Stillwater Mining, America's sole producer of platinum and palladium, has delivered results showing a net loss of $19.3 million for the second quarter.

According to the firm the poor results reflect a hike in operating costs and weak demand for precious metals.

The firm, which has recently agreed to the sale of a majority stake in the company to Russian mining firm Norilsk Nickel via its Norimet Limited trading arm, said the transaction had also played a part in affecting the company's turnover.

In a statement the company declared: 'Results were most significantly impacted by certain charges which related to the issue of shares to Norimet Limited'.

'These items were a $14 million, or $0.29 per share, non cash charge to income tax relating to a portion of the Company's tax losses which will not be utilized and $3 million of costs which were charged to income.'

Announcing the company's results, Stillwater chairman and chief executive, Francis McAllister declared: 'It is an exciting time for the company. We have successfully concluded the Norilsk Nickel transaction and have already used some of the capital received to pay down $50 million of our bank debt.'

In addition, he revealed that the firm would be negotiating a platinum group metals agreement with Norimet and Norilsk Nickel in the next few months.

If successful the agreement would see Stillwater purchase up to 1 million ounces of palladium from Norimet on an annual basis and resell this palladium to customers in North America pursuant to new long-term contracts.

Stillwater completed the stock purchase transaction with Norilsk Nickel on June 23rd.