Stillwater Mining Company Reports Second Quarter 2014 Earnings

Stillwater Mining Company Reports Second Quarter 2014 Earnings 
BILLINGS, MT -- (Marketwired) -- 07/31/14 --  STILLWATER MINING
COMPANY (NYSE: SWC) (TSX: SWC.U) 


 
--  Consolidated quarterly net income attributable to common stockholders
    of $17.9 million or $0.14 per diluted share, compared to a quarterly
    loss of $5.3 million or $0.04 per share during the second quarter of
    2013
--  Reorganization costs of $5.6 million incurred during the quarter
--  Total cash and investments up $27.6 million during the quarter to
    $501.9 million
--  All-in sustaining costs of $792 per mined ounce, a 6.5% decrease from
    the second quarter of 2013 and near the bottom of the updated guidance
    range
--  Recycling gross working capital increased by $9.8 million from
    previous quarter
--  Corporate overhead reduced to $9.3 million, down 50% from the second
    quarter of 2013
--  Stillwater and Johnson Matthey agree to five-year PGM refining and
    sales agreement

  
Stillwater Mining Company (the Company) today reported second quarter
2014 consolidated net income attributable to common stockholders of
$17.9 million or $0.14 per diluted share, compared to second quarter
2013 consolidated net loss attributable to common stockholders of
$5.3 million or $0.04 per share. Second quarter 2014 results include
$5.6 million of pre-tax reorganization costs. The second quarter of
2013 included proxy contest expenses of $1.5 million and non-cash
accelerated equity-based compensation of $9.1 million. 
Commenting on the second quarter results, Mick McMullen, the
Company's President and Chief Executive Officer stated, "I am very
pleased to report another excellent quarter at Stillwater Mining
Company. Earnings attributable to common stockholders of $17.9
million were a strong result that included a $5.6 million pre-tax
charge for reorganization costs. We also benefited during the quarter
from reprocessing and selling some PGM ounces from inventories that
had accumulated over the past year. The drive to produce profitable
ounces is evidenced by the $27.6 million increase in our net cash
position, which is pleasing considering recycling gross working
capital also increased by $9.8 million over the quarter. 
"We continue to focus on controlling our capital and operating costs,
recognizing that cost management is a profit driver we can control,
irrespective of future metal price behavior, which we cannot. Efforts
to control costs during the quarter included paring back our
workforce through both voluntary and involuntary severance programs;
completing a detailed assessment of the profit contribution of each
mining area within the Stillwater Mine; carefully scrutinizing all
proposed capital spending; and monitoring corporate overhead. 
"The Company is also benefiting from strong underlying market
fundamentals in our key products, palladium and platinum. Growth in
automotive production worldwide and ever more stringent emission
standards combine to ensure expanding demand for these metals, while
supply remains constrained. Significant labor difficulties in South
Africa during the first half of this year restricted global
production and consumed much of the metal inventory on hand, and most
analysts project significant supply deficits for palladium and
platinum this year and well into the future. Limited reinvestment in
existing PGM production facilities, particularly in South Africa,
also suggests that future production from that region may decline. 
"This year's second quarter saw a modest decline in mine output over
the previous quarter, all at the Stillwater Mine. The East Boulder
Mine has continued its strong performance. I have stated publicly
that our objective as a Company, rather than merely seeking to
maximize production, is to maximize profitable ounces while operating
in a safe manner and maintaining our social license. In furthering
this objective we may reduce production for a time in order to bypass
unprofitable stopes until we have the appropriate infrastructure in
place to maximize profitability. Tonnages mined at the Stillwater
Mine declined slightly in the quarter in part due to mining
conditions, some preferential allocation of resources toward
underground mine development and to operational changes being
implemented to maximize profitability, not ounces produced. 
"During the quarter we commenced stoping from the first stope in the
Graham Creek area. Preparations are under way to add an additional
shift at the East Boulder mill, which will increase production by
approximately 2,000 PGM ounces per month. We expect to see the
benefit of these changes over the coming quarters. In addition, in
the second quarter we began to see benefits to our recycling volumes
from our new agreement with Johnson Matthey. Based on these results
and current forecasts we are updating our 2014 guidance for total
mined production to a range of 510,000 - 525,000 palladium and
platinum ounces and are improving our 2014 guidance for all-in
sustaining costs (a non-GAAP measure) to a range of $780 - $830 per
mined ounce. We are also decreasing our full-year 2014 capital
expenditure guidance to a range of $125 to $135 million." 
2014 Guidance: 


 
                                                                            
                                          Current 2014       Previous 2014  
                                            Guidance           Guidance     
                                       ------------------ ------------------
Mined Production (palladium and                                             
 platinum ounces)                       510,000 - 525,000  520,000 - 535,000
Total Cash Costs per Mined Ounce (net                                       
 of by-product and recycling credits)      $530 - $570        $530 - $570   
All-In Sustaining Costs per Mined                                           
 Ounce*                                    $780 - $830        $800 - $850   
Corporate Overhead (1) (millions)           $35 - $45          $35 - $45    
Capital Expenditures (millions)            $125 - $135        $130 - $140   
Sustaining Capital Expenditures                                             
 (millions)                                 $82 - $87          $85 - $90    
Project Capital Expenditures                                                
 (millions)                                 $43 - $48          $45 - $50    
*                                                                           
All-in sustaining costs per mined ounce guidance for 2014 assumes the       
exclusion of approximately $28 per ounce recycling credit and approximately 
$13 per ounce of costs for foreign activities.                              
(1) Corporate Overhead includes: general and administrative, marketing, and 
exploration expenses.                                                       

 
In the second quarter of 2014, the Company's Montana mines produced a
total of 126,400 ounces of palladium and platinum, a 3.9% decrease
compared to mine production of 131,500 ounces in the second quarter
of 2013. The 4.7% increase in East Boulder Mine production in this
year's second quarter as compared to the second quarter of 2013 was
driven by slightly higher realized ore grades and higher tons. The
7.7% decline in ounces produced at the Stillwater Mine reflected
lower ore tons, partially offset by a slight increase in ore grades. 
Second Quarter Mine Production Comparison: 


 
                                             2014       2013                
                                            Second     Second   Percentage  
(Produced ounces)                           Quarter    Quarter    Change    
                                          ---------- ---------- ----------  
Stillwater Mine                               84,000     91,000       (7.7)%
  Palladium                                   64,700     70,200       (7.8)%
  Platinum                                    19,300     20,800       (7.2)%
East Boulder Mine                             42,400     40,500        4.7% 
  Palladium                                   33,000     31,500        4.8% 
  Platinum                                     9,400      9,000        4.4% 
Total                                        126,400    131,500       (3.9)%
  Palladium                                   97,700    101,700       (3.9)%
  Platinum                                    28,700     29,800       (3.7)%

