North American Palladium (NAP) announced its year-end financial and operational results from its Lac des Iles palladium mine in northwestern Ontario, Feb. 22.
The mine produced 166,785 ounces of payable palladium, a 4 per cent decrease from 2014.
Revenue of $193.6 million decreased $26.5 million, or 12 per cent, from the previous year.
Underground mining operations produced 1,532,050 tonnes at a grade of 4.4 grams per tonne palladium, an increase of 25 per cent from 2014.
The company’s debt decreased to $47.1 million compared to a whopping $281.7 million from the previous year.
It was a “year of change” said CEO Jim Gallagher in a news release.
“The financial restructuring that occurred in
August resulted in a substantial reduction in debt on our balance
sheet and Brookfield Asset Management taking a 92 per cent equity
position in the company.”
With the workforce pared down in
response to low metal prices, Gallagher said management is focused on
operational performance.
The first phase of an expansion to its tailings and water management facility is underway and the underground mine is adopting a “sub-level shrinkage mining method,” which will improve production.
“We expect these changes should lower our unit costs over the life-of-mine and will enable NAP to fully realize the benefit of improved metal prices should they occur later in 2016,” said Gallagher.
