JD400
5 years ago
'Palladium Picks'Palladium The 'Tesla Stock Of Commodities,'
Smashes Record Again
CAUTION:PALLADIUM CURRENTLY ON COKE
BLOOMBERG NEWS
05:26 PM ET 02/18/2020
No commodity is benefiting from the deadly coronavirus outbreak more than palladium.
Futures contracts for the precious metal surged as much as 8.1% to a record as Wall Street fled stocks. Investors are searching for safe havens after Apple (AAPL) warned that the virus and efforts to contain it would have its sales missing forecasts.
"Palladium has been unbelievable — it's like the Tesla stock of commodities," Edward Meir, an analyst at ED&F Man Capital Markets, said by phone. "Prices are caught up in the rally in precious metals. Whenever these metals rally, palladium tends to move as well but by a greater magnitude."
The rally in metals gathered pace around 10 a.m. as gold advanced above $1,600 an ounce. Over that full hour, volume for palladium was more than six times the average in the past 100 days for that time of day, according to data compiled by Bloomberg. Palladium delivered a 77% return over the past year, the biggest among 45 raw materials on the DCI BNP Paribas Enhanced Index.
Palladium futures for March delivery climbed 7.8% to settle at $2,497.60 an ounce at 1:01 p.m. on the New York Mercantile Exchange. Prices kept rising after the market closed Tuesday, touching $2,504.50, the highest in records going back three decades. The market was closed on Monday for a U.S. public holiday. In the spot market, the metal also reached an all-time high.
Gold futures for April delivery rose 1.1% to $1,603.60 an ounce, the highest close for a most-active contract on the Comex in New York since 2013. The tally of outstanding contracts for the metal is more than 30 times the size of palladium.
Palladium's stellar performance has been driven by expectations that stricter Chinese environmental standards will spur higher loadings of the material in cars, draining global supply that's already struggling to meet demand.
Production will trail consumption by 1.9 million ounces this year, wider than the 1.1 million ounce deficit last year, Anglo American Platinum Chief Executive Officer Chris Griffith said in a presentation.
https://www.investors.com/research/futures/palladium-tesla-stock-of-commodities-smashes-record-again/
JD400
5 years ago
Palladium’s biggest miner says market is in a bubble
Palladium prices have shot up 19% in 2020.
Elena Mazneva and Yuliya Fedorinova, Bloomberg / 29 January 2020
Palladium mining company Nornickel is shifting its production mix to more bars and less powder, in hopes to ease volatility in the market. Image: Andrey Rudakov, Bloomberg.
Palladium mining company Nornickel is shifting its production mix to more bars and less powder, in hopes to ease volatility in the market. Image: Andrey Rudakov, Bloomberg.
Financial speculators have created a bubble in palladium that’s bad for the industry, according to MMC Norilsk Nickel PJSC, the world’s biggest producer of the metal.
Nornickel is planning to take steps to ease market tightness by shifting sales to more investment-grade bars, instead of the powdered form used by industrial consumers, according to Anton Berlin, head of analysis and market development. He declined to provide exact figures of how many bars would be produced.
“The market has formed the bubble,” Berlin said in an interview in Moscow. “Underlying industrial demand is not evolving as quickly as the price move seems to indicate.”
Palladium prices have shot up 19% in 2020, fueled by speculation that mining companies won’t be able to increase supply at a time when demand for cleaner cars is increasing. The metal is a key part of autocatalysts, which filter toxic fumes, and is also valued by precious-metals investors. The price fell about 0.5% on Wednesday to $2 273 per ounce.
Powdered palladium is Nornickel’s main product, but the material isn’t used by financial investors, where demand for the metal has been strongest. By shifting its production mix to more bars and less powder, the company hopes it can ease the volatility in the market.
“A lack of ingots leads to higher lease rates, large backwardations and market turbulence,” Berlin said.
Nornickel will sell the ingots to its usual customers, who can use the metal in financial transactions, such as collateral for bank financing, Berlin said.
The record prices for palladium has revived concerns that users will start finding cheaper alternatives and encourage a switch to other metals, like platinum. Still, there’s no sign that’s happening yet because carmakers are more focused on meeting emissions targets and making electric cars, Berlin said.
The mining company will also deliver 3 tons of ingots from its palladium fund to provide short-term relief to the market, Berlin said.
Nornickel plans to produce about 85 tons (2.73 million ounces) of palladium this year.
© 2020 Bloomberg L.P.
https://www.moneyweb.co.za/news-fast-news/palladiums-biggest-miner-says-market-is-in-a-bubble/
nowwhat2
5 years ago
Wild things happening (understandably - now) within the whole "Platinum Group Metals Sector"
This 75 minute long interview link provides one with a half-decent overview
https://bit.ly/36TxpDT (which, I'm pretty sure YOU like, already possess but which others might benefit from listening to)
Anyways,
Last post on this NAM (for example) was 2 years ago ?
There are all kinds of companies (well actually 3 or 4) whose stock charts have "sprung to life"..........
NAM may be (an insignificant) one of them.
January 16th, 2020 Rockport, ON, Canada – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J) is pleased to announce that it has entered into an agreement with IBK Capital Corp. to assist the company in evaluating strategic alternatives to maximize shareholder value. IBK Capital Corp. will work to develop strategies to unlock what New Age Metals’ management and Board of Directors believe to be a significant unrecognized value in the company’s stock price.
Next day up 25 %....he-he-he - LoL
GENMF
NKORF
WHY ???....
The Platinum Group Metals stocks have been going bonkers due to recent spot prices
6 months ago :
Broke thru that level of resistance
https://genmining.com/site/assets/files/3691/gen-cp-2020-01-16.pdf
Bottom-Line question I guess tho is - Just who's gonna be The Next North American Palladium ?
Who's gonna BE the next company who receives a buyout offer ?
JD400
5 years ago
North American Palladium and Impala Platinum Announce Creation of Impala Canada
Mining News - Published on Thu, 19 Dec 2019
North American Palladium Ltd announced the successful completion of its previously announced plan of arrangement under the Canada Business Corporations Act with Impala Platinum Holdings Limited. Pursuant to the Arrangement, Implats has acquired 100% of the outstanding common shares of the Company for a total cash consideration of approximately CAD 1.0 billion. Upon completion of the Arrangement, NAP became a wholly-owned subsidiary of Implats. With the acquisition of NAP, Implats has strengthened its competitive position by adding the Lac des lies Mine to its asset portfolio. The low-cost Lac des lies Mine immediately boosts Implats' value and strengthens cash flow to advance its journey toward delivering sustainable shareholder returns. It also diversifies the group's production base with a palladium-rich operation in an established, low-risk mining jurisdiction. Going forward, NAP will operate in Canada under the name Impala Canada Ltd.
