Shares in Canadian mining firm North America Palladium (NAP) fell 27 per cent yesterday (May 10th) on the news that the group had revised down its full-year production forecast.

The mining company said in its first quarter results statement that it will refocus its activities on development and cut back on production.

As a result, its downgraded its annual production guidance by 12 per cent to between 145,000 oz and 155,000 oz.

During a conference call with analysts executives at NAP faced some tough questions, according to Mining Weekly.

Chief executive officer Bill Biggar is reported as saying: "We have done this to alleviate the pressure on developing and operating at the same time, so we can keep our mine expansion on track."

He also pointed out that the 20,000 oz left in the ground this year would be there in the future.

Over the first three months of the year, NAP's main Lac des Iles mine produced 30,661 oz of palladium.

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NAP shares drop after guidance cut (10/05/11)

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