It was a tough second quarter for North American Palladium (NAP).
The Toronto-based owner of the Lac des Iles Mine reported an adjusted EBITDA loss of $4 million, a decrease of $14.5 million compared to the $10.5 million during the same period last year.
A tailings pond spill at the mine, 85 kilometres northwest of Thunder Bay, forced the shutdown of milling operations for almost two months, and adversely affected operating and financial results for the quarter.
A significant stockpile of underground ore has accumulated at surface available for processing before the mill was restarted on June 26.
During the quarter, almost 23,000 ounces of palladium was produced, a decrease of 42 per cent compared to the same period last year.
In a July 29 news release, the company said it’s finalizing the design to addresses its tailings problems. In the meantime, the mill will run at a rate of 8,400 tonnes per day to allow for the implementation of a long-term tailings management solutions.
In June, heavy rains caused water balance issues in the tailings pond, forcing the company to release untreated water into the local watershed.
The company vows it will reduce and mitigate the potential downstream impact of the release with extensive monitoring and sampling of the watershed. As of July 28, monitoring indicated the water quality in the downstream water bodies has essentially returned to background levels that existed before the discharge occurred.
The company said suspended solids, aluminum and iron, which were previously identified as being above permitted discharge limits, are now at or below those limits.
Tests indicate no adverse impact to aquatic life. While the long-term impact of the discharge on the environment, if any, has yet to be determined, NAP claims the impact “will be negligible.”
The company said it is working with experts to prepare and execute a monitoring and remediation plan in consultation with First Nations groups and the Ministry of the Environment and Climate Change.
