North American Palladium revealed yesterday (24th February) that it experienced a 24 per cent decline in palladium production for the full year to 31st December 2008.

The company's latest financial figures show that output of the metal was 212,046 oz - down from 286,334 oz in 2007 - although the total covers the ten-month period prior to the Lac des Iles mine being placed on care and maintenance.

The temporary closure of the mine, which occurred on 29th October 2008, also had a significant impact on the firm's production figures for the fourth quarter of 2008.

Palladium output for the three months ended 31st December 2008 was 21,373 oz, which represents a decrease of 70 per cent from the 71,595 oz recorded in the corresponding quarter a year earlier.

Commenting on the results, President and CEO William Biggar said: "In response to the difficult market conditions we faced in the last quarter of 2008, North American Palladium reacted quickly to preserve the health of the company by putting our Lac des Iles mine on temporary care and maintenance.

"Accordingly, we have maintained a strong balance sheet, with $86 million in working capital and no long-term debt."

Mr Biggar added that the $7 million exploration programme on the Offset Zone at Lac des Ile is now underway and that drilling updates will be issued in due course.

North American Palladium currently produces around four per cent of the world's supply of the metal.



Source:

North American Palladium Announces Fourth Quarter and Year Ended December 31, 2008 Results (24/02/09)
http://cnrp.marketwire.com/client/north_american_palladium/release.jsp?actionFor=953938