Losses at Stillwater Mining have increased during the second quarter of 2006, according to new figures.

Despite increases in pgm prices, the firm saw a net loss of $2.3 million during the months of April, May and June, a significant increase on 2005's second quarter loss of $0.6 million.

In a statement the firm said that its consolidated pgm mine production of 149,000 oz was in line to meet expectations of 595,000 to 625,000 for the year . Total cash cost for the quarter was $322, above its guidance, while combined averages realised prices per oz ran at $484.

"The 2006 net loss includes the limited effect of higher pgm prices offset by a decrease in palladium inventory sales due to completion in early 2006 of the liquidation of the palladium ounces received in the 2003 Norilsk Nickel transaction," the firm claimed.

Chief executive Francis R McAllister predicted that higher capital expenditures would be required for 2006 and 2007.

"Our focus continues to be on transforming our mine operations by increasing the use of selective mining methods and increasing the developed state of the mines," he said.


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