The former Chief Financial Officer of NAP, Tim Hill, has been appointed Chief Executive Officer of Impala Canada. The NAP corporate office in Toronto will become the regional office for Implats, while NAP's finance and exploration offices will remain in Thunder Bay, Ontario.
Source : Strategic Research Institute, SteelGuru
JD400
5 years ago
North American Palladium and Impala Platinum Announce Completion of Arrangement and Creation of Impala Canada
9:30 am ET December 13, 2019 (Globe Newswire) Print
North American Palladium Ltd. ("NAP" or the "Company") TSX:PDL OTC PINK:PALDF is pleased to announce the successful completion of its previously announced plan of arrangement under the Canada Business Corporations Act (the "Arrangement") with Impala Platinum Holdings Limited ("Implats"). Pursuant to the Arrangement, Implats has acquired 100% of the outstanding common shares of the Company for a total cash consideration of approximately C$1.0 billion.
Upon completion of the Arrangement, NAP became a wholly-owned subsidiary of Implats. With the acquisition of NAP, Implats has strengthened its competitive position by adding the Lac des Iles Mine to its asset portfolio. The low-cost Lac des Iles Mine immediately boosts Implats' value and strengthens cash flow to advance its journey toward delivering sustainable shareholder returns. It also diversifies the group's production base with a palladium-rich operation in an established, low-risk mining jurisdiction. Going forward, NAP will operate in Canada under the name Impala Canada Ltd. ("Impala Canada").
"Impala Canada will accelerate our progress against a number of key strategic imperatives," stated Nico Muller, CEO and Executive Director of Implats. "The acquisition is an important development in the evolution of the Implats Group into a sustainable PGM producer. Over the past three years we have developed a strong understanding of the Canadian operation and its management team and are encouraged by its focus on palladium, its reliable growth potential, its highly engaged team and the revenue-generating potential of the Lac des Iles Mine. This acquisition is a positive development for Implats and our stakeholders."
The former Chief Financial Officer of NAP, Tim Hill, has been appointed Chief Executive Officer of Impala Canada. The NAP corporate office in Toronto will become the regional office for Implats, while NAP's finance and exploration offices will remain in Thunder Bay, Ontario.
Mr. Hill commented, "We are proud to play a significant role within a larger, integrated global PGM producer. We are confident that Lac des Iles will continue to be one of Canada's largest, lowest-cost and safest underground mines, producing a metal that contributes to a cleaner global environment. We look forward to benefiting from the technical, operational and financial resources of a global company as we continue to pursue our palladium production, development and exploration objectives in Canada."
The Arrangement was approved by NAP's shareholders at a special meeting held on December 4, 2019, and by the Ontario Superior Court of Justice (Commercial List) on December 9, 2019. Under the terms of the Arrangement, shareholders of NAP, other than Brookfield Business Partners L.P. (together with its institutional partners), will receive C$19.74 per NAP common share in cash, and Brookfield Business Partners L.P., as the majority shareholder of NAP, will receive C$16.00 per NAP common share in cash.
The Company expects that its common shares will be delisted from the Toronto Stock Exchange on or about December 16, 2019, and the Company intends to promptly apply to cease to be a reporting issuer in each of the provinces and territories of Canada. Implats trades on the JSE Limited (JSE: IMP). Implats shares may also be traded via sponsored level 1 ADR programme (IMPUY) (IMPUF) (U.S.:OTC).
A copy of Implat's early warning report will appear on the Company's profile on SEDAR at www.sedar.com.
Arrangement Questions
Registered NAP shareholders who have questions or require assistance with submitting their shares to the Arrangement may direct their questions to Computershare Trust Company of Canada, who is acting as depositary under the Arrangement, toll-free at 1-800-564-6253 or by email at corporateactions@computershare.com. Non-registered NAP shareholders should contact their broker or other intermediary with any questions or for instructions or assistance with submitting their shares for the Arrangement. Further information regarding the Arrangement is available in the Company's management information circular dated November 1, 2019, which is available under NAP's profile on SEDAR at www.sedar.com.
Thanks
JD400
5 years ago
Some of us did pretty good if you added to your left over RS 0.30 cent shares when the company got back on track a couple a years ago.
Most of my buys were between 4.50 7.50
I did pretty good and had a lot of fun here to boot.
It's been a great honor to be the end run mod here. I just want to thank you all for all the helps and inspirations you have given me along the way. <3
I've met so many wonderful people here and shared with some many old friends, Look at all the people that have posted on this board.
Everyone's been here at some point in their posting career it seems.
Sad to see the board come to a end in a lot of ways,
Thanks again and Great Job everyone <3
J:D
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
$PALDF Weeeeeeeeeeee Ewoooo Hoooo Ahaaa Haaaa $19.74 Approved
$PALDF North American Palladium Announces Voting Results From Special Meeting of Shareholders
11:27 am ET December 4, 2019 (Globe Newswire) Print
North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) today announced the positive outcome of the shareholder ("Shareholders") vote at today's special meeting (the "Meeting") of the Shareholders regarding the previously announced arrangement (the "Arrangement") pursuant to which a subsidiary of Impala Platinum Holdings Limited (the "Purchaser") will acquire all of the issued and outstanding common shares of the Company (the "Shares") by way of a plan of arrangement. Under the terms of the Arrangement, shareholders of NAP other than Brookfield (defined below), will receive C$19.74 per Share in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively "Brookfield"), as the majority shareholder of NAP, will receive C$16.00 per Share in cash.
Approximately 96.69% of the Shares voted at the Meeting voted in favour of the special resolution approving the Arrangement. Details of the voting results will be filed under the Company's profile on SEDAR www.sedar.com.
NAP will apply for a final order of the Ontario Superior Court of Justice (Commercial List) for approval of the Arrangement on December 9, 2019. Closing of the transaction remains subject to certain customary closing conditions including court approval and the receipt of the remaining required regulatory approvals. Assuming the satisfaction of these closing conditions, the transaction is expected to close on or around December 13, 2019. Following the completion of the Arrangement, the Company will be de-listed from the Toronto Stock Exchange and the Company will make the respective applications to the relevant securities regulatory authorities in Canada to cease to be a reporting issuer for the purposes of securities legislation.
