North American Palladium (PAL) just released up-dated Operating Guidance. In that release they announced cash costs for 2014 were expected to come in at $550/oz. This is no improvement over 2013's cash cost number. What PAL's management did not provide is a calculation of their all-in sustaining cash costs. This figure includes overheads, interest and sustaining capex. I compute it as follows:
|NAP All-In Sustaining Cash Costs|
|Cash costs/oz as reported by PAL||550|
|Total Other cash costs||79,500,000|
|Other cash costs/oz||454.29|
|All-in Sustaining Cash Costs||$ 1,004.29|
Not a pretty picture.
Disclosure: I am short PAL, .