Stillwater Mining Company Reports Second Quarter Earnings

Stillwater Mining Company Reports Second Quarter Earnings 
BILLINGS, MT -- (Marketwired) -- 08/08/13 --  STILLWATER MINING
COMPANY (NYSE: SWC) (TSX: SWC.U) 


 
--  Second quarter mine production of 131,500 PGM ounces -- 2013 guidance
    of 500,000 ounces reiterated
--  Recycling volume of 175,000 ounces sets second consecutive quarterly
    record
--  Capital expenditure guidance for 2013 reduced to a range of $145
    million to $155 million
--  Consolidated net loss attributable to common stockholders of $5.3
    million or $(0.04) per diluted share, including unusual items

  
Stillwater Mining Company today reported a consolidated net loss
attributable to common stockholders for the 2013 second quarter of
$5.3 million, or $(0.04) per diluted share. The loss reported for the
quarter was primarily driven by expenses resulting from the
accelerated vesting of equity-based compensation and from heightened
corporate activity during the recent proxy contest. The second
quarter included non-cash equity based compensation expense of $9.1
million resulting from change in control provisions triggered during
the quarter. In addition, proxy contest related expenses of $1.5
million were incurred during the second quarter. Consolidated net
income attributable to common stockholders reported for the 2012
second quarter was $19.2 million, or $0.17 per diluted share. Total
revenues for the 2013 second quarter were $266.5 million, an increase
of 25.2% compared to revenues of $212.8 million for the second
quarter of 2012.  
For the first six months of 2013, Stillwater reported net income
attributable to common stockholders of $9.3 million, or $0.08 per
diluted share, on revenues of $517.1 million, compared to net income
of $25.1 million, or $0.22 per diluted share, on revenues of $415.8
million, for the same period in 2012. 
Commenting on the Company's 2013 second quarter results, Terry
Ackerman, the Company's interim Chief Executive Officer, stated,
"Operational performance continued to be strong through the second
quarter as our teams built on their history of consistent execution.
Mined production results were once again ahead of plan and our
recycling facilities processed a record number of PGM ounces, topping
the previous record that was set just last quarter. Progress
continues on the growth projects at our Montana operations with the
Blitz, Graham Creek and Lower Far West projects all moving forward on
plan. Outside of Montana, a detailed engineering and feasibility
study on the Marathon project in Canada is in process and is expected
to be completed during the fourth quarter of this year. A limited
drilling program at the Altar project in Argentina for the 2012/2013
drilling season was completed in April and analysis of the core is
now underway. An updated report on the Altar project should be
published before year end. 
"As previously announced, the Company welcomed four new members to
its Board of Directors during the second quarter. Our management team
has already formed a solid working relationship with the
reconstituted Board. The Company has initiated a comprehensive
internal review process with the intent of providing information
necessary to assist the Board and management in charting a path
forward that will build upon the Company's successes and help refine
the strategic focus moving forward. This review includes the
Company's capital allocation practices, corporate activities, mining
operations and development and exploration projects. The review
process will be completed as quickly as possible and the conclusions
will be disclosed as appropriate. The management team is encouraged
by this review process and believes it will help make Stillwater an
even stronger Company." 
Mr. Ackerman concluded, "Overall, the second quarter was another
solid quarter for Stillwater. We incurred some unusual expenses
during the second quarter which, at first glance, masks good
underlying financial results. From a market perspective, we continue
to believe that the supply-demand picture for our primary product,
palladium, is very favorable and is characterized by steadily growing
demand against constrained or possibly declining supply." 
The Company's mines produced a total of 131,500 ounces of palladium
and platinum during the second quarter of 2013 compared to production
of 133,400 ounces in the second quarter of 2012. Production for the
first six months was 258,600 ounces compared to 254,200 ounces in the
first six months of 2012. The fluctuation in ounces produced is
driven primarily by the normal result of changes in mining conditions
and the array of stopes available for mining in any period.  
Second quarter 2013 revenues from sales of mined production
(including proceeds from the sale of by-products) totaled $112.7
million, a decrease from $116.2 million in the same period last year.
Combined sales realizations increased during the second quarter of
2013 for mined palladium and platinum ounces, averaging $865 per
ounce, an increase from the $850 per ounce realized in the second
quarter of 2012. The total quantity of mined palladium and platinum
sold decreased to 122,300 ounces in the second quarter of 2013,
