North American Palladium Releases Q3 Results

North American Palladium (TSX:PDL) put out its third quarter results on Friday, reporting a 39 percent increase in revenues for the quarter, year over year, and a substantial reduction it its total debt.
As quoted in the press release:

• Produced 57,914 ounces of payable palladium, a 78% increase compared to the same period in 2014, at a cash cost per ounce⁽¹⁾ of US$522.
• Revenue of $64.7 million, increased $18.3 million or 39% compared to the same period in 2014. Adjusted EBITDA⁽¹⁾ of $9.1 million, an increase of $0.8 million compared to $8.3 million for the same period in 2014.
• Underground mining operations produced 356,680 tonnes (3,877 tonnes per day) at a grade of 4.1 g/t palladium, an increase of 51,880 tonnes or 17% in the same quarter in 2014.
• The LDI mill processed 659,800 tonnes of blended feed at an average grade of 3.6 g/t palladium with a 83.4% recovery rate, compared with 566,494 tonnes at a 2.4 g/t palladium in the same quarter of 2014.
• The Company completed a recapitalization transaction (“Recapitalization”) on August 6, 2015 which reduced the carrying value of the Company’s debt by $359.8 million and completed the September 15, 2015 issuance of 8.6 million common shares by way of a Rights Offering to raise cash proceeds of$49.6 million, net of transaction costs.
• Total debt decreased to $43.7 million as at September 30, 2015, improving the Company’s debt to equity ratio to 0.09:1, compared to $405.4 million as at June 30, 2015 with a debt to equity ratio of 4.38:1.

CEO Jim Gallagher commented:

This was a key quarter for the Company. With the sponsorship of Brookfield Capital Partners, we recapitalized the balance sheet and raised $50 million of equity. We made some difficult but necessary decisions to reduce costs at both our Toronto head office and at the mine site. Our operations performed well but can still do better following the return to regular production after a difficult second quarter. We continue to meet our commitments in the area of health, safety and the environment. At the end of September, we modified our operating strategy to respond to a weaker price environment and ceased processing of low grade stockpiled ore. We are focused on profitability and creating long term value for our shareholders.

Click here for the full press release.