Stillwater Mining has delivered its fourth quarter results showing a sharp loss for the period, but revealed it had now finalised plans to sell its stockpiled Russian palladium.

The firm endured a $390 million loss in the quarter, a figure it blamed on low prices for palladium and a drop in reserves of platinum and palladium.

Nevertheless chief executive and chairman Frank McAllister remained bullish, insisting that production at the mine had been largely unaffected, and anticipating a stronger year ahead.

'For the year 2004 the company expects pgm production between 610,000 ounces and 625,000 ounces with total consolidated cash costs of approximately $275 to $290 per ounce,' he declared.

'Production from the East Boulder Mine will be increased and is expected to average approximately 1,500 tons per day, while by year-end the rate of mining is expected to reach approximately 1,650 tons per day,' he added.

Stillwater revealed that it produced a total of 147,000 ounces of palladium and platinum in the fourth quarter, of which 113,000 ounces was palladium.

In total 2003 saw 584,000 ounces of palladium and platinum produced, breaking down as 450,000 ounces of palladium and 134,000 ounces of platinum.

The company also reported that it is finalizing contracts to sell 877,000 ounces of stockpiled Russian palladium over the next two years.

Stillwater Mining will receive about $169 million in cash for the Russian metal, which it collected as part of a deal with Norilsk Nickel in return for a 51 per cent majority holding.