Stillwater Mining Reports Profit for First Quarter 2010
COLUMBUS, MT - Stillwater Mining Company reported net profit for the 2010 first quarter of $13.4 million on revenues of $133.5 million. This compares to a first quarter 2009 net loss of $11.7 million on revenues of $85.8 million. Higher realized PGM prices, higher volumes sold and lower production costs all contributed to the net profit for the first quarter of 2010.
The Company mines palladium and platinum from two underground mines located in south-central Montana. The mines produced a total of 129,000 ounces of palladium and platinum during the first quarter 2010, an increase of 3.4% from the 124,800 ounces produced during the first quarter 2009. Production at the Company's Stillwater Mine increased to 96,300 ounces during the first quarter of 2010 from the 92,900 ounces in the first quarter of 2009, while the East Boulder Mine production increased to 32,700 ounces from 31,900 ounces for the same period in 2009. Production costs also improved during first quarter 2010 compared to the year earlier. Total cash costs (a non-GAAP measure defined below) averaged $364 per ounce in the first quarter of 2010, 10% below total cash costs of $405 per ounce for the same period in 2009. The Stillwater Mine's total cash costs averaged $339 per ounce in the first quarter of 2010, 12% better than the $387 per ounce achieved in the first quarter of 2009. The East Boulder mine costs averaged $439 per ounce during 2010 first quarter, 3.5% better than $455 per ounce during first quarter 2009. These decreases were the result of continued good mine production in the first quarter of 2010 following restructuring measures taken at the end of 2008 and stronger recycling and by-product credits. With regard to sales, combined sales realizations continued to improve during first quarter 2010 for mined palladium and platinum ounces and averaged $644 per ounce, higher than the $510 per ounce realized in first quarter 2009. The total quantity of mined metals sold increased to 135,100 ounces in the first quarter of 2010 compared to 115,000 ounces sold during the same period in 2009. The Company's smelting and refining complex in Columbus, Montana processes mine concentrates and recycles spent catalyst materials received from third parties. A portion of the recycling material is purchased for the Company's own account and the balance is toll processed on behalf of others. In total, the Company processed recycling material containing 119,300 ounces of platinum, palladium and rhodium through the smelter and refinery during first quarter 2010, up more than 200% from the 38,600 ounces recycled during first quarter 2009. The higher volume in 2010 is the result of higher PGM prices and the correspondingly stronger incentive to collect material for recycling. The recycling segment had net income for the first quarter of 2010 of $2.9 million (including financing income), compared to income of $1.2 million in first quarter 2009. Francis R. McAllister, Stillwater Chairman and CEO, commented, "I am pleased to report that during the first quarter of 2010 Stillwater's operations continued to benefit from the changes we implemented at the end of 2008 when PGM prices fell off. During 2009, we saw dramatic improvements in mining productivity and reductions in mining costs that have improved the Company's competitive position. Over the same period, prices for platinum and palladium have steadily recovered, as demonstrated by the first quarter's $644 per ounce average sales realization. The stronger PGM prices have also reinvigorated our recycling business, increasing the economic incentive for collectors to gather up spent catalytic converters, thus making more recycling material available in the marketplace. As a result, both segments of our business have seen sharply improved performance recently. The company's address is 536 East Pike Avenue, P.O. Box 1330, Columbus, MT 59019, (406) 322-8700, fax: (406) 322-8701, email: investor-relations@