Robust Outlook For Palladium In The Surging PGM Market

 

COLUMBUS, MT - Stillwater Mining Company reported on the impressive 2009 recovery in platinum group metal (PGM) prices following the collapse in those prices in the fourth quarter of 2008 during the economic meltdown.

PGM (palladium, platinum and rhodium) prices have moved strongly ahead continuing a steady recovery that began in early 2009.

Palladium, which just over a year ago had fallen 72% from its 2008 high of $582 per ounce to a 2008 fourth quarter low of $164 per ounce, today was quoted in London at $422 per ounce, up 157% from the 2008 low.

Platinum, which fell 66% from its record high of $2,273 per ounce in early 2008 to a low of $763 per ounce a few months later, today has recovered by 104% to $1,556 per ounce.

Rhodium, which fell 90% from its 2008 peak of $10,100 per ounce to bottom out at $1,000 per ounce, today was quoted at $2,750 per ounce, up 170%.

Commenting on the recent buoyancy in PGM prices, Stillwater Chairman and CEO Frank McAllister observed, "Given the severity of the 2008 economic meltdown, the depth of the corresponding downward price movement in PGMs perhaps was understandable, but the magnitude and momentum of the subsequent recovery in PGM prices clearly has caught many observers by surprise. Palladium at the moment is faring best, having fallen the least and recovered the most, currently off just 27% from its 2008 high. Platinum also has done well, at present down 32% from its high. Rhodium remains down 73%."

"Within the recovery we also see a modest convergence of the palladium price towards the platinum price. Last March palladium was trading at just 18% of the price of platinum. Today palladium is priced at 27% of platinum, having closed some of the price gap, but still priced very attractively relative to platinum and rhodium. We expect to see this price gap narrow further going forward as research from the past several years comes to market that increases the opportunity to substitute palladium for platinum and even rhodium."

The company’s address is 536 East Pike Avenue, P.O. Box 1330, Columbus, MT 59019, (406) 322-8700, fax: (406) 322-8701, email: [email protected].