compared to the 128,100 ounces sold during the same period in 2012.  
Total cash costs per mined ounce (a non-GAAP measure defined below)
averaged $532 in the second quarter of 2013, compared to total cash
costs of $454 per ounce for the second quarter of 2012. The increase
is primarily the result of the ever-expanding underground mining
operations, general wage and other cost inflation, as well as the
priority given to the new-miner training programs in support of the
Company's projects and growth initiatives. The Company processed
recycling material containing a quarterly record 175,000 ounces of
palladium, platinum and rhodium through its smelter and refinery
during the second quarter of 2013. This represents the second
successive record quarter for the recycling facilities and represents
a 42.2% increase compared to the total of 123,100 ounces processed
during the second quarter of 2012. The increased volumes were
primarily attributable to growing volumes of material received from
new suppliers. Recycling sales volumes increased 54.0%, to 143,100
ounces in the second quarter of 2013, from 92,900 ounces in the
second quarter of 2012. Recycling revenues totaled $153.7 million in
the 2013 second quarter, up from $96.6 million in the same period of
2012. The Company's combined average realized price for sales of
recycled palladium, platinum and rhodium increased to $1,070 per
ounce in the second quarter of 2013 from $1,030 per ounce in the
second quarter of 2012. 
Total recycled ounces processed in the second quarter of 2013
included approximately 8,000 PGM ounces recovered from reprocessed
furnace brick. Subsequent to the end of the second quarter of 2013,
approximately 12,000 additional PGM recycling ounces were processed
from the furnace brick. Most of the revenue associated with the
20,000 PGM ounces from reprocessed furnace brick is expected to be
recognized in the third quarter of 2013. 
Guidance 
Based on results for the first six months and projections for the
remainder of the year, the Company has reviewed its previous mined
production, cash cost per ounce and capital expenditure guidance. As
a result of this review, the Company has reiterated its previous
guidance of 500,000 ounces of mined palladium and platinum for 2013.
The Company also is maintaining its full-year 2013 guidance for cash
costs per mined ounce of $560. The Company has concluded to reduce
its original capital expenditure guidance for 2013 to a range of $145
to $155 million from $172.8 million.  
Cash Flow and Liquidity 
At June 30, 2013, the Company's available cash was $222.4 million,
compared to $379.7 million at December 31, 2012. If highly liquid
investments are included with available cash, the Company's balance
sheet liquidity totaled $446.9 million at June 30, 2013, a decrease
from $641.7 million at December 31, 2012. Most of this decrease was
related to debt redemption during the first quarter of 2013. Of the
Company's current cash balance, $34.2 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 investments), less
current liabilities -- increased to $608.4 million at June 30, 2013,
from $606.0 million at year end 2012. 
Net cash provided by operating activities (which includes changes in
working capital) totaled $30.9 million for the first six months of
2013, compared to $55.4 million of cash provided in the first half of
2012. The lower cash generation in the first six months of 2013
largely reflected growth in recycling working capital attributable to
the greater volumes being processed this year. Capital expenditures
were $58.8 million in the first half of 2013, a slight decrease from
the $59.3 million in the first half of 2012. Of the capital
expenditures for the first six months of 2013, $6.0 million was
attributable to the major development projects underway on the J-M
Reef in Montana.  
Outstanding debt at June 30, 2013 was $303.6 million, down from
$461.1 million at December 31, 2012. In March 2013, the Company
repaid $164.3 million of its 1.875% convertible debentures. The
Company's debt balance currently includes $268.2 million outstanding
in the form of convertible debentures, $29.6 million of exempt
facility revenue bonds due in 2020, a capital lease of $5.5 million
and $0.3 million for a small installment land purchase. 
Second Quarter Results - Details 
For the second quarter of 2013, the Company's Stillwater Mine
produced 91,000 ounces of palladium and platinum, a decrease of 7.2%
from the 98,100 ounces produced in the second quarter of 2012.
Production at the Company's East Boulder Mine of 40,500 ounces in the
second quarter of 2013 reflected an increase from the 35,300 ounces
produced in the same quarter of 2012. The Stillwater Mine experienced
significant variations in ore grade delivered to the mill during the
2013 second quarter, resulting in an overall reduction in the
reported mill head grade. The normal grade challenges during the
quarter were compounded by a series of infrastructure factors
including dilution resulting from the loss of a key muck pass, which
led to using another pass for both ore and waste rock during part of
the period. These issues are being addressed but have not been
completely remedied to date. The current developed state of the