 
Revenue from the Company's Mine Production segment for the second
quarter of 2014 (including proceeds from the sale of by-products)
totaled $147.2 million, a 30.6% increase from $112.7 million in the
same period of 2013. Combined sales realizations for mined palladium
and platinum increased for the second quarter of 2014, averaging $962
per ounce, compared to $865 per ounce realized in the second quarter
of 2013. The total quantity of mined palladium and platinum sold in
the second quarter of 2014 was 144,000 ounces compared to 122,300
ounces sold in the same period of 2013. As a result of earlier
constraints on reprocessing slag inventories at the Stillwater Mine,
metal inventory increased through the first quarter of 2014.
Subsequently, inventories have been processed and PGMs in inventory
have decreased. Approximately 17,600 ounces of PGM sales from
inventory were recognized during the second quarter of 2014. 
The Company processed recycling material containing 134,300 ounces of
palladium, platinum and rhodium through its smelter and refinery
during the second quarter of 2014. This represents a decrease of
23.3% from the record total of 175,000 ounces processed during the
second quarter of 2013. Recycling volumes increased relative to the
March 2014 quarter by 32.3%. 
Second Quarter Recycling Ounces Processed Comparison: 


 
                                                                            
                                             2014       2013                
                                            Second     Second   Percentage  
                                            Quarter    Quarter    Change    
                                          ---------- ---------- ----------  
Total                                        134,300    175,000      (23.3)%
  Palladium                                   73,900     96,500      (23.4)%
  Platinum                                    50,300     65,200      (22.9)%
  Rhodium                                     10,100     13,300      (24.1)%

 
Recycling sales volumes for the second quarter of 2014 decreased by
29.1%, to 101,400 ounces from 143,100 ounces sold in the second
quarter of 2013. PGM Recycling revenue totaled $102.7 million for the
2014 second quarter, a 33.2% decrease from $153.7 million in the same
period of 2013. The Company's combined average realized price for
sales of recycled palladium, platinum and rhodium decreased by 6.4%
to $1,002 per ounce in the second quarter of 2014 from $1,070 per
ounce in the second quarter of 2013. 
The Company is utilizing a non-GAAP measure of mining efficiency,
All-in Sustaining Costs (AISC), in monitoring and managing its
performance going forward. This measure is calculated beginning with
total cash costs per mined ounce, net of credits (another non-GAAP
measure), and adding to it the recycling income credit; domestic
corporate overhead and marketing costs (excluding any depreciation
and amortization costs as well as research and development,
non-recurring and reorganization costs included in corporate overhead
costs); plus that portion of total capital expenditures associated
with sustaining the current level of mining operations. 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. See - "Reconciliation of Non-GAAP Measures to
Consolidated Costs of Revenues." 


 
                                                                            
                                           2014     2013     2014     2013  
Combined Montana Mining Operations All-   Second   Second  Year-to- Year-to-
 In Sustaining Costs Per Mined Ounce      Quarter  Quarter   date     date  
                                         -------- -------- -------- --------
Reported Total Cash Costs per Mined                                         
 Ounce (Net of Credits) *                $    550 $    532 $    559 $    527
  PGM Recycling Income Credit                  23       40       24       44
  Corporate General & Administrative                                        
   Costs (Before DD&A)                         60      115       60      107
  Capital Outlays to Sustain Production                                     
   at the Montana Operating Mines             159      160      147      157
                                         -------- -------- -------- --------
All-In Sustaining Costs per Mined Ounce                                     
 *                                       $    792 $    847 $    790 $    835
                                         ======== ======== ======== ========
                                                                            
* 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 below.

 
Combined total cash costs per mined ounce, net of by-product and
recycling credits, (a non-GAAP measure) averaged $550 per mined ounce
for the quarter ended June 30, 2014, compared to $532 for the same
quarter of 2013. See - "Reconciliation of Non-GAAP Measures to
Consolidated Costs of Revenues." The table below illustrates the
effect of by-product and recycling credits on the total cash costs
per mined ounce, net of credits, for the combined Montana mining
operations. 


 
                                                                            
                                           2014     2013     2014     2013  
Combined Montana Mining Operations Cash   Second   Second  Year-to- Year-to-
 Costs Per Mined Ounce                    Quarter  Quarter   date     date  
                                         -------- -------- -------- --------
Reported Total Cash Costs per Mined                                         
 Ounce (Net of Credits) *                $    550 $    532 $    559 $    527
  By-Product Revenue Credit                    68       53       60       56
  PGM Recycling Income Credit                  23       40       24       44
Total Cash Costs per Mined Ounce (Before                                    
 Credits) *                              $    641 $    625 $    643 $    627
                                         ======== ======== ======== ========
                                                                            
* 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 below.

