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North American Palladium Ltd. (PAL) – Mining Their Own Business

Headquartered in Toronto, Ontario, North American Palladium Ltd. (PAL) is a Canadian producer of palladium. Trading on the American Stock Exchange (AMEX), the company is part of the Industrial Metals and Minerals industry. Their core palladium business is supported by a major contribution from nickel, platinum, gold, and copper byproducts metals.

Palladium is one of six platinum group metals consisting of: platinum, palladium, osmium, ruthenium, iridium, and rhodium. These metals are valuable for their strength and durability, rarity, strong catalytic properties, resistance to oxidation and corrosion, conductivity, and high melting point. These platinum group metals are part of technological advances in the fields of autocatalysts, power generation, and fuel cells, as well as transportation, electronics, and healthcare.

North American Palladium Ltd. utilizes their expertise in the metals field with major partners on joint ventures in Canada and Finland. Approximately half of the palladium they produce is for use in the reduction of harmful substances such as hydrocarbons, carbon monoxide, and nitrous oxides in vehicle exhaust emissions. This palladium also finds use in electronics, such as computer hard disks and electronic components, and in the dental industry as alloys for dental restoration. In addition, palladium is part of the jewelry industry and chemical processes as a catalyst for silicones and for electrode coatings.

The company has their Lac des Iles mine in northwestern Ontario. This mine is one of the largest open-pit, bulk mineable palladium operations in the world. Production for fiscal 2007 from the mine increased for the second year in a row. Increased grade, recoveries, and mill availability improved the 2007 performance. Palladium production here in 2007 was 286,334 ounces compared with 237,338 ounces in 2006. The company’s byproduct metal production also increased proportionately.

For 2008, North American Palladium expects production of 300,000 ounces of palladium, an increase of 5 percent over the 2007 production level of 286,334 ounces. For quarter two of 2008, the company had revenue of $52.2 million, which was up 17 percent compared to quarter two of 2007. The company began mining at the Lac des Iles Mine in 1993.

North American Palladium has a fifty-fifty partnership with Vale Inco on the Shebandowan West land package of 7,840 hectares located 100 kilometers southwest of their producing mine at Lac des Iles. They are considering developing the Shebandowan West Project and its nickel, copper and platinum group metals. They are conducting an additional drill program to expand known resources and metallurgical testing of the metals.

North American Palladium Ltd. continues to work for shareholder profits. They are Canada’s only primary producer of palladium. With a strong management team with expertise in mine development and operation, the company hopes to further their growth by continuing to mine their own business.

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