Montana mines is providing the operational flexibility to work
through this issue and the Company's production and development goals
remain intact. 
Costs of metals sold (before depletion, depreciation and amortization
expense) increased to $226.5 million in the second quarter of 2013
from $168.1 million in the second quarter of 2012. Mining costs
included in costs of metals sold increased slightly to $77.4 million
in the 2013 second quarter from $75.0 million in the 2012 second
quarter. Recycling costs, which primarily reflect the cost of
acquiring spent catalytic materials for processing, totaled $149.2
million in the second quarter of 2013, more than the $93.1 million
reported in the second 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 costs were $14.1 million in the second
quarter of 2013, up from the $10.1 million incurred during the same
period of 2012. The increase was primarily due to costs related to
the retirement of the Company's former Chief Executive Officer.
Exploration expenses were $2.2 million for the second quarter of
2013, of which almost all was attributable to the Altar copper-gold
project, compared to $2.0 million, in the same period of 2012.
Marketing expenses declined to $2.3 million in the 2013 second
quarter compared to $3.7 million in the same quarter of 2012. The
Company plans to curtail marketing expenses for the remainder of
2013. 
Interest expense reported for the second quarters of 2013 and 2012
was $5.4 million and $1.2 million, respectively. This increase is
principally the result of non-cash accretion of the debt discount
related to the 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 second quarter of
2013 was $3.9 million. 
During the second quarter of 2013, the Company recorded a net foreign
currency transaction gain of $5.2 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 second quarter of 2012 was $3.7 million. 
First Six Months' Results - Details 
For the first six months of 2013, the Company's Stillwater Mine
produced 183,600 ounces, a decrease of 1.2% from the 185,800 ounces
produced in the first six months of 2012. Production at the Company's
East Boulder Mine of 75,000 ounces in the first six months of 2013
reflected a 9.6% increase from the 68,400 ounces produced in the same
period of 2012. 
Costs of metals sold (before depletion, depreciation and amortization
expense) increased to $419.1 million in the first six months of 2013
from $326.3 million in the first half of 2012. Mining costs included
in costs of metals sold increased to $153.1 million in the first half
of 2013 from $149.0 million in the same period in 2012. Recycling
costs, which primarily reflect the cost of acquiring spent catalytic
materials for processing, totaled $266.0 million in the first six
months of 2013, more than the $177.3 million reported in the first
six months 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 costs were $26.5 million in the first six
months of 2013, up from the $22.6 million incurred during the same
period of 2012. The Company recognized $8.1 million in exploration
expenses related to its mineral properties in both Canada and South
America in the first six months of 2013 and $12.1 million in the
first six months of 2012. Marketing expenses declined to $4.0 million
in the first half of 2013 compared to $6.0 million in the same time
period of 2012. As a result of the recent proxy contest and the
change in control provisions in the Company's employee and director
equity incentive plans, the Company recognized costs of $4.3 million
and $9.1 million, (non-cash charge) respectively, for the six-month
period ended June 30, 2013. 
Interest expense reported for the first six months of 2013 and 2012
was $12.1 million and $2.9 million, respectively. This increase is
principally the result of non-cash accretion of the debt discount
related to the 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 six months
of 2013 was $7.7 million. 
During the first six months of 2013, the Company recorded a net
foreign currency transaction gain of $9.5 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 six months of 2012 was $6.6 million.
About $10.7 million and $4.4 million of the 2013 and 2012 net gain,
respectively, related to the remeasurement into U.S. dollars of the
deferred taxes recorded in association with the acquisition of
Peregrine Metals Ltd. The gain reflects the effect of the high
inflation rate in Argentina as the obligation is remeasured from
pesos into U.S. dollars. 
Second Quarter Results Webcast and Conference Call 
Stillwater Mining Company will conduct a conference call to discuss
second quarter results at approximately 12:00 p.m. Eastern Daylight
Time on Thursday, August 8, 2013. 
Dial-In Numbers:
 United States: (800) 288-8961 
 International:
(612) 332-0335  
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
299099. 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 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 "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 (Loss)                      
(Unaudited)                                                                 
(In thousands, except per share data)                                       
                                                                            
