Stillwater Mining Company Reports Fourth Quarter and 2013 Results

Stillwater Mining Company Reports Fourth Quarter and 2013 Results  Achieves Record Revenue and Recycling PGM Ounces; Improves 2014 Guidance  BILLINGS, MT -- (Marketwired) -- 03/03/14 --  STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U)      --  Record total revenues for 2013 of $1.04 billion, up 29.9% from 2012 --  2013 mine production of 523,900 PGM ounces, up from 513,700 ounces in     2012 --  Company record 616,700 ounces of recycled PGMs processed for the full     year of 2013, up 38.5% from 2012 --  Consolidated net loss attributable to common stockholders for the full     year 2013 of $270.2 million or $2.28 per share --  Impairment charges of $461.8 million (before-tax) taken on the Altar     property in Argentina and the Marathon properties in Canada --  Cash and highly liquid investments totaling $496.0 million at December     31, 2013, reflecting convertible debt repayment of $164.3 million in     2013     Stillwater Mining Company today reported record revenues for 2013 of $1.04 billion, an increase of 29.9% compared to 2012 revenues of $800.2 million. The increase in total revenues reflects higher year-over-year PGM prices, as well as increased mine sales volumes and significantly higher volume of recycled material in 2013.  The Company reported a consolidated net loss attributable to common stockholders of $270.2 million or $2.28 per share for 2013. The result includes a $290.4 million (before-tax) impairment charge recorded in third quarter of 2013 for the Altar mineral property in Argentina, reducing the carrying value to its estimated fair market value of $102.0 million. In addition, during the fourth quarter, the Company recorded a $171.4 million (before-tax) impairment of its Marathon properties in Canada, reducing the carrying value of Marathon to the estimated fair market value of $57.2 million. The after-tax effects on consolidated net loss attributable to common stockholders for the Altar and Marathon impairments were reductions of $226.5 million and $93.2 million, respectively. Adjusted for these impairments, after-tax consolidated net income attributable to common stockholders would have been approximately $49.5 million for 2013, compared to $55.0 million in 2012.  Commenting on the results, Mick McMullen, the Company's President and Chief Executive Officer, stated, "The fourth quarter results reflect the initial progress we are making on our strategic priorities. We achieved record-level revenues for the year, reflecting our position as a world-class provider of PGM materials, and we also achieved a record year in our recycling segment. We are making progress on our goals of maximizing high margin production ounces and optimizing the performance of our metallurgical facilities. After just a short time as Stillwater's CEO, I am pleased with the rapid progress we are making and believe we can further improve our all-in sustaining costs. We exited 2013 on solid financial footing and improved flexibility with reduced debt levels and a superior liquidity profile.  "Moving forward, we are keenly focused on maximizing the value of output from the Montana mines, our core assets, while improving productivity and reducing production costs. Our capital allocation priorities are focused on strong payback projects and optimizing the capital structure in a manner that we believe will quickly create significant, sustainable value to shareholders. Based on the strong end to 2013 combined with the positive progress we are making year-to-date on our strategic priorities, we have elected to update and improve our previously provided financial guidance."  2014 Guidance:                                                                   2014 Guidance   Mined Production (palladium and platinum ounces)           520,000 - 535,000 Total Cash Cost per Mined Ounce (net of by-product and                        recycling credits)                                           $540 - $590    All-In Sustaining Cost per Mined Ounce                        $805 - $855    Corporate Overhead (millions)                                  $35 - $45     Capital Expenditures (millions)                               $145 - $155      Sustaining Capital Expenditures                              $97 - $103      Project Capital Expenditures                                 $48 - $52        For the year ended December 31, 2013, the Company's Montana mines produced a total of 523,900 ounces of palladium and platinum compared to mine production of 513,700 combined ounces in 2012.  2013 Mine Production by Quarter:                                                                                                                First     Second    Third     Fourth            (Produced ounces)           Quarter   Quarter   Quarter   Quarter  Year 2013 -------------------------- --------- --------- --------- --------- --------- Stillwater Mine               92,600    91,000    83,800    98,700   366,100    Palladium                  71,300    70,200    64,500    75,900   281,900    Platinum                   21,300    20,800    19,300    22,800    84,200 East Boulder Mine             34,500    40,500    40,400    42,400   157,800    Palladium                  26,800    31,500    31,200    32,800   122,300    Platinum                    7,700     9,000     9,200     9,600    35,500 Total                        127,100   131,500   124,200   141,100   523,900   Palladium                   98,100   101,700    95,700   108,700   404,200   Platinum                    29,000    29,800    28,500    32,400   119,700    Revenue from the Company's Mine Production segment for the fourth quarter of 2013 (including proceeds from the sale of by-products) totaled $114.7 million, a 0.7% decrease from $115.5 million in the same period of 2012. Combined sales realizations for mined palladium and platinum were essentially flat for the fourth quarter of 2013, averaging $869 per mined ounce, compared to $867 per mined ounce realized in the fourth quarter of 2012. The total quantity of mined palladium and platinum ounces sold in the fourth quarter of 2013 was 125,000 ounces, essentially unchanged from the same period in 2012. Sales ounces were less than production during the quarter due to timing differences in inventory flows.  The Company processed recycling material containing 120,000 ounces of palladium, platinum and rhodium through its smelter and refinery during the fourth quarter of 2013. This represents an increase of 1.2% over the total of 118,600 ounces processed during the fourth quarter of 2012. For the year ended December 31, 2013, the Company processed a record 616,700 ounces of recycled PGMs, a 38.5% increase from approximately 445,200 ounces processed during the same period of 2012. The increased volumes in 2013 were attributable to the addition of new suppliers of recycling material and ounces attributable to recycling from the reprocessing of furnace brick from the Company's own smelting facility.  2013 Recycling Activity by Quarter:                                                                                                                First     Second    Third     Fourth     2013                               Quarter   Quarter   Quarter   Quarter  Full-Year -------------------------- --------- --------- --------- --------- --------- Average tons of catalyst                                                      fed per day                    26.0      28.4      27.2      20.3      25.4 PGM ounces fed               154,200   175,000   167,500   120,000   616,700 PGM ounces sold              116,900   143,100   152,600   129,200   541,800 PGM toll ounces returned      14,400    25,500     8,000    17,500    65,400    Recycling sales volumes for the fourth quarter of 2013 increased by 49.2%, to 129,200 ounces from 86,600 ounces sold in the fourth quarter of 2012. PGM Recycling revenue totaled $127.7 million for the 2013 fourth quarter, a 45.3% increase from the $87.9 million in the same period of 2012. The Company's combined average realized price for sales of recycled palladium, platinum and rhodium decreased to $985 per ounce in the fourth quarter of 2013 from $1,012 per ounce in the fourth quarter of 2012.  Combined total cash costs per mined ounce, net of by-product and recycling credits, (a non-GAAP measure) averaged $496 per ounce for the year ended December 31, 2013. See - "Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues." Note that, for historical reasons, the Company's measurement of total cash costs per mined ounce customarily has been reported net of credits for sales of by-products from mining and also net of PGM Recycling segment margins. During the third quarter of 2013, the Company received significant revenue from the sale of PGM ounces recovered from used furnace brick attributable to recycling, which resulted in significantly higher than normal levels of PGM Recycling segment credits during 2013. These larger than normal PGM Recycling segment credits offset a portion of the growth in total cash costs per mined ounce for the full year 2013. Please see - "Current Operations - Reprocessing of Furnace Brick," in the Company's 2013 Form 10-K for further details. The table below illustrates the effect of by-product and recycling credits on the average cash costs per mined ounce net of credits for the combined Montana mining operations.                                                                                                                           