TORONTO (miningweekly.com) – Toronto-based North American Palladium (NAP) this week reported its first-quarter loss more than tripled on significantly higher expenses.
NAP on Monday said its comprehensive loss for the quarter ended March 31, was $2.8-million or $0.02 a share, which was 206% wider than the loss of $928 000 or $0.01 a share in the same period a year earlier.
Revenue for the quarter rose by 13% year-on-year to $47-million, up from $41.6-million. The main reason for the increase was owing to greater quantities of payable metals sold, more favourable exchange rates and higher realized prices for palladium.
The adjusted net loss, which excluded exploration costs, gains and losses from discontinued operations, and insurance recoveries net of mine restoration costs, was $800 000, compared with adjusted net income of $3.3-million in the same quarter a year earlier.
The company produced 38 654 oz of payable palladium at a cash cost per ounce of $490/oz.
Meanwhile, the company said that the low end of the 150 000 oz to 160 000 oz production guidance would be difficult to achieve, and could potentially decrease by about 10% to 15%. As a result of decreased underground production levels and the expected lower head grade of mill feed, cash costs were also expected to increase.
Further, NAP said the required capital expenditures to complete development of Phase I of the shaft project have been underestimated, and management expected capital expenditures in 2013 could be up to 35% higher than the prior guidance of $105-million.
The company said it would need to raise money on the debt or equity markets, or both, in the second quarter to pay for its 2013 capital plan.
"While the company believes that both the debt and equity markets are currently available to finance its funding requirement, certainty of completing a financing cannot be assumed at this time and, if sufficient financing is not obtained, it will have a materially negative impact on the company," NAP said.
The company’s TSX-listed stock fell by about 20% since the weekend and on Tuesday traded at C$1.11 apiece.