Stillwater aims to expand in Montana

At a time when many North American mining companies are laying off workers, Stillwater Mining (SWC-X) is looking to add personnel at its namesake mine, 80 miles southwest of Billings, Mont.

The move is aimed at tripling combined production of platinum and palladium to 1.3 million oz. within five years, states Chairman William Nettles.

He says that in the first half of 1998, “a significant number of experienced miners” will be hired to complete 200,000 ft. of definition drilling and to develop the East Boulder project toward production.

Currently, ore is being mined from 30 to 35 stopes. By the end of 1998, Stillwater hopes to have 38-40 stopes active at a daily production rate of 2,000 tons.

The price of palladium is hovering in the range of US$230 per oz. (its highest level in the past 12 months), and platinum is climbing to about US$380 per oz. from a low of US$330 in mid-December 1997.

For the fourth quarter of 1997, Stillwater reported a loss of US$844,000 (or 4cents per share), compared with a loss of US$1.3 million (7cents per share) for the same period last year.

Revenue rose significantly, however, to US$21.6 million, compared with US$15.4 million in the corresponding period of 1996. The increase was the result of higher mill throughput.

During the quarter, Stillwater completed its expansion of the operation to 2,000 tons per day. Production for the quarter was up accordingly: 105,000 oz. of platinum and palladium at a cash cost of US$168 per oz., compared with 77,000 oz. at US$170 per oz. in the last three months of 1996.

For the year, Stillwater reported a loss of US$5.4 million (27cents per share), compared with a profit of US$11 million (55cents per share) in 1996.

However, the profit of the previous year was the result of a change in the accounting procedure; in effect, the company suffered a loss of US$2.8 million (14cents per share).

Revenue for the year rose to US$76.9 million from US$56.2 million in 1996 — the result of a 39% increase in production.

The company produced 355,000 oz. of platinum and palladium at a cash cost of US$174 per oz. in 1997, compared with 255,000 oz. at a cash cost of US$184 per oz. for the previous year.