2013      2012                       Combined Montana Mining Operations     Fourth    Fourth     2013      2012   Cash Costs Per Mined Ounce            Quarter   Quarter  Full-Year Full-Year ------------------------------------ --------- --------- --------- --------- Reported Total Cash Costs per Mined                                           Ounce (Net of Credits) *            $     500 $     475 $     496 $     484   Add: By-Product Revenue Credit            43        54        52        60   Add: PGM Recycling Income Credit          25        20        68        21                                      --------- --------- --------- --------- Total Cash Costs per Mined Ounce                                              (Before Credits) *                  $     568 $     549 $     616 $     565                                      ========= ========= ========= =========    * These are non-GAAP measures. For a full description and reconciliation of these and other non-GAAP measures to GAAP accounting measures, see Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues and the accompanying discussion in the Company's 2013 Annual Report on Form 10-K.  The Company is also now utilizing another, broader non-GAAP measure of mining efficiency, All-In Sustaining Cost, in monitoring and managing its performance going forward. This non-GAAP measure starts with total cash costs net of credits and adds back the recycling credit, plus corporate general and administrative costs (before depletion, depreciation and amortization) and capital outlays directed toward sustaining operations at the Company's operating mines. The resulting measure provides a comparative indication of the all-in resources consumed in any period to sustain the mining operations and produce at current levels.                                                                                   Combined Montana Mining Operations      2013      2012                       All-In Sustaining Cost Per Mined       Fourth    Fourth     2013      2012    Ounce                                Quarter   Quarter  Full-Year Full-Year ------------------------------------ --------- --------- --------- --------- Reported Total Cash Costs per Mined                                           Ounce (Net of Credits) *            $     500 $     475 $     496 $     484 Add Back PGM Recycling Income Credit        25        20        68        21 Add Corporate General &                                                       Administrative Costs (Before DD&A)         49        92        88       101 Add Capital Outlays at the Montana                                            Operating Mines                           196       190       181       162                                      --------- --------- --------- --------- All-In Sustaining Cost Per Mined                                              Ounce                               $     770 $     777 $     833 $     768                                      ========= ========= ========= =========    * These are non-GAAP measures. For a full description and reconciliation of these and other non-GAAP measures to GAAP accounting measures, please see Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues and the accompanying discussion in the Company's 2013 Annual Report on Form 10-K.  Cash Flow and Liquidity  At December 31, 2013, the Company's consolidated available cash balance was $286.7 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 $496.0 million at December 31, 2013, a decrease from $641.7 million at December 31, 2012. Most of this decrease resulted from redeeming $164.3 million of convertible debt in March of 2013. Of the Company's year-end 2013 consolidated cash balance, $24.3 million was dedicated to the Marathon project (and other related Canadian 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 $614.8 million at December 31, 2013, from $606.0 million at the end of 2012.  Net cash provided by operating activities (which includes changes in working capital) totaled $149.4 million for the year ended December 31, 2013, compared to $103.9 million of cash provided for the same period of 2012. The growth in cash from operations for the year ended December 31, 2013 was largely driven by lower year-end recycling advances and higher non-cash interest expense associated with the 1.75% convertible debentures. Capital expenditures were $129.0 million for the year ended December 31, 2013, compared to $112.1 million in the same period of 2012. Of the capital expenditures for the year ended December 31, 2013, $93.9 million was attributable to ongoing investments in the Montana mines and processing facility. Year-to-date capital expenditures include $22.6 million attributable to the major developments underway along the J-M Reef in Montana, (Blitz and Graham Creek developments).  Outstanding balance sheet debt at December 31, 2013, was $310.7 million, down from $461.1 million at December 31, 2012. The Company's reported debt balance currently includes $274.0 million of 1.75% convertible debentures and $2.2 million of 1.875% convertible debentures, $29.6 million of exempt facility revenue bonds, a capital lease of $4.6 million and $0.3 million of financing for a small installment land purchase.  Other Matters  Notwithstanding the accounting impairment charge recorded in the third quarter of 2013, the Company is reviewing alternatives to optimize the value of its investment in the Altar project in Argentina. Some minimum level of annual expenditures will be required in order to maintain the Company's good standing and preserve its asset position at Altar. Future levels of exploration spending at Altar are discretionary and will be evaluated year by year.  The Company is currently completing a final feasibility study and an updated economic assessment of the Marathon PGM-copper project in Canada. As was announced previously, the initial findings of the feasibility study indicate that changes to the design and scale of the project will be required if the project is to achieve acceptable economic returns. Because these changes are likely to modify the environmental scope of the project, the joint federal and provincial panel responsible for reviewing the environmental impacts of the project has agreed to suspend its review activities until the final project scope is determined. At this stage, it is not yet clear if the scope changes being evaluated will be adequate to result in acceptable project economics. If an alternative project scope does result in an economically viable project, significant additional evaluation and design work will be required prior to any future decision to proceed with construction at Marathon.  Fourth Quarter Results - Details  For the fourth quarter of 2013, the Company's Stillwater Mine produced 98,700 ounces of palladium and platinum, an increase of 1.2% from the 97,500 ounces produced in the fourth quarter of 2012. Production at the Company's East Boulder Mine of 42,400 ounces in the fourth quarter of 2013 reflected an increase of 21.1% over the 35,000 ounces produced in the same quarter of 2012.  Costs of metals sold (before depletion, depreciation and amortization expense) increased to $201.4 million in the fourth quarter of 2013 from $155.6 million in the fourth quarter of 2012. Mine Production costs included in costs of metals sold increased to $76.9 million in the 2013 fourth quarter from $70.0 million in the 2012 fourth quarter. PGM Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, totaled $124.5 million in the fourth quarter of 2013, significantly more than the $85.6 million reported in the fourth quarter of 2012. The increase was due to higher volumes sold and the associated higher total market value of the materials acquired for processing.  General and administrative costs were $6.1 million in the fourth quarter of 2013, down from the $8.9 million incurred during the same period of 2012. The decrease was primarily due to lower share-based compensation costs following vesting associated with the technical change in control in the second quarter of 2013. Exploration expenses were $0.9 million in the fourth quarter of 2013 compared to $1.2 million, in the same period of 2012. Marketing expenses declined to $0.2 million in the 2013 fourth quarter compared to $3.3 million in the same quarter of 2012, reflecting the curtailment of palladium jewelry marketing efforts in 2013.  Interest expense reported for the fourth quarter of 2013 and 2012 was $5.3 million and $6.6 million, respectively. This decrease is due in part to the pay down on the outstanding debt associated with the 1.875% convertible earlier in the year, offset by interest expense related to the 1.75% convertible debentures, including the accretion of the debt discount that is charged to earnings over the expected life of the convertible debentures and offset by capitalized interest recognized as a cost of the Company's ongoing projects.  During the fourth quarter of 2013, the Company recorded a net foreign currency transaction gain of $2.5 million, primarily related to the deferred tax liability recorded in association with the acquisition of Peregrine Metals Ltd. The net foreign currency transaction gain recorded for the fourth quarter of 2012 was $2.2 million.  2013 Full-Year Results - Details  For the year ended December 31, 2013, the Company's Stillwater Mine produced 366,100 ounces of palladium and platinum, a decrease of 3.0% from the 377,400 ounces produced in the same period of 2012. Production at the Company's East Boulder Mine of 157,800 ounces for the year ended December 31, 2013 reflected a 15.8% increase from the 136,300 ounces produced in the same period of 2012. During 2013 the Stillwater Mine experienced unexpected negative fluctuations in ore grade delivered to the mill, a challenge that was largely offset by better-than-expected ore grades realized at the East Boulder Mine. The 2013 ore quality variances at Stillwater Mine appear to have been isolated and not indicative of a longer-term issue and by the last two months of 2013, actual ore grades were above budgeted ore grades.  