North American Palladium has said that the full production of one of its underground mines was largely responsible for the firm's improved operating results.

Lac des Iles mine's palladium production and by-metal sales pushed up revenue as the cash cost per unit for by-products fell from $329 per oz in 2005 to $219 per oz.

Palladium also soared in price, to $310 per oz compared to $182 per oz a year before. The company's added that "profitability remains highly levered to commodity price movements as it delivers and sells all of its palladium production into the spot market".

This quarter was the first for which the Canadian mine operated at full capacity and helped push palladium production up from 48,230 oz in the same quarter in 2005 to 57,326 oz.

An increase in production means that North American Palladium has now produced
104,000 oz of palladium in the first six months of the year to June 30th and it hopes to produce 225,000 oz by the end of 2006.

Although palladium is the company's main product, it said that it seeks to add to its current growth, such as through its talks with Gold Fields for the joint-venture Arctic Platinum Project in Finland.


Ÿ Adfero Ltd