Shareholders who have questions or require assistance with submitting their Shares to the Arrangement may direct their questions to Computershare Trust Company of Canada, who is acting as depositary under the Arrangement, toll free at 1-800-564-6253 or by email at corporateactions@computershare.com. Further information regarding the Arrangement is available in the management information circular of the Company dated November 1, 2019, which is available under NAP's profile on SEDAR at www.sedar.com.
$IMPUY new owners
JD400
5 years ago
$PALDF North American Palladium Announces Voting Results From Special Meeting of Shareholders
11:27 am ET December 4, 2019 (Globe Newswire) Print
North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) today announced the positive outcome of the shareholder ("Shareholders") vote at today's special meeting (the "Meeting") of the Shareholders regarding the previously announced arrangement (the "Arrangement") pursuant to which a subsidiary of Impala Platinum Holdings Limited (the "Purchaser") will acquire all of the issued and outstanding common shares of the Company (the "Shares") by way of a plan of arrangement. Under the terms of the Arrangement, shareholders of NAP other than Brookfield (defined below), will receive C$19.74 per Share in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively "Brookfield"), as the majority shareholder of NAP, will receive C$16.00 per Share in cash.
Approximately 96.69% of the Shares voted at the Meeting voted in favour of the special resolution approving the Arrangement. Details of the voting results will be filed under the Company's profile on SEDAR www.sedar.com.
NAP will apply for a final order of the Ontario Superior Court of Justice (Commercial List) for approval of the Arrangement on December 9, 2019. Closing of the transaction remains subject to certain customary closing conditions including court approval and the receipt of the remaining required regulatory approvals. Assuming the satisfaction of these closing conditions, the transaction is expected to close on or around December 13, 2019. Following the completion of the Arrangement, the Company will be de-listed from the Toronto Stock Exchange and the Company will make the respective applications to the relevant securities regulatory authorities in Canada to cease to be a reporting issuer for the purposes of securities legislation.
Shareholders who have questions or require assistance with submitting their Shares to the Arrangement may direct their questions to Computershare Trust Company of Canada, who is acting as depositary under the Arrangement, toll free at 1-800-564-6253 or by email at corporateactions@computershare.com. Further information regarding the Arrangement is available in the management information circular of the Company dated November 1, 2019, which is available under NAP's profile on SEDAR at www.sedar.com.
$IMPUY
JD400
5 years ago
Implats expects merger with NAP to be finalised by mid-December
26th November 2019
By: Marleny Arnoldi
Creamer Media Online Writer
JSE-listed Impala Platinum (Implats) has progressed with due diligence for the acquisition of outstanding shares in TSX-listed North American Palladium (NAP).
The $758-million, or R11-billion, merger has been approved by the Canadian and German competition authorities, as well as the South African Reserve Bank in terms of exchange control regulations.
The transaction remains subject to majority acceptance by NAP’s shareholders and approval by the Ontario Superior Court of Justice.
NAP shareholders will vote on the merger on December 4, after which the companies’ plan of arrangement will be submitted to the court for approval by December 9.
Implats had signed a bridge facility for the funds with Morgan Stanley Senior Funding, Nedbank’s London branch, RMB International in Mauritius and Standard Bank’s Isle of Man branch.
Implats expects the transaction to be concluded on or about December 13.
https://www.miningweekly.com/article/implats-expects-merger-with-nap-to-be-finalised-by-mid-december-2019-11-26
JD400
5 years ago
North American Palladium Reports Q3 2019 Record EBITDA¹
November, 07, 2019
Download PDF Format (opens in new window)
TORONTO, Nov. 07, 2019 (GLOBE NEWSWIRE) -- North American Palladium Ltd. ("NAP" or the"Company") (TSX:PDL) (OTC PINK:PALDF) today announced financial and operational results for the three and nine months ended September 30, 2019.
Third Quarter Highlights
Record revenue: Based on 59,611 ounces of palladium sold at an average palladium price of US$1,587, revenue for the quarter increased to $149.9 million compared to $93.6 million for the same period in 2018. This is the highest quarterly revenue in the Company’s history. Revenue for the first nine months of the year was $413.8 million based on 172,507 payable ounces of palladium sold.
Strong growth in net income: Net income was $41.4 million, or $0.70 per share, compared to $22.9 million, or $0.39 per share, reported for Q3 2018. Year-to-date net income was $107.5 million, or $1.83 per share.
Solid free cash flow1: Free cash flow for the quarter was $37.3 million, an increase from $18.2 million in Q3 2018; with year-to-date free cash flow at $127.9 million.
Record EBITDA: Adjusted EBITDA increased to $82.0 million, up from $38.0 million in Q3 2018. For the first nine months of the year, adjusted EBITDA was at $216.6 million.
Record production: Underground production averaged 7,410 tonnes per day (“tpd”) for the quarter, the highest in the Company’s history. This is a significant increase compared to the 6,144 tpd produced in Q3 2018.
On October 7, 2019, NAP entered into a definitive arrangement agreement (the “Arrangement Agreement” with Impala Platinum Holdings Limited (“Implats”) pursuant to which Implats will acquire 100% of NAP’s issued and outstanding common shares for a total cash consideration of approximately C$1.0 billion (the “Transaction”). A special meeting of shareholders has been called for December 4, 2019 to approve the Transaction.
“We are pleased to report a fourth consecutive quarter of record revenue, resulting in our highest-ever adjusted EBITDA of $82 million,” said Jim Gallagher, President and CEO.
“North American Palladium and our Lac des Iles Mine also set new records in Q3 2019 by marking 365 days (and still counting) without a Lost-Time Injury and winning the distinction of the President’s Award for Health and Safety Excellence in Mining from Workplace Safety North. We are proud that our commitment to safety has been recognized by the industry.”
Implats Acquisition
During the quarter, NAP entered into a definitive Arrangement Agreement with Implats pursuant to which Implats will acquire 100% of NAP’s issued and outstanding common shares for total cash consideration of approximately C$1.0 billion. The Transaction delivers attractive value to NAP shareholders and reflects the five years of hard work the NAP team has dedicated to realizing the potential of LDI and the Company’s other exploration assets.