Costs of metals sold (before depletion, depreciation and amortization expense) increased to $841.3 million for the year ended December 31, 2013 from $623.9 million in the same period of 2012. Mine Production costs included in costs of metals sold increased to $314.0 million for the year ended December 31, 2013 from $288.9 million in the same period of 2012. PGM Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, totaled $527.4 million for the year ended December 31, 2013, more than the $334.9 million reported in the same period of 2012. The increase was due to higher volumes sold and the related higher total cost to acquire materials for processing.  General and administrative costs were $42.0 million for the year ended December 31, 2013, up from the $40.9 million incurred during the same period of 2012. The Company recognized $11.2 million in total exploration expenses related to its mineral properties in both Canada and South America for the year ended December 31, 2013 and $15.0 million in the same period of 2012. Marketing expenses declined to $4.4 million for the year ended December 31, 2013 compared to $11.2 million in the same time period of 2012, reflecting the curtailment of marketing palladium for jewelry in 2013. As a result of the 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), respectively, for the year ended December 31, 2013. These costs were incurred during the first and second quarters of 2013.  Interest expense reported for the year ended December 31, 2013, and 2012 was $23.0 million and $10.9 million, respectively. This increase is principally the result of the interest expense related to the 1.75% convertible debentures, including the accretion of the debt discount that is charged to earnings over the expected life of the convertible debentures and offset by capitalized interest recognized as a cost of the Company's ongoing projects.  During the years ended December 31, 2013 and 2012, the Company recorded a net foreign currency transaction gain of $18.2 million and $15.2 million, respectively. Approximately $17.4 million and $15.4 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 result of high inflation in Argentina as the obligation is remeasured from Argentine pesos into U.S. dollars.  2013 Results Webcast and Conference Call  Stillwater Mining Company will conduct a conference call to discuss 2013 results at 12:00 noon Eastern Standard Time on Monday, March 3, 2014.  Dial-In Numbers:  United States: (800) 288-9626  International: (612) 332-0228  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 319541. In addition, the call transcript will be archived in the Investor Relations section of the Company's website.  About Stillwater Mining Company  Headquartered in Billings, Montana, Stillwater Mining Company is the only U.S. producer of platinum group metals (PGMs) and the largest primary producer of PGMs outside of South Africa and the Russian Federation. PGMs are rare precious metals used in a wide variety of applications, including auto catalysts, fuel cells, hydrogen purification, electronics, jewelry, dentistry, medicine, coinage and other uses. Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of PGMs from a geological formation in southern Montana known as the J-M Reef. This is the only known significant source of PGMs in the United States and one of the highest grade PGM resources in the world. The Company also owns the Marathon PGM-copper deposit in Ontario, Canada and the Altar porphyry copper-gold deposit located in the San Juan province of Argentina. 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 about 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 guidance; 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 2013 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 (Loss) Income                                                                                                                                     Three Months Ended    Twelve Months Ended                                       December 31,           December 31,                                      --------------------  ---------------------  (In thousands, except per share                                               data)                             2013       2012       2013        2012    ------------------------------- ---------  ---------  ----------  ---------  REVENUES                                                                       Mine Production               $ 114,669  $ 115,475  $  478,918  $ 455,426    PGM Recycling                   127,691     87,899     560,588    344,818                                  ---------  ---------  ----------  ---------        Total revenues              242,360    203,374   1,039,506    800,244  COSTS AND EXPENSES                                                             Costs of metals sold                                                           Mine Production                76,921     69,987     313,963    288,922      PGM Recycling                 124,525     85,589     527,384    334,949                                  ---------  ---------  ----------  ---------        Total costs of metals                                                         sold (excludes                                                               depletion, depreciation                                                      and amortization)          201,446    155,576     841,347    623,871    Depletion, depreciation and                                                   amortization                                                                  Mine Production                14,377     14,112      58,201     56,960      PGM Recycling                     312        262       1,116      1,055                                  ---------  ---------  ----------  ---------        Total depletion,                                                              depreciation and                                                             amortization                14,689     14,374      59,317     58,015                                  ---------  ---------  ----------  ---------          Total costs of revenues   216,135    169,950     900,664    681,886    Marketing                           158      3,296       4,355     11,170    Exploration                         922      1,225      11,169     15,010    Research and development             45        295         237      1,159    Proxy contest expense                 -          -       4,307          -    Accelerated equity based                                                      compensation expense                 -          -       9,063          -    General and administrative        6,139      8,921      41,985     40,948    Loss on inventory purchases           -        140           -        590    Loss on long-term investments       128        865       1,894      2,562    Impairment of non-producing                                                   mineral properties and                                                       property, plant and                                                          equipment                      171,338          -     461,755          -    Abandonment of non-producing                                                  property                             -          -           -      2,835    Loss on trade receivables           632          -         632          -    (Gain)/Loss on disposal of                                                    property, plant and                                                          equipment                          (38)        85          68        448                                  ---------  ---------  ----------  ---------          Total costs and                                                               expenses                 395,459    184,777   1,436,129    756,608  OPERATING (LOSS) INCOME          (153,099)    18,597    (396,623)    43,636  OTHER INCOME (EXPENSE)                                                         Other                                 3       (486)      1,173        181    Interest income                     965        619       4,481      2,325    Interest expense                 (5,311)    (6,559)    (22,957)   (10,920)   Foreign currency transaction                                                  gain, net                        2,521      2,174      18,200     15,155                                  ---------  ---------  ----------  ---------  (LOSS) INCOME BEFORE INCOME TAX                                               BENEFIT                         (154,921)    14,345    (395,726)    50,377  Income tax benefit                 46,185      2,531      93,653      4,039                                  ---------  ---------  ----------  ---------  NET (LOSS) INCOME               $(108,736) $  16,876  $ (302,073) $  54,416                                  ---------  ---------  ----------  ---------  Net (loss) income attributable                                                to noncontrolling interest       (30,750)         2     (31,867)      (629)                                 ---------  ---------  ----------  ---------  NET (LOSS) INCOME ATTRIBUTABLE                                                TO COMMON