North American Palladium has announced a 22 per cent increase in net income during the third quarter this year, enjoying higher palladium production and a 10.5 per cent reduction in production costs, including overheads.

Production is up by more than a third, with 76,729 ounces of palladium produced during the last quarter, compared to 51,168 ounces the previous year.

The improvement was attributed to higher ore grades and the commissioning of a new primary crusher.

Net income was C$3.5 million (seven Canadian cents a share), compared to C$2.9 million (six Canadian cents) during the third quarter of 2002.

Revenues amounted to C$42.6 million at the end of September this year. They were C$46.6 million at the same time last year.