- Clear Growth Strategy to Increase Production & Lower Cash Costs
The LDI mine expansion offers production growth with a decreasing operating cost profile and expanding operating margins. Through the utilization of the shaft and the bulk mining methods, operations are expected to benefit from increased mining rates and decreased operating costs, transforming LDI into a low cost producer.
- Leverage To Rising Palladium Prices
LDI is one of only two primary palladium producers in the world, offering investors exceptional exposure to the price of palladium. The outlook for palladium over the next ten years predicts a return to historically high prices, strong fabrication and investment demand, and constrained supply. NAP plans to optimize and expand its palladium operations are well timed in the commodity’s cycle.
- Attractive PGM Investment Jurisdiction
As a rare precious metal, there are very few palladium producing regions worldwide and few known economically viable ore bodies. Russia and South Africa, which are known to be higher-risk jurisdictions, account for almost 80% of global mine palladium production. Compared to the South African miners who are increasingly faced with geopolitical and hyperinflationary cost challenges, NAP operates in a mining-friendly jurisdiction with low political risk, stable government policies, moderate cost inflation and available skilled labour.
- Significant Development & Exploration Upside
The LDI mine property has significant exploration upside near the mine, where a number of recent discoveries can potentially increase palladium production in the future. This upside is further complemented by LDI’s excess mill capacity and established infrastructure, which will allow the Company to convert exploration success into production and cash flow on an accelerated timeline.