Stillwater Mining Company Reports First Quarter Earnings

  Stillwater Mining Company Reports First Quarter Earnings

Business Wire

BILLINGS, Mont. -- April 29, 2013

STILLWATER MINING COMPANY (NYSE:SWC) (TSX: SWC.U)

  *Consolidated net income attributable to common stockholders of $14.6
    million or $0.12 per diluted share
  *First quarter mine production of 127,100 PGM ounces ahead of plan
  *Recycling volume of 154,200 ounces sets Company quarterly record
  *Three Montana expansion projects continue to make significant progress

Stillwater Mining Company today reported consolidated net income attributable
to common stockholders for the 2013 first quarter of $14.6 million, or $0.12
per diluted share. Total revenues for the first quarter were $250.6 million.
Consolidated net income attributable to common stockholders reported for the
2012 first quarter was $5.9 million, or $0.05 per diluted share on revenues of
$203.1 million.

Commenting on the Company's 2013 first quarter results, Frank McAllister, the
Company's Chairman and Chief Executive Officer, stated, “The first quarter of
2013 has provided an excellent start to the year for Stillwater Mining.
Production from our Montana mines exceeded plan with a run rate ahead of our
500,000 ounce annual guidance, recycling volumes for the quarter set a new
Company record, total cash costs per ounce were lower than our guidance, and
our teams continue to be on track at our three Montana growth projects.
Overall, the Company’s operations are better positioned than ever before in
its 26 year operating history. In addition to operational strength, the
Company is on firm financial footing, with liquidity sufficient to ensure we
will be able to fund our PGM growth projects and should withstand any
short-term volatility in PGM prices. Despite a drop in most metal prices
during early April, the fundamentals for palladium remain robust. Demand for
this precious metal continues to grow in the face of some severe supply
constraints, and Stillwater is in an enviable position to benefit from these
fundamentals.”

The Company's mines produced a total of 127,100 ounces of palladium and
platinum during the first quarter of 2013, a 5.2% increase from the 120,800
ounce production in the first quarter of 2012. The increase in ounces produced
between 2012 and 2013 was driven by the selection of developed mining stopes
available from period to period, typical variability in mining production, the
normal result of changes in mining conditions.

First quarter 2013 revenues from sales of mined production (including
by-products) totaled $128.3 million, up from $116.7 million in the same period
last year. Combined sales realizations increased during the first quarter of
2013 for mined palladium and platinum ounces, averaging $926 per ounce, an
increase from the $875 per ounce realized in the first quarter of 2012. This
combined improvement in price and production, if sustained, would equate to a
benefit of about $12 million to the Company’s quarterly revenues. The total
quantity of mined palladium and platinum sold increased to 130,400 ounces in
the first quarter of 2013, compared to the 123,000 ounces sold during the same
period in 2012.

Total cash costs per mined ounce (a non-GAAP measure defined below) averaged
$523 in the first quarter of 2013, compared to total cash costs of $514 per
ounce for the first quarter of 2012. The increase is primarily the result of
the ever-expanding underground mining operations, general wage and other cost
inflation and the priority given to the new-miner training programs. Based on
results for the first quarter and projections for the remainder of the year,
the Company is maintaining its full-year cash cost guidance of $560 per mined
ounce.

The total recycled ounces of 154,200 for the first quarter of 2013 set a new
quarterly record for the Company and were 15.5% more than the previous
quarterly high of 133,500 ounces in the third quarter of 2011. It was up from
the 107,300 ounces of palladium, platinum and rhodium (including tolled
ounces) recycled during the first quarter of 2012. The increased volumes were
primarily attributable to finding and adding new recycling suppliers.
Recycling sales volumes increased 42%, to 116,900 ounces in the first quarter
of 2013, from 82,400 ounces in the first quarter of 2012. Revenues from sales
of purchased recycling materials totaled $122.3 million in the 2013 first
quarter, up from $86.3 million in the same period last year. The Company's
combined average realized price for sales of recycled palladium, platinum and
rhodium increased to $1,043 per ounce in the first quarter of 2013 from $1,039
per ounce in the first quarter of 2012.

