Stillwater Mining's palladium and platinum mines overcame temporary closures to hit production targets for 2006, according to a spokesman for the company.

The company's two Montana mines produced 601,000 platinum ounces during 2006 - a rise of nearly 50,000 ounces from 2005's figure of 554,000 - as Stillwater recorded annual net earnings of $7.9 million.

The figures come in spite of wildfires forcing the temporary closure of the mines during the third quarter and are attributed to the company's efforts to overhaul the methods employed at its mines, higher platinum group metal (pgm) prices and improved levels of efficiency in recycling.

Improvements in reusing old materials were especially marked with 349,000 pgm ounces recycled in 2006 compared to 208,000 in 2005, which in itself accounted for $19.5 million of the company's gross operating margin.

Commenting on the figures, Francis McAllister, Stillwater Chief Executive, said:" We are extremely gratified to see the company's improving financial performance as prices have strengthened and our various change initiatives are beginning to bear fruit."

Stillwater recently announced that it will press ahead with plans to further improve its mines in 2007, with measures set to include the expansion of metallurgical processing facilities and the completion of a new ventilation raise.

Ÿ Adfero Ltd