 
Cash Flow and Liquidity  
At June 30, 2014, the Company's consolidated available cash balance
was $246.4 million, compared to $286.7 million at December 31, 2013.
If highly liquid investments are included with available cash, the
Company's balance sheet liquidity totaled $501.9 million at June 30,
2014, an increase from $496.0 million at December 31, 2013. Of the
Company's second quarter consolidated cash balance, $18.5 million is
dedicated to the Marathon project (and other related Canadian
properties) and is unavailable for other corporate purposes. Net
working capital -- composed of total current assets (including
available cash and investments), less current liabilities --
decreased to $607.1 million at June 30, 2014, from $614.8 million at
the end of 2013. 
Net cash provided by operating activities (which includes changes in
working capital) totaled $60.3 million for the six months ended June
30, 2014, compared to $30.9 million of cash provided for the same
period of 2013. Cash flow from operations benefited from lower
corporate overhead and somewhat higher metal prices during this
year's first half. Capital expenditures, adjusted to a cash basis,
were $53.8 million for the six-month period ended June 30, 2014,
compared to $58.8 million in the same period of 2013. 
Outstanding balance sheet debt at June 30, 2014, was $318.1 million,
up from $310.7 million at December 31, 2013. The Company's reported
debt balance at June 30, 2014, included approximately $282.4 million
of 1.75% convertible debentures (net of unamortized discount of
$114.4 million) and $2.2 million of 1.875% convertible debentures,
$29.7 million of exempt facility revenue bonds, a capital lease of
$3.6 million and approximately $0.2 million of financing for a small
installment land purchase. The increase in the debt balance during
2014 is attributable to the accretion of the discount on the
Company's outstanding 1.75% convertible debentures. 
Other Matters  
During the second quarter of 2014, the Company and Johnson Matthey
agreed to a five-year PGM refining and sales contract. Under the
terms of this new agreement, Johnson Matthey has an exclusive
five-year right to refine all of the PGM filter cake the Company
produces. Johnson Matthey also has the right to purchase all of the
Company's mine production of palladium and a portion of its mined
platinum at competitive market prices and has the right to bid for
any recycling volumes the Company has available. The Company's
existing platinum sales agreement with Tiffany is excluded from the
Johnson Matthey contract. Other provisions of the Johnson Matthey
agreement include a good-faith effort by Johnson Matthey to assist in
growing the Company's recycling volumes, sharing of market
intelligence and a cooperative effort to evaluate and possibly
develop new technologies. The contract contains a clause allowing
Stillwater the ability to terminate the supply arrangement for a
nominal fee. The Company, at its sole discretion, may terminate the
refining arrangement after four years, in which event the Company
shall pay the same nominal fee to Johnson Matthey per troy ounce of
recovered PGM for the remaining term of the refining arrangement. 
In June 2014, the Company provided notice that it intended to
exercise its contractual right to call its $30.0 million in aggregate
principal amount of outstanding 8.0% State of Montana Exempt Facility
Revenue Bonds, Series 2000, issued through the State of Montana Board
of Investments, due July 1, 2020 (the "Series 2000 Bonds") at par,
plus accrued and unpaid interest. Subsequent to the end of the 2014
second quarter, the Company redeemed the entire $30.0 million
aggregate principal amount of Series 2000 Bonds for the total amount
of $30,040,000, including accrued interest.  
The Company's total workforce at June 30, 2014, was 1,663. This is a
reduction of 110 employees from a total of 1,773 at December 31,
2013. These net reductions have stemmed from reorganization efforts
including both voluntary and involuntary severances as well as normal
workforce attrition. The Company has no further significant personnel
cutbacks targeted at this point outside of normal attrition, but will
continue to assess its manpower requirements going forward. 
The Company continues to examine potential alternatives to realize
value from Altar, its copper-gold prospect in Argentina. The Company
has scaled back its activities at Altar (a project deemed to be
non-core), while maintaining a minimum level of activity that permits
it to retain its interest in the Altar concessions while limiting
spending to essential services. 
The Company owns a 75% interest in the Marathon PGM-copper project
and related properties in Canada. Mitsubishi Corporation owns the
remaining 25%. As announced previously, it has become clear that the
project as presently conceived would not provide an acceptable
economic rate of return for shareholders. The Company and its joint
venture partner are examining various alternatives to enhance project
returns. At this time there is no assurance that these alternatives
will provide the economic improvement required to make the project
viable. The Company is maintaining its tenure position at Marathon
and looking for opportunities to realize value from the project in
the future. However, until such time as the project is able to
demonstrate viable economics, the Company has scaled back spending on
the Marathon project. 
Second Quarter Results - Details  
For the second quarter of 2014, the Company's Stillwater Mine
produced 84,000 ounces of palladium and platinum, a decrease of 7.7%
from the 91,000 ounces produced in the second quarter of 2013.
Production at the Company's East Boulder Mine of 42,400 ounces in the
second quarter of 2014 reflected an increase of 4.7% over the 40,500
ounces produced in the same quarter of 2013. 
Costs of metals sold (before depletion, depreciation and amortization
expense) decreased to $189.8 million in the second quarter of 2014
from $226.5 million in the second quarter of 2013. Mine Production
costs included in costs of metals sold increased to $89.5 million in
the 2014 second quarter from $77.4 million in the 2013 second
quarter. Higher royalties and severance taxes driven by higher
realized PGM prices contributed to the increase in cost of metals
sold. PGM Recycling costs totaled $100.3 million in the second
quarter of 2014, down from the $149.2 million reported in the second
quarter of 2013. This decrease was due to significantly lower
recycling volumes processed and sold and the corresponding decrease
in the total cost of acquiring recycling material for processing. 
General and administrative (G&A) costs were $8.2 million in the
second quarter of 2014, down from the $14.1 million incurred during
the same period of 2013. The reduced G&A expense in this year's
second quarter is attributable mostly to lower compensation expense
in 2014. The second quarter of 2013 included G&A costs related to the
retirement of the Company's former Chief Executive Officer, one-time
software licensing fees and higher share based compensation expense.
The second quarter of 2014 included reorganization costs of $5.6
million as compared to the second quarter of 2013, which included
proxy contest expenses of $1.5 million, and non-cash accelerated
equity-based compensation of $9.1 million. Exploration expenses were
$0.7 million in the second quarter of 2014 compared to $2.2 million
in the same period of 2013 as a result of steps taken to scale back
exploration at the Altar and Marathon projects. Marketing expenses
declined to $0.4 million in the 2014 second quarter compared to $2.3
million in the same quarter of 2013, reflecting the continuing
curtailment of palladium jewelry marketing efforts. 
Interest expense in the second quarters of 2014 and 2013 was $5.9
million and $5.4 million, respectively, net of capitalized interest
of $1.1 million and $1.2 million, respectively. 
During the second quarter of 2014, the Company recorded a net foreign
currency transaction gain of $0.2 million. The net foreign currency
transaction gain recorded for the second quarter of 2013 was $5.2
million, primarily attributable to remeasurement of the deferred tax
liability recorded in association with the acquisition of Peregrine
Metals Ltd. 
First Six Months' Results - Details  
During the first six months of 2014, the Company's Stillwater Mine
produced 173,700 ounces of palladium and platinum, a decrease of 5.4%
from the 183,600 ounces produced in the same period of 2013.
Production at the Company's East Boulder Mine of 83,400 ounces for
the first six months of 2014 reflected an 11.2% increase from the
75,000 ounces produced in the same period of 2013. 
Costs of metals sold (before depletion, depreciation and amortization
expense) decreased to $358.5 million for the six-month period ended
June 30, 2014, from $419.1 million in the same period of 2013. Mine
Production costs included in costs of metals sold increased to $167.5
million for the six-month period ended June 30, 2014, from $153.1
million in the same period of 2013. PGM Recycling costs, which
primarily reflect the cost of acquiring spent catalytic materials for
processing, totaled $191.0 million for the six-month period ended
June 30, 2014, down from the $266.0 million reported in the same
period of 2013. The decrease was due to lower volumes sold and the
related reduction in total cost to acquire materials for processing. 
General and administrative (G&A) costs were $17.4 million for the
six-month period ended June 30, 2014, a decrease from the $26.6
million incurred during the same period of 2013. Included in the G&A
for the six-month period ended June 30, 2013, were costs related to
the retirement of the Company's former Chief Executive Officer,
one-time software licensing fees and higher share based compensation
expense. The six-month period ended June 30, 2014, included
reorganization costs of $6.0 million as compared to the same period
of 2013 which included proxy contest expenses of $4.3 million, and
non-cash accelerated equity-based compensation of $9.1 million. The
Company recognized $1.7 million in total exploration expenses related
to its mineral properties in both Canada and South America for the
six-month period ended June 30, 2014, and $8.1 million in the same
period of 2013. Marketing expenses declined to $0.5 million for the
six-month period ended June 30, 2014, compared to $4.0 million in the
same time period of 2013, reflecting the continuing curtailment of
marketing palladium for jewelry. 
Interest expense for the first six months of 2014, and 2013 was $11.7
million and $12.1 million, respectively, net of capitalized interest
of $2.2 million and $2.0 million, respectively. 
During the six-month periods ended June 30, 2014 and 2013, the
Company recorded a net foreign currency transaction gain of $4.4
million and $9.5 million, respectively. Essentially all of these net
gains related to the remeasurement into U.S. dollars of the deferred
tax liability 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
Argentine pesos into U.S. dollars. 
2014 Second Quarter Results Webcast and Conference Call 
Stillwater Mining Company will conduct a conference call to discuss
second quarter 2014 results at 12:00 noon Eastern Standard Time on
Thursday, July 31, 2014. 
Dial-In Numbers: 
 United States: (877) 407-8037
 International:
(201) 689-8037 
A webcast of the conference call and a corresponding presentation
will be available 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 (877) 660-6853
(U.S.) and (201) 612-7415 (International), access code 13586838. 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 applications. The 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 and
from the recycling of spent catalytic converters. The J-M Reef is the
only known significant source of PGMs in the United States and the
highest-grade PGM resource 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 the Company can be found at its
website: www.stillwatermining.com. 
Some statements contained in this report are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended (Securities Act), and Section 21E of the Securities
Exchange Act of 1934, as amended (Exchange Act), and, therefore,
involve uncertainties or risks that could cause actual results to
differ materially. These statements may contain words such as
"believes," "anticipates," "plans," "expects," "intends,"
"estimates," "will" 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. The
forward-looking statements in this report are based on assumptions
and analyses made by us in light of our experience and our perception
of historical trends, current conditions, expected future
developments, and other factors that we believe are appropriate under
the circumstances. 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 forward looking statements herein speak only as of the date of
this release. The Company disclaims any obligation to update
forward-looking statements. 


