, giving a palladium operating margin of US$271 per ounce, or US$9.9 million. Palladium prices remain strong, with the November 4, 2014 price at US$786 per ounce.

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