Stillwater Mining Company Reports Third Quarter Earnings

Stillwater Mining Company Reports Third Quarter Earnings 
BILLINGS, MT -- (Marketwire) -- 10/30/12 --   STILLWATER MINING
COMPANY (NYSE: SWC) (TSX: SWC.U) 


 
--  Net income attributable to common stockholders of $13.0 million or
    $0.11 per diluted share
--  Third-quarter mine production of 127,000 ounces; 500,000 ounce
    guidance for full year 2012 reiterated
--  Lower metal prices reduce earnings
--  Offering of $396.75 million of 1.75% senior convertible notes
    completed this month
--  Montana development projects continue to advance
--  New-miner training recruitment for development efforts progressing
    well

  
Stillwater Mining Company today reported consolidated net income
attributable to common stockholders for the 2012 third quarter of
$13.0 million, or $0.11 per diluted share. Total revenues for the
third quarter were $181.0 million. Net income attributable to common
stockholders reported for the third quarter of 2011 was $40.7
million, or $0.37 per diluted share with revenues of $253.7 million.
The third quarter 2012 results reflect lower PGM prices and higher
consolidated total cash costs than in last year's third quarter and
include a $6.6 million foreign currency transaction gain and
exploration expenses of $1.7 million. 
For the first nine months of 2012, Stillwater reported net income
attributable to common stockholders of $33.6 million, or $0.29 per
diluted share, on revenues of $596.9 million, compared to net income
of $119.6 million, or $1.10 per diluted share, on revenues of $646.3
million, for the same period in 2011. 
The Company's mines produced a total of 127,000 ounces of palladium
and platinum during the third quarter of 2012, a 2.3% decrease from
the 130,000 ounces produced in the third quarter of 2011 and a 4.8%
decrease from the 133,400 ounces produced during the second quarter
of 2012. Production for the first nine months of 2012 was 381,200
ounces compared to 403,800 ounces in the first nine months of 2011.
Most of the variability in production is the result of normal changes
in mining conditions and the array of stopes available for mining
from period to period. Based on production results for the first nine
months of 2012 and projections for the remainder of the year, the
Company is reiterating it
s full year 2012 guidance for mine
production of 500,000 ounces.  
Third quarter 2012 revenues from sales of mined production (including
by-products) totaled $107.1 million, down from $145.0 million in the
same period last year as a result of lower PGM prices and volumes.
Combined sales realizations decreased during the third quarter of
2012 for mined palladium and platinum ounces, averaging $803 per
ounce, an 18.7% decrease from the $988 per ounce realized in the
third quarter of 2011. The total quantity of mined palladium and
platinum sold declined to 124,300 ounces in the third quarter of
2012, a 9.8% decrease compared to the 137,800 ounces sold during the
same period in 2011. Income in the third quarter of 2012 included
$23.3 million from mining operations and $1.9 million from recycling
activities. For the third quarter of 2011, income from mining
operations and recycling activities were $58.6 million and $4.4
million, respectively. 
Total cash costs per mined ounce (a non-GAAP measure defined below)
averaged $496 in the third quarter of 2012, compared to total cash
costs of $439 per ounce for the third quarter of 2011. This expected
increase in cash costs is primarily a result of lower mine production
and higher labor costs, reflecting an increase in contractual wage
and benefit rates and hiring for the Company's new miner training
program that was implemented earlier this year. The total number of
Montana employees has increased to 1,629 at the end of the third
quarter of 2012 from 1,493 at the end of the third quarter of 2011.
Based on current projections, the Company is maintaining its total
cash costs guidance of $500 per mined ounce for the full year 2012.  
The Company processed recycling material containing 96,200 ounces of
palladium, platinum and rhodium through its smelter and refinery
during the third quarter of 2012, down from the 133,500 ounces
recycled during the third quarter of 2011. Recycling sales volumes
decreased to 74,600 ounces in the third quarter of 2012, from 86,700
ounces in the third quarter of 2011. Revenues from sales of purchased
recycling materials totaled $73.5 million in the 2012 third quarter,
down from $106.6 million in the same period last year. Tolling
revenues declined to $0.5 million in this year's third quarter,
compared to $0.8 million in the comparable quarter of 2011. The
Company's recycling segment had income for the 2012 third quarter of
$1.9 million (including financing income), compared to income of $4.4
million reported for the third quarter of 2011. The Company's
combined average realized price for sales of recycled palladium,
platinum and rhodium declined to $985 per ounce in the third quarter
of 2012 from $1,230 per ounce in the third quarter of 2011. 
Commenting on the Company's third quarter results, Frank McAllister,
the Company's Chairman and Chief Executive Officer, observed,
"Overall, we are pleased with the Company's third quarter
performance, especially when considering the rather volatile metal
markets during the quarter. While palladium and platinum prices were
substantially lower than in the same period last year, our operating
mines performed well and our development projects have continued to
advance. Both mine production and cash costs remain on target, and we
have reaffirmed our guidance for the year 2012 of 500,000 total mined
ounces of palladium and platinum at a total cash cost of $500 per
ounce. At the same time, we have reduced our guidance for 2012
capital and exploration expenditures. We now estimate 2012 capital
spending at about $127 million from $135 million and exploration
spending at about $17 million from $27 million. 
"As we reported previously, the new tunnel boring machine, or TBM,
has just now been put into operation at the Blitz project.
Utilization of the TBM expands the scope of our drilling and
accelerates the time frame. This underground machine is an impressive
450 feet long when fully assembled and cuts a tunnel 18 feet in
diameter. The new TBM has been installed inside the east portal at
the Stillwater Mine and ultimately will drive a 23,000-foot access
drift to the east along the J-M Reef. Simultaneously, a mining team
will drive a parallel tunnel about 600 feet above the TBM, using
conventional drill and blast methods. Both tunnels eventually will be
intersected by a new surface portal and decline situated at their far
end that will provide ventilation and emergency egress for the Blitz
area. The Blitz project, which provides a backbone for potential
future operations to the east of the Stillwater Mine, is targeted for
completion in late 2016 or 2017. We have recently updated our
assessment of total cost to complete the project, which currently is
estimated at about $197 million. 
"We also have continued to make progress on our Graham Creek project,
expanding to the west of our existing operations at the East Boulder
Mine. The TBM there, which was already in place as a holdover from
the original East Boulder project, has now progressed about 5,700
feet to the west, out of its total targeted footage of about 8,200
feet. The TBM drive at Graham Creek should be finished sometime in
the first half of 2013, after which we will begin developing two new
ventilation shafts to the surface to pro
vide support for future
operations in that area. The Graham Creek project should wrap up in
early 2015, at a total cost that we now estimate will be about $13
million." 
Referencing the Company's Marathon PGM-copper project near the north
shore of Lake Superior in Canada, Mr. McAllister noted, "Our efforts
at Marathon continue to progress primarily on two fronts right now --
the joint federal/provincial environmental review is advancing, and
definitive engineering design work is underway. A few weeks ago we
announced preliminary engineering findings that indicate the
palladium metal content was overestimated in a portion of the
original resource and reserve modeling work provided to us at the
time of the acquisition. We still don't know the overall effect or
materiality of these findings on Marathon's infrastructure, on its
economics, or on its permitting timeline, but as we cautioned
earlier, the effect is likely to be some deterioration in both
project economics and ore reserves. At the same time, we also are
seeing some potential increase in the overall resource tonnage as a
result of higher metals prices, better-than-estimated metal
recoveries and new drilling information, which might partially offset
the effect of lower ore reserve grades. We expect the final
engineering study to be completed during the first half of 2013. " 
Turning to the Company's Altar copper-gold exploration project,
located in the high Andes of the San Juan province in northwestern
Argentina, Mr. McAllister continued, "Other than finishing up some
metallurgical studies on the drill results from this past year's
drilling season, activity on the Altar project was fairly limited
during the third quarter. We were able to publish our drill results
for the drill season that ended this past April, which are available
on the Company's website. The results were generally encouraging.
This drilling extended the known mineralization to greater depth in
the original Altar discovery area, confirmed the presence and
significance of a second distinct mineralizing center with somewhat
higher gold grades in the eastern portion of the Altar resource area,
and reconnaissance drilling penetrated a potential third distinct
mineralizing center indicating additional mineral potential to the