                                      Three Months Ended   Six Months Ended 
                                           June 30,            June 30,     
                                     ------------------- -------------------
                                        2013      2012      2013      2012  
                                     --------- --------- --------- ---------
REVENUES                                                                    
  Mine production                    $112,742  $116,190  $241,056  $232,894 
  PGM recycling                       153,749    96,585   276,083   182,932 
                                     --------  --------  --------  -------- 
      Total revenues                  266,491   212,775   517,139   415,826 
COSTS AND EXPENSES                                                          
  Costs of metals sold                                                      
    Mine production                    77,376    74,996   153,129   149,025 
    PGM recycling                     149,154    93,149   266,016   177,264 
                                     --------  --------  --------  -------- 
      Total costs of metals sold      226,530   168,145   419,145   326,289 
  Depletion, depreciation and                                               
   amortization                                                             
    Mine production                    13,742    14,601    28,767    29,005 
    PGM recycling                         261       261       519       529 
                                     --------  --------  --------  -------- 
      Total depletion, depreciation                                         
       and amortization                14,003    14,862    29,286    29,534 
                                     --------  --------  --------  -------- 
        Total costs of revenues       240,533   183,007   448,431   355,823 
  Marketing                             2,263     3,650     3,990     5,988 
  Exploration                           2,153     2,000     8,104    12,117 
  Research and development                 25        77        88       782 
  Proxy contest expense                 1,529        --     4,307        -- 
  Accelerated equity based                                                  
   compensation expense                 9,063        --     9,063        -- 
  General and administrative           14,121    10,117    26,530    22,595 
  Loss on long-term investments         1,092        --     1,654        -- 
  Abandonment of non-producing                                              
   property                                --        --        --     2,835 
  Loss on disposal of property, plant                                       
   and equipment                            4       297        40       292 
                                     --------  --------  --------  -------- 
        Total costs and expenses      270,783   199,148   502,207   400,432 
OPERATING INCOME (LOSS)                (4,292)   13,627    14,932    15,394 
OTHER INCOME (EXPENSE)                                                      
  Other                                    17       577     1,162       585 
  Interest income                       1,214       790     2,414     1,435 
  Interest expense                     (5,438)   (1,153)  (12,090)   (2,868)
  Foreign currency transaction gain,                                        
   net                                  5,222     3,653     9,459     6,574 
                                     --------  --------  --------  -------- 
INCOME (LOSS) BEFORE INCOME TAX                                             
 (PROVISION) BENEFIT                   (3,277)   17,494    15,877    21,120 
Income tax (provision) benefit         (2,380)    1,303    (7,230)    3,617 
                                     --------  --------  --------  -------- 
NET INCOME (LOSS)                    $ (5,657) $ 18,797  $  8,647  $ 24,737 
                                     --------  --------  --------  -------- 
Net loss attributable to                                                    
 noncontrolling interest                 (349)     (358)     (628)     (358)
                                     --------  --------  --------  -------- 
NET INCOME (LOSS) ATTRIBUTABLE TO                                           
 COMMON STOCKHOLDERS                 $ (5,308) $ 19,155  $  9,275  $ 25,095 
                                     --------  --------  --------  -------- 
Other comprehensive income (loss),                                          
 net of tax                                                                 
  Net unrealized gains/(losses) on                                          
   securities available-for-sale           (5)     (109)       69       199 
                                     --------  --------  --------  -------- 
COMPREHENSIVE INCOME (LOSS)                                                 
 ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (5,313) $ 19,046  $  9,344  $ 25,294 
                                     --------  --------  --------  -------- 
Comprehensive loss attributable to                                          
 noncontrolling interest                 (349)     (371)     (628)     (371)
                                     --------  --------  --------  -------- 
TOTAL COMPREHENSIVE INCOME (LOSS)    $ (5,662) $ 18,675  $  8,716  $ 24,923 
                                     ========  ========  ========  ======== 
                                                                            
