BILLINGS, MT--(Marketwire - Oct 30, 2012) - STILLWATER MINING COMPANY (
- Net income attributable to common stockholders of $13.0 million or $0.11 per diluted share
- Third-quarter mine production of 127,000 ounces; 500,000 ounce guidance for full year 2012 reiterated
- Lower metal prices reduce earnings
- Offering of $396.75 million of 1.75% senior convertible notes completed this month
- Montana development projects continue to advance
- New-miner training recruitment for development efforts progressing well
Stillwater Mining Company today reported consolidated net income attributable to common stockholders for the 2012 third quarter of $13.0 million, or $0.11 per diluted share. Total revenues for the third quarter were $181.0 million. Net income attributable to common stockholders reported for the third quarter of 2011 was $40.7 million, or $0.37 per diluted share with revenues of $253.7 million. The third quarter 2012 results reflect lower PGM prices and higher consolidated total cash costs than in last year's third quarter and include a $6.6 million foreign currency transaction gain and exploration expenses of $1.7 million.
For the first nine months of 2012, Stillwater reported net income attributable to common stockholders of $33.6 million, or $0.29 per diluted share, on revenues of $596.9 million, compared to net income of $119.6 million, or $1.10 per diluted share, on revenues of $646.3 million, for the same period in 2011.
The Company's mines produced a total of 127,000 ounces of palladium and platinum during the third quarter of 2012, a 2.3% decrease from the 130,000 ounces produced in the third quarter of 2011 and a 4.8% decrease from the 133,400 ounces produced during the second quarter of 2012. Production for the first nine months of 2012 was 381,200 ounces compared to 403,800 ounces in the first nine months of 2011. Most of the variability in production is the result of normal changes in mining conditions and the array of stopes available for mining from period to period. Based on production results for the first nine months of 2012 and projections for the remainder of the year, the Company is reiterating its full year 2012 guidance for mine production of 500,000 ounces.
Third quarter 2012 revenues from sales of mined production (including by-products) totaled $107.1 million, down from $145.0 million in the same period last year as a result of lower PGM prices and volumes. Combined sales realizations decreased during the third quarter of 2012 for mined palladium and platinum ounces, averaging $803 per ounce, an 18.7% decrease from the $988 per ounce realized in the third quarter of 2011. The total quantity of mined palladium and platinum sold declined to 124,300 ounces in the third quarter of 2012, a 9.8% decrease compared to the 137,800 ounces sold during the same period in 2011. Income in the third quarter of 2012 included $23.3 million from mining operations and $1.9 million from recycling activities. For the third quarter of 2011, income from mining operations and recycling activities were $58.6 million and $4.4 million, respectively.
Total cash costs per mined ounce (a non-GAAP measure defined below) averaged $496 in the third quarter of 2012, compared to total cash costs of $439 per ounce for the third quarter of 2011. This expected increase in cash costs is primarily a result of lower mine production and higher labor costs, reflecting an increase in contractual wage and benefit rates and hiring for the Company's new miner training program that was implemented earlier this year. The total number of Montana employees has increased to 1,629 at the end of the third quarter of 2012 from 1,493 at the end of the third quarter of 2011. Based on current projections, the Company is maintaining its total cash costs guidance of $500 per mined ounce for the full year 2012.
The Company processed recycling material containing 96,200 ounces of palladium, platinum and rhodium through its smelter and refinery during the third quarter of 2012, down from the 133,500 ounces recycled during the third quarter of 2011. Recycling sales volumes decreased to 74,600 ounces in the third quarter of 2012, from 86,700 ounces in the third quarter of 2011. Revenues from sales of purchased recycling materials totaled $73.5 million in the 2012 third quarter, down from $106.6 million in the same period last year. Tolling revenues declined to $0.5 million in this year's third quarter, compared to $0.8 million in the comparable quarter of 2011. The Company's recycling segment had income for the 2012 third quarter of $1.9 million (including financing income), compared to income of $4.4 million reported for the third quarter of 2011. The Company's combined average realized price for sales of recycled palladium, platinum and rhodium declined to $985 per ounce in the third quarter of 2012 from $1,230 per ounce in the third quarter of 2011.
