North American Palladium Ltd. reported its production guidance along with its capital expenditure and exploration forecasts for its Lac des Iles palladium mine (LDI) in 2014. Targeting increased payable palladium production of 170,000 to 175,000 ounces. Capital investment and exploration budgets significantly reduced to approximately $30 million and $4 million, respectively.

Underground production forecasted to gradually increase throughout the year from approximately 3,000 tonnes per day in the first half of the year, up to 5,000 tonnes per day by the end of 2014. Based on the preliminary results, the company estimates that 2013 payable palladium production will total approximately 135,000 ounces, consistent with management's revised forecast for the year. More detailed disclosure of 2013 production results will be provided when the company releases its year-end results in February, 2014.

In 2014, operations are expected to benefit from the new shaft, which has positioned LDI for increased underground production from the Offset Zone. The company is targeting annual payable palladium production in the range of 170,000 to 175,000 ounces. Underground mining is expected to average approximately 3,000 tonnes per day for the first half of the year, and gradually increase up to 5,000 tonnes per day by the end of 2014.

With Phase I of the mine expansion now completed, the 2014 capital expenditure program for LDI has been substantially reduced to under $30 million. Key expenditures from the program include $11 million for capital development, $5 million to expand the tailings management facility, as well as other expenditures related to underground development, enhancements to the ore handling system, upgrades at the mill, engineering studies and other sustaining capital.