Stillwater Mining has reported a sharp rise in platinum group metal (pgm) production last year after it recovered from lower than planned ore grades in 2010.

Total mined production exceeded the Montana-based firm's most recent guidance and hit 517,900 pgm ounces in 2011, a steady increase from the 485,100 oz recorded the previous year.

Palladium production was up from 374,100 oz to 398,900 oz last year, while platinum output rose from 111,000 oz to 119,000 oz.

The increased production was driven by the company's flagship Stillwater Mine, which was up from 351,700 pgm ounces in 2010 to 386,900 oz last year.

By contrast, the East Boulder Mine recorded a slight drop in pgm production from 133,400 oz to 131,000 oz.

Across both the mines, the second half of the year showed lower pgm production than in the first six months.

"Following strong production results during the first half of the year, the company chose to reallocate some of its mining resources from production into mine development during the second half in order to maintain the developed state of the mines," the company said in a statement.

During 2011, the Stillwater processed a total of 486,700 oz of recycled pgm catalysts, an increase from 399,400 oz in 2010.

The company also stated that its Blitz and Graham Creek pgm expansion projects are being advanced as "priority expenditures".

Engineering work continues at Marathon, while additional delineation drilling is now in progress at Altar.

Stillwater chairman and chief executive officer Frank McAllister commented: "I would like to emphasise that for the foreseeable future the company remains solely a primary pgm producer and continues to direct most of its investment focus into pgms.

"Beyond Marathon and the two projects in the J-M Reef, the company has not identified any other compelling, available pgm opportunities that meet its investment criteria.

"In total, the company expects to direct far more of its economic resources into these pgm projects over the next several years than into Altar."

Source:                                                                                            

Stillwater Mining Reports Record Earnings of $144.3 Million or $1.30 per Diluted Share for 2011 (21/02/12)

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