The Transaction will require approval by at least 66 2/3% of the votes cast by NAP shareholders present at a special meeting of NAP shareholders, which will be held on Wednesday, December 4, 2019. In connection with the Transaction, Implats has entered into customary voting support agreements with Brookfield as well as each of NAP’s directors and executive officers. In addition to shareholder approval, the Transaction is subject to the receipt of certain other customary regulatory, court and stock exchange approvals.
Under the terms of the Arrangement Agreement, shareholders of NAP other than Brookfield (defined below), will receive C$19.74 per NAP common share (the “Minority Shareholder Consideration”) in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively “Brookfield”), as the majority shareholder of NAP, will receive C$16.00 per NAP common share in cash. The Minority Shareholder Consideration represents a premium of 15% to NAP's 30-day volume-weighted average price and 23% to NAP's 60-day volume-weighted average price on the Toronto Stock Exchange (“TSX”) as of October 4, 2019, the last trading day prior to the announcement of the Transaction.
Dividend
The Board has discontinued the quarterly dividend as a result of and in connection with the previously announced Transaction.
see the whole report here
https://www.nap.com/investors/news/news-details/2019/North-American-Palladium-Reports--Q3-2019-Record-EBITDA/default.aspx
JD400
5 years ago
Implats opts to expand footprint outside Africa
Invests R11bn in ‘mining-friendly’ Canada, a country with reliable and cheap electricity.
Adriaan Kruger / 10 October 2019 00:21
Demand for palladium has increased much faster than that of platinum in recent years.
Implats’s past overtures outside South Africa have been nothing to brag about. Its investment in Zimbabwe a few decades ago was a source of concern whenever Implats faced its shareholders, while the small investment in an exploration project in Canada has attracted little attention from analysts and shareholders over the last 20 years or so.
Read: Impala Platinum swings to profit, delays closure of shafts
At first glance, the announcement that it decided to acquire North American Palladium – one of its partners in the Sunday Lake exploration project – did not seem significant. The smallish mine near Hudson Bay in Canada produced only 262 000 ounces of platinum group metals (PGMs) in its last financial year compared to the 1.3 million ounces that Implats produced in its financial year to June 2019.
However, several aspects of the acquisition of North American Palladium show how important the investment is.
The first clue is in the name: it is a palladium rather than platinum mine.
Palladium accounted for 232 000 ounces of the total 262 000 ounces of PGMs it produced in the year to June.
In a video conference to mining analysts and investors around the globe, Implats CEO Nico Miller listed the attraction of palladium as the biggest motivation for its interest in North American Palladium.
“The palladium-rich ore body at [its] Lac des Iles mine will improve Implats’s commodity mix to more closely match the current and expected demand of the different platinum group metals,” he said. “It will increase our exposure to the global palladium market and the current strong prices of palladium without increasing the total global supply of palladium.”
Market demand
Implats produces nearly twice as much platinum (1.4 million ounces) as palladium (770 000 ounces) as South African ore bodies naturally contain more platinum than palladium. In contrast, the market demand for palladium has increased much faster than that of platinum in recent years.
According to the authoritative Johnson Matthey, market demand for palladium has far exceeded the demand for platinum. The demand for palladium increased 8% during 2018 to 6.9 million ounces, while the demand for platinum has remained unchanged during the last four years at 6.1 million ounces.
This is also reflected in world prices. The price of palladium increased sharply over the past year, by 54% from $1 084 per ounce a year ago to the current $1 674 per ounce. Platinum prices increased by only 8% from $826 per ounce to $893 per ounce over the same period. The increase in the price of palladium is even more profound over the last six years.
Balance adjustment
While the investment in North American Palladium will add only some 14% to Implats’s total PGM output, it increases the production of the more valuable palladium by more than 30%.
Miller also pointed out that North American Palladium is a highly mechanised mine, employing only 700 workers. Operating costs are much lower, at an all-in sustainable cost of $781 per ounce compared to Implats’s cost of nearly $1 600 per platinum ounce for its mines in SA.
“The acquisition will go a long way to reposition Implats as a lower-cost producer,” says Miller.
It seems the opportunity came at just the right time for Implats. It had a few good years and built up a bit of cash, repaid a lot of debt earlier than anticipated and accumulated a few billion rands worth of its own shares through buyback programmes – probably at prices way less than the current share price given the sharp increase of more than 285% over the last year.
All this will go towards settling the acquisition price of $758 million, equal to nearly R11.4 billion.
The deal was apparently welcomed by North American Palladium shareholders. The major shareholders were offered a premium of 16% above the weighted average market price, while minority shareholders stand to receive a premium of 23% to the market price.
Of further interest are the other – mostly unmentionable – reasons for the transaction.
When mentioning that Canada is a country friendly to the mining industry, Implats says by implication that SA is not very investor-friendly or welcoming to mining companies.
Years of uncertainty around mining policy, mineral rights, the troublesome Mining Charter, militant unions, political interference, criminal activities and electricity shortages probably all added up to nudge Implats towards Hudson Bay.
SA will effectively miss out on a capital investment of R11 billion if one argues that Implats could have elected to invest in SA instead.
Implats also stated in the announcement of the acquisition that the life of the Lac des Iles mine will be increased from the current nine years to 15 years, which means the directors are open to spending more money offshore, rather than in SA. Implats has limited its capital expenditure in SA during the last few years to reduce its exposure to these higher-cost operations.
Stimulus
In addition, the latest acquisition increases Implats’s interest in the small but important Sunday Lake exploration project, and adds a bit of stimulus to the project as it is only some 60km away from the larger mine.
The investment of R11.4 billion is equal to around 15% of Implats’s current market capitalisation. Overall, it looks like a good deal. The weighted average consideration payable to the majority and minority shareholders in North American Palladium amounts to C$16.71 per share, which represents a price-earnings ratio of 14.9 times compared to Implats’s of 24.4 times.