Commenting further on the first quarter, Mr. McAllister added, “Our teams
continue to make significant strides on our Montana development projects. The
8,200-foot tunnel boring machine (TBM) drive associated with the Graham Creek
project at the East Boulder Mine is nearly complete, with total advance of
nearly 8,000 feet at the end of the first quarter. Construction on one of the
two ventilation raises to the surface planned for this project has started and
first production from Graham Creek is expected in late 2014. At the Stillwater
Mine, construction on the Far West project, located in the lower west area,
commenced during the first quarter with work beginning on the extension of the
3500 West rail level, which will be the primary haulage level for this area.
And at the Blitz project, on the eastern side of the Stillwater Mine, the new
TBM has now advanced 1,300 feet and the conventional drift above it has driven
about 1,800 feet of ramp and infrastructure development to date. We are very
pleased with the progress on these projects, which are expected to provide
sustainability and future growth for our operations. Our capital expenditure
guidance for this year remains at $172.8 million, with almost 87% of that
amount focused on the existing Montana operations and these key growth
projects.

“At our Marathon PGM-copper development in Canada, early indications from the
ongoing engineering work suggests the project remains economically viable, at
current metal prices, and evenwith the expected adjustments to grade that we
have discussed previously. We expect to complete the engineering design as
well as an updated economic assessment during the second half of this year. In
addition, the Company is in the process of responding to information requests
following the submission of an Environmental Impact Statement (EIS) to the
Canadian authorities. These responses are expected to be submitted by the end
of this year's second quarter.

“The 2013 drilling season at the Altar project in Argentina is now complete,
one month ahead of schedule. We significantly scaled back spending at Altar,
with total exploration expenses and administrative costs of $6.7 million for
the first quarter, down approximately 44% compared to $12.0 million in the
first quarter last year. This year's drill program included 20 drill holes (16
new drill holes and 4 extensions) totaling 11,100 meters, compared to the 70
drill holes totaling 27,280 meters completed during the 2012 drilling season.
Overall drilling results have been favorable. These holes were designed to
test for horizontal and vertical extensions to the known mineralized area at
Altar.”

Mr. McAllister concluded, “The J-M Reef is a unique, world-class resource, but
our most important asset is our people. Underground mining requires highly
developed skills and continuous attention to detail. I would like to thank our
teams for their ever-continuing efforts to improve mining safety and
efficiency. For the first quarter, the Company's overall safety incidence
rate, which is calculated as the number of reportable injuries per 200,000
hours worked, was 3.3, higher than the exceptionally low 1.5 rate for the
first quarter last year. By historical standards, the 2013 first quarter
incidence rate of 3.3 would be good safety performance, but we continue to
focus on improving our safety culture through our on-going commitment to the
CORESafety philosophy.”

Cash Flow and Liquidity

At March 31, 2013, the Company’s available cash was $203.1 million, compared
to $379.7 million at December31, 2012. If highly liquid short-term
investments are included with available cash, the Company’s balance sheet
liquidity totaled $462.1 million at March 31, 2013, a decrease from $641.7
million at December31, 2012. Most of this decrease was related to debt
redemption during the first quarter. Of the Company's current cash balance,
$38.9 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 – increased to $619.3
million at March 31, 2013, from $606.0 million at year end 2012.

Net cash provided by operating activities (which includes changes in working
capital) totaled $15.5 million in the first quarter of 2013, compared to $15.1
million of cash provided in the first quarter of 2012. However, cash provided
from operations included working capital requirements of $21.1 million in the
first quarter of 2013, which included significant growth in recycling
inventories; in the first quarter of 2012, working capital requirements
totaled $6.1 million. Capital expenditures were $29.4 million in the first
quarter of 2013, up from $22.7 million in the first quarter of 2012. Of the
capital expenditures for the quarter, $3.1 million was attributable to the
major development projects underway on the J-M Reef in Montana. The capital
spending budget for 2013 is $172.8 million, up from $116.6 million of capital
spending during 2012.

