Total 2012 Palladium and Platinum Production Exceeds Guidance
Montana Mine Expansion Projects Continue to Show Significant Progress
BILLINGS, MT -- (MARKETWIRE) -- 01/15/13 -- STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U) reported today that its mined production of palladium and platinum for the fourth quarter 2012 was 132,500 ounces and for the year 2012 was 513,700 ounces, exceeding the Company's 2012 guidance of 500,000 ounces. Mined production for 2011 was 517,900 ounces. The Company also reported that mine production guidance for 2013 is again projected at 500,000 ounces.
While not yet finalized, 2012 total cash costs per mined ounce (a non-GAAP measure of extraction efficiency that is further defined in the Company's filings with the U.S. Securities and Exchange Commission) are expected to be at or slightly below 2012 guidance of $500. These will be above total cash costs per mined ounce of $420 for 2011.
Sentiment: Strong Buy
You do not sell a Company when you have invested $259MM in the LDI shaft since 2011 and not even done with the Phase I with no increase production etc etc...
PAL as a company must finish, at least, the phase I of the shaft and starts production from the shaft to show that the huge investment sank in LDI shaft was worth it. It can be around $300MM by mid 2013?
When the shaft will be used to get the 3,500 TPD from underground with a grade around 5.2gr or a bit lass and reduce cash cost notably then the situation will be totally different.
What you are looking is a quick profit no matter what but for the long shareholders and the Company it is a totally different ball game.
With the shaft starting to produce by July 2013 and fully producing end of September, LDI mine is starting to look like a real World class palladium mine and one of the rarest in Canada/USA. PAL will change financial status as a company who had a "hole in the ground" to a "World class profitable palladium mine."
At this point of time, PAL can eventually look for a buyer who will eventually give a fair value of the assets and obviously it is too early unless the buyer is willing to pay for something that has not been done yet.
If it is done now it will be at a steep discount to fair value and many long shareholders will feel screwed and may sue the BoD for mismanagement.
Let's wait until October 2013, would you?
Just my 2 cents,
I assume it will be a hostile bidder, and that mgmt will have no effective defenses. Show me the money now and I will sell irrespective of how much we've shelled out. Current Board deserves no one's support. Why would anyone vote to stay with them after all the boneheaded moves etc. The only one silly enough to trust them is BigBlow!
"With the shaft starting to produce by July 2013 and fully producing end of September,"
Sorry, NAP has said "full benefit" won't be until 2014. To me "full benefit" means fully producing. Guess you missed this because was hidden on the LDI progress page on the website.
The glass is draining.
BigBlue, do you really trust the current PAL management (what's left of it) to complete this grand plan? Why not lessen the risk and bring in a world-class mine management team that can ASSURE the success of the mission?
This is the only reason I can surmise for such a delay in getting new management on board. Even some of the analysts are now chastising them for being so slow. We're goin on 5 months since Biggars was canned, and CFO resigned months ago too. Our Current CEO is a part timer and actively solictiing 3rd party consulting deals with other companies as we speak. Can anyone think of any other sound reason why this seems to take on so little importance for PAL? I am flummoxed. Tick Tock, tick tock. Blackbeard approaches, me hopes!
Pace, didn't SWC also turn on a hoist shaft recently? I think they have specific experience digging and commercializing such projects. If so, they know what is needed to finish the work at LDI. I honestly don't know why they haven't already made a bid here. At current prices I suspect palladium is cheaper on wall street than in the mines. Go pirates!