Stillwater Mining Reported Strong Profitability/Debt Reduction

BILLINGS, MT - Stillwater Mining Company reported financial results for the third quarter ended September 30, 2014. "Third quarter 2014 results were defined by strong profitability, debt reduction and substantial cash generation driven by improved management of the business and solid underlying operations," stated Mick McMullen, the Company's President and Chief Executive Officer. "Prices for platinum and palladium weakened as the third quarter progressed, reflecting both a strengthening U.S. dollar and a reduction in the negative impact of geopolitical issues around PGM supplies originating from Russia and South Africa. Our internal efforts, begun earlier this year to reduce costs and focus on profitable ounces, have put us in a much better position to manage a more volatile environment of fluctuating metal prices. Mine production has remained generally on track, with stronger output at East Boulder during the quarter. This was offset in part by the deferral of production at some less profitable mining stopes at the Stillwater Mine until new infrastructure is in place to improve the profitability of the mining operation in those areas. Total cash and investments up $7.2 million during the quarter to $509.1 million, after $30.0 million in debt repayment. Corporate overhead expense, including exploration, reduced 9% year-over-year to $10.7 million. All-in Sustaining Costs of $837 per mined ounce of palladium and platinum. Total mined palladium and platinum production of 123,000 ounces.

"Mine production in the month of July was the lowest for 2014 as we made the changes at the Stillwater Mine indicated previously. As these changes came into effect, production has ramped up strongly during the third quarter and into October. Based on the current estimate October's production was approximately 20% higher than July's.

"Our all-in sustaining costs for the quarter were $837 per mined ounce. However, year-to-date, we are tracking at $805, which is solidly within our 2014 guidance range and a significant decrease from the $838 for the same period last year. Finally, recycling volumes have declined from their exceptionally strong 2013 levels, but they are in line with longer-term historical performance."

McMullen continued, "Shortly after the end of the third quarter, we finished the installation of the ventilation fan in the Graham Creek raise, thereby completing the infrastructure development at Graham Creek. The East Boulder Mine is already benefiting from some initial production out of the Graham Creek area and an extensive underground drill program is now getting underway to better define the ore body accessible from this new infrastructure. The Blitz project, on the Stillwater Mine side, continues to advance to the east. The deep drilling from surface to guide the underground development at Blitz has intercepted the J-M reef at depth as planned. As we have commented previously, spending at Marathon and Altar has been scaled back this year while we determine how best to realize value from each of these properties."

"Among the other highlights of the third quarter, we advanced capital projects to expand the tailings facilities at both mines, in order to assure sufficient tailings capacity will be available through about 2022 at the East Boulder Mine and about 2030 at the Stillwater Mine. Separately, our new refining and supply agreements with Johnson Matthey took effect on July 1, providing us with improved terms, access to additional recycling material and additional in-depth insight into the PGM markets. We redeemed the $30.0 million of outstanding 8.0% Exempt Facility Revenue Bonds in early July, saving about $2.5 million per year in interest cost. Even after redeeming the bonds, we grew our available liquidity, ending the quarter with $509.1 million of cash and short-term liquid investments which was a good result for shareholders," concluded McMullen.