Commenting on the Company's third quarter results, Frank McAllister, the Company's Chairman and Chief Executive Officer, observed, "Overall, we are pleased with the Company's third quarter performance, especially when considering the rather volatile metal markets during the quarter. While palladium and platinum prices were substantially lower than in the same period last year, our operating mines performed well and our development projects have continued to advance. Both mine production and cash costs remain on target, and we have reaffirmed our guidance for the year 2012 of 500,000 total mined ounces of palladium and platinum at a total cash cost of $500 per ounce. At the same time, we have reduced our guidance for 2012 capital and exploration expenditures. We now estimate 2012 capital spending at about $127 million from $135 million and exploration spending at about $17 million from $27 million.
"As we reported previously, the new tunnel boring machine, or TBM, has just now been put into operation at the Blitz project. Utilization of the TBM expands the scope of our drilling and accelerates the time frame. This underground machine is an impressive 450 feet long when fully assembled and cuts a tunnel 18 feet in diameter. The new TBM has been installed inside the east portal at the Stillwater Mine and ultimately will drive a 23,000-foot access drift to the east along the J-M Reef. Simultaneously, a mining team will drive a parallel tunnel about 600 feet above the TBM, using conventional drill and blast methods. Both tunnels eventually will be intersected by a new surface portal and decline situated at their far end that will provide ventilation and emergency egress for the Blitz area. The Blitz project, which provides a backbone for potential future operations to the east of the Stillwater Mine, is targeted for completion in late 2016 or 2017. We have recently updated our assessment of total cost to complete the project, which currently is estimated at about $197 million.
"We also have continued to make progress on our Graham Creek project, expanding to the west of our existing operations at the East Boulder Mine. The TBM there, which was already in place as a holdover from the original East Boulder project, has now progressed about 5,700 feet to the west, out of its total targeted footage of about 8,200 feet. The TBM drive at Graham Creek should be finished sometime in the first half of 2013, after which we will begin developing two new ventilation shafts to the surface to provide support for future operations in that area. The Graham Creek project should wrap up in early 2015, at a total cost that we now estimate will be about $13 million."
Referencing the Company's Marathon PGM-copper project near the north shore of Lake Superior in Canada, Mr. McAllister noted, "Our efforts at Marathon continue to progress primarily on two fronts right now -- the joint federal/provincial environmental review is advancing, and definitive engineering design work is underway. A few weeks ago we announced preliminary engineering findings that indicate the palladium metal content was overestimated in a portion of the original resource and reserve modeling work provided to us at the time of the acquisition. We still don't know the overall effect or materiality of these findings on Marathon's infrastructure, on its economics, or on its permitting timeline, but as we cautioned earlier, the effect is likely to be some deterioration in both project economics and ore reserves. At the same time, we also are seeing some potential increase in the overall resource tonnage as a result of higher metals prices, better-than-estimated metal recoveries and new drilling information, which might partially offset the effect of lower ore reserve grades. We expect the final engineering study to be completed during the first half of 2013. "
Turning to the Company's Altar copper-gold exploration project, located in the high Andes of the San Juan province in northwestern Argentina, Mr. McAllister continued, "Other than finishing up some metallurgical studies on the drill results from this past year's drilling season, activity on the Altar project was fairly limited during the third quarter. We were able to publish our drill results for the drill season that ended this past April, which are available on the Company's website. The results were generally encouraging. This drilling extended the known mineralization to greater depth in the original Altar discovery area, confirmed the presence and significance of a second distinct mineralizing center with somewhat higher gold grades in the eastern portion of the Altar resource area, and reconnaissance drilling penetrated a potential third distinct mineralizing center indicating additional mineral potential to the north of the current Altar resource. Drilling still has not defined the perimeter of the Altar mineralizing area. Added drilling at Quebrada de la Mina, a promising gold target to the northwest of the principal Altar mineral resource, indicated attractive gold grades but insufficient volumes to sustain a stand-alone gold operation there.
