Lower production of platinum group metals (pgm) caused fourth-quarter profits at Stillwater mining to fall.

Fourth-quarter production of pgm was 131,700 oz, a decrease on the 154,300 oz produced in the same quarter in 2006.

Production of platinum and palladium for the year totalled 537,500 oz - a reduction on the 600,600 oz produced during 2006.

"The nearly 15 per cent decrease in total output between 2007 and 2006 resulted from lower manpower counts in 2007 at the Stillwater Mine, as well as unusually favourable active mining areas at Stillwater in the fourth quarter of 2006," a statement from the firm said.

The firm said that the loss of experienced miners had affected production at the Stillwater Mine.

Net earnings were $400,000 compared with $2.8 billion in the same quarter of 2006 while a full-year loss of $14.3 million was reported.

But strong platinum prices could help the company to make a good start to 2008.

Francis McAllister, Chairman and Chief Executive Officer at Stillwater, said: "With our remaining platinum hedges rolling off during the first half 2008 and palladium prices that exceed our contractual floors, we should be in a position to benefit from these strong market prices."

Sources:

Platinum miner Stillwater quarterly profit plunges, 25/02/08
http://www.reuters.com/article/marketsNews/idUSN2527258020080225?pageNumber=2&virtualBrandChannel=0

Stillwater Mining Reports Modest Fourth Quarter 2007 Profit, Loss for Full Year; Post-2007 PGM Price Surge, 25/02/08
http://www.marketwire.com/mw/release.do?id=825204

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