Stillwater Mining Company reports pgm production increase

PGM production at Stillwater Mining Company, the only producer of platinum and palladium in the US, was up 6.2 per cent in 2009 on levels seen the previous year.

The company's results for 2009 show 529,900 oz of palladium and platinum were produced over the course of the 12 month period at the Stillwater and East Boulder mines in Montana.

At Stillwater, production increased from 349,400 oz to 393,800 oz on the back of improved efficiency and greater manpower following a staff transfer from East Boulder.

However, activity at the East Boulder mine tailed off as a result of downsizing and restructuring, leading to a decline in production from 149,500 oz in 2008 to 136,100 oz in 2009.

According to Stillwater chairman and CEO Francis R McAllister, the two mines' combined production in 2010 is expected to be 515,000 oz, which is slightly down on the figure reported for last year.

"Our management focus in 2010 will continue to center on strengthening our cost performance and improving mining efficiency, rather than on seeking to maximise mine production," Mr McAllister explained.

He added that safety performance across the company would also be the subject of management attention after Stillwater's record "deteriorated" over the last 12 months.

Meanwhile, combined sales realisations for mined palladium and platinum ounces averaged out at $539 per ounce over the 12 months, although the position improved as the year progressed.

By the fourth quarter of 2009, sales realisations averaged $579 per ounce, up from $498 per ounce in the equivalent period in 2008.

Source:

Platinum Today