Stillwater Mining Company confirmed yesterday (5th August) that it enjoyed year-on-year increases in pgm output in both the second quarter and first half of 2009.

The Montana-based firm revealed that platinum production for Q2 was up from 29,000 oz to 32,000 oz, while the figure increased from 58,000 oz to 61,000 oz for H1.

In addition, palladium output was up from 97,000 oz in Q2 2008 to 106,000 oz, while first-half production rose to 202,000 oz from the 197,000 oz recorded 12 months earlier.

Stillwater Chairman and CEO Francis McAllister expressed his delight at the results, noting that the company is now ahead of its full-year pgm production target for 2009.

"Mine production in this year's second quarter was 137,700 oz, bringing year-to-date production to 262,500 oz, well ahead of the level required to meet our 2009 full-year production guidance," he said.

"Consequently, we reaffirm our earlier full-year 2009 mine production guidance of 495,000 pgm ounces."

At the company's flagship Stillwater Mine, Q2 platinum production was up from 20,000 oz to 24,000 oz, while year-on-year H1 output increased from 40,000 oz to 46,000 oz.

Palladium output at the facility also rose from 68,000 oz to 79,000 oz in the second quarter and from 134,000 oz to 150,000 oz in the first six months of the year.

Stillwater also outlined an improvement in overall tonnes milled, with the Q2 2008 figure of 257,000 tonnes rising to 270,000 tonnes for the latest three-month period.

On an annualised basis, the total increased from 523,000 tonnes to 533,000 tonnes in H1 2009, while the mill recovery rate remained constant at 91 per cent across the board.

"Our focus at present is on optimising costs at current production levels, rather than trying to ramp up production at the mines," added Mr McAllister.

"With lower pgm prices compressing mining margins, we have the comfort of reducing capital spending on mine development for a time without impairing future productivity significantly."

A judge recently cancelled Stillwater's rhodium and palladium supply agreement with General Motors (GM) over concerns about the automaker's bankruptcy filing.

However, Mr McAllister also explained that the company's financial position will allow it to "reduce the full brunt" of the estimated $5 million to $10 million loss of revenue.

"On balance, although we are disappointed with the loss of the GM contract, I believe we will still be able to achieve the operational objectives we set for ourselves in 2009," he concluded.

Sources:

Stillwater Mining Reports Profit for Second Quarter (05/08/09)

Stillwater positions itself for life after GM pgm supply contracts (06/08/09)

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