 
                                                                            
Stillwater Mining Company                                                   
Consolidated Statements of Comprehensive Income (Loss)                      
(Unaudited)                                                                 
                                                                            
                                     Three Months Ended   Six Months Ended  
                                          June 30,            June 30,      
                                     ------------------  ------------------ 
(In thousands, except per share                                             
 data)                                 2014      2013      2014      2013   
                                     --------  --------  --------  -------- 
REVENUES                                                                    
  Mine Production                    $147,171  $112,742  $272,900  $241,056 
  PGM Recycling                       102,716   153,749   196,251   276,083 
  Other                                    --        --       235        -- 
                                     --------  --------  --------  -------- 
      Total revenues                  249,887   266,491   469,386   517,139 
                                     --------  --------  --------  -------- 
COSTS AND EXPENSES                                                          
  Costs of metals sold                                                      
    Mine Production                    89,499    77,376   167,490   153,129 
    PGM Recycling                     100,266   149,154   190,972   266,016 
    Other                                  --        --        79        -- 
                                     --------  --------  --------  -------- 
      Total costs of metals sold                                            
       (excludes depletion,                                                 
       depreciation and                                                     
       amortization)                  189,765   226,530   358,541   419,145 
                                     --------  --------  --------  -------- 
  Depletion, depreciation and                                               
   amortization                                                             
    Mine Production                    17,540    13,742    32,450    28,767 
    PGM Recycling                         262       261       503       519 
                                     --------  --------  --------  -------- 
      Total depletion, depreciation                                         
       and amortization                17,802    14,003    32,953    29,286 
                                     --------  --------  --------  -------- 
        Total costs of revenues       207,567   240,533   391,494   448,431 
  Marketing                               387     2,263       538     3,990 
  Exploration                             674     2,153     1,720     8,104 
  Proxy contest                            --     1,529        --     4,307 
  Accelerated equity based                                                  
   compensation for change-in-                                              
   control                                 --     9,063        --     9,063 
  Reorganization                        5,626        --     6,045        -- 
  General and administrative            8,212    14,146    17,428    26,618 
  Loss on long-term investments            --     1,092        --     1,654 
  (Gain) loss on disposal of                                                
   property, plant and equipment          (63)        4      (301)       40 
                                     --------  --------  --------  -------- 
        Total costs and expenses      222,403   270,783   416,924   502,207 
                                     --------  --------  --------  -------- 
OPERATING INCOME (LOSS)                27,484    (4,292)   52,462    14,932 
OTHER INCOME (EXPENSE)                                                      
  Other                                    32        17        64     1,162 
  Interest income                         994     1,214     1,819     2,414 
  Interest expense                     (5,868)   (5,438)  (11,719)  (12,090)
  Foreign currency transaction gain,                                        
   net                                    182     5,222     4,361     9,459 
                                     --------  --------  --------  -------- 
INCOME (LOSS) BEFORE INCOME TAX                                             
 PROVISION                             22,824    (3,277)   46,987    15,877 
  Income tax provision                 (5,166)   (2,380)  (10,291)   (7,230)
                                     --------  --------  --------  -------- 
NET INCOME (LOSS)                    $ 17,658  $ (5,657) $ 36,696  $  8,647 
Net loss attributable to                                                    
 noncontrolling interest                 (237)     (349)     (770)     (628)
                                     --------  --------  --------  -------- 
NET INCOME (LOSS) ATTRIBUTABLE TO                                           
 COMMON STOCKHOLDERS                 $ 17,895  $ (5,308) $ 37,466  $  9,275 
  Other comprehensive income (loss),                                        
   net of tax                                                               
    Net unrealized gains (losses) on                                        
     investments available-for-sale       178        (5)      141        69 
                                     --------  --------  --------  -------- 
COMPREHENSIVE INCOME (LOSS)                                                 
 ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 18,073  $ (5,313) $ 37,607  $  9,344 
Comprehensive loss attributable to                                          
 noncontrolling interest                 (237)     (349)     (770)     (628)
TOTAL COMPREHENSIVE INCOME (LOSS)    $ 17,836  $ (5,662) $ 36,837  $  8,716 
                                     ========  ========  ========  ======== 
Weighted average common shares                                              
 outstanding                                                                
  Basic                               119,867   118,435   119,738   117,937 
  Diluted                             156,167   118,435   155,921   118,391 
                                     --------  --------  --------  -------- 
Basic earnings (loss) per share                                             
 attributable to common stockholders $   0.15  $  (0.04) $   0.31  $   0.08 
                                     ========  ========  ========  ======== 
Diluted earnings (loss) per share                                           
 attributable to common stockholders $   0.14  $  (0.04) $   0.29  $   0.08 
                                     ========  ========  ========  ======== 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Consolidated Balance Sheets                                                 
(Unaudited)                                                                 
                                                                            
