Stillwater Mining Company revealed yesterday (6th May) that its pgm production declined by 3.3 per cent on a year-on-year basis during the first quarter of 2009.

The American firm, which mines platinum and palladium from its Stillwater and East Boulder underground sites in Montana, saw total output decrease from 129,000 oz to 124,800 oz.

However, the figures were affected by the restructuring of operations at the two mines at the end of 2008 as the company attempted to reduce costs in the face of declining pgm prices.

Overall production at Stillwater increased from 85,300 oz to 92,900 oz, with palladium output rising from about 66,000 oz to 71,000 oz and platinum output up from roughly 20,000 oz to 22,000 oz.

Meanwhile, total output at East Boulder slipped from 43,700 oz to 31,900 oz as palladium production fell from approximately 34,000 oz to 25,000 oz and platinum production dropped from about 9,000 oz to 7,000 oz.

These trends can be explained by the restructuring plans, as the company transferred a number of workers from East Boulder to Stillwater as part of its cost-based mining focus at that time.

Commenting on the results, Stillwater Mining Chief Executive Francis McAllister expressed his satisfaction at seeing that production was not badly affected by the upheaval.

He said: "During the 2009 first quarter, we have been pleased overall with the outcome of these changes.

"While we still have more to accomplish, both the East Boulder and Stillwater Mines are producing at rates higher than originally projected."

Mr McAllister added that he is reaffirming the company's full-year mine production guidance of 495,000 oz pgm as the total first-quarter output was "on track to meet or exceed" that target.

Stillwater Mining also confirmed that it processed 38,600 oz of recycled platinunm, palladium and rhodium at its smelting and refining complex in Columbus, down from 78,100 oz 12 months earlier.

Source:

Stillwater Mining Reports First Quarter 2009 Results (06/05/09)

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