We offer very detailed and comprehensive analysis to our ever-growing list of dedicated subscribers.
We want to bring to your attention otcmkts:paldf, North American Palladium LTD. Throughout this write-up, we will discuss information, economic news and other key data to analyze investors’ and traders’ potential. Bringing you the best penny stocks daily.
North American Palladium LTD’s principal operations include producing precious metals throughout Canada.
It also explores nickel, copper, platinum, palladium, and other precious metals. This company does hold an interest in the Lac des Iles mine, situated in northwest thunder bay, Ontario. This company was formed in 1968 and is headquartered in Toronto, Canada.
North American Palladium company Overview
Impala Canada Limited acquired North American palladium in 2019, which is a global group metal producer.
otcmkts:paldf was a former Canadian mining company that operated between 1968 and 2019. In 1993 the company operated in the Lac des Iles mine, a complex in the thunder bay district of Ontario. The main company activities included mining and exploration of palladium and gold.
About Impala Canada Limited
Impala was attracted to North American Palladium because of its focus on palladium, its growth potential, its dynamic team, and the revenue potential of Lac des Iles Mine. The company ticker symbol is (TSX:PDL).
Lac des Iles Mine palladium operation had more than 25 years of production in the low-risk area of Thunder Bay, Ontario, which employs more than 700 people. The mine is mostly noted for its advanced underground technologies and its extensive exploration portfolio.
Impala is focusing on its production to become Canada’s largest, low-cost- and risk-free underground mines and producing metals that contribute to a cleaner global environment.
This company will continue to pursue various palladium production, exploration, and development throughout Canada to complement its inventory of high-quality assets.
otcmkts:paldf reverse split, and what does it mean?
otcmkts:paldf on August 10th, 2015, had a reverse split, which means that the shareholder now owned a 2.5 share position of their 1000 share position after the split.
What Does this mean for the future of paldf?
When a company conducts this reverse split, it is because the share price has fallen to a lower price per share that the company would have preferred. This can be important for several factors;
- Some types of mutual funds may have a limit, which can affect which stocks they may buy, which is usually based on the share price.
- $5 to $10 price points can be considered important, as the stock exchange will look at the stock price and set a lower limit for its listing eligibility.
When a company has a reverse split, it is looking at the market capitalization both before and after the split. If the market capitalization remains stable, then this could result in a higher share price.
North American Palladium stock and paldf stock quote
Currently trading at $14.98 and has gained 0.27% at the time of this write-up. Let us discover some key data on this emerging company.
Its current Volume is 21,600 shs, having an Average Volume of 24,024 shs; its current Market Capitalization is $881.42 million, with a P/E Ratio of 8.03, the Dividend Yield is 2.00%, and Beta is 2.08.
Todays range is currently $14.98 Now: $14.98▼$15.01, its 50-day range is $14.98, MA: $14.98▼, $14.98, looking at is 52-week range, $6.69, Now: $14.98▼, $19.91.
Let us look at some news this company has been distributing, for a clearer picture of how to proceed, as a trader and investor, assessed on various financial news platforms.
otcmkts:paldf, North American Palladium Economic News
(OTCMKTS:PALDF) Passes above the 50 Day Moving Average
North American Palladium passed the 50-day moving average of $14.98 and was trading as high as $15.01, with a volume of 21,600 being traded.
The company’s 50 day moving average is at $14.98, and the 200-day moving average is at $14.98, with the market cap which is currently at $8881.42 million.
North American palladium records a profitable 2017
OTCMKTS:PALDF announced its financial and operational results for 2017. The company has also announced that it has initiated the processes to explore, approach, and evaluate its range of potential strategies, which is mainly focused on shareholders maximizing value, including the sale of the company potentially.
Here are just some of the highlights.
- The quarter increased to $36.9 million compared to a $0.07 million loss in the same period for 2016. In 2017 it was $86.2 million compared to $4.7 million for the year of 2016. Its net income was $15.2 million compared to its loss in 2016 of $12.9 million.
- Its revenue increased to $87.1 million compared to a loss of $46.0 million for 2016; its revenue had increased by 63% to $272.4 million.
- The company produced 201,592 palladium ounces, increasing 35% over 149,563 palladium ounces in 2016.
- Its underground production increase to 1,897,144 tonnes compared to 1,367,458 tonnes for 2016.
These excellent results the company has achieved are combined with a high palladium price. The company had invested more than $60 million in equipment, development, and infrastructure to improve its long-term success and goals. The company also focused its attention on its balance sheets and operations and paid $23 million in debt for that year. The company’s performance is a strong indicator of the financial performance expected in 2018. The company expects the mill to achieve approximately 12,000 tonnes per day, some of which will come from underground production estimated at 6000 tonnes per day.
The increase in revenue was mainly due to increased palladium prices and annual palladium revenues generated on sales of 197,311 ounces compared with 149,120 ounces for 2016.
The unit cost reduction of $57 per tonne increased operational efficiencies compared to $67 in 2016.
