NEW YORK ( TheStreet) -- Current demand for platinum and palladium from the auto industry, jewelry segment, and as an investment choice is strong, while labor and safety issues are constraining supply. In this scenario of growing deficit, North American Palladium (PAL) is likely to surpass its production guidance to best Stillwater Mining (SWC - Get Report), which anticipated production declines for 2010.North American Palladium plans to significantly increase its production. Preliminary assessment at the Offset Zone in the Lac des lles mine near Ontario, Canada is positive and this could boost production. "The Scoping Study shows that the Offset Zone project is financially robust and will enable continuation and expansion of LDI's production, while benefitting from lower production costs," said Chief Executive William J. Biggar in a press release on Monday. The company expects the cash costs of only $132 per ounce at this mine, thereby creating a significant value to the company.
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