North American Palladium (NAP) has announced lower metal production and recoveries in the third quarter of 2005.

Unveiling its results for the three months to September 30th, the pgm miner revealed that the lower production of palladium was largely due to a fall in head grade during the period.

The drop in production had a negative effect on the company's revenues and NAP announced a net loss during the quarter of $19.6 million, resulting in a net loss for the first nine months of 2005 of $42.6 million.

Those losses were also impacted by increased fuel costs, which pushed up its operating costs, as well as a strengthening Canadian dollar and continuing low palladium prices.

However, looking ahead, NAP claimed that it is "optimistic" that the fundamentals for palladium demand will improve in the medium term and also pointed out that its maintenance programme during the quarter has led to improved mill availability that should lead to increased production in the fourth quarter.

NAP announced in July that it would miss its 2005 palladium production target by as much as 15 per cent due to the low grade ore it is mining.


Ÿ Adfero Ltd