Stillwater Mining Company exceeded expectations for the production of platinum group metals (pgms) in the first quarter of 2011.

The company produced a total of 131,200 oz of palladium and platinum at its two mines in south-central Montana during the period.

Announcing record quarterly earnings, the firm said the output figures were 1.7 per cent up on 129,000 oz mined in the same period a year ago and 8.3 per cent higher than the 121,000 oz in the last quarter of 2010.

Production at the company's Stillwater Mine increased to 98,600 oz, marking an improvement of 2.4 per cent over the 96,300 oz produced in the first three months of 2010 and an increase of 13.9 per cent on the 86,600 oz reported for the fourth quarter of 2010.

Meanwhile its East Boulder Mine produced 32,600 pgm ounces in the first quarter of 2011, compared to 32,700 oz in the same quarter of 2010.

The total quantity of mined palladium and platinum sold decreased to 115,100 oz in the first quarter of 2011, against 135,100 oz for the same period in 2010.

Stillwater said this was the result of sales timing differences between the two quarters.

Francis R McAllister, Stillwater chairman and chief executive officer, said he was pleased with the performance during first quarter.

He noted that palladium prices fell away over the three months, which could be attributed to uncertainty surrounding the effect of rising oil prices and the Japanese earthquake and tsunami on automobile production.

"However, I believe these factors will have a relatively short term impact on pgm demand and we will continue to experience the benefits of robust pgm, and specifically palladium, market dynamics over the intermediate to longer term," he added.

Mr McAllister went on to say that the quarterly output of 131,200 oz is "very strong and higher than expected for the quarter".

He also suggested that the figures indicate Stillwater could beat its annual production target of 500,000 combined platinum and palladium ounces.

"While I am pleased with this improvement, it is not yet clear to what extent the first quarter production rates will be sustainable in the second and third quarters," he cautioned.

"Consequently, at least for now, we are maintaining our 2011 guidance estimate of 500,000 pgm ounces."

Source:



Stillwater Mining Reports Record Quarterly Earnings for the First Quarter (03/05/11)

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