Implats share up more than 285% in the past year
$PALDF
$IMPUY
https://www.moneyweb.co.za/news/companies-and-deals/implats-opts-to-expand-footprint-outside-africa/
JD400
5 years ago
NAPs neighbor to the South news
Benton and Rio Tinto Replace Purchase and Sale with Option to Acquire 100% Ownership of the Escape Lake Property
8:34 am ET October 10, 2019 (Newsfile) Print
Thunder Bay, Ontario--(Newsfile Corp. - October 10, 2019) - Benton Resources Inc. (TSXV: BEX) ('Benton' or 'the Company') is pleased to announce that Rio Tinto Exploration Canada Inc. (RTEC) and the Company have agreed to terminate the purchase agreement signed on July 2, 2019 (see NR dated July 2, 2019) and replace it with an option agreement pursuant to which RTEC will grant Benton the option to acquire a 100% ownership interest in the Escape Lake property, subject to a 1% net smelter return royalty to be retained by RTEC, in exchange for payment of $6 million by Benton to RTEC over a three year period as set out below. The option agreement is conditional on receipt of regulatory approval.
Option Terms
Benton will now have the option to acquire the Escape Lake property by paying C$6 million over four installments as follows:
C$3.0 million due on signing, immediately following receipt of regulatory approval
C$1.0 million on the first anniversary of the signing of the agreement
C$1.0 million on the second anniversary of the signing of the agreement and
C$1.0 million on the third anniversary of the signing of the agreement
Stephen Stares, President and CEO, stated: "We are delighted to have renegotiated the agreement with RTEC which provides Benton with ample time to start exploration drilling as soon as permits are in place without suffering dilution to raise the full $6 million up front. While Benton has cash in-hand to complete the initial option payment and to commence drilling, we are working diligently to secure possible financiers and or partners to complete the remaining payments. With the project located only 50 km from the Company's office in Thunder Bay, the project is well-situated to aggressively move forward. In addition, the project lies approximately 60 km south of North American Palladium's (NAP) Lac des Illes Mine and less then 10 km east of NAP/Transition Metals' Sunday Lake Intrusion".
Drilling highlights on the 220 hectare Escape Lake Property include:
121.6 m @ 2.49 g/t Pt+Pd+Au (1.04g/t Pt + 1.37g/t Pd + 0.07g/t Au) and 0.86% Cu+Ni (0.52% Cu + 0.34% Ni), incl. 33.4 m of 7.28 g/t Pt+Pd+Au (3.01g/t Pt + 4.08g/t Pd + 0.19g/t Au) and 2.26% Cu+Ni (1.49% Cu + 0.77% Ni) in drill hole 12CL0009, and 162 m @ 1.42 g/t Pt+Pd+Au (0.61g/t Pt + 0.76g/t Pd + 0.06g/t Au) and 0.47% Cu+Ni (0.28% Cu + 0.19% Ni), incl. 40.67 m 4.5 g/t Pt+Pd+Au (1.92g/t Pt + 2.48g/t Pd + 0.18g/t Au) and 1.26% Cu+Ni (0.89% Cu + 0.36% Ni) in drill hole 11CL0005.
QP
Nathan Sims (P.Geo.), Senior Exploration Manager for Benton Resources Inc., the 'Qualified Person' under National Instrument 43-101, has approved the scientific and technical disclosure in this news release and prepared or supervised its preparation.
On behalf of the Board of Directors of Benton Resources Inc.,
"Stephen Stares"
Stephen Stares, President
About Benton Resources Inc.
Benton Resources is a well-funded Canadian-based project generator with a diversified property portfolio in Gold, Silver, Nickel, Copper, and Platinum group elements. Benton holds multiple high-grade projects available for option which can be viewed on the Company's website. Most projects have an up-to-date 43-101 Report available.
JD400
5 years ago
Hunt for palladium riches sends South African miners abroad
8th October 2019
By: Bloomberg
JOHANNESBURG – Southern Africa is home to the world’s richest platinum deposits, but when Impala Platinum Holdings pondered how to invest its windfall profits it chose North America instead.
The acquisition of North American Palladium is partly a bet on platinum’s sister metal palladium continuing to rally, while Implats CEO Nico Muller has also stressed the appeal of a relatively quick payback from low-cost, mechanised assets. However, the deal is also a geopolitical play as the Johannesburg-based miner seeks to balance exposure to its more volatile home region.
“The diversification into North America provides a hedge against some of the socio-economic, political and structural risks the company faces in South Africa and Zimbabwe,” said Christopher Nicholson, an analyst at RMB Morgan Stanley.
The transaction comes three years after Sibanye Gold bought Montana-based Stillwater Mining, but Implats’s first deal outside southern Africa also echoes trends in the country’s gold industry. AngloGold Ashanti is selling its last remaining South African assets as it turns its back on deep-level mines in favor of more profitable deposits in West Africa, Australia and South America.
While South Africa’s platinum operations are far more robust than the nation’s gold mines, and Implats returned to profit this year on the back of record palladium prices and a weaker rand, its decision highlights some of the wider industry challenges.
Anglo American CEO Mark Cutifani last week said there are no shortage of geological opportunities in South Africa, but to attract investment requires political stability and regulatory clarity. The “parlous state” of public finances also remains a challenge, he said, adding that miners must work with the government to tackle unresolved issues in the nation’s Mining Charter, which seeks to address inequalities resulting from apartheid.
“There are many other factors besides mineral endowment that influence where investors decide to put their money, all of which drive reassurance to investors about the security of their investment over time,” Cutifani said.
While Implats had investment options in South Africa, the longer payback period involved in building a new mine was a deterrent.
“If you want exposure to a producing asset, you would have to look at North America or Russia,” said Mandi Dungwa, an analyst at Kagiso Asset Management in Cape Town. “If you are trying to reduce risk, Canada is a very attractive mining jurisdiction compared to some of the issues we have here.”
Anglo American Platinum CEO Chris Griffith said last week that South Africa’s government needs to resolve the issue of community disruptions around mines, which is leading to huge losses for producers. Labour disputes, crime and xenophobia are deterring investors, while policy differences between government and ruling African National Congress are also a concern, he said.
Sibanye, which became the largest platinum miner after acquiring Lonmin earlier this year, may move its primary listing from South Africa because of increasing uncertainty, CEO Neal Froneman said in March.
Geographical diversification is a secondary consideration, but has its advantages, said Implats CEO Muller. That includes the absence of power cuts, which have plagued South African industry as State-owned utility Eskom Holdings struggled to meet demand.
“We don’t have exposure to Eskom that side, there is lower risk associated with availability of cheap water and of course we are to a large extent shielded from the economic crisis we are experiencing in Zimbabwe,” Muller said.
Despite the challenges in southern Africa, not everyone is convinced by Implats’s overseas venture.