Outstanding debt at March 31, 2013 was $300.2 million, down from $461.1
million at December31, 2012. On March 15, 2013, the Company repaid $164.3
million of its 1.875% convertible debentures. The Company’s current debt
balance includes $264.3 million outstanding in the form of convertible
debentures, $29.6 million of exempt facility revenue bonds due in 2020, a
capital lease of $6.0 million and $0.3 million for a small installment land
purchase.

First Quarter Results - Details

For the first quarter of 2013, the Company’s Stillwater Mine produced 92,600
ounces, an increase of 5.6% from the 87,700 ounces produced in the first
quarter of 2012. Production at the Company’s East Boulder Mine of 34,500
ounces in the first quarter of 2013 reflected an increase from the 33,100
ounces produced in the same quarter of 2012.

Costs of metals sold (before depletion, depreciation and amortization expense)
increased to $192.6 million in the first quarter of 2013 from $158.1 million
in the first quarter of 2012. Mining costs included in costs of metals sold
increased slightly to $75.7 million in the 2013 first quarter from $74.0
million in the 2012 first quarter. Recycling costs, which primarily reflect
the cost of acquiring spent catalytic materials for processing, totaled $116.9
million in the first quarter of 2013, more than the $84.1 million reported in
the first quarter of 2012. The increase was due to higher volumes sold and the
related higher market value of the materials acquired for processing.

General and administrative (“G&A”) costs were $15.2 million in the first
quarter of 2013, up from the $12.5 million incurred during the same period of
2012, due in part to higher legal and advisory fees. Exploration expenses
decreased to $6.0 million for the first quarter of 2013, of which almost all
was attributable to the Altar copper-gold project. Exploration expenses
incurred during the first quarter of 2012 were $10.1 million. Marketing
expenses declined to $1.7 million in the 2013 first quarter compared to $2.3
million in the same quarter of 2012.

Interest expense reported for the first quarters of 2013 and 2012 was $6.7
million and $1.7 million, respectively. This increase is principally the
result of non-cash accretion of the debt discount related to the new 1.75%
convertible debentures that is charged to earnings over the expected life of
the convertible debentures. The amount of these non-cash charges to earnings
in the first quarter of 2013 was $3.8 million.

During the first quarter of 2013, the Company recorded a foreign currency
transaction gain of $4.2 million, primarily related to the deferred tax
liability recorded in association with the acquisition of Peregrine Metals
Ltd. The foreign currency transaction gain recorded for the first quarter of
2012 was $2.9 million.

Reported consolidated net income attributable to common stockholders for the
first quarter of 2013 included, by business segment (before income taxes),
income of $37.5 million from mining operations, income of $6.0 million from
recycling activities (including financing income), $0.9 million of costs
associated with the Marathon properties, $1.2 million of costs related to the
Altar copper-gold project, and corporate costs of $22.4 million. For the first
quarter of 2013, the Company reported a $4.9 million income tax provision. For
the first quarter of 2012, the consolidated net income attributable to common
stockholders included, by business segment (before income taxes), $28.3
million of income from mining operations, $2.4 million income from recycling
activities (including financing income), $9.0 million of costs related to the
Altar copper-gold project, $3.6 million of costs associated with the Marathon
properties and corporate costs of $14.4 million. For the first quarter of
2012, the Company reported a $2.3 million income tax benefit.

