Stillwater Mining Company (SWC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Stillwater Mining Company has a market cap of $1.42 billion; its shares were traded at around $14.61 with and P/S ratio of 3.6. SWC is in the portfolios of Jim Simons of Renaissance Technologies LLC, John Hussman of Hussman Economtrics Advisors, Inc..
The Companys operating objectives for 2010 include targeted mine production of 515,000 combined ounces of palladium and platinum at a total consolidated cash cost (a non-GAAP measure of extraction efficiency) of $360 per ounce and capital expenditures of about $50 million. The Company performed well against these objectives in the first quarter, producing 129,000 ounces of palladium and platinum at a total consolidated cash cost of $364 per ounce produced. Capital spending in the first quarter was $10.7 million. The total cash cost per ounce of $364 in the 2010 first quarter was slightly higher than the annual guidance, reflecting the effect on royalties and taxes of higher PGM prices, but absent the increase in royalties and taxes was about on plan.
First quarter 2010 palladium and platinum production at the Stillwater Mine totaled 96,300 ounces, solidly ahead of expectations, on good mining productivity and despite ore grades that were slightly lower than planned. In comparison, the Stillwater Mine produced 92,900 ounces of palladium and platinum in the first quarter of 2009. Total cash costs of $339 per ounce for the quarter were just above budgeted projections as a result of higher royalties and taxes, while capital expenditures for the quarter totaled $7.7 million. Total cash costs in the first quarter of 2009 were $387 per ounce and capital expenditures totaled $7.6 million. Primary development at the Stillwater Mine advanced 4,469 feet during the quarter, well ahead of plan, although this was somewhat at the expense of secondary development, which at 2,695 feet, trailed behind the plan. Diamond drilling footages at the Stillwater Mine totaling 72,099 feet for the first three months of 2010 were better than planned.
Mining performance at the East Boulder Mine through the first quarter of 2010 was good, with palladium and platinum production of 32,700 ounces, better than expected, and total cash costs of $439 per ounce, a bit higher than projected but only because of the higher royalties and taxes on strong PGM prices. In comparison, the East Boulder Mine produced 31,900 ounces of palladium and platinum in the first quarter of 2009 for total cash costs of $455 per ounce. Capital expenditures at the mine were $1.7 million in the first quarter of 2010 compared to $0.5 million in the first quarter of 2009. Actual primary development footage of 1,194 feet at the East Boulder Mine lagged plan during the first quarter, but secondary development of 2,415 feet was a little ahead of plan and diamond drilling footage of 24,487 feet slightly exceeded engineering projections.
Along with its mining operations, the Company also recycles spent catalyst material through its processing facilities in Columbus, Montana, recovering palladium, platinum and rhodium from these materials. For the first quarter of 2010, the Company recognized net income from its recycling operations of $2.9 million on revenues of $33.7 million, reflecting a combined average realization of $899 per sold ounce. In comparison, in the first quarter of 2009, net income from recycling operations was $1.2 million on revenues of $21.5 million, reflecting a combined average realization of $1,148 per sold ounce. Total tons of recycling material processed during the 2010 first quarter, including tolled material, averaged 18.4 tons per day, up from just 5.6 tons per day in the first quarter of 2009. The higher volume in 2010 is the result of higher PGM prices, along with the correspondingly stronger incentive to collect material for recycling and new business arrangements with suppliers.
During the first quarter of 2010, PGM market prices strengthened significantly: afternoon postings by the London Bullion Metals Association for platinum and palladium were $1,645 and $479 per ounce, respectively, at March 31, 2010, up from $1,461 and $393 per ounce, respectively, at the end of 2009. The increase in PGM prices was likely driven by several factors, including an emerging recovery in worldwide automotive production, diminished palladium exports from the Russian government stockpile, perceived cost pressures within South Africa, and substantial investment demand following the January 2010 introduction of platinum and palladium exchange-traded-funds (ETFs) in the U.S.
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Stillwater Mining Company has a market cap of $1.42 billion; its shares were traded at around $14.61 with and P/S ratio of 3.6. SWC is in the portfolios of Jim Simons of Renaissance Technologies LLC, John Hussman of Hussman Economtrics Advisors, Inc..
