North American Palladium Ltd (USA) (NYSEMKT:PAL) continues to fall, American Axle & Manufacturing Holdings Inc (NYSE:AXL)

Posted by Ryan Mandell May 8, 2013 0 Comment 1934 views


Hartford, CT 05/08/2013 (GDPInsider) – North American Palladium Ltd (USA) (NYSEMKT:PAL) shares fell 7.76% to close at $1.07.  With a market capitalization of $189.79 million, North American Palladium is a producer of precious metals such as palladium, platinum, gold and certain base metals.

The company has announced an increase of almost $6 million in its first quarter revenue for 2013.  North American Palladium’s revenue was $47.1 million compared to $41.6 million in the same period of 2012. According to the firm, the increase was due to greater quantities of payable metals sold and higher realized prices for palladium. Income from mining operations fell to $5.1 million when compared with $7.9 million in the same period last year.

The company announced a net loss of $2.8 million, or $0.02 earnings per share, compared to $0.9 million net loss, or $0.01 per share in the same quarter in 2012.

In the first quarter on 2013, North American Palladium said its invested $6.1 million in exploration and infill drilling and the company’s capital expenditures amounted to $38.1 million. The Company had $23.5 million cash on hand and $1.2 million in working capital, as of March 31, 2013. During the quarter, the company produced 38,654 ounces of payable palladium at $490 cash cost per ounce.

For 2013, the company said it might be difficult to achieve the low end production guidance of 150,000 to 160,000 ounce. North American Palladium said the estimated production could decrease by about 10-15%.

“There is significant value to be unlocked at Lac des Iles (“LDI”), and I am encouraged by LDI’s future cash generation potential,” said Phil du Toit, President and Chief Executive Officer. “My initial review of operations reaffirmed the potential that I saw when I accepted the role as CEO, but also identified some challenges as well as opportunities for improvement in areas such as strategic mine planning, cost optimization and project execution. This is a critical year for our transition and it will certainly not be without its challenges. We have a plan to unlock the high potential value of LDI, but this plan is contingent on a successful completion of a financing, therefore we are currently evaluating financing opportunities.”

North American Palladium also announced the resignation of its vice president and chief operating officer Greg Struble. According to the company, Struble has resigned from his post, effective May 15, 2013, to join as a chief executive officer of another public company.

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American Axle & Manufacturing Holdings, Inc (NYSE:AXL): There was a rise of 3.37% in American Axle & Manufact. Holdings, Inc (NYSE:AXL) shares in Tuesday’s trading session. The opening price of the shares was $15.48 which touched an intraday high of $16.02 before dipping to $15.48 per share. Over 3.50M shares were traded in Tuesday’s trading session which was almost three times that of the average volume of 1.79M that was measured over the last 30 days.

The Detroit-based auto supplier said that its quarterly income had fallen 86 percent. This drop has been attributed to refinancing of debt as well as increased preparation costs that came from the launch of new vehicles. Ending March 31, the first-quarter net income dropped to $7.3 million or 10 cents per share in comparison to the $51.2 million or 68 cents per share that existed in the same quarter in the previous year.

The company said that that its 2013 first-quarter results were a reflection of the $11.3 million in debt refinancing. In part, the company’s reduced income was also a result of rising operational costs.

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About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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