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. Such statements also include, but are not limited to,
comments regarding expansion plans, costs, grade, production and recovery
rates; permitting; financing needs and the terms of future credit facilities;
exchange rates; capital expenditures; increases in processing capacity; cost
reduction measures; safety; timing for engineering studies; environmental
permitting and compliance; litigating; labor matters; and the palladium,
platinum, copper and gold market. 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 2012 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 Comprehensive Income
(Unaudited)
(In thousands, except per share data)
                                                  
                                                  Three Months Ended March 31,
                                                  2013            2012
REVENUES
Mine production                                   $  128,314       $ 116,704
PGM recycling                                     122,334         86,347    
Total revenues                                    250,648          203,051
COSTS AND EXPENSES
Costs of metals sold
Mine production                                   75,753           74,029
PGM recycling                                     116,862         84,115    
Total costs of metals sold                        192,615          158,144
Depletion, depreciation and amortization
Mine production                                   15,025           14,404
PGM recycling                                     258             268       
Total depletion, depreciation and amortization    15,283          14,672    
Total costs of revenues                           207,898          172,816
Marketing                                         1,727            2,338
Exploration                                       5,951            10,117
Research and development                          63               705
General and administrative                        15,187           12,478
Loss on long-term investments                     562              —
Abandonment of non-producing property             —                2,835
(Gain)/Loss on disposal of property, plant and    36              (5        )
equipment
Total costs and expenses                          231,424          201,284
OPERATING INCOME                                  19,224           1,767
OTHER INCOME (EXPENSE)
Other                                             1,145            8
Interest income                                   1,200            645
Interest expense                                  (6,652      )    (1,715    )
Foreign currency transaction gain, net            4,237           2,931     
INCOME BEFORE INCOME TAX (PROVISION) BENEFIT      19,154           3,636
Income tax (provision) benefit                    (4,850      )    2,304     
NET INCOME                                        $  14,304       $ 5,940   
Net loss attributable to noncontrolling           (279        )    —         
interest
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS    $  14,583       $ 5,940   
Other comprehensive income, net of tax
Net unrealized gains on securities                74              308       
available-for-sale
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON       $  14,657       $ 6,248   
STOCKHOLDERS
Comprehensive loss attributable to                (279        )    —         
noncontrolling interest
TOTAL COMPREHENSIVE INCOME                        $  14,378       $ 6,248   
                                                                   
Weighted average common shares outstanding
Basic                                             117,433          115,552
Diluted                                           159,695          116,580
Basic earnings per share attributable to common   $  0.12          $ 0.05
stockholders
Diluted earnings per share attributable to        $  0.12         $ 0.05    
common stockholders
                                                                             

                                                              
Stillwater Mining Company
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data)
                                                                 
                                                 March 31,       December 31,
                                                 2013            2012
ASSETS
Current assets
Cash and cash equivalents                        $ 203,093       $ 379,680
Investments, at fair market value                259,014         261,983
Inventories                                      186,471         153,208
Trade receivables                                14,303          9,953
Deferred income taxes                            21,304          21,304
Other current assets                             24,993         26,734      
Total current assets                             709,178         852,862
Mineral properties and mine development, net
of $335,837 and $325,977 of accumulated          914,416         899,225
depletion and amortization
Property, plant and equipment, net of $175,536   120,086         122,677
and $169,933 of accumulated depreciation
Deferred debt issuance costs                     9,052           9,609
Other noncurrent assets                          5,733          6,390       
Total assets                                     $ 1,758,465    $ 1,890,763 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable                                 $ 37,548        $ 28,623
Accrued compensation and benefits                30,597          31,369
Property, production and franchise taxes         12,487          13,722
payable
Current portion of long-term debt and capital    1,957           168,432
lease obligations
Income taxes payable                             669             —
Other current liabilities                        6,641          4,702       
Total current liabilities                        89,899          246,848
Long-term debt and capital lease obligations     298,194         292,685
Deferred income taxes                            196,863         199,802
Accrued workers compensation                     6,199           5,815
Asset retirement obligation                      8,132           7,965
Other noncurrent liabilities                     7,927          5,068       
Total liabilities                                607,214        758,183     
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; 118,002,829 and 116,951,081   1,180           1,170
shares issued and outstanding
Paid-in capital                                  1,063,261       1,058,978
Accumulated earnings                             35,353          20,770
Accumulated other comprehensive loss             (25         )   (99         )
Total stockholders’ equity                       1,099,769      1,080,819   
Noncontrolling interest                          51,482         51,761      
Total equity                                     1,151,251      1,132,580   
Total liabilities and equity                     $ 1,758,465    $ 1,890,763 
                                                                             

