Canada's sole primary palladium producer North American Palladium (NAP) has said that the outlook for prices looks strong.

It made the prediction as it reported a sequential rise in its palladium production from its Lac des Iles mine for the first quarter of 2006.

Production rose to 47,015oz at an average recovery rate of 72.7 per cent, according to Platts.

That was a rise from the 36,833oz produced during the final quarter of last year, although a fall from the same period a year ago, when production reached 52,572.

Platinum production was also up on the previous quarter, rising to 4,698oz from 3,761oz during the last period. The company produces platinum, gold, nickel and copper as byproduct metals.

Nap told Platts that palladium prices had risen sharply from last year's first quarter price of $190/oz. It said it now averaged over $290/oz, adding that its production would continue to benefit from their higher commodity prices among its byproduct metals as well as palladium.

Ÿ Adfero Ltd