                                                   June 30,    December 31, 
(In thousands, except per share data)                2014          2013     
                                                 ------------  ------------ 
ASSETS                                                                      
Current assets                                                              
Cash and cash equivalents                        $    246,408  $    286,687 
Investments, at fair market value                     255,490       209,338 
Inventories                                           169,409       158,650 
Trade receivables                                      13,625         8,988 
Deferred income taxes                                  19,329        21,547 
Prepaids                                                6,307         3,912 
Other current assets                                   15,805        14,757 
                                                 ------------  ------------ 
  Total current assets                                726,373       703,879 
Mineral properties                                    159,252       159,252 
Mine development, net                                 372,964       346,346 
Property, plant and equipment, net                    118,963       124,731 
Deferred debt issuance costs                            7,214         7,945 
Other noncurrent assets                                 5,144         4,527 
                                                 ------------  ------------ 
  Total assets                                   $  1,389,910  $  1,346,680 
                                                 ============  ============ 
LIABILITIES AND EQUITY                                                      
Current liabilities                                                         
Accounts payable                                 $     24,222  $     32,088 
Accrued compensation and benefits                      27,950        30,646 
Property, production and franchise taxes payable       15,435        14,495 
Current portion of long-term debt and capital                               
 lease obligations                                     31,737         2,035 
Income taxes payable                                   12,554         4,416 
Other current liabilities                               7,330         5,368 
                                                 ------------  ------------ 
  Total current liabilities                           119,228        89,048 
Long-term debt and capital lease obligations          286,322       308,667 
Deferred income taxes                                  68,798        79,159 
Accrued workers compensation                            6,343         6,031 
Asset retirement obligation                             9,024         8,654 
Other noncurrent liabilities                            7,884         7,262 
                                                 ------------  ------------ 
  Total liabilities                                   497,599       498,821 
                                                 ------------  ------------ 
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; 119,964,825 and 119,466,449                             
 shares issued and outstanding                          1,200         1,195 
Paid-in capital                                     1,083,809     1,076,200 
Accumulated deficit                                  (211,969)     (249,436)
Accumulated other comprehensive income                    147             6 
                                                 ------------  ------------ 
  Total stockholders' equity                          873,187       827,965 
Noncontrolling interest                                19,124        19,894 
                                                 ------------  ------------ 
  Total equity                                        892,311       847,859 
                                                 ------------  ------------ 
  Total liabilities and equity                   $  1,389,910  $  1,346,680 
                                                 ============  ============ 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Consolidated Statements of Cash Flows                                       
(Unaudited)                                                                 
                                                                            
                                                         Six Months Ended   
                                                             June 30,       
(In thousands)                                            2014       2013   
                                                       ---------  --------- 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
Net income                                             $  36,696  $   8,647 
Adjustments to reconcile net income to net cash                             
 provided by operating activities:                                          
  Depletion, depreciation and amortization                32,953     29,286 
  (Gain) Loss on disposal of property, plant and                            
   equipment                                                (301)        40 
  Loss on long-term investments                               --      1,654 
  Amortization/accretion on investment                                      
   premium/discount                                        1,038      1,713 
  Deferred taxes                                          (4,043)        51 
  Foreign currency transaction gain, net                  (4,361)    (9,459)
  Accretion of asset retirement obligation                   370        338 
  Amortization of deferred debt issuance costs               731        923 
  Accretion of convertible debenture debt discount         8,407      7,725 
  Accelerated equity based compensation for change-in-                      
   control                                                    --      9,063 
  Share based compensation and other benefits              6,909     11,039 
  Non-cash capitalized interest                           (1,396)    (2,022)
Changes in operating assets and liabilities:                                
  Inventories                                            (11,099)   (35,113)
  Trade receivables                                       (4,637)     5,556 
  Prepaids                                                (2,395)    (3,020)
  Accrued compensation and benefits                       (2,700)    (1,172)
  Accounts payable                                        (6,581)     3,329 
  Property, production and franchise taxes payable         1,562        338 
  Income taxes payable                                     8,138      3,358 
  Accrued workers compensation                               312        459 
  Other operating assets                                  (1,248)    (3,774)
  Other operating liabilities                              1,945      1,972 
                                                       ---------  --------- 
NET CASH PROVIDED BY OPERATING ACTIVITIES                 60,300     30,931 
                                                       ---------  --------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Capital expenditures                                   (53,780)   (58,825)
  Proceeds from disposal of property, plant and                             
   equipment                                                 323         46 
  Purchases of investments                              (134,367)   (65,267)
  Proceeds from maturities of investments                 87,395    101,006 
                                                       ---------  --------- 
NET CASH USED IN INVESTING ACTIVITIES                   (100,429)   (23,040)
                                                       ---------  --------- 
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Payments on debt and capital lease obligations          (1,043)  (165,247)
  Issuance of common stock                                   893        114 
                                                       ---------  --------- 
NET CASH USED IN FINANCING ACTIVITIES                       (150)  (165,133)
                                                       ---------  --------- 
CASH AND CASH EQUIVALENTS                                                   
  Net decrease                                           (40,279)  (157,242)
  Balance at beginning of period                         286,687    379,680 
                                                       ---------  --------- 
BALANCE AT END OF PERIOD                               $ 246,408  $ 222,438 
                                                       =========  ========= 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors                                                       
(Unaudited)                                                                 
                                                                            
