May 6 (Bloomberg) -- North American Palladium Ltd., the operator of a precious-metals mine in Ontario, fell the most in two years after saying its 2013 output targets will be “difficult” to achieve and it may seek financing this quarter.
North American Palladium dropped 18 percent to C$1.13 at the close in Toronto, the biggest decline since May 10, 2011.
Chief Executive Officer Phil du Toit and Chief Financial Officer David Langille are reviewing the operating plans at its Lac des Iles mine, the Toronto-based company said today in its first-quarter earnings statement. Du Toit and Langille both joined the company this year.
“Preliminary findings identified some negative trends in operations and capital expenditures that are currently being assessed,” the company said. “Management believes that the low end of the 150,000 to 160,000 ounce production guidance will be difficult to achieve, and could potentially decrease by about 10 percent to 15 percent.”
The review, which is expected to be completed by the end of June, also showed that the cost of completing the first phase of a new shaft has been underestimated, the company said.
“Recognizing that the anticipated operating cash flows are not expected to provide sufficient cash to fund capital expenditures planned for 2013, the company is currently in the process of evaluating financing opportunities and plans to access the debt and/or equity markets in the second quarter,” it said in the statement.
North American Palladium also said today that Chief Operating Officer Greg Struble has resigned effective May 15 to pursue a CEO job at another company.
To contact the reporter on this story: Liezel Hill in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com