QualityStocks'  Instablog

Send Message
QualityStocks (www.qualitystocks.net) assists publicly traded companies by getting their story out to the investment community while helping investors discover emerging companies with plenty of growth potential. Our name, QualityStocks, emphasizes our commitment to connect subscribers with... More
My company:
My blog:
QualityStocks Micro-Cap and Small-Cap Blog
  • North American Palladium (PAL) is “One to Watch” 0 comments
    Jun 1, 2010 5:28 PM | about stocks: PAL

    North American Palladium (AMEX:PAL) is a Canadian precious metal company focused on growing its production of palladium and gold in mining-friendly countries. The company, along with Stillwater Mining, is one of only two primary palladium producers in the world.

    North American Palladium recently announced that it had restarted production at its flagship Lac des Iles mine in northwestern Ontario. This mine, which produced palladium since 1993, was shuttered in October 2008. Ore production from the Roby Underground zone at the Lac des Iles mine is expected to have increased on May 1 from 2,000 tons per day to 2,600 tons per day. In total, North American Palladium is expected to produce 140,000 ounces of palladium per year.

    North American Palladium re-opened its huge palladium mine due to a sharp increase in the price of palladium this year. At current prices, the company will be able mine its palladium at a very nice profit. The price of palladium has moved up this year due to several factors.

    On the demand side, there has been increasing demand for palladium (used in catalytic converters) from automakers globally. The demand for palladium has been especially strong in China where auto sales have been setting new records (for China) month after month. There has been increasing investment demand for palladium as well. Exchange traded funds, such as ETFS Physical Palladium Shares, which are backed by actual palladium, are popping up globally.

    On the supply side, production of palladium – which is often produced as a by-product of nickel mining – has fallen. Problems at South African mines along with cutbacks at Russia’s Norilsk Nickel have curtailed palladium supplies greatly.

    North American Palladium also owns and operates the Sleeping Giant gold mine which is located in the prolific Abitibi region of Quebec. The mine produced over 1 million ounces of gold before being put on care and maintenance in 2008 by IAMGOLD.

    Please see disclaimer on QualityStocks website: disclaimer.qualitystocks.net


    Disclosure: no positions
    Stocks: PAL
Back To QualityStocks' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.