The deal could prove costly should palladium prices fall, according to Johann Steyn, an analyst at Citigroup. Steyn said Implats could have bought Royal Bafokeng Platinum to exploit synergies from mines adjacent to its own Rustenburg operations.
“If we are correct in our forecast that palladium will revert back to a long-term average of $850/oz, then this deal could turn out to be value destructive,” Steyn said. “If it holds, then a lot of value will be created.”
Palladium traded at about $1 645/oz as of 2:11 p.m. in London, after climbing to a record of $1 701.93/oz last week. Implats has almost tripled in value this year, making it the best performer on the Johannesburg stock exchange. The shares were up 0.2% on Tuesday.
While Implats CEO Muller said the profitability of NAP will help the company reinstate dividends, it should have prioritized making payouts, according to Rene Hochreiter, an analyst at Noah Capital Markets.
“Maybe there aren’t many assets out there, but I would have spent the money on something better,” Hochreiter said. “It’s time for them to start paying dividends instead of blowing the money on expensive acquisitions.”
$IMPUY
$PALDF
https://www.miningweekly.com/article/hunt-for-palladium-riches-sends-south-african-miners-abroad-2019-10-08
JD400
5 years ago
South African Impala Platinum offers $1 billion for North American Palladium
[The Canadian Press]
The Canadian PressOctober 7, 2019
A $1-billion sales agreement announced Monday represents the culmination of a six-year turnaround for Toronto-based miner North American Palladium Inc., its president and CEO says.
On a conference call to discuss the deal to sell the company to South African miner Impala Platinum Holdings Ltd., Jim Gallagher said NAP was in severe financial distress following a poorly executed mine expansion in 2013 when financier Brookfield Capital Partners stepped in with a US$130-million loan.
In 2015, with the company still struggling, Brookfield converted its loan to equity to become the majority owner, on the understanding that it would sell its stake when the turnaround was complete.
"That day has come today. We have a sale of the company in an all-cash deal at near-record palladium prices and, except for a two-day blip in March of this year, at near-record high share prices," said Gallagher on a conference call to discuss the deal.
"From virtual bankruptcy four years ago, we now have a sale to the tune of $1 billion."
Impala Platinum, which uses the nickname Implats, has offered to pay $16 per share to Brookfield Business Partners LP, the majority shareholder with 81 per cent of the stock, and $19.74 per share for the remaining stake, resulting in an average price per share of $16.77.
Negotiations with Implats began in July and the companies had unofficially set a price of around $16 per share, Gallagher explained. The higher price for minority shareholders was agreed upon in recognition of the more recent rise in share prices.
North American Palladium has been producing palladium, a lustrous white material valued for its use in pollution-control devices for cars and trucks, for 25 years at its Lac des Iles Mine at Thunder Bay, Ont. It's also involved in two exploration projects.
“Implats has had an exploration presence in Canada for more than two decades and over the past three years we have developed a strong relationship with and understanding of NAP and its management team and operations," said CEO Nico Muller in a news release.
"It is Implats' view that the palladium market will remain in a structural deficit in the medium term, which should lend considerable support to stronger-for-longer pricing."
Implats said it was attracted to North American Palladium because of its fully mechanized mine, which means low labour costs and leading safety statistics, an estimated mine life of at least 15 years, and its future exploration opportunities. About 700 people work at the mine.
The companies have agreed to a 30-day period during which a termination fee of $24.5 million would be payable to Implats if a higher bid is accepted, with the fee increasing to $37.7 million thereafter. Implats would have the right to match any offer.
Closing of the transaction is expected in the fourth quarter, subject to North American Palladium shareholder approval and other customary conditions.
This report by The Canadian Press was first published Oct. 7, 2019.
Companies in this article: (TSX:PDL)
Dan Healing, The Canadian Press
https://ca.finance.yahoo.com/news/south-african-impala-platinum-offers-191814225.html
JD400
5 years ago
News Reel Brookfield Business Partners Sees $130 Million Proceeds From Implats Deal
12:09 pm ET October 7, 2019 (Dow Jones) Print
By Colin Kellaher
Brookfield Business Partners L.P. (BBU) on Monday said it expects after-tax proceeds of about $130 million from the sale of its stake in North American Palladium Inc. (PDL.T) to Impala Platinum Holdings Ltd. (IMP.JO).
North American Palladium, a Toronto-based pure-play palladium producer, has agreed to be acquired by the South African miner known as Implats for about $750 million.
Brookfield, the listed business-services and industrials arm of Brookfield Asset Management Inc. (BAM), said the company and its institutional partners will receive total proceeds of roughly $570 million for their 81% stake in North American Palladium.
Brookfield Business Partners said it expects after-tax proceeds of about $130 million. The company, which recapitalized and acquired control of North American Palladium in 2015, said it expects the transaction to close by the end of the year.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 07, 2019 12:09 ET (16:09 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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Brookfield Business Partners to Sell Controlling Interest in North American Palladium
11:45 am ET October 7, 2019 (Globe Newswire) Print
Brookfield Business Partners L.P. (NYSE: BBU) (TSX:BBU.UN) ("Brookfield Business Partners"), together with its institutional partners (collectively "Brookfield"), today announced an agreement to sell its 81% interest in North American Palladium Inc. (TSE: PDL) ("NAP"), a Canadian mining company and the only pure-play palladium producer in the world, to Impala Platinum Holdings Limited (JSE: IMP) ("Implats").
Implats has agreed to acquire all the issued and outstanding shares of NAP held by Brookfield for total proceeds of approximately $570 million. The agreement is part of a broader transaction whereby Implats will also acquire the remaining 19% of NAP's issued and outstanding shares not held by Brookfield.
Since Brookfield recapitalized NAP and acquired control of the company in 2015, NAP has completed a successful operational turnaround resulting in consistently strong earnings, significantly increased palladium production and mine life, growth of reserves through exploration activities, and reduced costs. Palladium demand has remained robust, supported by strong demand from the auto industry for use in catalytic converters that support reduced emissions.
Sale proceeds to Brookfield Business Partners for its 20% ownership interest in NAP are approximately $130 million, after taxes.
Transaction Process
Closing of the transaction is subject to NAP shareholder approval and customary closing conditions and is expected to occur in Q4 2019.
Brookfield Business Partners is a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs.
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with more than US$500 billion of assets under management. More information is available at www.brookfield.com.