north of the current Altar resource. Drilling still has not defined
the perimeter of the Altar mineralizing area. Added drilling at
Quebrada de la Mina, a promising gold target to the northwest of the
principal Altar mineral resource, indicated attractive gold grades
but insufficient volumes to sustain a stand-alone gold operation
there.  
"While Altar exploration and related support expenditures were
budgeted at about $25 million for 2012, only about $15.9 million in
total (including administrative expenses) has been spent through
September, suggesting that even with some added fourth quarter costs
to mobilize next year's drilling program, total spending at Altar
will probably not exceed $20 million this year. Drilling in the
2012-2013 season will focus on extending our understanding of the
Altar resource at depth, as well as trying to determine the eastern
boundary of the mineralization." 
Concluding his review of the Company's projects, Mr. McAllister
added, "After we commissioned our new smelting furnace in May of
2009, we stripped the brick out of the prior furnace in anticipation
of refurbishing it to become a slag cleaning circuit. During 2011, we
rebricked the old furnace and completed the necessary engineering of
the operating systems in order to connect the modified furnace with
the Company's primary smelting furnace. Most of the slag handling
changes have now been completed or are currently in progress. The
electric arc in the reconfigured furnace has now been struck and
conditioning of the furnace is currently underway. Once operational,
the slag cleaning furnace will be temporarily used for smelting so
that final modifications can be installed on the primary furnace.
Construction is scheduled to be complete and the slag cleaning
circuit fully operational at the beginning of December 2012. Our
engineers have estimated that the slag cleaning operation will
recover approximately 4,000 ounces of PGMs annually from both mined
and recycled materials that would otherwise remain bound up in the
smelter slags. 
"Separately, work on our new precious metal refining technology
continues with further process test work scheduled during the fourth
quarter of 2012." 
Commenting on the Company's recent convertible debenture offering,
which closed earlier this month, Mr. McAllister observed, "The
Company's successful $396.75 million convertible debt offering
positions us to pay off the $166.5 million of existing convertible
notes that are due to be redeemed early next year. It also provides
assurance that adequate working capital should be available to
sustain our operations and to progress with the Marathon project,
once the necessary approvals are in hand and the engineering design
work is completed. At the appropriate time, we expect to seek
additional financing for the Marathon project. These notes bear
interest at a rate of 1.75% per annum, do not provide for redemption
until 2019, and they allow the Company to settle them in any
combination of shares and cash, at our election. We are very pleased
with the terms we achieved in this financing. 
"Finally, on a personal note, I would like to welcome Mr. Gary Sugar
as a new director recently appointed to our Company's board. Gary is
a geologist by training and an investment banker by profession,
having recently retired after more than 30 years with RBC Capital
Markets in Canada. We are delighted to have him join us, and we look
forward to benefiting from his experience and insight." 
Cash Flow and Liquidity 
At September 30, 2012, the Company's available cash was $198.5
million, compared to $109.1 million at December 31, 2011. If highly
liquid short-term investments are included with available cash, the
Company's balance sheet liquidity totaled $274.7 million at September
30, 2012, an increase from $158.6 million at December 31, 2011. Of
the Company's current cash balance, $45.9 million is dedicated to the
Marathon project (and other related properties) and is unavailable
for other corporate purposes. Net working capital -- comprised of
total current assets (including available cash and short-term
investments), less current liabilities -- decreased to $199.7 million
at September 30, 2012, from $251.6 million at year end 2011. The
September 30, 2012 amount includes $166.5 million reclassified as the
current portion of long-term debt, reflecting convertible debentures
that may be redeemed by their holders on March 15, 2013. 
Net cash provided by operating activities (which includes changes in
working capital) totaled $45.1 million in the third quarter of 2012,
compared to $35.2 million of cash provided in the third quarter of
2011. Capital expenditures were $25.4 million in the third quarter of
2012, down from $27.9 million in the third quarter of 2011.  
Outstanding debt at September 30, 2012, was $203.3 million, up from
$196.0 million at December 31, 2011. The Company's total debt
includes the $166.5 million outstanding in the form of convertible
debentures, $29.6 million of Exempt Facility Revenue Bonds due in
2020, a capital lease of $6.9 million and $0.3 million 
for a small
installment land purchase. Subsequent to the end of the 2012 third
quarter, on October 17, 2012, the Company completed the issuance and
sale of $396.75 million of 1.75% convertible senior unsecured notes
due in 2032. The Company intends to use the net proceeds from the
offering to repay amounts that may come due under the Company's
outstanding 1.875% convertible debentures in March 2013, and for
general corporate purposes. 
Third Quarter Results - Details 
For the third quarter of 2012, the Company's mine production was
127,000 PGM ounces. The Company's Stillwater Mine produced 94,100
ounces, a decrease of 2.8% from the 96,800 ounces produced in the
third quarter of 2011 and a decrease of 4.1% from the 98,100 ounces
produced in the second quarter of 2012. The production decrease from
last year's third quarter at the Stillwater Mine was primarily
attributable to lower tons mined as a result of the fluctuations in
overall mining conditions, the mix of mining stopes, emphasis on mine
development and the availability of miners. Production at the
Company's East Boulder Mine of 32,900 ounces in the third quarter of
2012 reflected a decrease from the 33,200 ounces produced in the same
quarter of 2011 and from the 35,300 ounces produced in the second
quarter of 2012. 
Revenues for the third quarter of 2012 were $181.0 million, a decline
of 28.6% from the $253.7 million recorded in the third quarter of
2011. Proceeds from sales of mined PGMs and by-products totaled
$107.1 million in the third quarter of 2012, down 26.1% from the
$145.0 million in the same quarter of 2011, reflecting both lower
ounces sold and reduced PGM prices during the quarter. Recycling
revenues fell by 31.2% to $74.0 million from $107.5 million in the
third quarter of 2011 primarily as a result of lower PGM prices.
Sales from mine production totaled 124,300 ounces in the third
quarter of 2012 at an overall average realization of $803 per ounce,
as compared to 137,800 ounces at $988 per ounce in the third quarter
of 2011. Sales ounces were less than production in the third quarter
of 2012 due to normal timing differences in inventory flows. The
Company's average net realization on palladium sales from mine
production was $605 per ounce in the third quarter of 2012, compared
to $772 per ounce for the same period in 2011. The Company's average
net realization on mined platinum was $1,513 per ounce in the third
quarter of 2012 and $1,784 per ounce in the third quarter of 2011.
London Bullion Market Association afternoon posted prices per ounce
for palladium and platinum were $642 and $1,668, respectively, on
September 28, 2012, and were $614 and $1,511, respectively, on
September 30, 2011. 
Consolidated cash costs per mined ounce (a non-GAAP measure defined
below) averaged $496 in the third quarter of 2012, up from $439 per
ounce for the third quarter of 2011 and $454 per ounce reported for
the second quarter of 2012. The Stillwater Mine's total cash costs
averaged $469 per ounce in the third quarter of 2012, compared to the
$411 per ounce reported in the third quarter of 2011. The East
Boulder Mine's total cash costs averaged $574 per ounce during the
third quarter of 2012, compared to $520 per ounce during third
quarter of 2011. The most significant driver of cash cost per mined
ounce growth since the third quarter of last year at both mines was
an increase in staffing levels, along with higher wage and benefit
rates and lower mine production. The increase in staffing levels was
primarily attributable to hiring for the new-miner training program
in support of new projects and to accommodate increasing underground
travel distances and operations support requirements as the mines
expand. 
Costs of metals sold (before depletion, depreciation and amortization
expense) decreased to $142.0 million in the third quarter of 2012
from $175.5 million in the third quarter of 2011. Mining costs
included in costs of metals sold declined slightly to $69.9 million
in the 2012 third quarter from $71.0 million in the 2011 third
quarter, the result of lower royalties and taxes at lower metals
prices. Recycling costs, which primarily reflect the cost of
acquiring spent catalytic materials for processing, totaled $72.1
million in the third quarter of 2012, lower than the $103.3 million
reported in the third quarter of 2011. The decrease was due to lower
volumes sold and the related lower market value of the materials
acquired for processing.  
Depletion, depreciation and amortization expense decreased to $14.1
million in the third quarter of 2012 from $15.6 million in the same
period of 2011. The decrease is attributable to a lower depreciable
base in our fixed asset accounts in 2012, as many assets were fully