"While Altar exploration and related support expenditures were budgeted at about $25 million for 2012, only about $15.9 million in total (including administrative expenses) has been spent through September, suggesting that even with some added fourth quarter costs to mobilize next year's drilling program, total spending at Altar will probably not exceed $20 million this year. Drilling in the 2012-2013 season will focus on extending our understanding of the Altar resource at depth, as well as trying to determine the eastern boundary of the mineralization."
Concluding his review of the Company's projects, Mr. McAllister added, "After we commissioned our new smelting furnace in May of 2009, we stripped the brick out of the prior furnace in anticipation of refurbishing it to become a slag cleaning circuit. During 2011, we rebricked the old furnace and completed the necessary engineering of the operating systems in order to connect the modified furnace with the Company's primary smelting furnace. Most of the slag handling changes have now been completed or are currently in progress. The electric arc in the reconfigured furnace has now been struck and conditioning of the furnace is currently underway. Once operational, the slag cleaning furnace will be temporarily used for smelting so that final modifications can be installed on the primary furnace. Construction is scheduled to be complete and the slag cleaning circuit fully operational at the beginning of December 2012. Our engineers have estimated that the slag cleaning operation will recover approximately 4,000 ounces of PGMs annually from both mined and recycled materials that would otherwise remain bound up in the smelter slags.
"Separately, work on our new precious metal refining technology continues with further process test work scheduled during the fourth quarter of 2012."
Commenting on the Company's recent convertible debenture offering, which closed earlier this month, Mr. McAllister observed, "The Company's successful $396.75 million convertible debt offering positions us to pay off the $166.5 million of existing convertible notes that are due to be redeemed early next year. It also provides assurance that adequate working capital should be available to sustain our operations and to progress with the Marathon project, once the necessary approvals are in hand and the engineering design work is completed. At the appropriate time, we expect to seek additional financing for the Marathon project. These notes bear interest at a rate of 1.75% per annum, do not provide for redemption until 2019, and they allow the Company to settle them in any combination of shares and cash, at our election. We are very pleased with the terms we achieved in this financing.
"Finally, on a personal note, I would like to welcome Mr. Gary Sugar as a new director recently appointed to our Company's board. Gary is a geologist by training and an investment banker by profession, having recently retired after more than 30 years with RBC Capital Markets in Canada. We are delighted to have him join us, and we look forward to benefiting from his experience and insight."
Cash Flow and Liquidity
At September 30, 2012, the Company's available cash was $198.5 million, compared to $109.1 million at December 31, 2011. If highly liquid short-term investments are included with available cash, the Company's balance sheet liquidity totaled $274.7 million at September 30, 2012, an increase from $158.6 million at December 31, 2011. Of the Company's current cash balance, $45.9 million is dedicated to the Marathon project (and other related properties) and is unavailable for other corporate purposes. Net working capital -- comprised of total current assets (including available cash and short-term investments), less current liabilities -- decreased to $199.7 million at September 30, 2012, from $251.6 million at year end 2011. The September 30, 2012 amount includes $166.5 million reclassified as the current portion of long-term debt, reflecting convertible debentures that may be redeemed by their holders on March 15, 2013.
Net cash provided by operating activities (which includes changes in working capital) totaled $45.1 million in the third quarter of 2012, compared to $35.2 million of cash provided in the third quarter of 2011. Capital expenditures were $25.4 million in the third quarter of 2012, down from $27.9 million in the third quarter of 2011.
Outstanding debt at September 30, 2012, was $203.3 million, up from $196.0 million at December 31, 2011. The Company's total debt includes the $166.5 million outstanding in the form of convertible debentures, $29.6 million of Exempt Facility Revenue Bonds due in 2020, a capital lease of $6.9 million and $0.3 million for a small installment land purchase. Subsequent to the end of the 2012 third quarter, on October 17, 2012, the Company completed the issuance and sale of $396.75 million of 1.75% convertible senior unsecured notes due in 2032. The Company intends to use the net proceeds from the offering to repay amounts that may come due under the Company's outstanding 1.875% convertible debentures in March 2013, and for general corporate purposes.