Brookfield Business Partners is listed on the New York and Toronto stock exchanges. Important information may be disseminated exclusively via the website; investors should go to https://bbu.brookfield.com to access this information.
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Impala Platinum Holdings Limited To Acquire North American Palladium Ltd. For C$19.74/Share In Cash
11:25 am ET October 7, 2019 (Benzinga) Print
North American Palladium Ltd. ("NAP" or the “Company”) (TSX:PDL) (OTC:PALDF) is pleased to announce that it has entered into a definitive arrangement agreement (the "Arrangement Agreement") pursuant to which Impala Platinum Holdings Limited (“Implats”) (JSE:IMP) will acquire 100% of NAP’s issued and outstanding common shares for total cash consideration of approximately C$1.0 billion (the "Transaction").
Under the terms of the Arrangement Agreement, shareholders of NAP, other than Brookfield (defined below), will receive C$19.74 per NAP common share (the “Minority Shareholder Consideration”) in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively “Brookfield”), as the majority shareholder of NAP, will receive C$16.00 per NAP common share in cash. The Minority Shareholder Consideration represents a premium of 15% to NAP's 30-day volume-weighted average price and 23% to NAP's 60-day volume-weighted average price on the Toronto Stock Exchange (“TSX”) as of October 4, 2019.
The Transaction has been unanimously approved by both the board of directors of NAP and Implats.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Press Release: IIROC Trading Halt - PDL
8:17 am ET October 7, 2019 (Dow Jones) Print
IIROC Trading Halt - PDL
Canada NewsWire
TORONTO, Oct. 7, 2019
TORONTO, Oct. 7, 2019 /CNW/ - The following issues have been halted by IIROC:
Company: North American Palladium Ltd.
TSX Symbol: PDL (All Issues)
Reason: Pending News
Halt Time (ET): 8:03 AM
IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - Halts/Resumptions
View original content: http://www.newswire.ca/en/releases/archive/October2019/07/c2274.html
/CONTACT:
For further information about IIROC's trading halt policy, please see Trading Halts & Timely Disclosure (http://www.iiroc.ca/industry/marketmonitoringanalysis/Pages/Trading-Halts-Timely-Disclosure.aspx) at www.iiroc.ca under the Halts & Resumptions tab. Please note that IIROC staff cannot provide any information about a specific halt beyond what is contained in this halt notice. For general information about IIROC, contact IIROC's Complaints & Inquiries team at inquiries@iiroc.ca or 1-877-442-4322 (Option 2). For company-related enquiries, contact the company directly.
/Web site: http://www.iiroc.ca/
Copyright CNW Group 2019
(END) Dow Jones Newswires
October 07, 2019 08:17 ET (12:17 GMT)
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NAP had 8X volume today, Huge for them
Today was Good Day for $PALDF
Congrats
JD400
5 years ago
Pro-Life Thank You We knew it was just a matter of time that NAP would lose that "F"
Thought it would fetch over 1 billion but a cash sale was a steal at 751 Million, what a sweet deal IMPUY got.
I've heard of a "GO Pro" but bringing us news that our 'ship has come in' is a "Oh-Pro" hehe
Great to see you man
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$IMPUY news
UPDATE 1-S.Africa's Impala to buy North American Palladium for about $750 mln
[Reuters]
By Tanisha Heiberg
,Reuters•October 7, 2019
(Adds background, details of transaction, CEO comments)
By Tanisha Heiberg
Oct 7 (Reuters) - South Africa's Impala Platinum Holdings Ltd (Implats) said on Monday it would buy Canada-based North American Palladium Ltd for about C$1 billion ($751.77 million), marking the miner's first purchase outside of Africa.
Prices for Palladium, widely used in vehicle exhausts to reduce harmful emissions, have doubled from a low in August last year as tighter environmental regulations force carmakers to buy more of the precious metal.
"(The acquisition) not only signals our confidence in the prevailing platinum group metals (PGM) market but it also expedites our transition to a high-level multinational producer," Implats Chief Executive Officer Nick Muller said on a media call.
Implats pursued North American Palladium for three years, and the deal adds the Lac des Iles Mine in Thunder Bay, Ontario to the South African company's portfolio.
"It provides us with access to a well-established operational asset that employs bulk mining methods and occupies an attractive position on the industry cost curve," Muller said.
Canadian investment manager Brookfield Business Partners LP will get C$16 per share in cash for the about 81% of North American Palladium owned by the investor and its partners.
Other minority shareholders of the Canadian company will receive C$19.74 per share, the same price as the stock's Friday closing.
Implats said it will finance the deal using cash and a bridge loan facility. ($1 = 1.3302 Canadian dollars) (Reporting by Shariq Khan in Bengaluru and Tanisha Heiberg; Editing by Sriraj Kalluvila)
https://finance.yahoo.com/news/1-africas-impala-buy-north-164425613.html
JD400
5 years ago
Impala Platinum Holdings Limited to acquire North American Palladium Ltd.
Oct 07 2019
Download this Press Release PDF Format (opens in new window)
TORONTO, Oct. 07, 2019 (GLOBE NEWSWIRE) -- North American Palladium Ltd. ("NAP" or the “Company”) (TSX:PDL) (OTC PINK:PALDF) is pleased to announce that it has entered into a definitive arrangement agreement (the "Arrangement Agreement") pursuant to which Impala Platinum Holdings Limited (“Implats”) (JSE:IMP) will acquire 100% of NAP’s issued and outstanding common shares for total cash consideration of approximately C$1.0 billion (the "Transaction").
Under the terms of the Arrangement Agreement, shareholders of NAP, other than Brookfield (defined below), will receive C$19.74 per NAP common share (the “Minority Shareholder Consideration”) in cash and Brookfield Business Partners L.P. (together with its institutional partners, collectively “Brookfield”), as the majority shareholder of NAP, will receive C$16.00 per NAP common share in cash. The Minority Shareholder Consideration represents a premium of 15% to NAP's 30-day volume-weighted average price and 23% to NAP's 60-day volume-weighted average price on the Toronto Stock Exchange (“TSX”) as of October 4, 2019.
The Transaction has been unanimously approved by both the board of directors of NAP and Implats.
