Stillwater Mining Reports Record Earnings

Apr 20, 2001, 01:00 ET from Stillwater Mining Company

    COLUMBUS, Mont., April 20 /PRNewswire Interactive News Release/ --
 STILLWATER MINING COMPANY (Amex:   SWC) reported net income of $29.4 million or
 $0.75 per share for the first quarter of 2001 on revenue of $89.9 million
 compared to net income of $6.9 million or $0.18 per share on revenue of
 $42.1 million for the first quarter of 2000.  Results for the first quarter of
 2000 have been restated to give effect to a change in accounting related to
 the Company's method of revenue recognition, which was implemented in the
 fourth quarter of 2000.  Prior to the cumulative effect of the change in
 accounting, income for the first quarter of 2000 was $13.4 million, or
 $0.34 per share.
     During the first quarter of 2001 the Company produced 124,000 ounces of
 palladium and platinum compared to 112,000 ounces for the first quarter of
 2000.  Realized prices per ounce for the first quarter 2001 were $704 for
 palladium, and $529 for platinum, compared to $467 and $441, respectively, in
 the first quarter of 2000.  Cash costs before royalties and taxes for the
 first quarter of 2001 were $217 per ounce compared to $196 per ounce in 2000.
 Total cash costs per ounce for the first quarter of 2001 were $265 compared to
 $232 for the same period in 2000.
     In the first quarter of 2001, the Company amended the long-term sales
 contracts with two of its customers to amend the terms and to modify the
 pricing structures.  As a result of these amendments, the Company has
 committed an additional 10% of its palladium and platinum production for the
 years 2001 to 2010.  Such contracts have price ceilings and floors providing
 price protection between the Company and its customers.
     For 2001, the combination of all contracts and hedge positions result in
 an average ceiling, limiting the Company's realized prices to $447 per ounce
 for 36% of palladium ounces sold, and to $556 per ounce for 39% of platinum
 ounces sold.  During the first quarter of 2001 these contracts and hedge
 positions limited the Company's combined realized price, when compared to the
 combined market price, by $185 per ounce.  For 2001, the average floor
 supporting realized prices, including the Company's forward sales portfolio,
 are $368 per ounce for 96% of palladium sales, and $402 per ounce for 87% of
 platinum sales.
     At the Stillwater Mine, palladium and platinum production continued to
 improve from mid-year 2000.  Production grew from 98,000 ounces in the
 third quarter 2000, to 122,000 ounces in the fourth quarter 2000, to the
 124,000 ounces produced in the first quarter 2001.  The increased production
 was the result of a 19% increase in mill throughput, which was partially
 offset by a 6% decrease in the average mill head grade.  Production of
 palladium and platinum for the year 2001 at the Stillwater Mine is expected to
 be 500,000 ounces.
     At East Boulder, an additional 155 holes were added during this first
 quarter to the diamond drilling program of 132 holes completed during the
 fourth quarter to delineate ore reserves in the initial mining area.  The
 information from the drilling program is being utilized to refine the initial
 mine plan including development plans, production profile and operating and
 capital cost estimates.
     The grade that is indicated from the limited drill program is comparable
 to the previously calculated undiluted grade of 0.63 ounce per ton with
 horizontal widths of 6.8 feet, compared to 7.2 feet at the Stillwater Mine.
 The drill program also indicates that mill feed grades from the initial mining
 area will be in the range of 0.51 ounce per ton, compared to the probable
 reserve average of 0.71 ounce per ton for the entire East Boulder deposit.
     The drill program does indicate a high degree of continuity in the orebody
 at East Boulder, making available 140 tons of ore per foot of footwall
 lateral, compared to 70 tons at the Stillwater Mine.  This higher tonnage
 yield will have a beneficial effect on mine productivity and the cost of
 production.  The higher yield may also allow for the selection of more
 mechanized mining methods and also reduce sustaining development necessary to
 maintain a given production rate.
     These limited drill results are instructive but not necessarily indicative
 of results that will be realized from continuing mine development and
 drilling.  Ongoing sill excavation, diamond drilling and a test stope planned
 for the second half of 2001 will provide additional data for planning
 analysis.  The total effect of these changes on the economics of the East
 Boulder Mine will be better understood when the additional drilling together
 with the work to refine the detailed mine plan and the test stoping is
 completed later in 2001.
     During 2001, the Company expects to continue underground development,
 detailed engineering and commissioning of the concentrator and ancillary
 facilities at East Boulder.  The East Boulder Mine is expected to begin
 commercial production during 2002.  The Company currently estimates the cost
 of developing the project to enable it to commence initial production at
 approximately $370 million, compared to the previous estimate of $270 million.
 Of the $100 million increase, $41 million is attributable to project scope
 changes, $27 million is due to additional ground supports and schedule
 slippage due to unforeseen ground conditions in the tunnel driving process,
 $23 million is attributable to the use of mining contractors rather than
 Stillwater crews for mine development and construction and the remaining
 $9 million is a reserve for unforeseen project risks.  Additional sustaining
 capital expenditures will be necessary to achieve and maintain the mine's
 initial design capacity of 2,000 tons of ore per day.  This estimated cost and
 schedule may change based upon the results of the mining planning work to be
 completed during 2001.
     Announcing the Company's results, Stillwater Chairman and Chief Executive
 Officer, Francis McAllister said, "We are pleased with the continued increase
 in production from the Stillwater Mine.  During 2000, the Company implemented
 a number of aggressive programs to address the issues of inadequate mine
 development, mine infrastructure and mine planning.  Commencing with the
 fourth quarter of 2000 and continuing into this year, we are beginning to see
 the benefits of the programs in terms of increased mine production and lower
 operating costs.  At the start of the second quarter, we took steps to ensure
 that our 500,000-ounce production target is achieved.  The Stillwater Mine
 concentrator and the Columbus processing facilities were idle for a scheduled
 six-day maintenance program.  During that period, the mine continued to
 operate normally and the material was stockpiled.  As a result, annual
 production will not be impacted by the scheduled shut down."
     "At the East Boulder Mine, we are beginning to see the operating plan take
 shape.  While the initial average mill feed grade is 0.51 ounces per ton
 compared to the 0.71 ounces per ton for the entire deposit, it is important to
 note that at this time only 70,000 tons of minable material has been defined
 and modeled and the East Boulder Mine will be better understood when
 additional drilling, the work to refine the detailed mine plan and test
 stoping is completed later during 2001.  With regard to the capital costs, we
 feel the results of the drilling program, along with additional detailed
 engineering, have allowed us the opportunity to estimate the cost with greater
 certainty.  Our ability to fund the revised cost is supported by the Company's
 excellent operating cash flows and new credit agreement."
 