                                                
Stillwater Mining Company
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
                                                  
                                                  Three Months Ended March 31,
                                                  2013            2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                        $  14,304        $ 5,940
Adjustments to reconcile net income to net cash
provided by operating activities:
Depletion, depreciation and amortization          15,283           14,672
(Gain)/Loss on disposal of property, plant and    36               (5        )
equipment
Loss on long-term investments                     562              —
Deferred taxes                                    1,830            (3,501    )
Foreign currency transaction gain, net            (4,237      )    (2,931    )
Abandonment of non-producing property             —                2,835
Accretion of asset retirement obligation          167              153
Amortization of debt issuance costs               557              314
Accretion of convertible debenture debt           3,832            9
discount
Share based compensation and other benefits       4,246            3,772
Changes in operating assets and liabilities:
Inventories                                       (34,017     )    (1,566    )
Trade receivables                                 (4,350      )    (3,182    )
Accrued compensation and benefits                 (780        )    857
Accounts payable                                  11,567           3,845
Property, production and franchise taxes          1,612            441
payable
Income taxes payable                              669              (2,847    )
Workers compensation                              384              —
Other                                             3,837           (3,658    )
NET CASH PROVIDED BY OPERATING ACTIVITIES         15,502          15,148    
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures                              (29,406     )    (22,720   )
Proceeds from disposal of property, plant and     19               8
equipment
Purchases of investments                          (21,996     )    (5,250    )
Proceeds from maturities of investments           24,025          4,461     
NET CASH USED IN INVESTING ACTIVITIES             (27,358     )    (23,501   )
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on debt and capital lease obligations    (164,787    )    —
Payments for issuance costs                       —                (219      )
Issuance of common stock                          56              29        
NET CASH USED IN FINANCING                        (164,731    )    (190      )
CASH AND CASH EQUIVALENTS
Net decrease                                      (176,587    )    (8,543    )
Balance at beginning of period                    379,680         109,097   
BALANCE AT END OF PERIOD                          $  203,093      $ 100,554 
                                                                             

                                               
Stillwater Mining Company
Key Operating Factors
(Unaudited)
                                                  
                                                  Three Months Ended March 31,
(In thousands, except where noted)                2013               2012
OPERATING AND COST DATA FOR MINE PRODUCTION
Consolidated:
Ounces produced
Palladium                                         98                   94
Platinum                                          29                  27
Total                                             127                 121
Tons milled                                       293                  270
Mill head grade (ounce per ton)                   0.46                 0.49
Sub-grade tons milled ^(1)                        20                   12
Sub-grade tons mill head grade (ounce per         0.16                 0.17
ton)
Total tons milled^(1)                             313                  282
Combined mill head grade (ounce per ton)          0.44                 0.47
Total mill recovery (%)                           92                   91
Total operating costs per ounce (Non-GAAP)        $   431              $  429
^(2)
Total cash costs per ounce (Non-GAAP) ^(2)        $   523              $  514
Total production costs per ounce (Non-GAAP)       $   636              $  634
^(2)
Total operating costs per ton milled              $   175              $  184
(Non-GAAP) ^(2)
Total cash costs per ton milled (Non-GAAP)        $   213              $  220
^(2)
Total production costs per ton milled             $   259              $  272
(Non-GAAP) ^(2)
Stillwater Mine:
Ounces produced
Palladium                                         71                   68
Platinum                                          21                  20
Total                                             92                  88
Tons milled                                       192                  172
Mill head grade (ounce per ton)                   0.51                 0.55
Sub-grade tons milled ^(1)                        10                   8
Sub-grade tons mill head grade (ounce per         0.21                 0.21
ton)
Total tons milled ^(1)                            202                  180
Combined mill head grade (ounce per ton)          0.49                 0.53
Total mill recovery (%)                           93                   92
Total operating costs per ounce (Non-GAAP)        $   409              $  400
^(2)
Total cash costs per ounce (Non-GAAP) ^(2)        $   498              $  478
Total production costs per ounce (Non-GAAP)       $   619              $  604
^(2)
Total operating costs per ton milled              $   188              $  195
(Non-GAAP) ^(2)
Total cash costs per ton milled (Non-GAAP)        $   229              $  233
^(2)
Total production costs per ton milled             $   284              $  295
(Non-GAAP) ^(2)
                                                                          