“This transaction delivers attractive value for our shareholders and reflects five years of hard work we have devoted to realize the potential of our assets. We have successfully established Lac des Iles Mine as one of Canada’s largest, lowest-cost and safest underground mines, producing a metal that contributes to a cleaner global environment,” commented Jim Gallagher, President and Chief Executive Officer of NAP. “Our employees, suppliers, customers and community stakeholders can all join me in feeling tremendous pride at this pivotal moment in our Company’s history. By becoming a significant part of a larger, integrated global producer, we will benefit from greater access to technical, operational and financial resources with which to pursue our production, development and exploration objectives in Canada.”
Terms of the Transaction
The Transaction will be carried out pursuant to the Arrangement Agreement under a court-approved statutory plan of arrangement under the Canada Business Corporations Act. The Transaction will require approval by at least 66 2/3% of the votes cast by the shareholders of NAP present at a special meeting of NAP shareholders. Implats has entered into customary voting support agreements with Brookfield as well as each of NAP’s directors and executive officers.
The Arrangement Agreement also includes customary non-solicitation provisions following the expiration of a 30-day modified go-shop period, during which period the Company and its representatives have the right to respond to bona fide expressions of interest in respect of an acquisition proposal. If NAP accepts a superior proposal during such period, the Arrangement Agreement provides that a go-shop termination fee of C$24.5 million is payable to Implats. If NAP accepts a superior proposal following the 30-day modified go-shop period, the Arrangement Agreement provides for a termination fee of $37.7 million payable to Implats. Implats has the right to match any superior proposal within 5 business days.
In addition to shareholder approval, the Transaction is subject to the receipt of certain regulatory, court and stock exchange approvals and the satisfaction of other conditions customary in transactions of this nature.
Further information regarding the Transaction will be included in the information circular that NAP will prepare, file, and mail in due course to its shareholders in connection with its special meeting to be held to consider the Transaction. The Arrangement Agreement will be filed on the SEDAR profile of NAP on the SEDAR website at www.sedar.com.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States pursuant to the United States Securities Act of 1933, as amended, or any state securities laws.
Recommendation of NAP’s Board
NAP’s board of directors has unanimously determined, after receiving financial and legal advice, that the consideration to be received by NAP’s shareholders is fair from a financial point of view and that the Transaction is in the best interests of NAP and its shareholders, and the board of directors unanimously recommends that NAP’s shareholders vote in favour of the Transaction.
The board of directors of NAP has received a fairness opinion from BMO Capital Markets that, as of the date of the opinion, and subject to the assumptions, limitations, and qualifications on which such opinion is based, the aggregate consideration to be received by shareholders as a whole pursuant to the Transaction is fair, from a financial point of view, to the shareholders as a whole.
Investor Call
NAP will host a conference call for investors at 4:00 pm (EST) on Monday, October 7, 2019. Interested parties are invited to join the call via the telephone numbers below.
Date: Monday, October 7, 2019
Time: 4:00 p.m. ET
Dial-in: North America: 1-800-319-4610 | International: 1-604-638-5340
Replay: North America: 1-855-669-9658 | International Toll-Free: 1-604-674-8052 |
Replay Passcode: 3703
Advisors and Counsel
BMO Capital Markets has provided a fairness opinion to the board of directors of NAP in connection with the Transaction. Stikeman Elliott LLP and Webber Wentzel are acting as NAP’s legal advisors in connection with the Transaction.
Macquarie Capital Markets Canada Ltd. and Macquarie Advisory and Capital Markets South Africa (Pty) Ltd are acting as financial advisors to Implats and its Board of Directors. Baker McKenzie is acting as Implats’ legal advisors in connection with the Transaction.
About NAP
NAP is a Canadian company with 25 years of production at the Lac des Iles Mine in a low-risk jurisdiction northwest of Thunder Bay, Ontario. North American Palladium is the world’s only pure play palladium producer. With over 700 employees, the Lac des Iles Mine features a unique, world-class ore body and modern infrastructure, including both an underground mine and surface operations.
About Implats
Impala is one of the world’s foremost producers of platinum and associated platinum group metals. Impala is currently structured around five main operations with a total of 20 underground shafts. Its operations are located within the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, the two most significant platinum group metal bearing ore bodies in the world.
https://www.nap.com/investors/news-releases/news-releases-details/2019/Impala-Platinum-Holdings-Limited-to-acquire-North-American-Palladium-Ltd/default.aspx
JD400
5 years ago
Implats to acquire North American Palladium for R11.4bn cash
Photo by Creamer Media
Nico Muller
7th October 2019
By: Martin Creamer
Creamer Media Editor
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JOHANNESBURG (miningweekly.com) – Platinum group metals mining company Impala Platinum (Implats) on Monday entered into a definitive agreement to acquire 100% of the outstanding shares in North American Palladium Limited for close to R11.4-billion.
North American Palladium (NAP), a company headquartered in Toronto, Canada, primarily mines and explores for palladium.
Listed on the TSX and the US OTC market, NAP wholly owns and operates the Lac des Iles Mine, northwest of Thunder Bay, Ontario, and also has an ownership in two Canadian exploration properties, the Sunday Lake Project and Shebandowan Joint Venture.
In operation since 1993, Lac des Iles is a platinum group metals (PGM) producer, which in 2018 produced 237 461 oz of palladium at an all-in sustaining cost (AISC) of $690/oz. The operation is on track to meet its 2019 production guidance of 220 000 to 235 000 oz of palladium at an AISC of $785/oz to $815/oz produced.
Implats CEO Nico Muller said the transaction would expedite Implats’ transition to becoming a multinational producer, allowing the company to capitalise on expected medium-term deficits in the palladium market.
He added that the deal provided access to an established 700-employee, round-the-clock operational asset, which employs bulk-mining mechanised methods and occupies an attractive position on the industry cost curve.
“History has shown us that it is important to develop in-country leadership. We don’t have a very attractive success record of exporting South Africans to head up operations. I say this particularly with regard to NAP, where we do have very strong leadership,” Muller said in response to Mining Weekly Online.
“What is important is that we develop strong alignments and integration between the South African head office, operations and Canada. The company has been very impressed with the leadership and operational teams… and we’d like to keep it pretty much the same and retain key management. What we will do is manage the transition very carefully and look at governance practices being embedded into NAP, so we will send a small transition team to manage that process.”
Payback period at current spot prices is expected to be less than three years.
https://www.miningweekly.com/article/implats-to-acquire-north-american-palladium-for-r114bn-cash-2019-10-07
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