Stillwater Mining Company has confirmed that its pgm production increased by 8.7 per cent on a quarter-on-quarter basis in the third quarter of 2010.

The Montana-based firm posted palladium and platinum output of 122,400 oz, compared to the total of 112,600 oz in the preceding three-month period.

However, the figure represents a 5.2 per cent decline from the third quarter of last year, with Stillwater also noting that lower-grade ore impacted performance in Q2 2010.

At the flagship Stillwater Mine, output increased from 79,200 oz in the second quarter to 89,600 oz, although 95,100 oz was produced at the facility in the same period in 2009.

In addition, production at the East Boulder mine reached 32,800 oz, which is a slight decline from the 34,000 oz recorded 12 months earlier.

Commenting on the results, Chairman and Chief Executive Francis McAllister revealed that the company is expecting to produce between 480,000 oz and 490,000 oz this year.

"Despite a few continuing challenges in this year's third quarter (more or less as expected), on the whole we are very pleased with the Company's current direction and outlook," he said.

"With the return of higher metal prices this year, we have broadened our initial plans for 2011 and beyond to include consideration of opportunities to expand production longer-term at our Montana mines."

The financial results also showed that the company sold 120,500 oz of palladium and platinum during the quarter, compared to 137,400 oz in the same period in 2009.

Processing of recycled material containing palladium, platinum and rhodium totalled 78,500 oz, representing a year-on-year improvement of 29.1 per cent.

Stillwater Mining Company is the only major precious metals miner in the US.

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Stillwater Mining Reports Earnings for Third Quarter (29/10/10)

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