                                               
Stillwater Mining Company
Key Operating Factors (continued)
(Unaudited)
                                                  
                                                  Three Months Ended March 31,
(In thousands, except where noted)                2013               2012
OPERATING AND COST DATA FOR MINE PRODUCTION
(Continued)
East Boulder Mine:
Ounces produced
Palladium                                         27                   26
Platinum                                          8                   7
Total                                             35                  33
Tons milled                                       101                  98
Mill head grade (ounce per ton)                   0.37                 0.37
Sub-grade tons milled ^(1)                        10                   4
Sub-grade tons mill head grade (ounce per         0.11                 0.11
ton)
Total tons milled ^(1)                            111                  102
Combined mill head grade (ounce per ton)          0.34                 0.36
Total mill recovery (%)                           90                   90
Total operating costs per ounce (Non-GAAP)        $   490              $  505
^(2)
Total cash costs per ounce (Non-GAAP) ^(2)        $   590              $  610
Total production costs per ounce (Non-GAAP)       $   685              $  714
^(2)
Total operating costs per ton milled              $   152              $  163
(Non-GAAP) ^(2)
Total cash costs per ton milled (Non-GAAP)        $   184              $  197
^(2)
Total production costs per ton milled             $   213              $  231
(Non-GAAP) ^(2)
                                                                          

          Sub-grade tons milled includes reef waste material only. Total tons
(1)    milled includes ore tons and sub-grade tons only. See “Proven and
          Probable Ore Reserves – Discussion” in the Company’s 2012 Annual
          Report on Form 10-K for further information.
          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
(2)       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)
                                              
(In thousands, except for average prices)     Three Months Ended March 31,
                                              2013             2012
SALES AND PRICE DATA
Ounces sold
Mine production:
Palladium (oz.)                               101                96
Platinum (oz.)                                29                27
Total                                         130               123
PGM recycling: ^(1)
Palladium (oz.)                               66                 46
Platinum (oz.)                                42                 30
Rhodium (oz.)                                 9                 7
Total                                         117               83
By-products from mining: ^(2)
Rhodium (oz.)                                 1                  1
Gold (oz.)                                    2                  3
Silver (oz.)                                  2                  1
Copper (lb.)                                  214                174
Nickel (lb.)                                  339                289
Average realized price per ounce ^(3)
Mine production:
Palladium ($/oz.)                             $  725             $  671
Platinum ($/oz.)                              $  1,628           $  1,598
Combined ($/oz.)^(4)                          $  926             $  875
PGM recycling: ^(1)
Palladium ($/oz.)                             $  674             $  643
Platinum ($/oz.)                              $  1,607           $  1,528
Rhodium ($/oz.)                               $  1,122           $  1,585
Combined ($/oz.)^(4)                          $  1,043           $  1,039
By-products from mining: ^(2)
Rhodium ($/oz.)                               $  1,200           $  1,431
Gold ($/oz.)                                  $  1,622           $  1,691
Silver ($/oz.)                                $  30              $  33
Copper ($/lb.)                                $  3.39            $  3.60
Nickel ($/lb.)                                $  6.43            $  7.62
Average market price per ounce ^(3)
Palladium ($/oz.)                             $  739             $  682
Platinum ($/oz.)                              $  1,634           $  1,607
Combined ($/oz.)^(4)                          $  939             $  886
                                                                    