In December 2017, the company had cash and cash equivalents, the company’s credit for that year was $6.8 million compared to 2016, which was $1.7 million. During 2017 the company extended its credit facility of $60 million to 2018.
During December of 2017, the company paid $15million towards its loan. The company had a debt of $85,6 million compared to 2016, which was $108.8 million, which was reduced by $23,2 million. The outstanding balance in 2017 is $35 million.
The company’s increased investments in exploration and developments reflect its commitment to exploration opportunities into various resources within a condensed period.
otcmkts:paldf Recent refinements to the Lac des Iles and several other targets at the initial stage include validation and supporting their expanded explorations and drilling programs for 2017 and beyond.
The record demand in 2017 for palladium production, global auto sales, increasing global emissions, and an ongoing substitution of diesel engines for gasoline all contributed to this. Along with increased recycling and depleted investor, stocks had made up for that supply deficit of 2017. The demand is expected to be strong in 2018, with some analysts predicting averages of $1080 per ounce of palladium.
What outlook is expected for North American Palladium
In 2018 the company expected the production of up to 240,000 ounces of palladium. These estimates include $37.7 million of capital costs for mining and development and equipment and infrastructure. There is also an additional $27,1 invested in tailings dam construction and other long-term projects.
PALDF Receives Final Order
Impala Platinum Holdings Limited will acquire the issued and outstanding common shares of the company by arrangement. The company has received approval with the proposed arrangement plans. All parties currently anticipate that the transaction will close around December 2019.
North American Palladium Announce the voting results from shareholders.
otcmkts:paldf announced a positive outcome for the shareholders regarding Impala Platinum Holdings Limited’s arrangement to require the company’s issued and outstanding common shares.
Impala is the purchaser under the terms of the arrangement.
98.69% of the shareholders voted in favor of the resolution and approved the arrangement. Full details of the voting results can be found at www.sedar.com under the company’s profile information.
The company will be de-listed from the Toronto Stock Exchange.
The company will then make their applications to the regulatory authorities to cease to be the reporting issuer.
Impala Platinum Holdings To Acquire North American Palladium LTD.
On a recent conference call regarding Impala Platinum holdings acquiring North American Palladium. You can find the full transcript of this conference call on the company’s website for the full report.
Jim Gallagher opened the conference concerning some of the transaction details with Impala Platinum agreeing to acquire North American Palladium’s outstanding shares in a cash deal that is valued at over $1 billion.
In 2013 North American Palladium was in financial trouble as the mine expansions had not gone in their favor. The company had been using all of its resources and was on the brink of insolvency. That is when Brookfield Asset Management made an initial investment of $130 million for a loan debt facility. Brookfield believed the company to be an asset and thought positively of the mine and palladium story as a tangible commodity.
Jim went on to include that he joined North American Palladium that year as the CEO and believed fully in its mine’s potential, the palladium story, and had additional confidence because of Brookfield’s support.
In 2015 there were some operational improvements, but there were still various challenges to overcome. In that year, during March to company tripped some financial covenants.
That is when Brookfield converted its debt to equity, and in August, it became a 91% shareholder of the company.
Jim became the CEO, and the mandate he had received from Brookfield was to fix the asset. The company would support management, turnaround and they would look into selling their position by a full sale or sale back into the market. This would allow them to redeploy capital into their business.
We have a sale of the company in a cash deal at record palladium prices. The company’s virtual bankruptcy four years ago, and we now have a sale of approximately $1 billion. The company has been described by a few analysts who cover them in a free cash flow operation.
Due to its success story, its hard work, the NAP team’s expertise, and the Lac des Iles team. The mine has become one of the largest underground mines in Canada.
It has also received an award from Workplace Safety North for safety. It is also one of Canada’s low-cost underground mines with an excellent, hard-working team in place.
The deal is for 100% of issued and common shares for cash consideration of $1 billion.
This is a cash deal for the minority shareholders and Brookfield. During the last three months, the company shares have appreciated by approximately 50%.
The transaction follows a rigorous plan of arrangement, which is court reviewed. It will require at least 66% of the votes by shareholders. Brookfield currently holds 81% and has already made commitments to support Impala in this deal; it is also reported to be supported by the board.
If all goes smoothly, the expectation is that the deal can go through by the end of the year. As previously stated, the Directors of North American Palladium have given their support on the decision of its three key points.
- Minority shareholders should get the full value of the share price appreciation.
- The shareholders receive a fair opinion, which is supportive of the transaction from Bank Montreal.
- Opportunities inside the 30 days go-shop period for superior offer.
Through the last five years, Brookfield has been a superior partner, but they are not a long-term holder of the company. Impala believes in the asset and would like to see it grow. Impala has developed a positive working relationship with North American Palladium throughout the years. This is a crucial deal for the company and the best home for the mine and the team.
Stock Analyzers hope you have enjoyed this article. You may be interested in reading eats stock, which is another penny stock with potential.