Stillwater Mining Company revealed yesterday (14th October) that its pgm production increased by 9,100 oz during the third quarter of 2009.

The Montana-based firm announced that output for the three months was 129,100 oz, in comparison with the figure of 120,000 oz recorded in the equivalent period last year.

Breaking down the statistics showed that total platinum production rose from 27,500 oz to 29,900 oz, while palladium output enjoyed a leap from 92,500 oz to 99,200 oz.

At the company's flagship Stillwater Mine, output increased by 13.5 per cent to 95,100 oz, with platinum and palladium production up by 2,700 oz and 8,600 oz respectively.

However, the news was less encouraging at the East Boulder Mine, where platinum production was down to 7,800 oz from 8,100 oz and palladium output fell from 28,100 oz to 26,200 oz.

In addition, Stillwater noted that company-wide pgm output for the nine months to 30th September was 391,600 oz, compared to 375,200 oz at the same time in 2008.

Palladium output was the main contributor to the improvement - rising from 289,100 oz to 300,900 oz - while platinum production increased from 86,100 oz to 90,700 oz.

Encouraging figures were again posted at the Stillwater Mine, with platinum production up from 59,800 oz to 68,000 oz and palladium output rising from 197,400 oz to 223,000 oz.

East Boulder's quarterly struggles were extended to the nine-month period, with production of platinum and palladium declining by 3,600 oz and 13,800 oz respectively.

According to the firm, the declines at the site can be partially explained by the fact that workforces were reduced by about 50 per cent as part of a reshuffle into distinct mining areas.

"The company has previously given production guidance of 496,000 palladium and platinum oz combined output from the two mines for the full year 2009," read a statement.

"Through nine months, the company is at 79 per cent of that objective, suggesting that full-year results should exceed the earlier guidance."

Stillwater was also hit by the recent news that General Motors was cancelling its rhodium and palladium supply agreement with the firm as part of its filing for bankruptcy.

However, the statement also revealed that the gradual improvement in pgm market conditions allowed it to absorb the blow with less disruption than some observers had predicted.

"The effect of losing [the] supply agreement in early July has been almost entirely offset by the increase in pgm market prices and as expected, the company has had no difficulty finding buyers for the displaced metal under that contract," it added.

Stillwater Mining Company focuses its extraction efforts on the J-M Reef, which is the only major known source of pgms in the US.

Sources:

Stillwater Mining Company Releases 2009 Third Quarter Production and Pricing Statistics (14/10/09)

Mont. mining co. recovers without GM's business (14/10/09)

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