Stillwater Mining Company revealed on Tuesday (16th March) that production at its two underground mines in central Montana was down by 7.2 per cent over the course of 2008.

Palladium and platinum output at the Stillwater mine was 349,400 oz - compared to 359,300 oz during 2007 - while production at the East Boulder mine fell from 178,200 oz to 149,500 oz.

The small decline at the former is being attributed to lower combined ore grades in active mining areas, while the latter was impacted by a temporary closure and subsequent restructuring and streamlining in Q4.

Commenting on the results, Chairman and CEO Francis McAllister explained that the company's projected mine production for 2009 is 495,000 oz pgm, similar to the final 2008 figure of 498,900 oz.

He said: "[This is] reflecting increased production in 2009 at the Stillwater mine in the range of 370,000 oz, benefiting from miners transferred from East Boulder mine in December, offset by lower projected output of 125,000 palladium and platinum oz under our restructured operations at the East Boulder Mine."

In addition, the company revealed that it processed around 398,000 oz pm of recycled material at its smelting and refining facility in Columbus, representing a yearly rise of 6.7 per cent.

The sharp pgm price declines contributed to a tough fourth quarter at the complex, with just 79,000 oz being fed into the smelter, in comparison to 94,300 oz during the same period in 2007.

The official financial statement also revealed that Stillwater posted a net loss of $112.7 million in 2008.

Source:

Stillwater Mining Reports 2008 Results (16/03/09)
http://www.msnbc.msn.com/id/29727598/