BILLINGS, MT -- (Marketwire) -- 02/27/13 -- STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U)
•Net income attributable to common stockholders of $55.0 million or $0.46 per diluted share •Montana mining operations show strong 2012 results:•Total mine production of 513,700 PGM ounces exceeds 2012 guidance of 500,000 ounces •Total cash costs at $484 per ounce beat 2012 guidance of $500 per ounce •Safety performance in 2012 at a Company best •Montana proven ore reserves expanded to an all-time high in 2012 •Strong cash and investment position of $642 million supporting PGM growth projects •Solid PGM market fundamentals and outlook
Stillwater Mining Company today reported 2012 net income attributable to common stockholders of $55.0 million, or $0.46 per diluted share, on revenues of $800.2 million, compared to net income attributable to common stockholders of $144.3 million, or $1.30 per diluted share, on revenues of $906.0 million in 2011. The Company's mines produced a total of 513,700 ounces of palladium and platinum during 2012, which exceeded the Company's 2012 guidance of 500,000 ounces; and compared to 517,900 ounces produced in 2011. The modest decrease in ounces produced between 2011 and 2012 resulted primarily from normal variability in mining conditions, as well as the array of stopes available for mining from period to period.
Progress continued during 2012 on the Company's PGM development projects. Spending in 2012 was heavily focused on Montana, where the Graham Creek and Blitz projects are under way. The tunnel boring machine, or TBM, drive at Graham Creek had advanced approximately 6,500 feet by the end of 2012, with completion of the full 8,200 feet of development expected during the first half of 2013. The newly acquired TBM at the Blitz project was installed on the east side of the Stillwater Mine during the second half of 2012 and started cutting during December. The machine is expected to develop about 23,000 feet of new TBM drift over the next several years. Also during 2012, the Company identified a new development area within the Stillwater Mine, the Far West project, that will accelerate the opportunity to increase annual mine production at the mine. About 92.6% of 2012 capital spending was committed to the Montana operations. These projects are expected to increase annual PGM production at the Montana operations to about the 600,000 ounce level as they are advanced over the next several years.
Along with these new developments, the Company also more than replaced the reserves it extracted from the existing mines during 2012, increasing proven ore reserves to 3.1 million in-situ ounces at the end of 2012 from 2.6 million ounces at the end of 2011. The year-end 2012 proven ore reserves included 2.4 million ounces of palladium and 0.7 million ounces of platinum. In addition to the growth in proven reserves, the Company also increased its Montana probable reserves of palladium and platinum to 18.4 million ounces from 17.4 million ounces at the end of 2011.
The Company enjoyed excellent safety performance during 2012, achieving the lowest incidence rate of reportable injuries for any year in its history. The Company began adopting the National Mining Association-sponsored CoreSafety program during 2012, layering the modules that this new program provides over its existing framework of safety practices.
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