Tuesday September 12, 9:02 am Eastern Time
Press Release
SOURCE: Stillwater Mining Company
Stillwater Mining Announces Three Year Operating Plan for Stillwater Mine
DENVER, Sept. 12 /PRNewswire/ -- STILLWATER MINING COMPANY (Amex: SWC - news) announced today its three-year plan for the Stillwater Mine, Nye, Montana. The Company expects to process ore grade material at an average of 2,300 tons per day in 2001, 2,500 tons per day in 2002 and 2,800 tons per day in 2003. Palladium and platinum production from the mine is forecast at approximately 500,000 ounces for 2001, 590,000 ounces for 2002 and 665,000 ounces for 2003. Cash costs of production over the three year period are projected to be about $230, $200 and $185 per ounce, respectively. On a cash cost per ton milled basis, costs are projected to be $120, $115 and $110, respectively. Details are outlined in the accompanying table.
``Our operating and planning team have invested a significant amount of time and resources in developing an achievable plan,'' said Bill Nettles, Chairman and Chief Executive Officer. ``The schedule as outlined allows us to 1) complete development objectives 2) make necessary upgrades to the infrastructure and 3) improve our ability to execute the plan in an orderly way. We are moving from being a production-driven organization to a plan-driven organization, and this should improve the predictability of the operating plan at the Stillwater Mine.
``Our efforts to make improvements at the Stillwater Mine are paying off. August was a record month for footwall lateral development, and total development footage, including diamond drilling, is ahead of internal projections. This accelerated development work is expected to significantly increase proven reserves by the end of 2000 compared to year-end 1999.
``The average number of rounds per day has increased from 54 at the end of May of this year to 71 through the first full week of September. We believe these improvements are an indication that the Stillwater Mine is turning the corner toward achieving its expansion targets.''
For the three year period, total capital expenditures for the Stillwater Mine are expected to be approximately $80 million for 2001, $60 million for 2002 and $60 million for 2003, respectively. Capitalized development for each of the three years is expected to be $25 million, plus an additional $15 million in 2001 for accelerated development. Major capital projects for the three year period are approximately $25 million per year, with sustaining capital set at $15 million for 2001 and $10 million per year for 2002 and 2003. A capital schedule is attached.
Stillwater Mining Company is the only U.S. producer of palladium and platinum and the only significant primary producer of platinum group metals outside of South Africa. The Company is traded on the American Stock Exchange under the symbol SWC. Information on Stillwater Mining can be found at its web site: www.stillwatermining.com.
NOTE: Management's conference call reviewing the three year plan at 12:00 noon Eastern Daylight Time today will be simultaneously carried on the Company's web site under the Investor Relations section, Management Presentations heading. A replay on the web site will be available approximately two hours after the call ends.
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding processing rates, production, costs of production, increases in proven reserves, planned improvements in operations, projected development footage and capital cost forecasts. Factors that could cause actual results to differ materially include price volatility of palladium and platinum, economic and political events affecting supply and demand for platinum and palladium, risk of cost overruns, inaccurate forecasts, problems with productivity, unexpected events during ramp-up or development, fluctuations in ore grade, tons mined, recovery rates, difficulty of estimating reserves accurately, dependence on a single mine and geological, technical, mining or processing problems. These and other factors are discussed in more detail in the Company's filings with the Securities and Exchange Commission, including the ``Risk Factors'' contained in the Company's Annual Report on Form 10-K and its Registration Statement on Form S-3, filed on July 1, 1998. Descriptions of events relating to the palladium and platinum markets are not intended to be complete, and readers are advised to obtain their own information and advice regarding commodities markets. The Company disclaims any obligation to update forward-looking statements.
Stillwater Mine
Three Year Plan*
Operating Statistics
September 2000
2001 2002 2003
Average Ore Tons per Day 2,300 2,500 2,800
Mill Head Grade 0.65 0.68 0.70
Recovery 0.91 0.92 0.92
Total Ounces Produced
(includes sub-grade) 500,000 590,000 665,000
Cash Cost per Ounce $230 $200 $185
Total Primary Development
Footage 53,000 35,000 36,000
Footwall Lateral 20,300 18,800 16,200
Secondary Development 27,400 29,400 29,700
Diamond Drilling Footage 530,000 425,000 470,000
All projections in the Stillwater Mine three-year plan are estimates and, as such, are subject to revision. See statement under Private Securities Litigation Reform Act of 1995.
Stillwater Mine
Three Year Plan*
Capital Expenditures
September 2000
($ in millions)
2001 2002 2003
Accelerated Development $15 $-- $--
Capitalized Development 25 25 25
Capital Projects 25 25 25
Sustaining Capital 15 10 10
Total Capital Expenditures $80 $60 $60
Capital Project Detail
2001 - 2003
Detail
2900 Decline/Conveyor System $20
Ventilation Upgrades 15
5000 Rail Upgrades 15
Ore/Waste Pass Modifications 10
Mine Services 10
Other Projects 5
Total $75
All projections in the Stillwater Mine three-year plan are estimates and, as such, are subject to revision. See statement under Private Securities Litigation Reform Act of 1995.
SOURCE: Stillwater Mining Company
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