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North American Palladium Limited ┼×irket Message Board

  • pacenet_2000 pacenet_2000 Jan 15, 2013 8:34 AM Flag

    Exceeding guidance! Why don't they just buy PAL?

    Total 2012 Palladium and Platinum Production Exceeds Guidance

    Montana Mine Expansion Projects Continue to Show Significant Progress

    BILLINGS, MT -- (MARKETWIRE) -- 01/15/13 -- STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U) reported today that its mined production of palladium and platinum for the fourth quarter 2012 was 132,500 ounces and for the year 2012 was 513,700 ounces, exceeding the Company's 2012 guidance of 500,000 ounces. Mined production for 2011 was 517,900 ounces. The Company also reported that mine production guidance for 2013 is again projected at 500,000 ounces.

    While not yet finalized, 2012 total cash costs per mined ounce (a non-GAAP measure of extraction efficiency that is further defined in the Company's filings with the U.S. Securities and Exchange Commission) are expected to be at or slightly below 2012 guidance of $500. These will be above total cash costs per mined ounce of $420 for 2011.

    Sentiment: Strong Buy

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    • Pacenet,

      You do not sell a Company when you have invested $259MM in the LDI shaft since 2011 and not even done with the Phase I with no increase production etc etc...

      PAL as a company must finish, at least, the phase I of the shaft and starts production from the shaft to show that the huge investment sank in LDI shaft was worth it. It can be around $300MM by mid 2013?

      When the shaft will be used to get the 3,500 TPD from underground with a grade around 5.2gr or a bit lass and reduce cash cost notably then the situation will be totally different.
      What you are looking is a quick profit no matter what but for the long shareholders and the Company it is a totally different ball game.

      With the shaft starting to produce by July 2013 and fully producing end of September, LDI mine is starting to look like a real World class palladium mine and one of the rarest in Canada/USA. PAL will change financial status as a company who had a "hole in the ground" to a "World class profitable palladium mine."

      At this point of time, PAL can eventually look for a buyer who will eventually give a fair value of the assets and obviously it is too early unless the buyer is willing to pay for something that has not been done yet.
      If it is done now it will be at a steep discount to fair value and many long shareholders will feel screwed and may sue the BoD for mismanagement.

      Let's wait until October 2013, would you?

      Just my 2 cents,

    • We need a bidding war for PAL. Maybe SWC, Norilsk, the Chinese, and the Japanese can all get in a bidding frenzy.

      • 1 Reply to tristrem
      • This is the only reason I can surmise for such a delay in getting new management on board. Even some of the analysts are now chastising them for being so slow. We're goin on 5 months since Biggars was canned, and CFO resigned months ago too. Our Current CEO is a part timer and actively solictiing 3rd party consulting deals with other companies as we speak. Can anyone think of any other sound reason why this seems to take on so little importance for PAL? I am flummoxed. Tick Tock, tick tock. Blackbeard approaches, me hopes!

    • Pace, didn't SWC also turn on a hoist shaft recently? I think they have specific experience digging and commercializing such projects. If so, they know what is needed to finish the work at LDI. I honestly don't know why they haven't already made a bid here. At current prices I suspect palladium is cheaper on wall street than in the mines. Go pirates!

    • Maybe they are.

      Sentiment: Strong Buy