Montana-based platinum producer
The US$1.68-per-share profit compares with earnings of US$61.5 million, or US$1.57 per share, in the corresponding period of 2000. Revenue between the two periods climbed to US$277.4 million from US$225.2 million.
During the final three months of 2001, Stillwater earned US$4.9 million (12 per share) on revenue of US$59.3 million, compared with earnings of US$23.5 million (60 per share) on US$78.7 million in the year-earlier period.
Stillwater’s namesake mine in southwestern Montana produced a record 134,000 oz. combined platinum and palladium during the recent quarter — up 10% from a year earlier. The increase is largely due to a 17% increase in the volume of ore that passed through the mill (excluding 3,000 oz. extracted from development ore at the nearby East Boulder project).
Total cash costs climbed to US$267 from US$264 per oz. Higher mining costs were partially offset by a reduction in royalty and tax payments.
In 2001, Stillwater pumped out a record 504,000 oz. of combined palladium and platinum, excluding 22,000 oz. from East Boulder. This is 17% higher than what was produced in 2000 and reflects a 21% increase in the volume of ore milled.
Total cash costs were unchanged at US$264 per oz.
Stillwater realized an average US$461 per oz. for its palladium and US$452 per oz. for platinum during the recent quarter. Both are higher than average market prices.
For the year, average realized prices rang in at US$570 per oz. for palladium and US$498 per oz. for platinum, both of which are lower than average spot prices but slightly better than in the previous year.
Looking ahead, Stillwater expects to produce 590,000 oz. in 2002, despite a decision to keep daily mining rates unchanged at 2,300 tonnes. The company had planned to increase rates to 2,700 tonnes daily.
Stillwater also expects to pour 150,000 oz. at East Boulder, which should reach the 900-tonne-per-day mining rate by the end of the second quarter.
During 2001, Stillwater completed 19,520 metres of underground development and sank 156,770 metres of drilling at the Stillwater mine. Consequently, proven and probable reserves rose by 2% to 21.6 million tonnes grading 23.3 grams per tonne, equivalent to 16 million contained ounces, about 12 million of which are palladium.
East Boulder’s proven and probable reserves stand at 23.9 million tonnes grading 18.2 grams, equivalent to 11.6 million contained ounces (about 9 million oz. palladium).
Stillwater has renegotiated a US$250-million credit facility, from which it has already drawn US$200 million. Under the new terms, US$65 million changes to a 5-year loan, US$135 million to a 7-year loan, and the remainder, to a 5-year revolving credit facility.
The company recently raised $60 million through the private placement of 4.3 million shares priced at US$14 apiece. A portion of the proceeds was used to pay down US$25 million of the revolving credit facility.
At year-end, Stillwater had US$14.9 million in cash or equivalents.
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