Weighted average common shares                                              
 outstanding                                                                
  Basic                               118,435   115,819   117,937   115,686 
  Diluted                             118,435   123,855   118,391   116,671 
Basic earnings (loss) per share                                             
 attributable to common stockholders $  (0.04) $   0.17  $   0.08  $   0.22 
Diluted earnings (loss) per share                                           
 attributable to common stockholders $  (0.04) $   0.17  $   0.08  $   0.22 
                                     ========  ========  ========  ======== 
                                                                            
                                                                            

 
                                                                            
Stillwater Mining Company                                                   
Consolidated Balance Sheets                                                 
(Unaudited)                                                                 
(In thousands, except per share data)                                       
                                                                            
                                                                            
                                                    June 30,   December 31, 
                                                      2013          2012    
                                                 ------------- -------------
ASSETS                                                                      
Current assets                                                              
Cash and cash equivalents                        $    222,438  $    379,680 
Investments, at fair market value                     224,480       261,983 
Inventories                                           188,449       153,208 
Trade receivables                                       4,397         9,953 
Deferred income taxes                                  21,304        21,304 
Prepaids                                                7,986         4,967 
Other current assets                                   27,729        21,767 
                                                 ------------  ------------ 
  Total current assets                                696,783       852,862 
Mineral properties                                    579,092       579,092 
Mine development, net                                 349,772       320,133 
Property, plant and equipment, net                    123,103       122,677 
Deferred debt issuance costs                            8,686         9,609 
Other noncurrent assets                                 4,832         6,390 
                                                 ------------  ------------ 
  Total assets                                   $  1,762,268  $  1,890,763 
                                                 ============  ============ 
LIABILITIES AND EQUITY                                                      
Current liabilities                                                         
Accounts payable                                 $     31,350  $     28,623 
Accrued compensation and benefits                      30,197        31,369 
Property, production and franchise taxes payable       13,770        13,722 
Current portion of long-term debt and capital                               
 lease obligations                                      1,983       168,432 
Income taxes payable                                    3,358            -- 
Other current liabilities                               7,693         4,702 
                                                 ------------  ------------ 
  Total current liabilities                            88,351       246,848 
Long-term debt and capital lease obligations          301,600       292,685 
Deferred income taxes                                 189,419       199,802 
Accrued workers compensation                            6,274         5,815 
Asset retirement obligation                             8,303         7,965 
Other noncurrent liabilities                            5,344         5,068 
                                                 ------------  ------------ 
  Total liabilities                                   599,291       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; 119,016,207 and 116,951,081 shares                             
 issued and outstanding                                 1,190         1,170 
Paid-in capital                                     1,080,639     1,058,978 
Accumulated earnings                                   30,045        20,770 
Accumulated other comprehensive loss                      (30)          (99)
                                                 ------------  ------------ 
  Total stockholders' equity                        1,111,844     1,080,819 
                                                 ------------  ------------ 
Noncontrolling interest                                51,133        51,761 
                                                 ------------  ------------ 
  Total equity                                      1,162,977     1,132,580 
                                                 ------------  ------------ 
  Total liabilities and equity                   $  1,762,268  $  1,890,763 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
Stillwater Mining Company                                                   
Consolidated Statements of Cash Flows                                       
(Unaudited)                                                                 
(In thousands)                                                              
                                                         Six Months Ended   
                                                             June 30,       
                                                      ----------------------
                                                          2013       2012   
                                                      ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES                                        
Net income                                            $    8,647 $   24,737 
Adjustments to reconcile net income to net cash                             
 provided by operating activities:                                          
  Depletion, depreciation and amortization                29,286     29,534 
  Loss on disposal of property, plant and equipment           40        292 
  Loss on long-term investments                            1,654         -- 
  Deferred taxes                                              51      2,105 
  Foreign currency transaction gain, net                  (9,459)    (6,574)
  Abandonment of non-producing property                       --      2,835 
  Accretion of asset retirement obligation                   338        310 
  Amortization of debt issuance costs                        923        629 
  Accretion of convertible debenture debt discount         7,725         -- 
  Accelerated share based compensation                     9,063         -- 
  Share based compensation and other benefits             11,039      7,887 
  Non-cash capitalized interest                           (2,022)      (341)
  Excess tax expense for stock based compensation          1,470         -- 
Changes in operating assets and liabilities:                                
  Inventories                                            (35,113)     9,920 
  Trade receivables                                        5,556     (2,380)
  Prepaids                                                (3,020)    (3,399)
  Accrued compensation and benefits                       (1,172)     1,234 
  Accounts payable                                         3,329     (2,336)
  Property, production and franchise taxes payable           338        396 
  Income taxes payable                                     3,358     (3,115)
  Workers compensation                                       459        502 
  Restricted cash                                             --         75 
  Other                                                   (1,559)    (6,943)
                                                      ---------- ---------- 
NET CASH PROVIDED BY OPERATING ACTIVITIES                 30,931     55,368 
                                                      ---------- ---------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Capital expenditures                                   (58,825)   (59,313)
  Proceeds from disposal of property, plant and                             
   equipment                                                  46         28 
  Purchases of investments                               (65,267)   (31,887)
  Proceeds from maturities of investments                101,006     23,549 
                                                      ---------- ---------- 
NET CASH USED IN INVESTING ACTIVITIES                    (23,040)   (67,623)
                                                      ---------- ---------- 
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 debt and capital lease obligations        (165,247)      (495)
  Payments for debt issuance costs                            --       (219)
  Issuance of common stock                                   114         32 
                                                      ---------- ---------- 
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES     (165,133)   100,315 
                                                      ---------- ---------- 
CASH AND CASH EQUIVALENTS                                                   
  Net increase (decrease)                               (157,242)    88,060 
  Balance at beginning of period                         379,680    109,097 
                                                      ---------- ---------- 
BALANCE AT END OF PERIOD                              $  222,438 $  197,157 
                                                      ========== ========== 
                                                                            
