First quarter figures released by Stillwater Mining today have revealed an increase in revenues to $127.4 million, compared to $100.7 million last year.

Total pgm production reached 144,000 ounces, only just under last year's figure of 148,000 and 36,000 ounces of pgms were sold from recycling activities.

Stillwater chairman and CEO, Francis R. McAllister, said: "The company has increased development spending in 2005 at both mines to improve the developed state, preparatory to increasing production at both the East Boulder and the Stillwater Mine.

"The company and its operations generated strong positive cash flow during the first quarter of 2005, resulting in an increase in cash and highly liquid investments of $27.4 million. At the end of the quarter the company had a total of $136.6 million of available cash, cash equivalents and short-term investments."

However, production costs and net loss were higher over the period, as the company was affected by lower prices on sales of mine production and metal received in the Norilsk Nickel transaction and higher non-cash depreciation and amortisation expense.

Production levels stayed the same at the Stillwater mine, with 81,000 ounces of palladium and 24,000 ounces of platinum produced during the first quarter of 2005.

In addition, 140,000 ounces of pgms were sold during the period, down on 2004's 150,000 ounces.

Stillwater Mining is the only US producer of palladium and platinum and is the largest primary producer of pgms outside of South Africa and Russia.

It is now focused on optimising production, increasing its pgm recycling business and helping to raise awareness of palladium's properties in order to boost demand.