depreciated during 2010 and 2011. Lower production rates also tend to
drive depletion expense lower. 
General and administrative ("G&A") costs were $9.9 million in the
third quarter of 2012, down from the $13.1 million incurred during
the same period of 2011. The third quarter of 2011 included $4.7
million in expenses associated with financing activities and $1.3
million of acquisition costs related to Peregrine Metals Ltd.
Exploration expenses totaled $1.7 million for the third quarter of
2012, of which almost all was attributable to the Altar copper-gold
project. Exploration expenses incurred during the third quarter of
2011 were $0.3 million. Marketing expenses decreased to $1.9 million
in the 2012 third quarter compared to $4.3 million in the same
quarter of 2011. Research and development costs decreased to less
than $0.1 million in the third quarter of 2012 from $0.5 million in
the same quarter of 2011. 
Reported net income attributable to common stockholders for the third
quarter of 2012 of $13.0 million included, by business segment,
income of $23.3 million from mining operations, income of $1.9
million from recycling activities (including financing income),
income of $5.0 million related to the Altar copper-gold project
(including a foreign currency transaction gain of $6.5 million less
exploration costs and G&A costs of $1.5 million), $1.3 million of
costs associated with the Marathon properties, and corporate costs of
$13.8 million, which included a loss on long-term investments in
certain Canadian exploration companies of $1.7 million and marketing
expense of $1.9 million. 
The Company reported a $2.4 million income tax provision and a $0.3
million cost allocation attributable to noncontrolling interest in
the third quarter of 2012. For the third quarter of 2011, the net
income attributable to common stockholders of $40.7 million included,
by business segment, $58.6 million of income from mining operations
and $4.4 million income from recycling activities (including
financing income), $0.9 million of costs associated with the Marathon
properties and corporate costs of $18.6 million. For the third
quarter of 2011, the Company reported a $2.8 million income tax
provision.  
First Nine Months' Results - Details 
During the first nine months of 2
012, the Company's mining operations
produced 381,200 ounces of palladium and platinum, including 279,900
ounces from the Stillwater Mine and 101,300 ounces from the East
Boulder Mine. For the comparable period in 2011, total mine
production of 403,800 ounces included Stillwater Mine production of
304,200 ounces and East Boulder production of 99,600 ounces. The
decline in ounces produced at the Stillwater Mine for the first nine
months of 2012 was primarily the result of normal variation among the
stopes available for mining. 
Sales of palladium and platinum from mine production totaled 375,400
ounces in the first nine months of 2012 at an overall average
realization of $843 per ounce. The first nine months of 2011 saw
sales of mine production totaling 389,500 ounces at $981 per ounce.
The Company's average realization to date in 2012 on palladium sales
from mine production was $640 per ounce, compared to $769 per ounce
in the first nine months of 2011. The comparable average realization
on platinum from mine production was $1,536 per ounce for the first
nine months of 2012 and $1,778 per ounce in the first nine months of
2011.  
During the first nine months of 2012, the Company processed about
326,600 ounces of PGMs from recycled catalytic materials, including
both purchased catalysts and toll materials processed on behalf of
others for a fee. By comparison, in the first nine months of 2011,
the Company processed about 374,300 ounces of recycled material. Of
the purchased catalysts processed, the Company sold a total of
249,900 ounces of palladium, platinum and rhodium during the first
nine months of 2012 at an overall average price of about $1,020 per
ounce; for the first nine months of 2011, the Company sold about
190,700 recycled ounces at an average realization of $1,232 per
ounce.  
Revenues for the first nine months of 2012 totaled $596.9 million, a
decrease of 7.6% from the $646.3 million in the first nine months of
2011. Recycling revenues increased to $256.9 million in the first
nine months of 2012 from $238.4 million in last year's first nine
months, as higher recycling volumes more than offset the lower 2012
PGM prices. Proceeds from sales of mined PGMs totaled $340.0 million
in the 2012 first nine months, down from $406.7 million in the same
period of 2011.  
Costs of metals sold (before depletion, depreciation and amortization
expense) increased to $468.3 million in the first nine months of 2012
from $425.5 million in the first nine months of 2011. Mining costs
included in total costs of metals sold increased to $218.9 million in
the first nine months of 2012 from $196.4 million in the 2011 period.
Recycling costs, largely comprised of the cost to purchase spent
catalytic materials for processing, totaled $249.4 million in the
first nine months of 2012, up from $228.0 million in the first nine
months of 2011.  
Depletion, depreciation and amortization expense decreased to $43.6
million in the first nine months of 2012 compared to $47.4 million in
the same period of 2011.  
General and administrative ("G&A") costs increased to $32.5 million
in the first nine months of 2012 from the $29.4 million for the same
period of 2011. This increase in costs for the first nine months of
2012 was primarily attributable to one-time software licensing fees,
higher legal and advisory services and growth in project
administrative costs. The comparable period in 2011 included $4.7
million in expenses associated with financing activities and $1.3
million of acquisition costs related to Peregrine Metals Ltd.
Exploration and related support expenses totaled $13.8 million for
the nine months ending September 30, 2012, of which almost all was
attributable to the Altar copper-gold project. Marketing expenses
remained consistent during the first nine months of 2012 at $7.9
million as compared to $8.0 million in the same time period of 2011.
Research and development costs decreased to $0.9 million for the
first nine months of 2012 from $1.6 million for the same period in
2011.  
The Company's reported net income attributable to common stockholders
of $33.6 million for the first nine months of 2012 included, by
business segment, $77.9 million of income from mining operations,
income of $7.9 million from recycling activities (including financing
income), costs of $6.2 million associated with the Marathon
properties, costs of $2.5 million related to the Altar copper-gold
project (net of a foreign currency transaction gain of $13.2
million), and corporate costs of $40.7 million. For the first nine
months of 2012, the Company reported a $3.4 million income tax
provision and $0.7 million of costs attributable to noncontrolling
interest. The net income attributable to common stockholders of
$119.6 million recorded for the first nine months of 2011 included,
by business segment, $164.0 million of income from mining operations
and $10.7 million of income from recycling activities (including
financing income), $1.9 million of costs associated with the Marathon
properties and corporate costs of a $40.6 million. The Company
reported a $12.6 million income tax provision for the first nine
months of 2011. 
Third Quarter Results Webcast and Conference Call 
Stillwater Mining Company will conduct a conference call to discuss
third quarter results at approximately 12:00 p.m. Eastern Daylight
Time on Tuesday, October 30, 2012.  
Dial-In Numbers: 
 United States: (800) 230-1059 
 International:
(612) 288-0329  
The conference call will be simultaneously webcast through the
Company's website at www.stillwatermining.com in the Investor
Relations section.  
A telephone replay of the call will be available for one week
following the event. The replay dial-in numbers are (800) 475-6701
(U.S.) and (320) 365-3844 (International), access code 267982. In
addition, the call transcript will be archived in the Investor
Relations section of the Company's website.  
About Stillwater Mining Company 
Stillwater Mining Company is the only U.S. producer of palladium and
platinum and is the largest primary producer of platinum group metals
outside of South Africa and the Russian Federation. The Company's
shares are traded on the New York Stock Exchange under the symbol SWC
and on the Toronto Stock Exchange under the symbol SWC.U. Information
on Stillwater Mining can be found at its website:
www.stillwatermining.com. 
Some statements contained in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and, therefore, involve uncertainties or risks that
could cause actual results to differ materially. These statements may
contain words such as "desires," "believes," "anticipates," "plans,"
"expects," "intends," "estimates" or similar expressions. These
statements are not guarantees of the Company's future performance and
are subject to risks, uncertainties and other important factors that
could cause its actual performance or achievements to differ
materially from those expressed or implied by these forward-looking
statements. Additional information regarding factors that could cause
results to differ materially from management's expectations is found
in the section entitled "Risk Factors" in the Company's 2011 Annual
Report on Form 10-K, in its quarterly Form 10-Q filings, and in
corresponding filings with Canadian securities regulatory
authorities. The Company intends that the forward-looking statements
contained herein be subject to the above-mentioned statutory safe
harbors. Investors are cautioned not to rely on forward-looking
statements. The Company disclaims any obligation to update
forward-looking statements. 


