Stillwater Mining Company revealed yesterday (5th November) that its pgm production increased during the third quarter of 2009.

The Montana-based firm generated output of 129,000 oz in the three months ended 30th September, compared with the figure of 120,000 oz for the equivalent period in 2008.

Palladium production increased from 93,000 oz to 99,000 oz, while platinum production enjoyed a slightly smaller rise, from 27,000 oz to 30,000 oz.

In addition, output in the first nine months of the year jumped from 375,000 oz to 392,000 oz, despite the cancellation of the company's supply agreement with General Motors.

The main contributor to the improvement was again palladium production, which rose from 289,000 oz to 301,000 oz, with platinum output up from 86,000 oz to 91,000 oz.

As a result, the company has now updated its full-year production guidance for 2009 from 495,000 oz pgm to 515,000 oz pgm.

CEO Francis McAllister expressed his delight at the progress being made at the Stillwater and East Boulder mines, particularly considering the tough economic climate and low pgm prices at present.

"I believe we are on track to achieve and exceed most of the operational objectives we set for ourselves for 2009. Mine production should meet or exceed annual guidance," he said.

"Despite the anguish associated with our earlier employee cutbacks and restructuring, our workforce has come through magnificently and I commend their initiative and resolve in response to these difficult adjustments."

Mr McAllister added that the company is looking for diversification opportunities in the pgm industry because it is acutely aware of its current dependency on platinum and palladium.

Stillwater Mining Company's operations mainly revolve around the JM Reef, which is the only known significant source of pgms in the US.

Sources:

Stillwater Mining Reports Profit for Third Quarter (05/11/09)

Mining improvements positively impact Stillwater's 3Q bottom line (06/11/09)

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