Third Quarter Results - Details
For the third quarter of 2012, the Company's mine production was 127,000 PGM ounces. The Company's Stillwater Mine produced 94,100 ounces, a decrease of 2.8% from the 96,800 ounces produced in the third quarter of 2011 and a decrease of 4.1% from the 98,100 ounces produced in the second quarter of 2012. The production decrease from last year's third quarter at the Stillwater Mine was primarily attributable to lower tons mined as a result of the fluctuations in overall mining conditions, the mix of mining stopes, emphasis on mine development and the availability of miners. Production at the Company's East Boulder Mine of 32,900 ounces in the third quarter of 2012 reflected a decrease from the 33,200 ounces produced in the same quarter of 2011 and from the 35,300 ounces produced in the second quarter of 2012.
Revenues for the third quarter of 2012 were $181.0 million, a decline of 28.6% from the $253.7 million recorded in the third quarter of 2011. Proceeds from sales of mined PGMs and by-products totaled $107.1 million in the third quarter of 2012, down 26.1% from the $145.0 million in the same quarter of 2011, reflecting both lower ounces sold and reduced PGM prices during the quarter. Recycling revenues fell by 31.2% to $74.0 million from $107.5 million in the third quarter of 2011 primarily as a result of lower PGM prices. Sales from mine production totaled 124,300 ounces in the third quarter of 2012 at an overall average realization of $803 per ounce, as compared to 137,800 ounces at $988 per ounce in the third quarter of 2011. Sales ounces were less than production in the third quarter of 2012 due to normal timing differences in inventory flows. The Company's average net realization on palladium sales from mine production was $605 per ounce in the third quarter of 2012, compared to $772 per ounce for the same period in 2011. The Company's average net realization on mined platinum was $1,513 per ounce in the third quarter of 2012 and $1,784 per ounce in the third quarter of 2011. London Bullion Market Association afternoon posted prices per ounce for palladium and platinum were $642 and $1,668, respectively, on September 28, 2012, and were $614 and $1,511, respectively, on September 30, 2011.
Consolidated cash costs per mined ounce (a non-GAAP measure defined below) averaged $496 in the third quarter of 2012, up from $439 per ounce for the third quarter of 2011 and $454 per ounce reported for the second quarter of 2012. The Stillwater Mine's total cash costs averaged $469 per ounce in the third quarter of 2012, compared to the $411 per ounce reported in the third quarter of 2011. The East Boulder Mine's total cash costs averaged $574 per ounce during the third quarter of 2012, compared to $520 per ounce during third quarter of 2011. The most significant driver of cash cost per mined ounce growth since the third quarter of last year at both mines was an increase in staffing levels, along with higher wage and benefit rates and lower mine production. The increase in staffing levels was primarily attributable to hiring for the new-miner training program in support of new projects and to accommodate increasing underground travel distances and operations support requirements as the mines expand.
Costs of metals sold (before depletion, depreciation and amortization expense) decreased to $142.0 million in the third quarter of 2012 from $175.5 million in the third quarter of 2011. Mining costs included in costs of metals sold declined slightly to $69.9 million in the 2012 third quarter from $71.0 million in the 2011 third quarter, the result of lower royalties and taxes at lower metals prices. Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, totaled $72.1 million in the third quarter of 2012, lower than the $103.3 million reported in the third quarter of 2011. The decrease was due to lower volumes sold and the related lower market value of the materials acquired for processing.
Depletion, depreciation and amortization expense decreased to $14.1 million in the third quarter of 2012 from $15.6 million in the same period of 2011. The decrease is attributable to a lower depreciable base in our fixed asset accounts in 2012, as many assets were fully depreciated during 2010 and 2011. Lower production rates also tend to drive depletion expense lower.
General and administrative ("G&A") costs were $9.9 million in the third quarter of 2012, down from the $13.1 million incurred during the same period of 2011. The third quarter of 2011 included $4.7 million in expenses associated with financing activities and $1.3 million of acquisition costs related to Peregrine Metals Ltd. Exploration expenses totaled $1.7 million for the third quarter of 2012, of which almost all was attributable to the Altar copper-gold project. Exploration expenses incurred during the third quarter of 2011 were $0.3 million. Marketing expenses decreased to $1.9 million in the 2012 third quarter compared to $4.3 million in the same quarter of 2011. Research and development costs decreased to less than $0.1 million in the third quarter of 2012 from $0.5 million in the same quarter of 2011.