 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Consolidated Statements of Operations and Comprehensive Income              
(Unaudited)                                                                 
(in thousands, except per share data)                                       
                                                                            
                                  Three Months Ended    Nine Months Ended   
                                     September 30,         September 30,    
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
Revenues                                                                    
  Mine production                $ 107,057  $ 145,033  $ 339,951  $ 406,746 
  PGM recycling                     73,987    107,477    256,919    238,430 
  Other                                  -      1,142          -      1,142 
                                 ---------  ---------  ---------  -
-------- 
      Total revenues               181,044    253,652    596,870    646,318 
Costs and expenses                                                          
  Costs of metals sold                                                      
    Mine production                 69,910     71,006    218,935    196,350 
    PGM recycling                   72,096    103,336    249,360    228,042 
    Other                                -      1,141          -      1,141 
                                 ---------  ---------  ---------  --------- 
      Total costs of metals sold   142,006    175,483    468,295    425,533 
  Depletion, depreciation and                                               
   amortization                                                             
    Mine production                 13,843     15,359     42,848     46,555 
    PGM recycling                      264        269        793        796 
                                 ---------  ---------  ---------  --------- 
      Total depletion,                                                      
       depreciation and                                                     
       amortization                 14,107     15,628     43,641     47,351 
                                 ---------  ---------  ---------  --------- 
        Total costs of revenues    156,113    191,111    511,936    472,884 
  Exploration                        1,668        290     13,785        365 
  Marketing                          1,886      4,337      7,874      7,990 
  Research and development              82        525        864      1,605 
  General and administrative         9,882     13,149     32,477     29,404 
  Abandonment of non-producing                                              
   property                              -          -      2,835          - 
  Loss on long-term investments      1,697          -      1,697          - 
  (Gain)/Loss on disposal of                                                
   property, plant and equipment        71         84        363       (142)
                                 ---------  ---------  ---------  --------- 
        Total costs and expenses   171,399    209,496    571,831    512,106 
Operating income                     9,645     44,156     25,039    134,212 
Other income/(expense)                                                      
  Other                                 82         14        667         26 
  Interest income                      271      1,106      1,706      2,839 
  Interest expense                  (1,493)    (1,635)    (4,361)    (4,907)
  Foreign currency transaction                                              
   gain/(loss)                       6,605       (142)    13,314         40 
                                 ---------  ---------  ---------  --------- 
Income before income tax                                                    
 provision                          15,110     43,499     36,365    132,210 
Income tax provision                (2,418)    (2,758)    (3,405)   (12,579)
                                 ---------  ---------  ---------  --------- 
Net income                       $  12,692  $  40,741  $  32,960  $ 119,631 
                                 ---------  ---------  ---------  --------- 
Net loss attributable to                                                    
 noncontrolling interest              (304)         -       (675)         - 
                                 ---------  ---------  ---------  --------- 
Net income attributable to                                                  
 common stockholders             $  12,996  $  40,741  $  33,635  $ 119,631 
                                 ---------  ---------  ---------  --------- 
Other comprehensive                                                         
 income/(loss), net of tax                                                  
  Net unrealized gains/(losses)                                             
   on securities available fo
r                                              
   sale                                421       (235)       620       (339)
                                 ---------  ---------  ---------  --------- 
Comprehensive income                                                        
 attributable to common                                                     
 stockholders                    $  13,417  $  40,506  $  34,255  $ 119,292 
                                 =========  =========  =========  ========= 
Weighted average common shares                                              
 outstanding                                                                
  Basic                            116,377    103,114    115,918    102,831 
  Diluted                          117,145    111,118    116,847    110,967 
Basic earnings per share                                                    
 attributable to common                                                     
 stockholders                    $    0.11  $    0.40  $    0.29  $    1.16 
                                                                            
