North American Palladium to Aim for Higher Production, Lower Costs in 2014

North American Palladium Ltd. (TSX:PDL,NYSEMKT:PAL) provided its 2014 production guidance, as well as the capex and exploration forecasts for its Lac des Iles palladium mine. The company plans to increase its payable palladium production to between 170,000 and 175,000 ounces while reducing its capital investment and exploration budgets to $30 million and $4 million, respectively.

Other highlights include:

• Underground production forecasted to gradually increase throughout the year from approximately 3,000 tonnes per day in the first half of the year, up to 5,000 tonnes per day by the end of 2014; and
• Planning to commission a preliminary economic assessment (“PEA”) study to define future growth potential at LDI by optimizing the Offset Zone resources and several alternative, supplemental development opportunities that could leverage the capacity of existing infrastructure.

Phil du Toit, president and CEO of North American Palladium, commented:

Looking ahead to 2014, our operating focus will be on consolidating the growth investments from our past to establish steady-state operations with the new shaft at LDI. Production through the shaft is gradually increasing, enabling us to target over 170,000 ounces of payable palladium production in 2014 at a significantly reduced capital expenditure program of under $30 million. As we increase underground production, we expect that a decrease in operating costs will follow, further positioning LDI for enhanced operating margins.

Click here to read the full North American Palladium Ltd. (TSX:PDL,NYSEMKT:PAL) press release.