Stillwater Mining Provides Company Update

 

LITTLETON, CO - Stillwater Mining Company reported full-year 2015 mined production of 520,800 ounces of palladium and platinum including fourth quarter production of 132,400 ounces. At December 31, 2015, the Company had $463.8 million in cash, cash equivalents and highly liquid investments. 

Commenting on the preliminary 2015 results, Mick McMullen, the Company’s President and Chief Executive Officer stated, Operationally, Stillwater performed well during 2015. Mined production was ahead of guidance and we made notable strides in expanding the recycling business. This, combined with concerted efforts to conserve capital and reduce costs, resulted in the Company generating positive free cash flow for the quarter. While not yet finalized, All-in Sustaining Costs (AISC) are expected to range from $603 to $623 per mined ounce for the fourth quarter and from $705 to $715 for the full-year 2015, a sharp improvement over the prior year periods and below the low end of our guidance range. We have seen a strong cost reduction trajectory during the last quarter, achieved through productivity gains and a focus on better mining practices. During the quarter, the Company continued to invest in sustaining capital and growth projects while still generating free cash flow.

At December 31, 2015, the Company’s cash, cash equivalents and highly liquid investments balance was $463.8 million (including $18.5 million of investments which have been reserved as collateral on letters of credit). On a sequential basis, this balance represents an increase of $3.5 million from the total reported at the end of the third quarter of 2015. The 2015 year-end cash balance reflects a payment of $5.2 million related to the purchase of 25% interest in the Marathon PGM-copper project made during the fourth quarter. The total cash consideration was comprised of $1.0 million in cash and the equivalent of 25% of the total cash and cash equivalents held by the project.

During the fourth quarter of 2015, the Company processed 129,800 ounces of palladium, platinum and rhodium from recycled material. Recycling volumes for the full-year 2015 totaled 551,100 ounces, an increase of 17.4% from the 469,400 processed during 2014.

The Company continued to make progress on its Blitz development project during 2015. Surface drilling program successfully demonstrated J-M Reef existence over the length of the project. Grades are consistent with historical off-shaft mineralization (0.6 to 0.7 ounce/ton). Benbow portal permit was approved and surface construction is underway. The tunnel boring machine drive progressed 9,500 feet out of total planned 23,000 feet; parallel conventional drive resulted in 14,700 feet of ramp and infrastructure development.

First production is expected in 2018 with total infrastructure completion in 2019, project expected to provide primarily growth in production until gradual offset of depletion from the Stillwater Mine in approximately 10 years. Production of 150,000 to 200,000 PGM ounces/year is anticipated upon full ramp up.

Production from the Blitz area is expected to be Company’s lowest cost mined production, total spend through 2015 of approximately $80 million out of total anticipated project cost of $205 million.