Stillwater Mining has announced that it could face charges of up to $3 million on its 2005 sales.

The company has revealed that it has discovered miscellaneous metal sales receivables which may not be recoverable, although it stated that its major commercial agreements are not involved.

Stillwater, the largest pgm producer outside South Africa and Russia, also revealed that its auditors have now reviewed control deficiencies related to the issue, with the firm expecting to report one or more material weaknesses in internal controls over financial reporting regarding its year-end review.

The company also stated that it is currently in the process of reviewing its contract administration processes as well as strengthening accounting controls in relation to miscellaneous metal purchases and sales, in an effort to ensure that such deficiencies are properly remedied.

In November last year, Stillwater announced a slowdown in production during the third quarter of 2005, resulting in a net loss at the firm of $9.1 million, although at that time chairman and chief executive Francis R McAllister insisted the firm was looking to increase its production over the months ahead.


Ÿ Adfero Ltd