Stillwater Mining Company Reports on 2012 Mine Production

Stillwater Mining Company Reports on 2012 Mine Production Results and
Montana Expansion Projects 
Total 2012 Palladium and Platinum Production Exceeds Guidance 
Montana Mine Expansion Projects Continue to Show Significant Progress 
BILLINGS, MT -- (Marketwire) -- 01/15/13 --  STILLWATER MINING
COMPANY (NYSE: SWC) (TSX: SWC.U) reported today that its mined
production of palladium and platinum for the fourth quarter 2012 was
132,500 ounces and for the year 2012 was 513,700 ounces, exceeding
the Company's 2012 guidance of 500,000 ounces. Mined production for
2011 was 517,900 ounces. The Company also reported that mine
production guidance for 2013 is again projected at 500,000 ounces. 
While not yet finalized, 2012 total cash costs per mined ounce (a
non-GAAP measure of extraction efficiency that is further defined in
the Company's filings with the U.S. Securities and Exchange
Commission) are expected to be at or slightly below 2012 guidance of
$500. These will be above total cash costs per mined ounce of $420
for 2011. 
Total cash costs for 2013 are expected to average about $560 per
mined ounce, reflecting ongoing increases in infrastructure
requirements at both of the Company's Montana mines as they continue
to go deeper and expand outward, increases in contractual labor
commitments, ongoing growth in the Company's workforce, training,
safety and mine support efforts to enable the Company's Montana
expansion projects, as well as general inflation. While the Company's
PGM industry peers face similar cost pressures from deepening and
receding face dynamics, Stillwater has fared better due to the
stratigraphy of its ore reserve and a more stable operating
environment. Furthermore, Stillwater has benefitted from palladium's
improved price relationship to that of platinum. For the past 24
months, the palladium-to-platinum price relationship has averaged
42%, compared to 26% between 2003 and 2010. This improved price
relationship has positioned Stillwater as one of the lowest cost
primary PGM producers in the world. Given the positive outlook for
demand in the auto industry and expected favorable supply-demand
dynamics for palladium, the Company believes there is an opportunity
for the palladium-to-platinum price relationship to tighten further. 
On the recycling side, the Company's volumes increased in the fourth
quarter 2012 to 118,600 ounces as PGM prices rebounded late in the
year and new shippers emerged. Recycling volumes, which are price
sensitive, had dipped during the middle part of 2012, but rebounded
as PGM prices increased during the fourth quarter. Total recycling
volumes for the year 2012 were 445,200 ounces of palladium, platinum
and rhodium compared to 486,700 ounces for 2011.  
Commenting on the 2012 results, Frank McAllister, the Company's
chairman and CEO, stated, "These are dynamic times in the PGM
industry. Our mines continue to perform very well, with stable
production, well controlled, competitive cost structures and
comparatively modest sustaining capital requirements, while other PGM
producers face very significant production, labor and cost
challenges. The dynamics of our industry are driven by continued
strong growth in demand, particularly for palladium, in the face of
ever increasing supply constraints globally. At this point, we find
ourselves one of the few PGM producers projecting a long-term growth
profile in PGMs, which we believe is built atop a foundation of
stable, highly cost-competitive and long-lived existing operations.
In particular, I am pleased to observe that the significant
investment we have made in the development of our Montana operations
these past several years has now progressed to the point where we can
begin to quantify the level of future growth achievable at those
operations. 
"Of special note in 2012 was the continuing improvement in the
Company's safety performance: our reportable incident rate per
200,000 hours worked declined to 3.12 in 2012 from 3.34 in 2011, a
6.6% improvement. I congratulate each of our employees for another
excellent year of dedicated performance and for continuing attention
to workplace safety and productivity improvement." 
Montana Expansion Projects 
Projecting beyond 2013, Stillwater further advised that it now
expects first production from its Graham Creek project at the East
Boulder Mine in late 2014, with the project expected to increase
total Company production by about 30,000 ounces annually from 2015
and thereafter. In addition, the Company is initiating development of
the Far West project, a new as yet undeveloped mining area with
attractive ore grades situated within the Stillwater Mine. Once in
operation, the Far West area is expected to increase the Stillwater
Mine's production by approximately 20,000 ounces initially in 2016,
growing to approximately 45,000 ounces in 2017 and thereafter. With
Graham Creek and Far West both on line in 2017, estimated annual
Company production from the Montana operations should total
approximately 575,000 ounces. Beyond 2017, when the Blitz project
comes fully online, estimated annual Company production from the
Montana operations should total at least 600,000 ounces. The Company
expects to gain more clarity on the ultimate production potential of
the Blitz project as development there proceeds further. 