Diluted earnings per share                                                  
 attributable to common                                                     
 stockholders                    $    0.11  $    0.37  $    0.29  $    1.10 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Consolidated Balance Sheets                                                 
(Unaudited)                                                                 
(in thousands, except share and per share data)                             
                                                                            
                                               September 30,  December 31,  
                                                    2012           2011     
                                               -------------  ------------- 
ASSETS                                                                      
Cash and cash equivalents                      $     198,475  $     109,097 
Investments, at fair market value                     76,252         49,533 
Inventories                                          125,495        131,856 
Trade receivables                                      9,915          6,188 
Deferred income taxes                                 20,154         19,819 
Other current assets                                  11,013          9,433 
                                               -------------  ------------- 
  Total current assets                               441,304        325,926 
Mineral properties                                   600,751        596,686 
Property, plant and equipment, net of $480,083                              
 and $436,612 of accumulated depletion,                                     
 depreciation and amortization                       403,354        367,727 
Restricted cash                                        9,245         25,070 
Other noncurrent assets                                9,843         11,915 
                                               -------------  ------------- 
  Total assets                                 $   1,464,497  $   1,327,324 
                                               =============  ============= 
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Accounts payable                               $      25,894  $      26,880 
Accrued compensation and benefits                     30,028         27,573 
Property, production and franchise taxes                                    
 payable                                              12,973         14,071 
Current portion of long-term debt and capital                        
       
 lease obligations                                   168,407              - 
Income taxes payable                                       -          1,235 
Other current liabilities                              4,344          4,576 
                                               -------------  ------------- 
  Total current liabilities                          241,646         74,335 
Long-term debt and capital lease obligations          34,907        196,046 
Deferred income taxes                                181,516        193,884 
Accrued workers compensation                           6,546          6,056 
Asset retirement obligation                            7,801          7,331 
Other noncurrent liabilities                           7,828          5,704 
                                               -------------  ------------- 
  Total liabilities                                  480,244        483,356 
                                               -------------  ------------- 
Equity                                                                      
Stockholders' equity                                                        
Preferred stock, $0.01 par value, 1,000,000                                 
 shares authorized; none issued                            -              - 
Common stock, $0.01 par value, 200,000,000                                  
 shares authorized; 116,756,413 and                                         
 115,375,604 shares issued and outstanding             1,168          1,154 
Paid-in capital                                      932,351        878,050 
Accumulated deficit                                     (640)       (34,275)
Accumulated other comprehensive loss                    (341)          (961)
                                               -------------  ------------- 
  Total stockholders' equity                         932,538        843,968 
                                               -------------  ------------- 
Noncontrolling interest                               51,715              - 
                                               -------------  ------------- 
  Total equity                                       984,253        843,968 
                                               -------------  ------------- 
  Total liabilities and stockholders' equity   $   1,464,497  $   1,327,324 
                                               =============  ============= 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Consolidated Statements of Cash Flows                                       
(Unaudited)                                                                 
(in thousands)                                                              
                                                                            
                                  Three Months Ended    Nine Months Ended   
                                     September 30,         September 30,    
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
Cash flows from operating                                                   
 activities                                                                 
Net income                       $  12,692  $  40,741  $  32,960  $ 119,631 
Adjustments to reconcile net                                                
 income to net cash provided by                                             
 operating activities:                                                      
  Depletion, depreciation and                                               
   amortization                     14,107     15,628     43,641     47,351 
  (Gain)/Loss on disposal of                                                
   property, plant and equipment        71         84        363       (142)
  Loss on long-term investments      1,697          -      1,697          - 
  Foreign currency transaction                                              
   (gain)                           (6,094)         -    (12,703)         - 
  Abandonment of non-producing                                              
   property                              -          -      2,835          - 
  Accretion of asset retirement                                             
   obligation                          160        147        470        433 
  Amortization of debt issuance                                             
   costs                               315        246        944        737 
  Share based compensation and                                              
   other benefits                    5,013      3,284     12,899      9,073 
Changes in operating assets and                                             
 liabilities:                                                               
  Inventories                       (3,700)   (23,267)     6,221    (78,836)
  Trade receivables                 (1,347)       692     (3,727)       299 
  Accrued compensation and                                                  
   benefits                          1,162       (350)     2,258      3,992 
  Accounts payable                   1,064      3,374     (1,270)     8,018 
  Property, production and                                                  
   franchise taxes payable             634      1,232      1,041      4,176 
  Income taxes payable               1,880     (7,242)    (1,235)     2,579 
  Workers compensation                 (12)       304        490       (250)
  Restricted cash                   15,750          -     15,825      3,000 
  Other                              1,674        333     (2,275)     7,829 
                                 ---------  ---------  ---------  --------- 
Net cash provided by operating                                              
 activities                         45,066     35,206    100,434    127,890 
                                 ---------  ---------  ---------  --------- 
Cash flows from investing                                                   
 activities                                                                 
  Capital expenditures             (25,375)   (27,937)   (84,688)   (74,232)
  Purchase of long-term                                                     
   investment                            -          -          -       (616)
  Proceeds from disposal of                                                 
   property, plant and equipment        12          9         39        236 
  Purchases of investments         (36,399)    (7,571)   (68,286)  (105,667)
  Proceeds from maturities of                                               
   investments                      18,454     67,380     42,003    204,397 
                                 ---------  ---------  ---------  --------- 
Net cash (used in) provided by                                              
 investing activities              (43,308)    31,881   (110,932)    24,118 
                                 ---------  ---------  ---------  --------- 
Cash flows from financing                                                   
 activities                                                                 
  Proceeds from sale of                                                     
   noncontrolling interest, net                                             
   of transaction costs                  -          -     93,821          - 
  Issuance of long-term debt             -          -      7,176          - 
  Payments on long term debt and                                            
   capital lease obligations          (451)         -       (946)         - 
  Payments for debt issuance                                           
     
   costs                                 -          -       (219)         - 
  Issuance of common stock              11         60         44        785 
                                 ---------  ---------  ---------  --------- 
Net cash (used in) provided by                                              
 financing activities                 (440)        60     99,876        785 
                                 ---------  ---------  ---------  --------- 
Cash and cash equivalents                                                   
  Net increase                       1,318     67,147     89,378    152,793 
  Balance at beginning of period   197,157    105,009    109,097     19,363 
                                 ---------  ---------  ---------  --------- 
Balance at end of period         $ 198,475  $ 172,156  $ 198,475  $ 172,156 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors                                                       
(Unaudited)                                                                 
                                                                            
                                                  Three Months  Nine Months 
                                                     Ended         Ended    
                                                 September 30, September 30,
                                                 ------------- -------------
(in thousands, except where noted)                2012   2011   2012   2011 
                                                 ------ ------ ------ ------
OPERATING AND COST DATA FOR MINE PRODUCTION                                 
                                                                            
