How Mining Stocks make a difference

Learn everything you need to know in 'The Complete Guide to Mining Stocks' for FREE from The Successful Investor.

Best Canadian Mining Stocks TSX: Plus Gold Stocks, Canadian Diamond Mines and more.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

Topic: Mining Stocks

High debt threatens this junior miner

Real Estate Investing

Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.

North American Palladium (symbol PDL on Toronto; www.napalladium.com) owns the Lac des Iles palladium mine near Thunder Bay. It also owns the Vezza gold project in Quebec’s Abitibi region.

Palladium is mainly used in catalytic converters for automobiles, as well as in jewellery.

In 2014, the company’s revenue rose 43.7%, to $220.1 million from $153.2 million in 2013. The increase came from higher palladium production and sales, higher palladium prices and more favourable exchange rates. Cash flow per share jumped to $0.12 from $0.04.

Lac des Iles is forecast to produce 185,000 to 205,000 ounces of palladium in 2015, up from 174,194 ounces in 2014.


Aggressive investing, the conservative way

The investor’s dream—catch a rising stock that will pay off, and not come crashing down. That’s what subscribers to Stock Pickers Digest discover: rising stocks they can invest in with confidence. They get Pat McKeough’s conservative approach to aggressive investing, a search for hidden value that yields big gains without excessive risk.

The biggest jump has come from Alimentation Couche-Tard since Pat made it his Aggressive Stock of the Year three years ago, up 386% and still reaching new highs. But each of his last two #1 picks have also achieved new highs.

Pat just released the latest issue of Stock Pickers Digest, including a feature on a Canadian tech stock he has just made a buy. You can get all the details at a special price. As a new subscriber to Stock Pickers Digest you can save $50.00. Plus you will immediately start getting updates and recommendations on stocks making moves you should know about in our weekly Email Hotline.

Click here to begin your no-risk subscription right away.


Mining stocks: Low-priced share issue would dilute investors’ holdings

Palladium prices should rise as the global economic recovery continues to increase vehicle sales. Production of the metal could also slow in South Africa, which has seen a wave of miners’ strikes in recent years, and sanctions-hit Russia.

The Lac des Iles mine’s reserves will keep it going until just 2019 at the latest. That means the company will have to undertake a major expansion to keep the mine viable.

However, North American Palladium’s long-term debt of $218.8 million is a very high 2.3 times its $94.0-million market cap. That means it will likely have to issue shares at today’s low price to expand Lac des Iles. That will dilute its current investors’ holdings.

TSI Network recommendation: sell.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.