North American Palladium Ltd. reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2017. For the quarter, the company reported revenue of CAD 44.3 million compared to CAD 32.5 million in the first quarter of 2016. The higher revenue in First Quarter 2017 was primarily due to increased metal prices, offset by lower sales volumes. Net loss was CAD 3.8 million or CAD 0.07 per basic and diluted share, compared to a net loss of CAD 13.1 million, or CAD 0.23 per basic and diluted share a year ago. Adjusted EBITDA was CAD 6.8 million, an improvement of CAD 12.6 million over the loss of CAD 5.8 million incurred a year ago. Income from mining operations was CAD 0.1 million against loss from mining operations of CAD 12.9 million a year ago. Loss before taxes was CAD 3.8 million against CAD 13.1 million a year ago. Net cash provided by operations was CAD 8.7 million against CAD 9.1 million a year ago.

For the quarter, underground mining produced 363,136 (4,035 tonnes per day) at a grade of 4.4 g/t palladium compared to 338,807 tonnes (3,723 tonnes per day) at a grade of 4.3 g/t palladium a year ago. During the quarter, a total of 458,382 tonnes of ore were milled, including 77,600 tonnes of low grade surface ore, compared to 353,601 tonnes of ore milled a year ago which included 40,270 tonnes of low grade ore and tailings. The year-on-year increase of 104,781 tonnes milled resulted in a 21% reduction in site-wide unit production costs from CAD 89/tonne in first quarter of 2016 to CAD 70/tonne in first quarter of 2017.

The company's previous 2017 guidance of palladium production of between 180,000 and 190,000 ounces of palladium at an average AISC cost of CAD 700-720 per ounce remains unchanged. The AISC for the second half of The AISC for the second half of 2017 is expected to drop to USD 550-560 per ounce.