STOCKHOLDERS         $ (77,986) $  16,874  $ (270,206) $  55,045                                  ---------  ---------  ----------  ---------  Other comprehensive (loss)                                                    income, net of tax                                                            Net unrealized (loss)/gains                                                   on securities available-for-                                                 sale                              (183)       242         105        862                                  ---------  ---------  ----------  ---------  COMPREHENSIVE (LOSS) INCOME                                                   ATTRIBUTABLE TO COMMON                                                       STOCKHOLDERS                   $ (78,169) $  17,116  $ (270,101) $  55,907                                  ---------  ---------  ----------  ---------  Comprehensive (loss) income                                                   attributable to noncontrolling                                               interest                         (30,750)         2     (31,867)      (629)                                 ---------  ---------  ----------  ---------  TOTAL COMPREHENSIVE (LOSS)                                                    INCOME                         $(108,919) $  17,118  $ (301,968) $  55,278                                  =========  =========  ==========  =========  Weighted average common shares                                                outstanding                                                                   Basic                           119,381    116,888     118,607    116,162    Diluted                         119,381    153,974     118,607    131,441  Basic (loss) earnings per share                                               attributable to common                                                       stockholders                   $   (0.65) $    0.14  $    (2.28) $    0.47  Diluted (loss) earnings per                                                   share attributable to common                                                 stockholders                   $   (0.65) $    0.13  $    (2.28) $    0.46                                  =========  =========  ==========  =========                                                                                                                                                            Stillwater Mining Company                                                    Consolidated Balance Sheets                                                                                                                                                                               December 31,   December 31,  (In thousands, except per share data)               2013           2012      ---------------------------------------------- -------------  -------------  ASSETS                                                                       Current assets                                                               Cash and cash equivalents                      $     286,687  $     379,680  Investments, at fair market value                    209,338        261,983  Inventories                                          158,650        153,208  Trade receivables                                      8,988          9,953  Deferred income taxes                                 21,547         21,304  Prepaids                                               3,912          5,020  Other current assets                                  14,757         21,714                                                 -------------  -------------      Total current assets                             703,879        852,862  Mineral properties                                   159,252        576,359  Mine development, net                                346,346        322,866  Property, plant and equipment, net                   124,731        122,677    Deferred debt issuance costs                         7,945          9,609    Other noncurrent assets                              4,527          6,390                                                 -------------  -------------      Total assets                               $   1,346,680  $   1,890,763                                                 =============  =============  LIABILITIES AND EQUITY                                                       Current liabilities                                                          Accounts payable                               $      32,088  $      28,623  Accrued compensation and benefits                     30,646         31,369  Property, production and franchise taxes                                      payable                                              14,495         13,722  Current portion of long-term debt and capital                                 lease obligations                                     2,035        168,432  Income taxes payable                                   4,416              -  Other current liabilities                              5,368          4,702                                                 -------------  -------------      Total current liabilities                         89,048        246,848    Long-term debt and capital lease obligations       308,667        292,685    Deferred income taxes                               79,159        199,802    Accrued workers compensation                         6,031          5,815    Asset retirement obligation                          8,654          7,965    Other noncurrent liabilities                         7,262          5,068                                                 -------------  -------------      Total liabilities                                498,821        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; 119,466,449 and                                           116,951,081 shares issued and outstanding             1,195          1,170  Paid-in capital                                    1,076,200      1,058,978  Accumulated (deficit) earnings                      (249,436)        20,770  Accumulated other comprehensive income (loss)              6            (99)                                                -------------  -------------      Total stockholders' equity                       827,965      1,080,819                                                 -------------  -------------  Noncontrolling interest                               19,894         51,761                                                 -------------  -------------      Total equity                                     847,859      1,132,580                                                 -------------  -------------      Total liabilities and equity               $   1,346,680  $   1,890,763                                                 =============  =============                                                                                                                                                            Stillwater Mining Company                                                    Consolidated Statements of Cash Flows                                                                                                                                                                             Twelve Months Ended                                                             December 31,                                                             --------------------  (In thousands)                                            2013       2012    ------------------------------------------------------ ---------  ---------  CASH FLOWS FROM OPERATING ACTIVITIES                                         Net (loss) income                                      $(302,073) $  54,416  Adjustments to reconcile net (loss) income to net cash                        provided by operating activities:                                             Depletion, depreciation and amortization                59,317     58,015    Loss on inventory purchases                                  -        590    Loss on trade receivables                                  632          -    Loss on disposal of property, plant and equipment           68        448    Impairment of non-producing mineral properties and                            property, plant and equipment                         461,755          -    Abandonment of non-producing property                        -      2,835    Loss on long-term investments                            1,894      2,562    Amortization/accretion on investment                                          premium/discount                                        3,079        900    Deferred taxes                                        (108,543)    (3,937)   Foreign currency transaction gain, net                 (18,200)   (15,155)   Accretion of asset retirement obligation                   689        634    Amortization of debt issuance costs                      1,664      1,495    Accretion of convertible debenture debt discount        15,783      3,097    Accelerated equity based compensation expense            9,063          -    Share based compensation and other benefits             15,242     16,369    Non-cash capitalized interest                           (2,878)         -  Changes in operating assets and liabilities:                                   Inventories                                             (4,252)   (19,958)   Trade receivables                                          333     (3,765)   Prepaids                                                 1,108         