                                               Three Months     Six Months  
                                                  Ended           Ended     
                                                 June 30,        June 30,   
                                             --------------- ---------------
(In thousands, except where noted)             2014    2013    2014    2013 
                                             ------- ------- ------- -------
OPERATING AND COST DATA FOR MINE PRODUCTION                                 
Consolidated:                                                               
Ounces produced                                                             
Palladium                                         97     102     198     200
Platinum                                          29      30      59      59
                                             ------- ------- ------- -------
Total                                            126     132     257     259
                                             ======= ======= ======= =======
Tons milled                                      286     308     564     602
Mill head grade (ounce per ton)                 0.47    0.46    0.49    0.46
Sub-grade tons milled (1)                         17      21      34      41
Sub-grade tons mill head grade (ounce per                                   
 ton)                                           0.14    0.18    0.16    0.17
Total tons milled(1)                             303     329     598     643
Combined mill head grade (ounce per ton)        0.46    0.44    0.47    0.44
Total mill recovery (%)                           92      92      92      92
Total mine concentrate shipped (tons) (3)      6,903   7,156  14,204  14,316
Platinum grade in concentrate (ounce per                                    
 ton) (3)                                       4.50    4.43    4.66    4.37
Palladium grade in concentrate (ounce per                                   
 ton) (3)                                      14.87   14.75   15.09   14.51
Total cash costs per ounce - net of credits                                 
 (Non-GAAP) (2)                              $   550 $   532 $   559 $   527
Total cash costs per ton milled - net of                                    
 credits (Non-GAAP) (2)                      $   229 $   213 $   240 $   213
Stillwater Mine:                                                            
Ounces produced                                                             
Palladium                                         64      70     133     142
Platinum                                          20      21      41      42
                                             ------- ------- ------- -------
Total                                             84      91     174     184
                                             ======= ======= ======= =======
Tons milled                                      175     199     345     391
Mill head grade (ounce per ton)                 0.51    0.49    0.53    0.50
Sub-grade tons milled (1)                          5      12      13      22
Sub-grade tons mill head grade (ounce per                                   
 ton)                                           0.23    0.23    0.26    0.22
Total tons milled (1)                            180     211     358     413
Combined mill head grade (ounce per ton)        0.50    0.48    0.52    0.48
Total mill recovery (%)                           93      92      93      93
Total mine concentrate shipped (tons) (3)      3,749   4,332   8,144   8,640
Platinum grade in concentrate (ounce per                                    
 ton) (3)                                       5.60    5.03    5.58    5.12
Palladium grade in concentrate (ounce per                                   
 ton) (3)                                      18.16   16.68   17.64   16.89
Total cash costs per ounce - net of credits                                 
 (Non-GAAP) (2)                              $   535 $   532 $   541 $   515
Total cash costs per ton milled - net of                                    
 credits (Non-GAAP) (2)                      $   250 $   229 $   262 $   229
                                                                            
                                                                            
Stillwater Mining Company                                                   
Key Operating Factors (Continued)                                           
(Unaudited)                                                                 
                                                                            
                                               Three Months     Six Months  
                                                  Ended           Ended     
                                                 June 30,        June 30,   
                                             --------------- ---------------
(In thousands, except where noted)             2014    2013    2014    2013 
                                             ------- ------- ------- -------
OPERATING AND COST DATA FOR MINE PRODUCTION                                 
 (Continued)                                                                
East Boulder Mine:                                                          
Ounces produced                                                             
Palladium                                         33      32      65      58
Platinum                                           9       9      18      17
                                             ------- ------- ------- -------
Total                                             42      41      83      75
                                             ======= ======= ======= =======
Tons milled                                      111     109     219     211
Mill head grade (ounce per ton)                 0.42    0.41    0.41    0.39
Sub-grade tons milled (1)                         12       9      21      19
Sub-grade tons mill head grade (ounce per                                   
 ton)                                           0.10    0.10    0.11    0.11
Total tons milled (1)                            123     118     240     230
Combined mill head grade (ounce per ton)        0.39    0.38    0.39    0.36
Total mill recovery (%)                           90      91      90      90
Total mine concentrate shipped (tons) (3)      3,154   2,824   6,060   5,676
Platinum grade in concentrate (ounce per                                    
 ton) (3)                                       3.19    3.51    3.29    3.22
Palladium grade in concentrate (ounce per                                   
 ton) (3)                                      10.96   11.80   11.23   10.90
Total cash costs per ounce - net of credits                                 
 (Non-GAAP) (2)                              $   580 $   532 $   597 $   559
Total cash costs per ton milled - net of                                    
 credits (Non-GAAP) (2)                      $   200 $   183 $   207 $   183

 
(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, reorganization 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     Six Months  
                                                  Ended           Ended     
                                                 June 30,        June 30,   
                                             --------------- ---------------
(In thousands, except for average prices)      2014    2013    2014    2013 
                                             ------- ------- ------- -------
SALES AND PRICE DATA                                                        
Ounces sold                                                                 
Mine Production:                                                            
  Palladium (oz.)                                112      98     212     199
  Platinum (oz.)                                  32      25      63      54
                                             ------- ------- ------- -------
    Total                                        144     123     275     253
                                             ------- ------- ------- -------
PGM Recycling: (1)                                                          
  Palladium (oz.)                                 59      81     113     147
  Platinum (oz.)                                  35      50      67      92
  Rhodium (oz.)                                    7      12      15      21
                                             ------- ------- ------- -------
    Total                                        101     143     195     260
                                             ------- ------- ------- -------
By-products from Mine Production: (2)                                       
  Rhodium (oz.)                                    1       1       2       2
  Gold (oz.)                                       2       3       5       5
  Silver (oz.)                                     1       2       3       4
  Copper (lb.)                                   305     260     482     474
  Nickel (lb.)                                   412     348     777     687
Average realized price per ounce (3)                                        
Mine Production:                                                            
  Palladium ($/oz.)                          $   821 $   716 $   784 $   720
  Platinum ($/oz.)                           $ 1,450 $ 1,446 $ 1,441 $ 1,544
    Combined ($/oz.)(4)                      $   962 $   865 $   936 $   897
PGM Recycling: (1)                                                          
  Palladium ($/oz.)                          $   752 $   732 $   741 $   706
  Platinum ($/oz.)                           $ 1,426 $ 1,600 $ 1,418 $ 1,603
  Rhodium ($/oz.)                            $ 1,018 $ 1,163 $   988 $ 1,145
    Combined ($/oz.)(4)                      $ 1,002 $ 1,070 $   992 $ 1,058
By-products from Mine Production: (2)                                       
  Rhodium ($/oz.)                            $ 1,083 $ 1,082 $ 1,076 $ 1,143
  Gold ($/oz.)                               $ 1,288 $ 1,354 $ 1,292 $ 1,478
  Silver ($/oz.)                             $    20 $    21 $    20 $    25
  Copper ($/lb.)                             $  2.90 $  3.05 $  2.95 $  3.20
  Nickel ($/lb.)                             $  7.77 $  5.14 $  6.85 $  5.78
Average market price per ounce (3)                                          
  Palladium ($/oz.)                          $   815 $   712 $   780 $   726
  Platinum ($/oz.)                           $ 1,447 $ 1,465 $ 1,438 $ 1,550
    Combined ($/oz.)(4)                      $   957 $   866 $   932 $   902

