Stillwater Mining has announced it is unlikely to meet production targets for 2007 of 615,000 to 645,000 oz of platinum group metals (pgms).

The firm attributes the shortfall in production partly to a cutback in the number of contractors at its Stillwater Mine as well as teething troubles over introducing new load-haul-dump equipment.

Meanwhile, a higher than average rate of attrition after a change in scheduling and the recent strike of 780 workers were also cited as factors behind the reduced projected output.

The firm is now expected to issue a new production figure "once the extent of the production loss associated with this month's strike and the productivity issues experienced during the second quarter can be more fully assessed".

Second-quarter figures from Stillwater show that output of pgms dipped to 133,100 oz - a fall of 15,600 oz from its initial estimates.

The firm's first-half output of pgms is now down 17,700 oz to 277,200 oz compared with 294,000 oz for the year ago period.

Growth was however evident for the company's recycling operations which were up 5,200 oz to 93,100 for the second quarter.

Sources:

Stillwater warns it will not meet 2007 PGM production targets, 19/07/07 http://www.mineweb.net/mineweb/view/mineweb/en/page35?oid=23703&sn=Detail

Stillwater Mining Company Releases Preliminary Second Quarter Production Results Following Resumption of Mining Operations at Stillwater Mine http://money.cnn.com/news/newsfeeds/articles/prnewswire/LATH16519072007-1.htm

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