Consolidated:                                                               
Ounces produced                                                             
Palladium                                            98    100    294    311
Platinum                                             29     30     87     93
                                                 ------ ------ ------ ------
Total                                               127    130    381    404
                                                 ====== ====== ====== ======
Tons milled                                         262    283    801    873
Mill head grade (ounce per ton)                    0.52   0.49   0.51   0.50
Sub-grade tons milled (1)                            19     24     49     64
Sub-grade tons mill head grade (ounce per ton)     0.18   0.19   0.17   0.18
Total tons milled(1)                                281    307    850    937
Combined mill head grade (ounce per ton)           0.50   0.47   0.49   0.47
Total mill recovery (%)                              92     92     92     92
Total operating costs per ounce (Non-GAAP) (2)   $  417 $  340 $  406 $  324
Total cash costs per ounce (Non-GAAP) (2)        $  496 $  439 $  487 $  419
Total production costs per ounce (Non-GAAP) (2)  $  608 $  553 $  600 $  531
Total operating costs per ton milled (Non-GAAP)                             
 (2)                                             $  189 $  144 $  182 $  140
Total cash costs per ton milled (Non-GAAP) (2)   $  225 $  186 $  219 $  181
Total production costs per ton milled (Non-GAAP)                            
 (2)                                             $  276 $  235 $  269 $  229
Stillwater Mine:                                                            
Ounces produced                                                             
Palladium                                            72     74    215    234
Platinum                                             22     22     65     70
                                                 ------ ------ ------ ------
Total                                                94     96    280    304
                                                 ====== ====== ====== ======
Tons milled                                         156    184    496    573
Mill head grade (ounce per ton)                    0.64   0.55   0.61   0.56
Sub-grade tons milled (1)                            10     17     27     49
Sub-grade tons mill head grade (ounce per ton)     0.24   0.23   0.22   0.21
Total tons milled (1)                               166    201    523    622
Combined mill head grade (ounce per ton)           0.62   0.53   0.59   0.53
Total mill recovery (%)                              92     92     92     92
Total operating costs per ounce (Non-GAAP) (2)   $  395 $  317 $  382 $  312
Total cash costs per ounce (Non-GAAP) (2)        $  469 $  411 $  457 $  401
Total production costs per ounce (Non-GAAP) (2)  $  582 $  532 $  574 $  520
Total operating costs per ton milled (Non-GAAP)                             
 (2)                                             $  224 $  152 $  204 $  153
Total cash costs per ton milled (Non-GAAP) (2)   $  266 $  197 $  244 $  196
Total production costs per ton milled (Non-GAAP)                            
 (2)                                             $  330 $  256 $  307 $  254
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors (continued)                                           
(Unaudited)                                                                 
                                                                            
                                                  Three Months  Nine Months 
                                                     Ended         Ended    
                                                 September 30, September 30,
                                                 ------------- -------------
                                                  2012   2011   2012   2011 
                                                 ------ ------ ------ ------
OPERATING AND COST DATA FOR MINE PRODUCTION                                 
(Continued)                                                                 
                                                                            
East Boulder Mine:                                                          
Ounces produced                                                             
Palladium                                            26     26     79     77
Platinum                                              7      8     22     23
                                                 ------ ------ ------ ------
Total                                                33     34    101    100
                                                 ====== ====== ====== ======
Tons milled                                         106     99    305    300
Mill head grade (ounce per ton)                    0.34   0.37   0.36   0.37
Sub-grade tons milled (1)                             9      7     22     15
Sub-grade tons mill head grade (ounce per ton)     0.10   0.09   0.11   0.10
Total tons milled (1)                               115    106    327    315
Combined mill head grade (ounce per ton)           0.32   0.35   0.35   0.36
Total mill recovery (%)                              90     90     90     89
Total operating costs per ounce (Non-GAAP) (2)   $  480 $  407 $  472 $  362
Total cash costs per ounce (Non-GAAP) (2)        $  574 $  520 $  570 $  474
Total production costs per ounce (Non-GAAP) (2)  $  684 $  616 $  674 $  567
Total operating costs per ton milled (Non-GAAP)                             
 (2)                                             $  138 $  129 $  147 $  114
Total cash costs per ton milled (Non-GAAP) (2)   $  165 $  165 $  177 $  
150
Total production costs per ton milled (Non-GAAP)                            
 (2)                                             $  197 $  195 $  209 $  179
                                                                            
(1) Sub-grade tons milled includes reef waste material only. Total tons     
    milled includes ore tons and sub-grade tons only. See "Proven and       
    Probable Ore Reserves - Discussion" in the Company's 2011 Annual Report 
    on Form 10-K for further information.                                   
(2) Total operating costs include costs of mining, processing and           
    administrative expenses at the mine site (including mine site overhead  
    and credits for metals produced other than palladium and platinum from  
    mine production). Total cash costs include total operating costs plus   
    royalties, insurance and taxes other than income taxes. Total production
    costs include total cash costs plus asset retirement costs and          
    depreciation and amortization. Income taxes, corporate general and      
    administrative expenses, asset impairment write-downs, gain or loss on  
    disposal of property, plant and equipment, restructuring costs and      
    interest income and expense are not included in total operating costs,  
    total cash costs or total production costs. Operating costs per ton,    
    operating costs per ounce, cash costs per ton, cash costs per ounce,    
    production costs per ton and production costs per ounce are non-GAAP    
    measurements that management uses to monitor and evaluate the efficiency
    of its mining operations. These measures of cost are not defined under  
    U.S. Generally Accepted Accounting Principles (GAAP). Please see        
    "Reconciliation of Non-GAAP Measures to Costs of Revenues" and the      
    accompanying discussion for additional detail.                          
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors (continued)                                           
(Unaudited)                                                                 
                                                                            
                                               Three Months    Nine Months  
                                                  Ended           Ended     
(in thousands, except for average prices)     September 30,   September 30, 
                                               2012    2011    2012    2011 
                                             ------- ------- ------- -------
SALES AND PRICE DATA                                                        
Ounces sold                                                                 
Mine production:                                                            
  Palladium (oz.)                                 97     109     290     308
  Platinum (oz.)                                  27      29      85      82
                                             ------- ------- ------- -------
    Total                                        124     138     375     390
                                             ------- ------- ------- -------
                                                                            
PGM recycling: (1)                                                          
  Palladium (oz.)                                 42      49     145     106
  Platinum (oz.)                                  27      31      86      71
  Rhodium (oz.)                                    6       6      19      13
                                             ------- ------- ------- -------
    Total                                         75      86     250     190
                                             ------- ------- ------- -------
                                                                            
Other: (5)                                                                  
  Platinum (oz.)                                   -       1       -       1
                                                                            
By-products from mining: (2)                                                
  Rhodium (oz.)                                    1       2       3       2
  Gold (oz.)                                       2       2       7       6
  Silver (oz.)                                     1       1       4       4
  Copper (lb.)                                   219     218     568     612
  Nickel (lb.)                                   295     301     836     972
                                                                            
Average realized price per ounce(3)                                         
Mine production:                                                            
  Palladium ($/oz.)                          $   605 $   772 $   640 $   769
  Platinum ($/oz.)                           $ 1,513 $ 1,784 $ 1,536 $ 1,778
                                                                            