39    Accrued compensation and benefits                         (723)     3,575    Accounts payable                                         3,187     (1,772)   Property, production and franchise taxes payable         2,006       (970)   Income taxes payable                                     4,416     (1,235)   Workers compensation                                       216       (241)   Restricted cash                                              -     25,035    Excess tax benefit from stock-based compensation        (2,756)    (7,737)   Other operating assets                                   6,790     (2,250)   Other operating liabilities                              1,616     (9,096)                                                        ---------  ---------  NET CASH PROVIDED BY OPERATING ACTIVITIES                149,433    103,894                                                         ---------  ---------  CASH FLOWS FROM INVESTING ACTIVITIES                                           Capital expenditures                                  (129,029)  (112,071)   Proceeds from disposal of property, plant and                                 equipment                                                 218        222    Purchases of investments                              (151,567)  (280,273)   Proceeds from maturities of investments                201,255     67,314                                                         ---------  ---------  NET CASH USED IN INVESTING ACTIVITIES                    (79,123)  (324,808)                                                        ---------  ---------  CASH FLOWS FROM FINANCING ACTIVITIES                                           Proceeds from sale of noncontrolling interest, net                            of transaction costs                                        -     93,821    Excess tax benefit from stock-based compensation         2,756      7,737    Issuance of long-term debt                                   -    403,926    Payments on debt and capital lease obligations        (166,187)    (1,394)   Payments for debt issuance costs                             -    (12,637)   Issuance of common stock                                   128         44                                                         ---------  ---------  NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES     (163,303)   491,497                                                         ---------  ---------  CASH AND CASH EQUIVALENTS                                                      Net increase (decrease)                                (92,993)   270,583    Balance at beginning of period                         379,680    109,097                                                         ---------  ---------  BALANCE AT END OF PERIOD                               $ 286,687  $ 379,680                                                         =========  =========                                                                                                                                                            Stillwater Mining Company                                                    Key Operating Factors                                                        (Unaudited)                                                                                                                                                                                           Three Months     Twelve Months                                              Ended December    Ended December                                                  31,               31,                                                 ----------------- ----------------- (In thousands, except where noted)         2013     2012     2013     2012   ---------------------------------------- -------- -------- -------- -------- OPERATING AND COST DATA FOR MINE                                              PRODUCTION                                                                  Consolidated:                                                                Ounces produced                                                              Palladium                                     109       98      404      396 Platinum                                       32       35      120      118                                          -------- -------- -------- -------- Total                                         141      133      524      514                                          ======== ======== ======== ======== Tons milled                                   299      281    1,201    1,081 Mill head grade (ounce per ton)              0.51     0.51     0.47     0.51 Sub-grade tons milled (1)                      17       20       73       69 Sub-grade tons mill head grade (ounce                                         per ton)                                    0.17     0.14     0.17     0.16 Total tons milled(1)                          316      301    1,274    1,150 Combined mill head grade (ounce per ton)     0.49     0.49     0.45     0.49 Total mill recovery (%)                        92       92       92       92 Total mine concentrate shipped (tons)                                         (3)                                        7,308    6,246   28,669   23,843 Platinum grade in concentrate (ounce per                                      ton) (3)                                    4.65     5.02     4.50     5.17 Palladium grade in concentrate (ounce                                         per ton) (3)                               15.28    16.80    14.59    17.15 Total cash costs per ounce - net of                                           credits (Non-GAAP) (2)                  $    500 $    475 $    496 $    484 Total cash costs per ton milled - net of                                      credits (Non-GAAP) (2)                  $    223 $    209 $    204 $    216 Stillwater Mine:                                                             Ounces produced                                                              Palladium                                      76       75      282      290 Platinum                                       23       23       84       88                                          -------- -------- -------- -------- Total                                          99       98      366      378                                          ======== ======== ======== ======== Tons milled                                   186      176      765      673 Mill head grade (ounce per ton)              0.57     0.60     0.51     0.60 Sub-grade tons milled (1)                       7       10       36       36 Sub-grade tons mill head grade (ounce                                         per ton)                                    0.26     0.20     0.23     0.21 Total tons milled (1)                         193      186      801      709 Combined mill head grade (ounce per ton)     0.55     0.58     0.50     0.58 Total mill recovery (%)                        93       92       92       92 Total mine concentrate shipped (tons)                                         (3)                                        4,253    3,600   16,975   13,645 Platinum grade in concentrate (ounce per                                      ton) (3)                                    5.73     6.41     5.22     6.71 Palladium grade in concentrate (ounce                                         per ton) (3)                               18.50    21.33    17.12    21.94 Total cash costs per ounce - net of                                           credits (Non-GAAP) (2)                  $    469 $    453 $    484 $    456 Total cash costs per ton milled - net of                                      credits (Non-GAAP) (2)                  $    240 $    238 $    221 $    243                                                                                                                                                           Stillwater Mining Company                                                    Key Operating Factors (Continued)                                            (Unaudited)                                                                                                                                                                                           Three Months     Twelve Months                                                  Ended             Ended                                                   December 31,      December 31,   (In thousands, except where noted)         2013     2012     2013     2012   ---------------------------------------- -------- -------- -------- -------- OPERATING AND COST DATA FOR MINE                                              PRODUCTION (Continued)                                                      East Boulder Mine:                                                           Ounces produced                                                              Palladium                                      33       27      122      106 Platinum                                        9        8       36       30                                          -------- -------- -------- -------- Total                                          42       35      158      136                                          ======== ======== ======== ======== Tons milled                                   114      104      436      408 Mill head grade (ounce per ton)              0.41     0.37     0.40     0.37 Sub-grade tons milled (1)                       9       11       37       33 Sub-grade tons mill head grade (ounce                                         per ton)                                    0.10     0.09     0.10     0.10 Total tons milled (1)                         123      115      473      441 Combined mill head grade (ounce per ton)     0.39     0.34     0.37     0.35 Total mill recovery (%)                        90       90       90       90 Total mine concentrate shipped (tons)                                         (3)                                        3,055    2,646   11,694   10,198 Platinum grade in concentrate (ounce per                                      ton) (3)                                    3.16     3.12     3.45     3.12 Palladium grade in concentrate (ounce                                         per ton) (3)                               10.80    10.65    10.93    10.74 Total cash costs per ounce - net of                                           credits (Non-GAAP) (2)                  $    573 $    537 $    525 $    562 Total cash costs per ton milled - net of                                      credits (Non-GAAP) (2)                  $    198 $    163 $    175 $    174                                                                                (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 2013 Annual             Report on Form 10-K for further information.                             (2) Total cash costs include total operating costs plus royalties,               insurance and taxes other than income taxes. 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 cash costs. Cash costs per ton and cash 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 Consolidated Costs        of Revenues" and the accompanying discussion for additional detail.      (3) The concentrate tonnage and grade values are inclusive of periodic re-       processing of smelter slag and brick PGM bearing materials.                                                                                                                                                                      Stillwater Mining Company                                                    Key Operating Factors (Continued)                                            (Unaudited)                                                                                                                                                                                           Three Months     Twelve Months                                                  Ended             Ended                                                   December 31,      December 31,   ---------------------------------------- ----------------- ----------------- (In thousands, except for average                                             prices)                                   2013     2012     2013     2012   ---------------------------------------- -------- -------- -------- -------- SALES AND PRICE DATA                                                         Ounces sold                                                                  Mine Production:                                                               Palladium (oz.)                              98       96      398      386   Platinum (oz.)                               27       29      111      114                                          -------- -------- -------- --------     Total                                     125      125      509      500                                          -------- -------- -------- -------- PGM Recycling: (1)                                                             Palladium (oz.)                              76       47      306      192   Platinum (oz.)                               42       33      192      119   Rhodium (oz.)                                11        6       44       25                                          -------- -------- -------- --------     Total                                     129       86      542      336                                          -------- -------- -------- -------- By-products from Mine Production: (2)                                          Rhodium (oz.)                                 1        1        3        4   Gold (oz.)                                    2        2        9        9   Silver (oz.)                                  1        2        5        6   Copper (lb.)                                258      173      903      742   Nickel (lb.)                                310      284    1,350    1,120 Average realized price per ounce(3)                                          Mine Production:                                                               Palladium ($/oz.)                      $    723 $    647 $    721 $    641   Platinum ($/oz.)                       $  1,395 $  1,594 $  1,481 $  1,551       Combined ($/oz.)(4)                $    869 $    867 $    887 $    849 PGM Recycling: (1)                                                             Palladium ($/oz.)                      $    723 $    628 $    713 $    645   Platinum ($/oz.)                       $  1,449 $  1,534 $  1,526 $  1,542   Rhodium ($/oz.)                        $    980 $  1,168 $  1,091 $  1,377       Combined ($/oz.)(4)                $    985 $  1,012 $  1,031 $  1,018 By-products from Mine Production: (2)                                          Rhodium ($/oz.)                        $    931 $  1,074 $  1,047 $  1,258   Gold ($/oz.)                           $  1,271 $  1,694 $  1,394 $  1,667   Silver ($/oz.)                         $     20 $     32 $     24 $     31   Copper ($/lb.)                         $   3.08 $   3.42 $   3.14 $   3.42   Nickel ($/lb.)                         $   5.19 $   6.63 $   5.47 $   6.74 Average market price per ounce(3)                                              Palladium ($/oz.)                      $    726 $    650 $    725 $    643   Platinum ($/oz.)                       $  1,400 $  1,603 $  1,487 $  1,551       Combined ($/oz.)(4)                $    873 $    872 $    891 $    850                                                                                (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 produced from mined ore       alongside the Company's primary production of palladium and platinum.        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 calculates the combined average realized and a combined          average market price of palladium and platinum using the same ratio as       the rate of ounces of each respective metal that are produced from the       base metal refinery.                                                      Reconciliation of Non-GAAP Measures to Consolidated 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 (Loss) 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 Consolidated 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 (Loss) 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 the Stillwater Mine, the East Boulder Mine and other PGM activities are equal in total to total consolidated costs of revenues as reported in the Company's Consolidated Statements of Comprehensive (Loss) Income.  Total Cash Costs (Non-GAAP): This non-GAAP measure is 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 mine by-products, depreciation and amortization and asset retirement costs, and timing differences resulting from changes in product inventories. The Company uses this measure as a comparative indication of the cash costs related to production and processing operations in any period. It is a measure of extraction efficiency.  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.                                                                                   Stillwater Mining Company                                                    Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues                                                                                                                       Three Months Ended    Twelve Months Ended                                       December 31,          December 31,      -------------------------------- --------------------  --------------------  (In thousands, except per ounce                                               and per ton data)                  2013       2012       2013       2012    -------------------------------- ---------  ---------  ---------  ---------  Consolidated:                                                                Total cash cost before by-                                                    product and recycling credits                                                (Non-GAAP)                      $  80,099  $  72,714  $ 322,564  $ 290,346  Less: By-product credit             (5,982)    (7,079)   (27,085)   (30,642) Less: Recycling income credit       (3,590)    (2,681)   (35,463)   (11,042)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                (Non-GAAP)                      $  70,527  $  62,954  $ 260,016  $ 248,662                                                                               Divided by platinum/palladium                                                 ounces produced                       141        132        524        514                                                                               Total cash cost before by-                                                    product and recycling credits                                                per ounce Pt/Pd produced (Non-                                               GAAP)                           $     568  $     549  $     616  $     565  Less: By-product credit per                                                   ounce Pt/Pd produced                  (43)       (54)       (52)       (60) Less: Recycling income credit                                                 per ounce Pt/Pd produced              (25)       (20)       (68)       (21)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                per ounce Pt/Pd produced (Non-                                               GAAP)                           $     500  $     475  $     496  $     484                                                                               Divided by ore tons milled             316        301      1,274      1,150                                                                               Total cash cost before by-                                                    product and recycling credits                                                per ore ton milled (Non-GAAP)         253        242        253        252  Less: By-product credit per ore                                               ton milled                            (19)       (24)       (21)       (27) Less: Recycling income credit                                                 per ore ton milled                    (11)        (9)       (28)       (10)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                per ore ton milled (Non-GAAP)   $     223  $     209  $     204  $     215                                                                               Reconciliation to consolidated                                                costs of revenues:                                                          Total cash cost net of by-                                                    product and recycling credits                                                (Non-GAAP)                      $  70,527  $  62,954  $ 260,016  $ 248,662  Asset retirement costs                 177        165        689        635  Depletion, depreciation and                                                   amortization                       14,377     14,111     58,201     56,960  Depletion, depreciation and                                                   amortization (in inventory)         1,472      1,534      1,190      1,393  Change in product inventories       (4,828)    (4,425)   (10,480)    (3,452) Cost of PGM Recycling              124,526     85,589    527,384    334,949  PGM Recycling - depreciation           312        262      1,116      1,055  By-product credit                    5,982      7,079     27,085     30,642                                                                               Profit from PGM Recycling                                                     (before bad debt expense and                                                 gain/loss on asset disposals)       3,590      2,681     35,463     11,042                                   ---------  ---------  ---------  ---------  Total consolidated cost of                                                    revenues                        $ 216,135  $ 169,950  $ 900,664  $ 681,886                                   =========  =========  =========  =========  Memo: Royalties, Taxes and Other                                              included in Total consolidated                                               cost of revenues                $  10,059  $   8,571  $  43,814  $  39,593                                                                                                                                                            Stillwater Mining Company                                                    Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues         (Continued)                                                                                                                                                                                Three Months Ended    Twelve Months Ended                                       December 31,          December 31,      -------------------------------- --------------------  --------------------  (In thousands, except per ounce                                               and per ton data)                  2013       2012       2013       2012    -------------------------------- ---------  ---------  ---------  ---------  Stillwater Mine:                                                             Total cash cost before by-                                                    product and recycling credits                                                (Non-GAAP)                      $  52,401  $  50,685  $ 217,921  $ 200,016  Less: By-product credit             (3,636)    (4,499)   (16,270)   (19,793) Less: Recycling income credit       (2,495)    (2,005)   (24,470)    (8,124)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                (Non-GAAP)                      $  46,270  $  44,181  $ 177,181  $ 172,099                                                                               Divided by platinum/palladium                                                 ounces produced                        99         98        366        378                                                                               Total cash cost before by-                                                    product and recycling credits                                                per ounce Pt/Pd produced (Non-                                               GAAP)                           $     529  $     517  $     595  $     529  Less: By-product credit per                                                   ounce Pt/Pd produced                  (37)       (46)       (44)       (52) Less: Recycling income credit                                                 per ounce Pt/Pd produced              (25)       (20)       (67)       (21)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                per ounce Pt/Pd produced (Non-                                               GAAP)                           $     467  $     451  $     484  $     456                                                                               Divided by ore tons milled             193        186        801        709                                                                               Total cash cost before by-                                                    product and recycling credits                                                per ore ton milled (Non-GAAP)   $     272  $     273  $     272  $     282  Less: By-product credit per ore                                               ton milled                            (19)       (24)       (20)       (28) Less: Recycling income credit                                                 per ore ton milled                    (13)       (11)       (31)       (11)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                per ore ton milled (Non-GAAP)   $     240  $     238  $     221  $     243                                                                               Reconciliation to costs of                                                    revenues:                                                                   Total cash cost net of by-                                                    product and recycling credits                                                (Non-GAAP)                      $  46,270  $  44,181  $ 177,181  $ 172,099  Asset retirement costs                 165        153        639        588  Depletion, depreciation and                                                   amortization                       11,030     10,653     44,696     43,329  Depletion, depreciation and                                                   amortization (in inventory)         1,111      1,377        896        924  Change in product inventories       (2,158)    (3,414)    (5,110)    (2,326) By-product credit                    3,636      4,499     16,270     19,793  Profit from PGM Recycling                                                     (before bad debt expense and                                                 gain/loss on asset disposals)       2,495      2,005     24,470      8,124                                   ---------  ---------  ---------  ---------  Total cost of revenues           $  62,549  $  59,454  $ 259,042  $ 242,531                                   =========  =========  =========  =========  Memo: Royalties, Taxes and Other                                              included in Total cost of                                                    revenues                        $   6,823  $   5,982  $  29,525  $  27,062                                                                                                                                                            Stillwater Mining Company                                                    Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues         (Continued)                                                                                                                                                                                Three Months Ended    Twelve Months Ended                                        December 31,          December 31,     -------------------------------- --------------------  --------------------  (In thousands, except per ounce                                               and per ton data)                  2013       2012       2013       2012    -------------------------------- ---------  ---------  ---------  ---------  East Boulder                                                                 Total cash cost before by-                                                    product and recycling