Reported net income attributable to common stockholders for the third quarter of 2012 of $13.0 million included, by business segment, income of $23.3 million from mining operations, income of $1.9 million from recycling activities (including financing income), income of $5.0 million related to the Altar copper-gold project (including a foreign currency transaction gain of $6.5 million less exploration costs and G&A costs of $1.5 million), $1.3 million of costs associated with the Marathon properties, and corporate costs of $13.8 million, which included a loss on long-term investments in certain Canadian exploration companies of $1.7 million and marketing expense of $1.9 million.
The Company reported a $2.4 million income tax provision and a $0.3 million cost allocation attributable to noncontrolling interest in the third quarter of 2012. For the third quarter of 2011, the net income attributable to common stockholders of $40.7 million included, by business segment, $58.6 million of income from mining operations and $4.4 million income from recycling activities (including financing income), $0.9 million of costs associated with the Marathon properties and corporate costs of $18.6 million. For the third quarter of 2011, the Company reported a $2.8 million income tax provision.
First Nine Months' Results - Details
During the first nine months of 2012, the Company's mining operations produced 381,200 ounces of palladium and platinum, including 279,900 ounces from the Stillwater Mine and 101,300 ounces from the East Boulder Mine. For the comparable period in 2011, total mine production of 403,800 ounces included Stillwater Mine production of 304,200 ounces and East Boulder production of 99,600 ounces. The decline in ounces produced at the Stillwater Mine for the first nine months of 2012 was primarily the result of normal variation among the stopes available for mining.
Sales of palladium and platinum from mine production totaled 375,400 ounces in the first nine months of 2012 at an overall average realization of $843 per ounce. The first nine months of 2011 saw sales of mine production totaling 389,500 ounces at $981 per ounce. The Company's average realization to date in 2012 on palladium sales from mine production was $640 per ounce, compared to $769 per ounce in the first nine months of 2011. The comparable average realization on platinum from mine production was $1,536 per ounce for the first nine months of 2012 and $1,778 per ounce in the first nine months of 2011.
During the first nine months of 2012, the Company processed about 326,600 ounces of PGMs from recycled catalytic materials, including both purchased catalysts and toll materials processed on behalf of others for a fee. By comparison, in the first nine months of 2011, the Company processed about 374,300 ounces of recycled material. Of the purchased catalysts processed, the Company sold a total of 249,900 ounces of palladium, platinum and rhodium during the first nine months of 2012 at an overall average price of about $1,020 per ounce; for the first nine months of 2011, the Company sold about 190,700 recycled ounces at an average realization of $1,232 per ounce.
Revenues for the first nine months of 2012 totaled $596.9 million, a decrease of 7.6% from the $646.3 million in the first nine months of 2011. Recycling revenues increased to $256.9 million in the first nine months of 2012 from $238.4 million in last year's first nine months, as higher recycling volumes more than offset the lower 2012 PGM prices. Proceeds from sales of mined PGMs totaled $340.0 million in the 2012 first nine months, down from $406.7 million in the same period of 2011.
Costs of metals sold (before depletion, depreciation and amortization expense) increased to $468.3 million in the first nine months of 2012 from $425.5 million in the first nine months of 2011. Mining costs included in total costs of metals sold increased to $218.9 million in the first nine months of 2012 from $196.4 million in the 2011 period. Recycling costs, largely comprised of the cost to purchase spent catalytic materials for processing, totaled $249.4 million in the first nine months of 2012, up from $228.0 million in the first nine months of 2011.
Depletion, depreciation and amortization expense decreased to $43.6 million in the first nine months of 2012 compared to $47.4 million in the same period of 2011.
