|Bid||19.64 x 0|
|Ask||19.65 x 0|
|Day's Range||19.60 - 19.66|
|52 Week Range||9.12 - 26.30|
|Beta (3Y Monthly)||2.11|
|PE Ratio (TTM)||6.94|
|Forward Dividend & Yield||0.53 (2.71%)|
|1y Target Est||N/A|
North American Palladium Ltd. (TSX:PDL) has been having a good run this year. Here’s why the stock is a buy, plus one strong uranium play.
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
It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes...
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
North American Palladium Ltd. (TSE:PDL) is about to trade ex-dividend in the next 3 days. Ex-dividend means that...
Jim Gallagher has been the CEO of North American Palladium Ltd. (TSE:PDL) since 2015. This report will, first, examine...
I've been keeping an eye on North American Palladium Ltd. (TSE:PDL) because I'm attracted to its fundamentals. Looking...
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
Lundin Mining Corp. (TSX:LUN) and one other stock represent two of the best metals and mining investments for new investors in the TSX index.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift...
It could soon be commonplace to see stocks like Canopy Growth Corp (TSX:WEED)(NYSE:CGC) held alongside the best of tech.
Let’s take a look at the stats for North American Palladium Ltd. (TSX:PDL) and see why it’s a solid buy for a fast-growing industry.
Hunting for a bargain? This group of beaten-down stocks, including MAG Silver (TSX:MAG)(NYSE:MAG), might provide the value you're looking for.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes t...
Despite rallying substantially, there are signs of further upside ahead for North American Palladium Ltd. (TSX:PDL).