Dallas, Texas 08/14/2014 (FINANCIALSTRENDS) – North American Palladium Ltd (USA)(NYSEMKT:PAL) the Toronto-based precious metals producer with $101.50 million market cap has been marking time on the stock markets with its second quarter results. The company reported that the production of the company had dropped by 8% in the quarter to quarter comparison. The company also reportedly warned that the weak production in the past weeks has affected the third quarter.
North American Palladium Ltd (USA) (NYSEMKT:PAL) which operates in the precious metal production domain, with much of its success from its Lac Des Iles mine. However, its most important product Palladium is mined at this mine. Incidentally, this mine may well be one of the primary resources for palladium globally.
It’s established presence in the mining of palladium has allowed PAL to continue to explore various sites for the production of palladium. However, it does have a well reputed presence in the mining of precious yellow metal gold, besides some base metals as well.
North American Palladium Ltd (USA) (NYSEMKT:PAL) according to analysts is likely to have an issue with cash. The repayment of $23.4 million to BAM, it would raise certain issues through equity financing during 2014.
The company also reported that PAL may also show fall in production in 2014 as well, is further speculation by experts. The forecast that the production will remain low continues to bear down on its current position.
In the recent months, PAL has been reeling under the costs of the massive amount it paid to Brookefiled in the field. This massive payout has affected the company in this quarter as well. The June 7, 2013 value of $130 million loan at 15%, led to PAL paying $23,4 million in interest as well prepayment fees.