 
(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 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, the most comparable measure under GAAP, 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 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 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 Income (Loss). 
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 Costs 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
Costs 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 Costs 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 Costs 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       
(Unaudited)                                                                 
                                                                            
                                  Three Months Ended     Six Months Ended   
                                       June 30,              June 30,       
                                 --------------------  -------------------- 
(In thousands, except per ounce                                             
 and per ton data)                  2014       2013       2014       2013   
                                 ---------  ---------  ---------  --------- 
Consolidated:                                                               
Total cash costs before by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  81,084  $  82,151  $ 165,135  $ 162,173 
By-product credit                   (8,628)    (6,943)   (15,309)   (14,451)
Recycling income credit             (2,926)    (5,288)    (6,093)   (11,320)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  69,530  $  69,920  $ 143,733  $ 136,402 
                                                                            
Divided by platinum/palladium                                               
 ounces produced                       126        132        257        259 
                                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 per ounce Pt/Pd produced (Non-                                             
 GAAP)                           $     641  $     625  $     643  $     627 
By-product credit per ounce                                                 
 Pt/Pd produced                        (68)       (53)       (60)       (56)
Recycling income credit per                                                 
 ounce Pt/Pd produced                  (23)       (40)       (24)       (44)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 per ounce Pt/Pd produced (Non-                                             
 GAAP)                           $     550  $     532  $     559  $     527 
                                                                            
Divided by ore tons milled             303        329        598        643 
                                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 per ore ton milled (Non-GAAP)   $     267  $     250  $     276  $     254 
By-product credit per ore ton                                               
 milled                                (28)       (21)       (26)       (23)
Recycling income credit per ore                                             
 ton milled                            (10)       (16)       (10)       (18)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 per ore ton milled (Non-GAAP)   $     229  $     213  $     240  $     213 
                                                                            
Reconciliation to consolidated                                              
 costs of revenues:                                                         
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  69,530  $  69,920  $ 143,733  $ 136,402 
Asset retirement costs                 189        171        370        338 
Depletion, depreciation and                                                 
 amortization                       17,540     13,742     32,450     28,767 
Depletion, depreciation and                                                 
 amortization (in inventory)          (893)       881       (340)       128 
Change in product inventories        9,119     (5,827)     2,404     (9,510)
Cost of PGM Recycling              100,266    149,154    190,972    266,016 
PGM Recycling - depreciation           262        261        503        519 
By-product credit                    8,628      6,943     15,309     14,451 
Profit from PGM Recycling                                                   
 (before bad debt expense and                                               
 gain/loss on asset disposals)       2,926      5,288      6,093     11,320 
                                 ---------  ---------  ---------  --------- 
Total consolidated cost of                                                  
 revenues                        $ 207,567  $ 240,533  $ 391,494  $ 448,431 
                                 =========  =========  =========  ========= 
Memo: Royalties, Taxes and Other                                            
 included in Total consolidated                                             
 cost of revenues                $  13,017  $  11,082  $  25,030  $  22,774 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues       
 (Continued)                                                                
(Unaudited)                                                                 
                                                                            
                                  Three Months Ended     Six Months Ended   
                                       June 30,              June 30,       
                                 --------------------  -------------------- 
(In thousands, except per ounce                                             
 and per ton data)                  2014       2013       2014       2013   
                                 ---------  ---------  ---------  --------- 
Stillwater Mine:                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  51,940  $  56,081  $ 107,168  $ 111,286 
By-product credit                   (5,026)    (4,084)    (9,042)    (8,748)
Recycling income credit             (1,953)    (3,643)    (4,123)    (8,041)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  44,961  $  48,354  $  94,003  $  94,497 
                                                                            
Divided by platinum/palladium                                               
 ounces produced                        84         91        174        184 
                                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 per ounce Pt/Pd produced (Non-                                             
 GAAP)                           $     618  $     617  $     617        607 
By-product credit per ounce                                                 
 Pt/Pd produced                        (60)       (45)       (52)       (48)
Recycling income credit per                                                 
 ounce Pt/Pd produced                  (23)       (40)       (24)       (44)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 per ounce Pt/Pd produced (Non-                                             
 GAAP)                           $     535  $     532  $     541        515 
                                                                            
Divided by ore tons milled             180        211        358        413 
                                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 per ore ton milled (Non-GAAP)   $     289  $     265  $     299        269 
By-product credit per ore ton                                               
 milled                                (28)       (19)       (25)       (21)
Recycling income credit per ore                                             
 ton milled                            (11)       (17)       (12)       (19)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 per ore ton milled (Non-GAAP)   $     250  $     229  $     262        229 
                                                                            
Reconciliation to costs of                                                  
 revenues:                                                                  
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  44,961  $  48,354  $  94,003  $  94,497 
Asset retirement costs                 176        158        345        313 
Depletion, depreciation and                                                 
 amortization                       13,276     10,518     24,661     22,127 
Depletion, depreciation and                                                 
 amortization (in inventory)        (1,193)       792       (821)       192 
Change in product inventories        7,780     (4,100)     3,729     (6,214)
By-product credit                    5,026      4,084      9,042      8,748 
Profit from PGM Recycling                                                   
 (before bad debt expense and                                               
 gain/loss on asset disposals)       1,953      3,643      4,123      8,041 
                                 ---------  ---------  ---------  --------- 
Total cost of revenues           $  71,979  $  63,449  $ 135,082  $ 127,704 
                                 =========  =========  =========  ========= 
Memo: Royalties, Taxes and Other                                            
 included in Total cost of                                                  
 revenues                        $   8,465  $   7,440  $  16,398     15,688 
                                                                            