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors                                                       
(Unaudited)                                                                 
                                                                            
                                        Three Months Ended  Six Months Ended
                                             June 30,           June 30,    
                                        ------------------ -----------------
(In thousands, except where noted)         2013     2012     2013     2012  
                                        --------- -------- -------- --------
OPERATING AND COST DATA FOR MINE                                            
 PRODUCTION                                                                 
Consolidated:                                                               
Ounces produced                                                             
Palladium                                     102      102      200      196
Platinum                                       30       31       59       58
                                        --------- -------- -------- --------
Total                                         132      133      259      254
                                        ========= ======== ======== ========
Tons milled                                   308      269      601      539
Mill head grade (ounce per ton)              0.46     0.54     0.46     0.51
Sub-grade tons milled (1)                      21       18       41       30
Sub-grade tons mill head grade (ounce                                       
 per ton)                                    0.18     0.16     0.17     0.16
Total tons milled (1)                         329      287      642      569
Combined mill head grade (ounce per                                         
 ton)                                        0.44     0.51     0.44     0.49
Total mill recovery (%)                        92       92       92       91
Total operating costs per ounce (Non-                                       
 GAAP) (2)                              $     448 $    374 $    439 $    400
Total cash costs per ounce (Non-GAAP)                                       
 (2)                                    $     532 $    454 $    527 $    482
Total production costs per ounce (Non-                                      
 GAAP) (2)                              $     644 $    562 $    640 $    596
Total operating costs per ton milled                                        
 (Non-GAAP) (2)                         $     179 $    174 $    177 $    179
Total cash costs per ton milled (Non-                                       
 GAAP) (2)                              $     213 $    211 $    213 $    216
Total production costs per ton milled                                       
 (Non-GAAP) (2)                         $     258 $    261 $    258 $    266
Stillwater Mine:                                                            
Ounces produced                                                             
Palladium                                      70       75      142      143
Platinum                                       21       23       42       43
                                        --------- -------- -------- --------
Total                                          91       98      184      186
                                        ========= ======== ======== ========
Tons milled                                   199      168      391      340
Mill head grade (ounce per ton)              0.49     0.63     0.50     0.59
Sub-grade tons milled (1)                      12       10       22       17
Sub-grade tons mill head grade (ounce                                       
 per ton)                                    0.23     0.20     0.22     0.21
Total tons milled (1)                         211      178      413      357
Combined mill head grade (ounce per                                         
 ton)                                        0.48     0.61     0.48     0.57
Total mill recovery (%)                        92       92       93       92
Total operating costs per ounce (Non-                                       
 GAAP) (2)                              $     450 $    352 $    429 $    375
Total cash costs per ounce (Non-GAAP)                                       
 (2)                                    $     532 $    426 $    515 $    451
Total production costs per ounce (Non-                                      
 GAAP) (2)                              $     658 $    538 $    638 $    569
Total operating costs per ton milled                                        
 (Non-GAAP) (2)                         $     194 $    195 $    191 $    195
Total cash costs per ton milled (Non-                                       
 GAAP) (2)                              $     229 $    235 $    229 $    234
Total production costs per ton milled                                       
 (Non-GAAP) (2)                         $     284 $    297 $    284 $    296
                                                                            
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors (continued)                                           
(Unaudited)                                                                 
                                                                            