General and administrative ("G&A") costs increased to $32.5 million in the first nine months of 2012 from the $29.4 million for the same period of 2011. This increase in costs for the first nine months of 2012 was primarily attributable to one-time software licensing fees, higher legal and advisory services and growth in project administrative costs. The comparable period in 2011 included $4.7 million in expenses associated with financing activities and $1.3 million of acquisition costs related to Peregrine Metals Ltd. Exploration and related support expenses totaled $13.8 million for the nine months ending September 30, 2012, of which almost all was attributable to the Altar copper-gold project. Marketing expenses remained consistent during the first nine months of 2012 at $7.9 million as compared to $8.0 million in the same time period of 2011. Research and development costs decreased to $0.9 million for the first nine months of 2012 from $1.6 million for the same period in 2011.
The Company's reported net income attributable to common stockholders of $33.6 million for the first nine months of 2012 included, by business segment, $77.9 million of income from mining operations, income of $7.9 million from recycling activities (including financing income), costs of $6.2 million associated with the Marathon properties, costs of $2.5 million related to the Altar copper-gold project (net of a foreign currency transaction gain of $13.2 million), and corporate costs of $40.7 million. For the first nine months of 2012, the Company reported a $3.4 million income tax provision and $0.7 million of costs attributable to noncontrolling interest. The net income attributable to common stockholders of $119.6 million recorded for the first nine months of 2011 included, by business segment, $164.0 million of income from mining operations and $10.7 million of income from recycling activities (including financing income), $1.9 million of costs associated with the Marathon properties and corporate costs of a $40.6 million. The Company reported a $12.6 million income tax provision for the first nine months of 2011.
Third Quarter Results Webcast and Conference Call
Stillwater Mining Company will conduct a conference call to discuss third quarter results at approximately 12:00 p.m. Eastern Daylight Time on Tuesday, October 30, 2012.
United States: (800) 230-1059
International: (612) 288-0329
The conference call will be simultaneously webcast 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 (800) 475-6701 (U.S.) and (320) 365-3844 (International), access code 267982. In addition, the call transcript will be archived in the Investor Relations section of the Company's website.
About Stillwater Mining Company
Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. 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 on Stillwater Mining can be found at its website: www.stillwatermining.com.
Some statements contained in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, therefore, involve uncertainties or risks that could cause actual results to differ materially. These statements may contain words such as "desires," "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. 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 2011 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 Company disclaims any obligation to update forward-looking statements.
|Stillwater Mining Company|
|Consolidated Statements of Operations and Comprehensive Income|
|(in thousands, except per share data)|
|Three Months Ended |
|Nine Months Ended |
|Costs and expenses|
|Costs of metals sold|
|Total costs of metals sold||142,006||175,483||468,295||425,533|
|Depletion, depreciation and amortization|
|Total depletion, depreciation and amortization||14,107||15,628||43,641||47,351|
|Total costs of revenues||156,113||191,111||511,936||472,884|
|Research and development||82||525||864||1,605|
|General and administrative||9,882||13,149||32,477||29,404|
|Abandonment of non-producing property||-||-||2,835||-|
|Loss on long-term investments||1,697||-||1,697||-|
|(Gain)/Loss on disposal of property, plant and equipment||71||84||363||(142||)|
|Total costs and expenses||171,399||209,496||571,831||512,106|
|Foreign currency transaction gain/(loss)||6,605||(142||)||13,314||40|
|Income before income tax provision||15,110||43,499||36,365||132,210|
|Income tax provision||(2,418||)||(2,758||)||(3,405||)||(12,579||)|