Combined ($/oz)(4)                               803 $   988 $   843 $   981
PGM recycling: (1)                                                          
  Palladium ($/oz.)                          $   620 $   767 $   651 $   744
  Platinum ($/oz.)                           $ 1,491 $ 1,788 $ 1,545 $ 1,770
  Rhodium ($/oz)                             $ 1,327 $ 2,192 $ 1,449 $ 2,272
Combined ($/oz)(4)                           $   985 $ 1,230 $ 1,020 $ 1,232
Other: (5)                                                                  
  Platinum ($/oz.)                           $     - $ 1,774 $     - $ 1,774
                                                                            
By-products from mining: (2)                                                
  Rhodium ($/oz.)                            $ 1,124 $ 
1,832 $ 1,310 $ 1,857
  Gold ($/oz.)                               $ 1,692 $ 1,703 $ 1,659 $ 1,519
  Silver ($/oz.)                             $    32 $    41 $    31 $    37
  Copper ($/lb.)                             $  3.34 $  3.87 $  3.42 $  3.99
  Nickel ($/lb.)                             $  6.16 $  8.39 $  6.77 $  9.70
                                                                            
Average market price per ounce(3)                                           
  Palladium ($/oz.)                          $   611 $   753 $   641 $   768
  Platinum ($/oz.)                           $ 1,496 $ 1,771 $ 1,535 $ 1,782
Combined ($/oz)(4)                           $   804 $   970 $   843 $   981
                                                                            
(1) Ounces sold and average realized price per ounce from PGM recycling     
    relate to ounces produced from processing of catalyst materials.        
(2) By-product metals sold reflect contained metal. Realized prices reflect 
    net values (discounted due to product form and transportation and       
    marketing charges) per unit received.                                   
(3) The Company's average realized price represents revenues, which include 
    the effect of hedging gains and losses realized on commodity instruments
    and agreement discounts, divided by ounces sold. The average market     
    price represents the average London Bullion Market Association afternoon
    postings for the actual months of the period.                           
(4) The Company reports a combined average realized and a combined average  
    market price of palladium and platinum at the same ratio as ounces that 
    are produced from the base metal refinery.                              
(5) Ounces sold and average realized price per ounce from Other relate to   
    ounces purchased in the open market for resale.                         

 
Reconciliation of Non-GAAP Measures to Costs of Revenues  
The Comp
any utilizes certain non-GAAP measures as indicators in
assessing the performance of its mining and processing operations
during any period. Because of the processing time required to
complete the extraction of finished PGM products, there are typically
lags of one to three months between ore production and sale of the
finished product. Sales in any period include some portion of
material mined and processed from prior periods as the revenue
recognition process is completed. Consequently, while costs of
revenues (a GAAP measure included in the Company's Consolidated
Statement of Operations and Comprehensive Income) appropriately
reflects the expense associated with the materials sold in any
period, the Company has developed certain non-GAAP measures to assess
the costs associated with its producing and processing activities in
a particular period and to compare those costs between periods.  
While the Company believes that these non-GAAP measures may also be
of value to outside readers, both as general indicators of the
Company's mining efficiency from period to period and as insight into
how the Company internally measures its operating performance, these
non-GAAP measures are not standardized across the mining industry and
in most cases will not be directly comparable to similar measures
that may be provided by other companies. These non-GAAP measures are
only useful as indicators of relative operational performance in any
period, and because they do not take into account the inventory
timing differences that are included in costs of revenues, they
cannot meaningfully be used to develop measures of earnings or
profitability. A reconciliation of these measures to costs of
revenues for each period shown is provided as part of the following
tables, and a description of each non-GAAP measure is provided below. 
Total Costs of Revenues: For the Company as a whole, this measure is
equal to total costs of revenues, as reported in the Consolidated
Statement of Operations and Comprehensive Income. For the Stillwater
Mine, the East Boulder Mine, and other PGM activities, the Company
segregates the expenses within total costs of revenues that are
directly associated with each of these activities and then allocates
the remaining facility costs included in total cost of revenues in
proportion to the monthly volumes from each activity. The resulting
total costs of revenues measures for Stillwater Mine, East Boulder
Mine and other PGM activities are equal in total to total costs of
revenues as reported in the Company's Consolidated Statement of
Operations and Comprehensive Income. 
Total Production Costs (Non-GAAP): Calculated as total costs of
revenues (for each mine or combined) adjusted to exclude gains or
losses on asset dispositions, costs and profit from recycling
activities, revenues from the sale of mined by-products and timing
differences resulting from changes in product inventories. This
non-GAAP measure provides a comparative measure of the total costs
incurred in association with production and processing activities in
a period, and may be compared to prior periods or between the
Company's mines.  
When divided by the total tons milled in the respective period, Total
Production Cost per Ton Milled (Non-GAAP) -- measured for each mine
or combined -- provides an indication of the cost per ton milled in
that period. Because of variability of ore grade in the Company's
mining operations, production efficiency underground is frequently
measured against ore tons produced rather than contained PGM ounces.
Because ore tons are first actually weighed as they are fed into the
mill, mill feed is the first point at which production tons are
measured precisely. Consequently, Total Production Cost per Ton
Milled (Non-GAAP) is a general measure of production efficiency, and
is affected both by the level of Total Production Costs (Non-GAAP)
and by the volume of tons produced and fed to the mill.  
When divided by the total recoverable PGM ounces from production in
the respective period, Total Production Cost per Ounce (Non-GAAP) --
measured for each mine or combined -- provides an indication of the
cost per ounce produced in that period. Recoverable PGM ounces from
production are an indication of the amount of PGM product extracted
through mining in any period. Because extracting PGM material is
ultimately the objective of mining, the cost per ounce of extracting
and processing PGM ounces in a period is a useful measure for
comparing extraction efficiency between periods and between the
Company's mines. Consequently, Total Production Cost per Ounce
(Non-GAAP) in any period is a general measure of extraction
efficiency, and is affected by the level of Total Production Costs
(Non-GAAP), by the grade of the ore produced and by the volume of ore
produced in the period. 
Total Cash Costs (Non-GAAP): This non-GAAP measure is calculated by
excluding the depreciation and amortization and asset retirement
costs from Total Production Costs (Non-GAAP) for each mine or
combined. The Company uses this measure as a comparative indication
of the cash costs related to production and processing in any period. 
When divided by the total tons milled in the respective period, Total
Cash Cost per Ton Milled (Non-GAAP) -- measured for each mine or
combined -- provides an indication of the level of cash costs
incurred per ton milled in that period. Because of variability of ore
grade in the Company's mining operations, production efficiency
underground is frequently measured against ore tons produced rather
than contained PGM ounces. Because ore tons are first weighed as they
are fed into the mill, mill feed is the first point at which
production tons are measured precisely. Consequently, Total Cash Cost
per Ton Milled (Non-GAAP) is a general measure of production
efficiency, and is affected both by the level of Total Cash Costs
(Non-GAAP) and by the volume of tons produced and fed to the mill.  
When divided by the total recoverable PGM ounces from production in
the respective period, Total Cash Cost per Ounce (Non-GAAP) --
measured for each mine or combined -- provides an indication of the
level of cash costs incurred per PGM ounce produced in that period.
Recoverable PGM ounces from production are an indication of the
amount of PGM product extracted through mining in any period. Because
ultimately extracting PGM material is the objective of mining, the
cash cost per ounce of extracting and processing PGM ounces in a
period is a useful measure for comparing extraction efficiency
between periods and between the Company's mines. Consequently, Total
Cash Cost per Ounce (Non-GAAP) in any period is a general measure of
extraction efficiency, and is affected by the level of Total Cash
Costs (Non-GAAP), by the grade of the ore produced and by the volume
of ore produced in the period. 
Total Operating Costs (Non-GAAP): This non-GAAP measure is derived
from Total Cash Costs (Non-GAAP) for each mine or combined by
excluding royalty, tax and insurance expenses from Total Cash Costs
(Non-GAAP). Royalties, taxes and insurance costs are contractual or
governmental obligations outside of the control of the Company's
mining operations, and in the case of royalties and most taxes, are
driven more by the level of sales realizations rather than by
operating efficiency. Consequently, Total Operating Costs (Non-GAAP)
is a useful indicator of the level of production and processing costs
incurred in a period that are under the control of mining operations. 
When divided by the total tons milled in the respective period, Total
Operating Cost per Ton Milled (Non-GAAP) -- measured for each mine or
combined -- provides an indication of the level of controllable cash
costs incurred per ton milled in that period. Because of variability
of ore grade in the Company's mining operations, production
efficiency underground is frequently measured against ore tons
produced rather than contained PGM ounces. Because ore tons are first
actually weighed as they are fed into the 
mill, mill feed is the
first point at which production tons are measured precisely.
Consequently, Total Operating Cost per Ton Milled (Non-GAAP) is a
general measure of production efficiency, and is affected both by the
level of Total Operating Costs (Non-GAAP) and by the volume of tons
produced and fed to the mill.  
When divided by the total recoverable PGM ounces from production in
the respective period, Total Operating Cost per Ounce (Non-GAAP) --
measured for each mine or combined -- provides an indication of the
level of controllable cash costs incurred per PGM ounce produced in
that period. Recoverable PGM ounces from production are an indication
of the amount of PGM product extracted through mining in any period.
Because ultimately extracting PGM material is the objective of
mining, the cost per ounce of extracting and processing PGM ounces in
a period is a useful measure for comparing extraction efficiency
between periods and between the Company's mines. Consequently, Total
Operating Cost per Ounce (Non-GAAP) in any period is a general
measure of extraction efficiency, and is affected by the level of
Total Operating Costs (Non-GAAP), by the grade of the ore produced
and by the volume of ore produced in the period. 