                                      Three Months Ended   Six Months Ended 
                                           June 30,            June 30,     
                                     ------------------- -------------------
(In thousands, except where noted)      2013      2012      2013      2012  
                                     --------- --------- --------- ---------
OPERATING AND COST DATA FOR MINE                                            
 PRODUCTION                                                                 
(Continued)                                                                 
East Boulder Mine:                                                          
Ounces produced                                                             
Palladium                                   32        27        58        53
Platinum                                     9         8        17        15
                                     --------- --------- --------- ---------
Total                                       41        35        75        68
                                     ========= ========= ========= =========
Tons milled                                109       101       211       199
Mill head grade (ounce per ton)           0.41      0.38      0.39      0.38
Sub-grade tons milled (1)                    9         9        19        13
Sub-grade tons mill head grade                                              
 (ounce per ton)                          0.10      0.11      0.11      0.11
Total tons milled (1)                      118       110       230       212
Combined mill head grade (ounce per                                         
 ton)                                     0.38      0.36      0.36      0.36
Total mill recovery (%)                     91        91        90        90
Total operating costs per ounce                                             
 (Non-GAAP) (2)                      $     442 $     434 $     464 $     468
Total cash costs per ounce (Non-                                            
 
 GAAP) (2)                           $     532 $     529 $     559 $     569
Total production costs per ounce                                            
 (Non-GAAP) (2)                      $     614 $     628 $     647 $     670
Total operating costs per ton milled                                        
 (Non-GAAP) (2)                      $     152 $     140 $     152 $     151
Total cash costs per ton milled                                             
 (Non-GAAP) (2)                      $     183 $     171 $     183 $     184
Total production costs per ton                                              
 milled (Non-GAAP) (2)               $     211 $     203 $     212 $     216
                                                                            
(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 2012 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 Ended  Six Months Ended
                                             June 30,           June 30,    
                                        ------------------ -----------------
(In thousands, except for average                                           
 prices)                                   2013     2012     2013     2012  
                                        --------- -------- -------- --------
SALES AND PRICE DATA                                                        
Ounces sold                                                                 
Mine production:                                                            
  Palladium (oz.)                              98       97      199      193
  Platinum (oz.)                               25       31       54       58
                                        --------- -------- -------- --------
    Total                                     123      128      253      251
                                        --------- -------- -------- --------
PGM recycling: (1)                                                          
  Palladium (oz.)                              81       57      147      103
  Platinum (oz.)                               50       30       92       60
  Rhodium (oz.)                                12        6       21       13
                                        --------- -------- -------- --------
    Total                                     143       93      260      176
                                        --------- -------- -------- --------
By-products from mining: (2)                                                
  Rhodium (oz.)                                 1        1        2        2
  Gold (oz.)                                    3        2        5        5
  Silver (oz.)                                  2        2        4        3
  Copper (lb.)                                260      175      474      349
  Nickel (lb.)                                348      252      687      541
Average realized price per ounce (3)                                        
Mine production:                                                            
  Palladium ($/oz.)                     $     716 $    643 $    720 $    657
  Platinum ($/oz.)                      $   1,446 $  1,502 $  1,544 $  1,547
Combined ($/oz.)(4)                     $     865 $    850 $    897 $    862
PGM recycling: (1)                                                          
  Palladium ($/oz.)                     $     732 $    680 $    706 $    664
  Platinum ($/oz.)                      $   1,600 $  1,610 $  1,603 $  1,569
  Rhodium ($/oz.)                       $   1,163 $  1,413 $  1,145 $  1,500
Combined ($/oz.)(4)                     $   1,070 $  1,030 $  1,058 $  1,034
By-products from mining: (2)                                                
  Rhodium ($/oz.)                       $   1,082 $  1,295 $  1,143 $  1,378
  Gold ($/oz.)                          $   1,354 $  1,594 $  1,478 $  1,644
  Silver ($/oz.)                        $      21 $     29 $     25 $     31
  Copper ($/lb.)                        $    3.05 $   3.35 $   3.20 $   3.48
  Nickel ($/lb.)                        $    5.14 $   6.52 $   5.78 $   7.11
Average market price per ounce (3)                                          
  Palladium ($/oz.)                     $     712 $    628 $    726 $    656
  Platinum ($/oz.)                      $   1,465 $  1,499 $  1,550 $  1,555
Combined ($/oz.)(4)                     $     866 $    838 $    902 $    863
                                                                            
(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.                              

