North American Palladium Ltd. reported unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported revenue of CAD 70.3 million compared to CAD 39.9 million a year ago. Net income and comprehensive income was CAD 7.9 million or CAD 0.14 per basic and diluted share, compared to a net loss of CAD 9.9 million, or CAD 0.17 per basic and diluted share a year ago. Income from mining operations was CAD 11.6 million against loss from mining operations of CAD 4.8 million a year ago. The higher revenue in second quarter of 2017 was primarily due to an increase in palladium prices and an increase in payable palladium sold. Adjusted EBITDA for the quarter was CAD 20.5 million, compared to CAD 1.1 million for second quarter of 2016. Cash provided by operations was CAD 25.7 million compared to CAD 1.5 million a year ago. Additions to mining interests were CAD 9.5 million compared to CAD 16.5 million a year ago.

Underground production was 455,169 tonnes (5,002 tonnes per day) at an average grade of 3.9 grams per tonne, an increase of 180,963 tonnes or 66% compared to 274,206 tonnes (3,013 tonnes per day) at an average grade of 3.8 grams per tonne in second quarter of 2016. Mill production of 50,222 ounces of payable palladium in comparison to 38,203 payable ounces produced in second quarter of 2016. Total ore mine was 656,712 tones compared to 484,877 tones a year ago. During the quarter, a total of 580,265 tonnes of ore were milled compared to 539,461 tonnes of ore milled in second quarter of 2016.

For the six months, the company reported revenue of CAD 114.6 million compared to CAD 72.4 million a year ago. Net income and comprehensive income was CAD 4.1 million or CAD 0.07 per basic and diluted share, compared to a net loss of CAD 23 million, or CAD 0.40 per basic and diluted share a year ago. Income from mining operations was CAD 11.7 million against loss from mining operations of CAD 17.7 million a year ago. Cash provided by operations was CAD 36.4 million compared to cash used in operations of CAD 2.2 million a year ago. Additions to mining interests were CAD 25.8 million compared to CAD 29.4 million a year ago.

Payable production for the six months ended June 30, 2017 was 90,474 ounces.

The company's 2017 guidance of palladium production between 180,000 and 190,000 ounces of palladium at an average AISC cost of $700-720 per ounce remains unchanged. Third quarter production will be slightly impacted by planned rehabilitation work in the underground ore bins which will reduce production over a 3 week period.