                                                                            
Stillwater Mining Company                                                   
Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues       
 (Continued)                                                                
(Unaudited)                                                                 
                                                                            
                                  Three Months Ended     Six Months Ended   
                                       June 30,              June 30,       
                                 --------------------  -------------------- 
(In thousands, except per ounce                                             
 and per ton data)                  2014       2013       2014       2013   
                                 ---------  ---------  ---------  --------- 
East Boulder                                                                
Total cash costs before by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  29,144  $  26,070  $  57,967  $  50,887 
By-product credit                   (3,602)    (2,859)    (6,267)    (5,703)
Recycling income credit               (973)    (1,645)    (1,970)    (3,279)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  24,569  $  21,566  $  49,730  $  41,905 
                                                                            
Divided by platinum/palladium                                               
 ounces produced                        42         41         83         75 
                                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 per ounce Pt/Pd produced (Non-                                             
 GAAP)                           $     688  $     644  $     696  $     679 
By-product credit per ounce                                                 
 Pt/Pd produced                        (85)       (71)       (75)       (76)
Recycling income credit per                                                 
 ounce Pt/Pd produced                  (23)       (41)       (24)       (44)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 per ounce Pt/Pd produced (Non-                                             
 GAAP)                           $     580  $     532  $     597  $     559 
                                                                            
Divided by ore tons milled             123        118        240        230 
                                                                            
Total cash costs before by-                                                 
 product and recycling credits                                              
 per ore ton milled (Non-GAAP)   $     237  $     221  $     241  $     222 
By-product credit per ore ton                                               
 milled                                (29)       (24)       (26)       (25)
Recycling income credit per ore                                             
 ton milled                             (8)       (14)        (8)       (14)
                                 ---------  ---------  ---------  --------- 
Total cash costs net of by-                                                 
 product and recycling credits                                              
 per ore ton milled (Non-GAAP)   $     200  $     183  $     207  $     183 
                                                                            
Reconciliation to costs of                                                  
 revenues:                                                                  
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  24,569  $  21,566  $  49,730  $  41,905 
Asset retirement costs                  13         13         25         25 
Depletion, depreciation and                                                 
 amortization                        4,264      3,224      7,789      6,640 
Depletion, depreciation and                                                 
 amortization (in inventory)           300         89        481        (64)
Change in product inventories        1,339     (1,727)    (1,404)    (3,296)
By-product credit                    3,602      2,859      6,267      5,703 
Profit from PGM Recycling                                                   
 (before bad debt expense and                                               
 gain/loss on asset disposals)         973      1,645      1,970      3,279 
                                 ---------  ---------  ---------  --------- 
Total cost of revenues           $  35,060  $  27,669  $  64,858  $  54,192 
                                 =========  =========  =========  ========= 
Memo: Royalties, Taxes and Other                                            
 included in Total cost of                                                  
 revenues                        $   4,552  $   3,642  $   8,632  $   7,086 
                                                                            
PGM Recycling and Other: (1)                                                
Cost of open market purchases    $      --  $      --  $      79  $      -- 
Cost of PGM Recycling              100,266    149,154    190,972    266,016 
PGM Recycling - depreciation           262        261        503        519 
                                 ---------  ---------  ---------  --------- 
Total cost of revenues           $ 100,528  $ 149,415  $ 191,554  $ 266,535 
                                 =========  =========  =========  ========= 

 
(1) PGM Recycling and Other include PGM recycling and metal purchased
on the open market for resale. 
Stillwater Mining Company
 All-In Sustaining Costs (a Non-GAAP
Measure)
 (Unaudited) 
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, net of
credits, (another non-GAAP measure, described above), and adding to
it the recycling income credit, domestic corporate overhead costs and
marketing costs (excluding any depreciation and amortization costs as
well as research and development, non-recurring and reorganization
costs included in corporate overhead costs), and that portion of
total capital expenditures associated with sustaining the current
level of mining operations. (Capital expenditures for Blitz, Graham
Creek and certain other one-time projects are not included in the
calculation.) 
When divided by the total recoverable PGM ounces in the respective
period, All-In Sustaining Costs per Mined 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
costs 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     Six Months Ended   
                                       June 30,              June 30,       
                                 --------------------  -------------------- 
(In thousands, except $/oz.)        2014       2013       2014       2013   
                                 ---------  ---------  ---------  --------- 
All-In Sustaining Costs                                                     
Total cash costs net of by-                                                 
 product and recycling credits                                              
 (Non-GAAP)                      $  69,530  $  69,920  $ 143,733  $ 136,402 
Recycling income credit              2,926      5,288      6,093     11,320 
                                 ---------  ---------  ---------  --------- 
                                 $  72,456  $  75,208  $ 149,826  $ 147,722 
                                                                            
Consolidated Corporate General &                                            
 Administrative costs            $   8,212  $  14,146  $  17,428  $  26,618 
Corporate depreciation and                                                  
 amortization and research and                                              
 development included in                                                    
 Consolidated Corporate General                                             
 & Administrative costs               (112)      (121)      (255)      (265)
General & Administrative Costs                                              
 in Foreign Subsidiaries              (873)    (1,137)    (2,311)    (2,649)
Marketing costs                        387      2,263        538      3,990 
                                 ---------  ---------  ---------  --------- 
                                 $   7,614  $  15,151  $  15,400  $  27,694 
                                                                            
Total incurred capitalized costs $  32,476  $  33,114  $  57,149  $  61,561 
Capital associated with                                                     
 expansion projects                (12,469)   (12,141)   (19,267)   (21,031)
                                 ---------  ---------  ---------  --------- 
Total Capital incurred to                                                   
 sustain existing operations     $  20,007  $  20,973  $  37,882  $  40,530 
                                                                            
                                 ---------  ---------  ---------  --------- 
All-In Sustaining Costs (Non-                                               
 GAAP)                           $ 100,077  $ 111,332  $ 203,108  $ 215,946 
                                                                            
Mined ounces produced                126.4      131.5      257.1      258.6 
                                                                            
                                 ---------  ---------  ---------  --------- 
All-In Sustaining Costs per                                                 
 Mined Ounce ($/oz.) (Non-GAAP)  $     792  $     847  $     790  $     835 
                                 ---------  ---------  ---------  --------- 

  
INVESTOR CONTACT: 
Mike Beckstead
(406) 373-8971 
 
 
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