North American Palladium Reports Sizeable Decrease in Debt

North American Palladium (TSX:PDL) reported its financial and operational results for 2015, highlighting a reduction in debt to $47.1 million compared to $281.7 million as of year-end 2014.
As quoted in the press release:

• Produced 166,785 ounces of payable palladium, a 4% decrease compared to 2014, at a cash cost per ounce⁽¹⁾ of US$557.
• Revenue of $193.6 million, decreased $26.5 million or 12% compared to 2014. Adjusted EBITDA⁽¹⁾ of $13.5 million, a decrease of $36.5 million compared to $50 million for 2014.
• Underground mining operations produced 1,532,050 tonnes (4,197 tonnes per day) at a grade of 4.4 g/t palladium, an increase of 306,503 tonnes or 25% over the mining rate of 3,358 tonnes per day in 2014.
• The LDI mill processed 2,135,915 tonnes of blended feed at an average grade of 3.2 g/t palladium with an 82.8% recovery rate, compared with 2,684,782 tonnes at an average grade of 2.7 g/t palladium in 2014.
• Total debt decreased to $47.1 million as at December 31, 2015 compared to $281.7 million as at December 31, 2014 improving the Company’s debt to equity ratio to 0.11:1.

North American Palladium CEO, Jim Gallagher, said:

2015 was a year of change at North American Palladium. 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% equity position in the Company. The Company’s workforce, partly in response to lower overall metal prices, was reduced both at the corporate office and at the LDI site. The management team is now focused on operational performance at LDI. With ongoing financial support from Brookfield, the site is in the first phase of an expansion of the long-term tailings and water management facility that will remove current production rate restrictions. The underground mine is currently transitioning to a sub-level shrinkage mining method that is expected to improve production reliability and rate. 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.

Click here for the full press release.