credits                                                (Non-GAAP)                      $  27,698  $  22,029  $ 104,643  $  90,330  Less: By-product credit             (2,346)    (2,580)   (10,815)   (10,849) Less: Recycling income credit       (1,095)      (676)   (10,993)    (2,918)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                (Non-GAAP)                      $  24,257  $  18,773  $  82,835  $  76,563                                                                               Divided by platinum/palladium                                                 ounces produced                        42         35        158        136                                                                               Total cash cost before by-                                                    product and recycling credits                                                per ounce Pt/Pd produced (Non-                                               GAAP)                           $     659  $     629  $     664  $     663  Less: By-product credit per                                                   ounce Pt/Pd produced                  (56)       (74)       (69)       (80) Less: Recycling income credit                                                 per ounce Pt/Pd produced              (26)       (19)       (70)       (21)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                per ounce Pt/Pd produced (Non-                                               GAAP)                           $     577  $     536  $     525  $     562                                                                               Divided by ore tons milled             123        115        473        441                                                                               Total cash cost before by-                                                    product and recycling credits                                                per ore ton milled (Non-GAAP)   $     225  $     192  $     221  $     205  Less: By-product credit per ore                                               ton milled                            (19)       (22)       (23)       (25) Less: Recycling income credit                                                 per ore ton milled                     (9)        (6)       (23)        (7)                                  ---------  ---------  ---------  ---------  Total cash cost net of by-                                                    product and recycling credits                                                per ore ton milled (Non-GAAP)   $     197  $     164  $     175  $     173                                                                               Reconciliation to costs of                                                    revenues:                                                                   Total cash cost net of by-                                                    product and recycling credits                                                (Non-GAAP)                      $  24,257  $  18,773  $  82,835  $  76,563  Asset retirement costs                  13         12         50         47  Depletion, depreciation and                                                   amortization                        3,346      3,458     13,505     13,631  Depletion, depreciation and                                                   amortization (in inventory)           361        157        294        469  Change in product inventories       (2,670)    (1,011)    (5,370)    (1,126) By-product credit                    2,346      2,580     10,815     10,849  Profit from PGM Recycling                                                     (before bad debt expense and                                                 gain/loss on asset disposals)       1,095        676     10,993      2,918                                   ---------  ---------  ---------  ---------  Total cost of revenues           $  28,748  $  24,645  $ 113,122  $ 103,351                                   =========  =========  =========  =========  Memo: Royalties, Taxes and Other                                              included in Total cost of                                                    revenues                        $   3,236  $   2,589  $  14,289  $  12,531                                                                               PGM Recycling and Other: (1)                                                 Cost of PGM Recycling            $ 124,526  $  85,589  $ 527,384  $ 334,949  PGM Recycling - depreciation           312        262      1,116      1,055                                   ---------  ---------  ---------  ---------  Total cost of revenues           $ 124,838  $  85,851  $ 528,500  $ 336,004                                   =========  =========  =========  =========                                                                                 (1) PGM Recycling and Other include PGM recycling and metal purchased on         the open market for resale.                                               Stillwater Mining Company  All-In Sustaining Cost a Non-GAAP Measure  All-In Sustaining Costs (Non-GAAP): This non-GAAP measure is used as an indicator from period to period of the level of total cash required by the business to maintain and operate the existing mines, including corporate administrative costs and replacement capital. The measure is calculated beginning with total cash costs (another non-GAAP measure, described above), and adding to it the recycling income credit, corporate overhead costs (excluding any depreciation and amortization costs and other non-recurring non-cash costs included in corporate overhead costs), marketing costs, and that portion of total capital expenditures associated with sustaining the current level of mining operations.  When divided by the total recoverable PGM ounces in the respective period, All-In Sustaining Costs per Ounce (non-GAAP) provides an indication of the level of total cash required to maintain and operate the mines per PGM ounce produced in the period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because the objective of PGM mining activity is to extract PGM material, the all-in cash cost per ounce to produce PGM material, administer the business and sustain the operating capacity of the mines is a useful measure for comparing overall extraction efficiency between periods. This measure is affected by the total level of spending in the period and by the grade and volume of ore produced.                                                                                                                     Three Months Ended    Twelve Months Ended                                       December 31,          December 31,                                       --------------------  --------------------  (In thousands, except $/oz.)        2013       2012       2013       2012      All-In Sustaining Costs                                                      Total Cash Costs (a non-GAAP                                                  measure)                      $  70,527  $  62,954  $ 260,016  $ 248,662      Add: Recycling income credit     3,590      2,681     35,463     11,041                                   ---------  ---------  ---------  ---------                                   $  74,117  $  65,635  $ 295,479  $ 259,703                                                                                 Consolidated Corporate General                                                & Administrative costs        $ 178,244  $   9,061  $ 346,538  $  41,538      Less: Depreciation and                                                        amortization included in                                                     Consolidated Corporate                                                       General & Administrative                                                     costs                            (204)      (259)      (785)      (691)     Less: Non-recurring non-cash                                                  Items in Consolidated                                                        Corporate General &                                                          Administrative costs         (171,338)         -   (303,787)         -      Add: Marketing costs               158      3,296      4,355     11,170                                   ---------  ---------  ---------  ---------                                   $   6,860  $  12,098  $  46,321  $  52,017                                                                                   Total capital incurred to                                                     sustain existing operations    27,583     25,047     94,931     83,237                                                                                                                ---------  ---------  ---------  ---------  All-In Sustaining Cost           $ 108,560  $ 102,780  $ 436,731  $ 394,957                                                                                 Mined Ounces per Cost Report         141        132        524        514                                                                                                                ---------  ---------  ---------  ---------    All-In Sustaining Cost per                                                    Mined Ounce ($/oz.)           $     770  $     777  $     833  $     768                                   =========  =========  =========  =========      INVESTOR CONTACT:  Mike Beckstead (406) 373-8971     
Press spacebar to pause and continue. Press esc to stop.