| 1. |
GROWTH
With a growing reserve and resource base and a rising production profile, over the next few years we plan to significantly increase our palladium and gold production while lowering our operating costs. Our LDI mine expansion is expected to transform our company into a long life, low cost producer of palladium, and we expect to see increased production from our gold division in 2012. |
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| 2. |
EXPLORATION UPSIDE
Future growth will come from our significant exploration upside and through the continued exploration and development of our high-quality projects. The exploration success from our recent programs highlights our potential to organically grow our reserve base and extend mine lives. With permits, mine infrastructure and excess capacity at both of our mills, we are confident that we can move from exploration success to production on an accelerated timeline. |
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| 3. |
STABILITY
Our mines are located in Ontario and Quebec in Canada. Internationally, Canada is one of the world's leading mining countries and is recognized as a mining-friendly jurisdiction that has low political risk, stable government policies and available skilled labour. With global supply of palladium limited to mostly South Africa and Russia, NAP offers significant leverage to the PGM market with minimal geopolitical risk. |
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| 4. |
PALLADIUM EXPOSURE
As one of only two primary palladium producers in the world, our plans to significantly increase our palladium production while lowering our operating costs are well timed with the rising price of palladium. Palladium was the best performing metal in 2010 and the outlook for 2011 and beyond remains favourable, underpinned by stagnant supply and growing demand from the auto and investment sectors. |
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| 5. |
FINANCIAL STRENGTH
With significant cash balances and operating cash flow, we are able to continue investing in our mine expansions and exploration activities. Our ability to finance working capital supports our funding flexibility as we continue to make significant investments to position NAP for future growth. |
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| 6. |
OPERATIONAL EXPERTISE
At the end of the day, it is people that build businesses. While we are fortunate to have exceptional assets, the proven track record of success of our senior management and operating teams enhances NAP's investment proposition and substantially reduces our operating risk in all our endeavors. In 2010 we proved that we can deliver growth by restarting two mines and commencing two mine expansions. Our progress has been fueled by an entrepreneurial business culture that transcends a team of over 400 employees spread across our palladium and gold operations. |
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