Precious metals company North American Palladium Ltd reported a second-quarter profit helped by a 69% rise in quarterly palladium production at the company's flagship mine in Quebec and maintained its full year palladium production forecast.

The company said it still expects 2011 production of 145 000-155 000 oz of payable palladium at a cash cost of $450/oz.

Net income for the quarter ended June 30, was C$5.4-million, or 3 Canadian cents per share, compared with a net loss of C$11.8-million, or 8 Canadian cents per share.

Quarterly production at the company's flagship Lac des Iles mine was 46 971 oz of payable palladium at $335/oz, up from 27 839 oz at total cash costs of $304/oz, a year ago.

The company which also owns and operates the Sleeping Giant gold mine in Abitibi, Quebec, said revenue rose two-fold to C$51.4-million in the second quarter.

Palladium futures for September were trading at about $728/oz Wednesday on NYMEX.

Shares of North American Palladium closed at C$3.35 on Wednesday on the Toronto Stock Exchange.

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