(1)    Ounces sold and average realized price per ounce from PGM recycling
          relate to ounces produced from processing of catalyst materials.
          By-product metals sold reflect contained metal. Realized prices
(2)       reflect net values (discounted due to product form and
          transportation and marketing charges) per unit received.
          The Company’s average realized price represents revenues, which
          include the effect of hedging gains and losses realized on commodity
(3)       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.
          The Company reports a combined average realized and a combined
(4)       average market price of palladium and platinum at the same ratio as
          ounces that are produced from the base metal refinery.

Reconciliation of Non-GAAP Measures to Costs of Revenues

The Company 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 Statements of
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 Statements of
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 Statements of 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.

                                               
Stillwater Mining Company
Reconciliation of Non-GAAP Measures to Costs of Revenues
                                                  
                                                  Three Months Ended March 31,
(In thousands)                                    2013           2012
Consolidated:
Reconciliation to consolidated costs of revenues:
Total operating costs (Non-GAAP)                  $  54,790        $ 51,829
Royalties, taxes and other                        11,692          10,302    
Total cash costs (Non-GAAP)                       $  66,482        $ 62,131
Asset retirement costs                            167              153
Depletion, depreciation and amortization          15,025           14,404
Depletion, depreciation and amortization (in      (753       )     (64       )
inventory)
Total production costs (Non-GAAP)                 $  80,921        $ 76,624
Change in product inventories                     (3,683     )     183
Cost of PGM recycling                             116,862          84,115
PGM recycling – depreciation                      258              268
Add: Profit from by-products                      7,509            9,122
Add: Profit from PGM recycling                    6,031           2,504     
Total consolidated costs of revenues              $  207,898      $ 172,816 
Stillwater Mine:
Reconciliation to costs of revenues:
Total operating costs (Non-GAAP)                  $  37,895        $ 35,127
Royalties, taxes and other                        8,248           6,824     
Total cash costs (Non-GAAP)                       $  46,143        $ 41,951
Asset retirement costs                            155              142
Depletion, depreciation and amortization          11,609           11,169
Depletion, depreciation and amortization (in      (600       )     (256      )
inventory)
Total production costs (Non-GAAP)                 $  57,307        $ 53,006
Change in product inventories                     (2,114     )     1,254
Add: Profit from by-products                      4,665            5,966
Add: Profit from PGM recycling                    4,397           1,812     
Total costs of revenues                           $  64,255       $ 62,038  
East Boulder Mine:
Reconciliation to costs of revenues:
Total operating costs (Non-GAAP)                  $  16,895        $ 16,702
Royalties, taxes and other                        3,444           3,478     
Total cash costs (Non-GAAP)                       $  20,339        $ 20,180
Asset retirement costs                            12               11
Depletion, depreciation and amortization          3,416            3,235
Depletion, depreciation and amortization (in      (153       )     192       
inventory)
Total production costs (Non-GAAP)                 $  23,614        $ 23,618
Change in product inventories                     (1,569     )     (1,071    )
Add: Profit from by-products                      2,844            3,156
Add: Profit from PGM recycling                    1,634           692       
Total costs of revenues                           $  26,523       $ 26,395  
PGM Recycling:
Reconciliation to costs of revenues:
PGM recycling – depreciation                      258              268
Cost of PGM recycling                             116,862         84,115    
Total costs of revenues                           $  117,120      $ 84,383  

Contact:

INVESTORS:
Stillwater Mining Company
Mike Beckstead
406-373-8971
or
Innisfree M&A Incorporated
Arthur Corzier / Jennifer Shotwell / Scott Winter
212-750-5833
or
MEDIA:
Sard Verbinnen & Co
Dan Gagnier / Michael Henson
212-687-8080
 
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