|Net loss attributable to noncontrolling interest||(304||)||-||(675||)||-|
|Net income attributable to common stockholders||$||12,996||$||40,741||$||33,635||$||119,631|
|Other comprehensive income/(loss), net of tax|
|Net unrealized gains/(losses) on securities available for sale||421||(235||)||620||(339||)|
|Comprehensive income attributable to common stockholders||$||13,417||$||40,506||$||34,255||$||119,292|
|Weighted average common shares outstanding|
|Basic earnings per share attributable to common stockholders||$||0.11||$||0.40||$||0.29||$||1.16|
|Diluted earnings per share attributable to common stockholders||$||0.11||$||0.37||$||0.29||$||1.10|
|Stillwater Mining Company|
|Consolidated Balance Sheets|
|(in thousands, except share and per share data)|
|September 30, |
|December 31, |
|Cash and cash equivalents||$||198,475||$||109,097|
|Investments, at fair market value||76,252||49,533|
|Deferred income taxes||20,154||19,819|
|Other current assets||11,013||9,433|
|Total current assets||441,304||325,926|
|Property, plant and equipment, net of $480,083 and $436,612 of accumulated depletion, depreciation and amortization||403,354||367,727|
|Other noncurrent assets||9,843||11,915|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued compensation and benefits||30,028||27,573|
|Property, production and franchise taxes payable||12,973||14,071|
|Current portion of long-term debt and capital lease obligations||168,407||-|
|Income taxes payable||-||1,235|
|Other current liabilities||4,344||4,576|
|Total current liabilities||241,646||74,335|
|Long-term debt and capital lease obligations||34,907||196,046|
|Deferred income taxes||181,516||193,884|
|Accrued workers compensation||6,546||6,056|
|Asset retirement obligation||7,801||7,331|
|Other noncurrent liabilities||7,828||5,704|
|Preferred stock, $0.01 par value, 1,000,000 shares authorized; none issued||-||-|
|Common stock, $0.01 par value, 200,000,000 shares authorized; 116,756,413 and 115,375,604 shares issued and outstanding||1,168||1,154|
|Accumulated other comprehensive loss||(341||)||(961||)|
|Total stockholders' equity||932,538||843,968|
|Total liabilities and stockholders' equity||$||1,464,497||$||1,327,324|
|Stillwater Mining Company|
|Consolidated Statements of Cash Flows|
|Three Months Ended |
|Nine Months Ended |
|Cash flows from operating activities|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depletion, depreciation and amortization||14,107||15,628||43,641||47,351|
|(Gain)/Loss on disposal of property, plant and equipment||71||84||363||(142||)|
|Loss on long-term investments||1,697||-||1,697||-|
|Foreign currency transaction (gain)||(6,094||)||-||(12,703||)||-|
|Abandonment of non-producing property||-||-||2,835||-|
|Accretion of asset retirement obligation||160||147||470||433|
|Amortization of debt issuance costs||315||246||944||737|
|Share based compensation and other benefits||5,013||3,284||12,899||9,073|
|Changes in operating assets and liabilities:|
|Accrued compensation and benefits||1,162||(350||)||2,258||3,992|
|Property, production and franchise taxes payable||634||1,232||1,041||4,176|
|Income taxes payable||1,880||(7,242||)||(1,235||)||2,579|
|Net cash provided by operating activities||45,066||35,206||100,434||127,890|
|Cash flows from investing activities|
|Purchase of long-term investment||-||-||-||(616||)|
|Proceeds from disposal of property, plant and equipment||12||9||39||236|
|Purchases of investments||(36,399||)||(7,571||)||(68,286||)||(105,667||)|
|Proceeds from maturities of investments||18,454||67,380||42,003||204,397|
|Net cash (used in) provided by investing activities||(43,308||)||31,881||(110,932||)||24,118|
|Cash flows from financing activities|
|Proceeds from sale of noncontrolling interest, net of transaction costs||-||-||93,821||-|
|Issuance of long-term debt||-||-||7,176||-|
|Payments on long term debt and capital lease obligations||(451||)||-||(946||)||-|
|Payments for debt issuance costs||-||-||(219||)||-|
|Issuance of common stock||11||60||44||785|
|Net cash (used in) provided by financing activities||(440||)||60||99,876||785|
|Cash and cash equivalents|
|Balance at beginning of period||197,157||105,009||109,097||19,363|
|Balance at end of period||$||198,475||$||172,156||$||198,475||$||172,156|
|Stillwater Mining Company|
|Key Operating Factors|
|Three Months Ended |
|Nine Months Ended |
|(in thousands, except where noted)||2012||2011||2012||2011|
|OPERATING AND COST DATA FOR MINE PRODUCTION|