Highlight of Business Operations:
For the first quarter of 2010, the Company reported net income of $13.4 million, or $0.14 per share, compared to a net loss of $11.7 million, or $0.12 per share, in the first quarter 2009. Much of the difference is attributable to higher metal prices in 2010 the combined average sales realization per mined ounce for platinum and palladium was $644 in the first quarter of 2010 compared to $510 per ounce in 2009s first quarter. The combined average realized prices differ from equivalent average market prices as the result of ceiling prices on a portion of the Companys mined platinum, floor prices on the Companys mined palladium at prices prevailing during the first quarter of 2009, small contractual discounts on metal not subject to the floors and ceilings, and selling prices based on monthly averages which generally lag the market price by one month. Mine production of platinum and palladium totaled 129,000 ounces in the 2010 first quarter, as compared to 124,800 ounces in the same period of 2009, reflecting continued strong performance at both the Stillwater Mine and the East Boulder Mine. The Companys total available liquidity, expressed as cash plus short-term investments, at March 31, 2010, was $220.6 million, up from $201.2 million at the end of 2009. Net working capital (including cash and investments) increased over the quarter to $297.6 million from $269.5 million at year end 2009.The Companys operating objectives for 2010 include targeted mine production of 515,000 combined ounces of palladium and platinum at a total consolidated cash cost (a non-GAAP measure of extraction efficiency) of $360 per ounce and capital expenditures of about $50 million. The Company performed well against these objectives in the first quarter, producing 129,000 ounces of palladium and platinum at a total consolidated cash cost of $364 per ounce produced. Capital spending in the first quarter was $10.7 million. The total cash cost per ounce of $364 in the 2010 first quarter was slightly higher than the annual guidance, reflecting the effect on royalties and taxes of higher PGM prices, but absent the increase in royalties and taxes was about on plan.
First quarter 2010 palladium and platinum production at the Stillwater Mine totaled 96,300 ounces, solidly ahead of expectations, on good mining productivity and despite ore grades that were slightly lower than planned. In comparison, the Stillwater Mine produced 92,900 ounces of palladium and platinum in the first quarter of 2009. Total cash costs of $339 per ounce for the quarter were just above budgeted projections as a result of higher royalties and taxes, while capital expenditures for the quarter totaled $7.7 million. Total cash costs in the first quarter of 2009 were $387 per ounce and capital expenditures totaled $7.6 million. Primary development at the Stillwater Mine advanced 4,469 feet during the quarter, well ahead of plan, although this was somewhat at the expense of secondary development, which at 2,695 feet, trailed behind the plan. Diamond drilling footages at the Stillwater Mine totaling 72,099 feet for the first three months of 2010 were better than planned.
Mining performance at the East Boulder Mine through the first quarter of 2010 was good, with palladium and platinum production of 32,700 ounces, better than expected, and total cash costs of $439 per ounce, a bit higher than projected but only because of the higher royalties and taxes on strong PGM prices. In comparison, the East Boulder Mine produced 31,900 ounces of palladium and platinum in the first quarter of 2009 for total cash costs of $455 per ounce. Capital expenditures at the mine were $1.7 million in the first quarter of 2010 compared to $0.5 million in the first quarter of 2009. Actual primary development footage of 1,194 feet at the East Boulder Mine lagged plan during the first quarter, but secondary development of 2,415 feet was a little ahead of plan and diamond drilling footage of 24,487 feet slightly exceeded engineering projections.
Along with its mining operations, the Company also recycles spent catalyst material through its processing facilities in Columbus, Montana, recovering palladium, platinum and rhodium from these materials. For the first quarter of 2010, the Company recognized net income from its recycling operations of $2.9 million on revenues of $33.7 million, reflecting a combined average realization of $899 per sold ounce. In comparison, in the first quarter of 2009, net income from recycling operations was $1.2 million on revenues of $21.5 million, reflecting a combined average realization of $1,148 per sold ounce. Total tons of recycling material processed during the 2010 first quarter, including tolled material, averaged 18.4 tons per day, up from just 5.6 tons per day in the first quarter of 2009. The higher volume in 2010 is the result of higher PGM prices, along with the correspondingly stronger incentive to collect material for recycling and new business arrangements with suppliers.
During the first quarter of 2010, PGM market prices strengthened significantly: afternoon postings by the London Bullion Metals Association for platinum and palladium were $1,645 and $479 per ounce, respectively, at March 31, 2010, up from $1,461 and $393 per ounce, respectively, at the end of 2009. The increase in PGM prices was likely driven by several factors, including an emerging recovery in worldwide automotive production, diminished palladium exports from the Russian government stockpile, perceived cost pressures within South Africa, and substantial investment demand following the January 2010 introduction of platinum and palladium exchange-traded-funds (ETFs) in the U.S.
Read the The complete Report