The Graham Creek project's 8,200-foot tunnel boring machine (TBM)
excavation remains on track and will be finished in the first half of
2013. Once complete, it will be followed by the installation of two
ventilation raises to surface over the subsequent 18 months. During
this time the Company will continue to hire and train additional
skilled miners required for the East Boulder Mine and Graham Creek
operations. Through the end of 2012, the TBM has advanced about 6,500
feet. While not complete, significant definitional drilling has been
performed at the Graham Creek project and minable ore has been
identified. Ore grades in this area appear consistent with current
grades in the existing portion of the East Boulder Mine. The cost of
the Graham Creek project is estimated at $13 million, of which
approximately $3.5 million has been charged to the project through
the end of 2012. 
The Company's new Far West project was first identified in this
year's mining plan and is situated in an area of relatively high PGM
grades between the 3500 and 5000 levels at the western end of the
Stillwater Mine. The Company anticipates the Far West project will
take about three years to fully develop at an estimated cost of $25
million. It represents an acceleration of incremental production made
possible by the Company's ongoing development of the Blitz project.
Because the Far West project is situated within the existing envelope
of the Stillwater Mine, the development efforts there will benefit
from the existing major infrastructure of the mine. At least
initially, some manpower may be diverted from the Blitz development
into the Far West project in order to accelerate overall production
growth at the Stillwater Mine, but if workforce attrition remains
stable, the effect on the Blitz timeline should be minimal. 
The Blitz project includes three principal elements: a TBM drive that
ultimately will extend about 23,000 feet to the east from the
existing Stillwater Mine infrastructure; a second underground drift
parallel to the TBM drive and about 600 feet above it; and a proposed
new surface portal and decline to be located about four miles to the
east of the existing Stillwater Mine facilities. The new surface
portal will be conventionally driven and is intended to intercept the
two primary Blitz tunnels, providing ventilation and emergency egress
for the Blitz area. The TBM acquired for the Blitz project was fully
commissioned during the fourth quarter of 2012 and to date has
advanced about 400 feet. Construction of the second conventional
drift is also in progress and has advanced over 700 feet. As these
drives continue to advance, definitional and probe drilling will be
performed to further enhance the understanding of the geology in this
area. Total cost of the Blitz project is expected to be approximately
$197 million, of which approximately $35.6 million has been charged
to the project through the end of 2012. 
Marathon  
Separately, the detailed engineering study is progressing at the
Marathon project in Canada and is expected to be completed during the
third quarter of 2013. The environmental review at Marathon is also
proceeding; the Company currently is responding to sufficiency
comments received during the fourth quarter of last year from the
joint federal and provincial environmental review panel related to
the Marathon environmental assessment. 
Altar  
The Company believes the Altar project is a low-cost option on
copper-gold with significant resource potential upside. To that end,
the capital spending program for Altar remains highly disciplined and
focused on defining and ultimately valuing that upside. Stillwater
plans to reduce spending significantly at Altar in 2013. Importantly,
this limited spending at Altar will not divert capital away from the
Company's core palladium-focused operations and growth projects. 
Conclusion 
The Company continues to be extremely positive on the outlook for
palladium and its position to benefit from that outlook. The Company
has a strong balance sheet and stable base of cost-competitive
palladium-focused operations, both of which will enable the Company
to further its palladium-based growth projects at a time when other
major companies in the PGM industry face significant challenges. 
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 Company 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 "believes," "anticipates," "plans," "expects,"
"intends," "projects", "estimates," "forecast," "guidance," 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 our actual performance
or achievements to differ materially from those expressed or implied
by these forward-looking statements. Such statements include, but are
not limited to, comments regarding expansion plans, costs, grade,
production and recovery rates, permitting, financing needs, the terms
of future credit facilities and capital expenditures, increases in
processing capacity, cost reduction measures, safety, timing for
engineering studies, and environmental permitting and compliance,
litigation, labor matters and the palladium and platinum market.
Additional information regarding factors, which 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 and in subsequent filings with the United States
Securities & Exchange Commission. 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.  
CONTACT: 
Mike Beckstead
(406) 373-8971 
 
 
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