 
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 (Loss)) 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 Company's
Consolidated Statements of Comprehensive Income (Loss). 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 (Loss). 
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    Six Months Ended 
                                          June 30,             June 30,     
                                    -------------------- -------------------
(In thousands)                         2013       2012      2013      2012  
                                    ---------- --------- --------- ---------
Consolidated:                                                               
Reconciliation to consolidated                                              
 costs of revenues:                                                         
                                                                            
Total operating costs (Non-GAAP)    $  58,838  $ 49,915  $113,628  $101,743 
  Royalties, taxes and other           11,082    10,612    22,774    20,915 
                                    ---------  --------  --------  -------- 
Total cash costs (Non-GAAP)         $  69,920  $ 60,527  $136,402  $122,658 
  Asset retirement costs                  171       157       338       311 
  Depletion, depreciation and                                               
   amortization                        13,742    14,601    28,767    29,005 
  Depletion, depreciation and                                               
   amortization (in inventory)            881      (294)      128      (358)
                                    ---------  --------  --------  -------- 
Total production costs (Non-GAAP)   $  84,714  $ 74,991  $165,635  $151,616 
  Change in product inventories        (5,827)    3,554    (9,510)    3,737 
  Cost of PGM recycling               149,154    93,149   266,016   177,264 
  PGM recycling - depreciation            261       261       519       529 
  Add: Profit from by-products          6,943     7,229    14,451    16,351 
  Add: Profit from PGM recycling        5,288     3,823    11,320     6,326 
                                    ---------  --------  --------  -------- 
Total consolidated costs of                                                 
 revenues                           $ 240,533  $183,007  $448,431  $355,823 
                                    =========  ========  ========  ======== 
Stillwater Mine:                                                            
Reconciliation to costs of                                                  
 revenues:                                                                  
Total operating costs (Non-GAAP)    $  40,914  $ 34,566  $ 78,809  $ 69,692 
  Royalties, taxes and other            7,440     7,230    15,688    14,054 
                                    ---------  --------  --------  -------- 
Total cash costs (Non-GAAP)         $  48,354  $ 41,796  $ 94,497  $ 83,746 
  Asset retirement costs                  158       145       313       288 
  Depletion, depreciation and                                               
   amortization                        10,518    11,067    22,127    22,237 
  Depletion, depreciation and                                               
   amortization (in inventory)            792      (228)      192      (484)
                                    ---------  --------  --------  -------- 
Total production costs (Non-GAAP)   $  59,822  $ 52,780  $117,129  $105,787 
  Change in product inventories        (4,100)    2,040    (6,214)    3,294 
  Add: Profit from by-products          4,084     4,636     8,748    10,602 
  Add: Profit from PGM recycling        3,643     2,803     8,041     4,615 
                                    ---------  --------  --------  -------- 
Total costs of revenues             $  63,449  $ 62,259  $127,704  $124,298 
                                    =========  ========  ========  ======== 
East Boulder Mine:                                                          
Reconciliation to costs of                                                  
 revenues:                                                                  
Total operating costs (Non-GAAP)    $  17,924  $ 15,349  $ 34,819  $ 32,052 
  Royalties, taxes and other            3,642     3,382     7,086     6,860 
                                    ---------  --------  --------  -------- 
Total cash costs (Non-GAAP)         $  21,566  $ 18,731  $ 41,905  $ 38,912 
  Asset retirement costs                   13        12        25        23 
  Depletion, depreciation and                                               
   amortization                         3,224     3,534     6,640     6,769 
  Depletion, depreciation and                                               
   amortization (in inventory)             89       (66)      (64)      125 
                                    ---------  --------  --
------  -------- 
Total production costs (Non-GAAP)   $  24,892  $ 22,211  $ 48,506  $ 45,829 
  Change in product inventories        (1,727)    1,514    (3,296)      443 
  Add: Profit from by-products          2,859     2,593     5,703     5,749 
  Add: Profit from PGM recycling        1,645     1,020     3,279     1,711 
                                    ---------  --------  --------  -------- 
Total costs of revenues             $  27,669  $ 27,338  $ 54,192  $ 53,732 
                                    =========  ========  ========  ======== 
PGM Recycling:                                                              
Reconciliation to costs of                                                  
 revenues:                                                                  
  PGM recycling - depreciation      $     261  $    261  $    519  $    529 
  Cost of PGM recycling               149,154    93,149   266,016   177,264 
                                    ---------  --------  --------  -------- 
Total costs of revenues             $ 149,415  $ 93,410  $266,535  $177,793 
                                    =========  ========  ========  ======== 

  
INVESTOR CONTACT: 
Mike Beckstead
(406) 373-8971 
 
 
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