Platinum producer
Revenue between the two periods climbed to US$52.9 million from US$49.1 million.
During the first nine months of 2001, the Montana-based company earned US$61 million ($1.55 per share) on revenue of US$218.1 million, compared with year-ago income of US$38 million (97 per share) on US$146.6 million.
(The 2000 figures are restated from previous calculations.)
The company’s namesake mine in southwestern Montana produced 123,000 oz. of combined platinum and palladium in the recent quarter — up 26% from a year earlier, thanks mostly to a 28% increase in the tons of ore milled. Head grades slipped slightly to 0.65 oz. from 0.69 oz. per ton. The company realized prices of US$475 per oz. for its palladium and US$504 per oz. for platinum.
Total cash costs per ounce fell to US$264 from US$306 between the two quarters. The decrease is attributed to a US$24-per-oz. drop in operating costs and a US$18-per-oz. fall in royalties and taxes on lower metal prices.
So far this year, the mine has pumped out 370,000 oz. platinum-palladium, compared with 308,000 oz. in the first nine months of 2000. Total cash costs were unchanged at US$263 per oz. Stillwater expects the mine to churn out 500,000 oz. of palladium and platinum this year.
Meanwhile, the East Boulder project, near Big Timber, Mont., is expected to start up in 2002, with production in 2003 projected at 1 million oz. About US$240 million of the required capital cost of US$370 million has been covered so far.
During the third quarter, development activities at East Boulder generated 9,000 oz. palladium-platinum, revenue from which will be credited against the capital costs. Pre-commercial processing will continue in the fourth quarter as more stopes are developed.
Underground work continued on the crusher, mechanical shop, sand plant, central ramp, crusher ore and waste bins. Footwall lateral development and reef sill excavation and development continued to allow test mining. Permanent rail installation is ongoing, as is remedial tunnel ground support work. On the surface, commissioning of the concentrator is under way.
Since the initial, 132-hole program, 603 holes totalling more than 5,000 ft. have tested the deposit. The holes average 0.65 oz. per ton over a horizontal thickness of 7.1 ft. Results from 170 holes drilled along 2,000 ft. of the west end of the footwall indicate the presence of a higher grade zone. Preliminary results indicate an undiluted weighted average grade of around 0.71-0.78 oz. per ton.
At Sept. 30, Stillwater had US$17.9 in cash and cash equivalents.
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