Stillwater Mining has increased its 2011 production guidance to 515,000 platinum group metal (pgm) ounces after a rise in second quarter output.

The company's two mines in Montana produced a total of 142,700 oz of palladium and platinum in Q2, up 26.7 per cent from the 112,600 oz mined a year ago.

Production at the Stillwater Mine increased to 108,900 oz in the second quarter, compared to 79,200 ounces in the same period in 2010.

The East Boulder Mine produced 33,800 oz, up slightly on the 33,400 oz seen last year.

Overall production costs per ounce decreased 9.6 per cent year-on-year during the second quarter of 2011.

Total cash costs averaged $384 (£234.5) per ounce, a $9 (£5.5) reduction from a year before.

Stillwater also has a smelting and refining complex in Columbus, Montana that processes mine concentrates and recycles spent catalyst material received from third parties.

The firm processed recycling material containing 125,200 oz of platinum, palladium and rhodium through this facility during the second quarter of 2011, a 26.2 per cent year-on-year increase.

Francis R McAllister, Stillwater chairman and chief executive officer, said: "All of our operations are performing well right now, reflecting strong pgm prices, improved productivity, improved cost management and a focus on building for the future."

Source:

Stillwater Mining Reports Record Quarterly Earnings (03/08/11) 

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