From yahoo finance, SWC's stock price was 12.83 a share way back on April 3, 1995(and that is on a split adjusted basis). After almost 18 years, SWC is now only 12.62 a share.There has been inflation since 1995. Also SWC has never paid a dividend. Shareholder's are supposed to own a corporation...not management. Where did all the profit's from the past of SWC go? I am new here. I bought because of the current projected worldwide shortfall in palladium. The pollution in some cities abroad are terrible. Montana has a valuable asset.
Current management has to go as well. For example, Kevin Shiel was manager at the East Boulder for a while before his promotion to Vice President of Operations. At East Boulder, Kevin was responsible for delivering the most expensive ounces of Pt and Pd in East Boulder's history. The company on a whole is on track to revisit history and produce expensive ounces. Kevin is not a numbers guy, and mining is a pure numbers game. I guess now the management can't hire consultants fast enough so that their butts are covered when, as one vice president put it, "...they get a new boss". Hopefully the board and management will be down the road in the not so distant future.
"Where did all the profit's from the past of SWC go?'
A lot of it went into Frank McAllister's bank accounts. It's ridiculous that he gets over $5 million/year (cash plus free shares) for a company this size, even more outrageous when you see how poorly the share price has performed under his tenure (the share price closed at $36.00/share on Frank's first day as CEO/Chairman, over 12 years ago). And how in the world does the board of directors justify Frank's pay? Frank is 70 years old and has an ABSOLUTELY HORRIBLE record as CEO. Is there a legitimate "worry" that some other company will steal away Frank to run (actually ruin) their business? So they have to pay him so much in order to keep the competition for Frank's services at bay? Of course they aren't worried, they just pay Frank all that loot because they give him whatever he wants, it's not about pay for performance or a competitive market for failed executives.
As to the rest of the profits, other board members and executives have been paid handsomely as well. All Frank seems to care about is looting SWC for his own benefit, and keeping the directors and executives happy so that he can continue to loot the company. And by "loot", I mean taking money that he doesn't deserve. If Frank or the directors ever exercised any leadership or responsibility to the shareholders, his pay would be tied to the share price, i.e. he should have gotten no more than $100k/year cash, plus stock awards ONLY if the share price went higher. But Frank and the directors gave shareholders the finger in 2011, when they paid nearly 4x the market price for some copper-dirt that SWC shareholders didn't want, and thereby essentially told SWC shareholders that their input wasn't needed or wanted. Now these bums come crying to the shareholder base "oh please don't kick us out!". Incredible. Frank has never been man enough to treat shareholders responsibly, so no surprise that he's not man enough to accept their will.
Also worth noting as far as where SWC's past profits have gone - a huge portion of those have been wasted on Frank McAllister's idiotic dream of becoming a South American copper prince. In 2011 SWC had about $200 million cash, but Frank wasted all that and more (without shareholder's consent) so that he could pay $451 million for a company with a market cap of barely above $100 million. And he's committed to spend even more cash to explore and potentially develop that project. All of SWC's huge cash pile is now gone, plus Frank has piled on the debt, at very bad terms for SWC. Instead of using the cash to further develop the Montana assets and pay a dividend to shareholders, Frank chose to follow his dream, waste shareholder money on a ridiculous project that shareholder didn't want, and pay himself, his buddies on the board and fellow executives huge salaries. That's where the money went. But that should end if/when these #$%$ get voted out in early May.
As a shareholder of SWC, I would propose a spin-off. The original Stillwater Mine, one corporation that stand's alone(producing palladium and platinum). Then all the other asset's that SWC has, just re-name it the copper/gold corporation.
Yep. The Altar deposit (Peregrine acquisition of 2011) actually has negative value in SWC, due to the potential for Frank McAllister to waste more money on it. Spin off Altar and that potential problem goes away. Of course, the key is to spin Frank off with Altar; seems easy enough to do.