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North American Palladium Reports
Third Quarter 2008 Financial Results and Strong Liquidity Position
TORONTO, November 10 — North American Palladium Ltd. (TSX:PDL)(AMEX:PAL) today announced financial results for the
third quarter of 2008.
"The unprecedented speed and magnitude of the decline in metal prices resulted in a significant loss for the Company in the
third quarter" said William Biggar, President and CEO. "As previously announced on October 21, 2008, we have put our Lac des
Iles Mine on a care and maintenance basis until metal prices improve. In the interim, we will utilize our strong balance sheet to
focus on exploration around the mine site and elsewhere on our 21,000 acre property, as well as strategic initiatives including
acquisitions and joint ventures."
For Immediate Release
The Company is in a strong liquidity position. Working capital was $105.5 million at September 30, 2008,
including cash and cash equivalents of $66.4 million. At the end of the third quarter 2008, long-term debt was
Revenue before pricing adjustments was $35.3 million for the third quarter of 2008, a decrease of $7.3 million
(17%) compared to the same period last year. Mark-to-market pricing and foreign currency adjustments
amounted to negative $44.2 million due to a rapidly declining commodity price environment during the quarter.
Revenue after pricing adjustments was negative $8.9 million.
Palladium sales for the third quarter of 2008 were recognized for accounting purposes at US$199 per ounce, a
42% decrease compared to US$344 per ounce in the same period last year.
Loss from mining operations for the quarter ended September 30, 2008 was $66.0 million compared to a loss of
$10.2 million in the same period last year. This loss includes the $44.2 million in pricing adjustments, as well as a
$5.6 million write-down of ore and concentrate i