 
                                                                            
                                                                            
Reconciliation of Non-GAAP Measures to Costs of Revenues                    
                                                                            
                                     Three Months Ended  Nine Months Ended  
                                        September 30,       September 30,   
(in thousands)                         2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
Consolidated:                                                               
Reconciliation to consolidated costs                                        
 of revenues:                                                               
Total operating costs (Non-GAAP)     $ 52,943  $ 44,212  $154,686  $130,966 
  Royalties, taxes and other           10,108    12,823    31,023    38,251 
                                     --------  --------  --------  -------- 
Total cash costs (Non-GAAP)          $ 63,051  $ 57,035  $185,709  $169,217 
  Asset retirement costs                  160       147       471       432 
  Depletion, depreciation and                                               
   amortization                        13,843    15,359    42,848    46,555 
  Depletion, depreciation and                                               
   amortization (in inventory)            217      (580)     (141)   (1,670)
                                     --------  --------  --------  -------- 
Total production costs (Non-GAAP)    $ 77,271  $ 71,961  $228,887  $214,534 
  Change in product inventories        (2,764)    2,068       973    (6,143)
  Cost of PGM recycling                72,096   103,336   249,360   228,042 
  PGM recycling - depreciation            264       269       793       796 
  Add: Profit from by-products          7,212     8,969    23,563    24,508 
  Add: Profit from PGM recycling        2,034     4,508     8,360    11,147 
                                     --------  --------  --------  -------- 
Total consolidated costs of revenues $156,113  $191,111  $511,936  $472,884 
                                     ========  ========  ========  ======== 
Stillwater Mine:                                                            
Reconciliation to costs of revenues:                                        
Total operating costs (Non-GAAP)     $ 37,147  $ 30,686  $106,839  $ 94,963 
  Royalties, taxes and other            7,025     9,056    21,079    27,091 
                                     --------  --------  --------  -------- 
Total cash costs (Non-GAAP)          $ 44,172  $ 39,742  $127,918  $122,054 
  Asset retirement costs                  148       137       436       401 
  Depletion, depreciation and                                               
   amortization                        10,439    12,126    32,676    36,282 
  Depletion, depreciation and                                               
   amortization (in inventory)             31      (513)     (453)     (637)
                                     --------  --------  --------  -------- 
Total production costs (Non-GAAP)    $ 54,790  $ 51,492  $160,577  $158,100 
  Change in product inventories        (2,206)    1,666     1,088    (5,544)
  Add: Profit from by-products          4,692     5,950    15,294    15,834 
  Add: Profit from PGM recycling        1,504     3,353     6,119     8,373 
                                     --------  --------  --------  -------- 
Total costs of revenues              $ 58,780  $ 62,461  $183,078  $176,763 
                                     ========  ========  ========  ======== 
East Boulder Mine:                                                          
Reconciliation to costs of revenues:                                        
Total operating costs (Non-GAAP)     $ 15,796  $ 13,525  $ 47,848  $ 36,002 
  Royalties, taxes and other            3,083     3,767     9,943    11,160 
                                     --------  --------  --------  -------- 
Total cash costs (Non-GAAP)          $ 18,879  $ 17,292  $ 57,791  $ 47,162 
  Asset retirement costs                   12        11        35        32 
  Depletion, depreciation and                                               
   amortization                         3,404     3,233    10,173    10,273 
  Depletion, depreciation and                                               
   amortization (in inventory)            186       (66)      311    (1,032)
                                     --------  --------  --------  -------- 
Total production costs (Non-GAAP)    $ 22,481  $ 20,470  $ 68,310  $ 56,435 
  Change in product inventories     
     (558)     (740)     (115)   (1,741)
  Add: Profit from by-products          2,520     3,019     8,269     8,674 
  Add: Profit from PGM recycling          530     1,155     2,241     2,774 
                                     --------  --------  --------  -------- 
Total costs of revenues              $ 24,973  $ 23,904  $ 78,705  $ 66,142 
                                     ========  ========  ========  ======== 
PGM Recycling                                                               
Reconciliation to costs of revenues:                                        
  Cost of open market purchases             -     1,141         -     1,141 
  PGM recycling - depreciation            264       269       793       796 
  Cost of PGM recycling                72,096   103,336   249,360   228,042 
                                     --------  --------  --------  -------- 
Total costs of revenues              $ 72,360  $104,746  $250,153  $229,979 
                                     ========  ========  ========  ======== 

  
CONTACT: 
Mike Beckstead
(406) 373-8971 
 
 
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