     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 first quarter 2001 at
 12:00 noon Eastern Standard 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 production, capital
 costs to develop East Boulder Mine, ore grades, tonnage yield of ore per foot
 of footwall lateral, continuity of grade, lowering costs of production,
 planned improvements in operations, construction and mining plans,
 management's expectations regarding objectives, development work, materials
 handling and other improvements, increased hiring, drilling programs, reserve
 increases and expansion work at the Stillwater Mine and the East Boulder
 Project, ore pass additions and modifications, ventilation improvements and
 other service improvements, paste-fill system improvements and supply and
 demand for palladium and platinum.  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,
 ability to access bank or other financing, economic developments affecting the
 capital markets, loss of a significant customer, dependence on a few
 customers, labor difficulties, inadequate insurance coverage, government
 regulations, property title uncertainty, risk of cost overruns, inaccurate
 forecasts, problems with productivity, unexpected events during expansion or
 development, fluctuations in ore grade, tons mined, crushed or milled, amounts
 and prices of the Company's forward metals sales under hedging and supply
 contracts, complexity of processing platinum group metals, 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.  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 Mining Company
      Key Factors
      (Unaudited)
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
     Ounces produced (000)(2)
       Palladium                                           96             86
       Platinum                                            28             26
         Total                                            124            112
 
     Tons mined (000)                                     199            169
 
     Tons milled (000)                                    200            169
     Mill head grade (ounce per ton)                     0.68           0.73
     Total mill recovery (%)                               90             91
 
     Sub-grade tons milled (000)                           18             14
     Sub-grade mill head grade (ounce per ton)           0.21           0.12
 
     Total tons milled (000)                              218            183
     Combined mill head grade (ounce per ton)            0.64           0.68
 
     Ounces sold (000)(2)
       Palladium                                          109             67
       Platinum                                            28             27
         Total                                            137             94
 
     Average realized price per ounce(2)
       Palladium                                         $704           $467
       Platinum                                          $529           $441
       Combined(1)                                       $668           $460
 
     Average market price per ounce
       Palladium                                         $930           $589
       Platinum                                          $602           $479
       Combined(1)                                       $853           $563
 
      (1)  Stillwater Mining reports a combined average realized and market
           price of palladium and platinum at the same ratio as ounces are
           produced from the base metals refinery.  The combined average
           realized price represents revenues of the company excluding contract
           discounts divided by ounces sold.  The combined average market price
           represents the London PM Fix for the actual months of the period.
 
      (2)  Effective January 1, 2000, the company changed its method of
           accounting for revenue recognition.  The company now recognizes
           revenue as title passes to the customer.  Ounces sold and average
           realized prices for the first quarter of 2000 have been restated
           accordingly.  The differences in ounces produced and ounces sold are
           caused by the length of time required by the smelting and refining
           processes and the specified delivery dates under the long-term sales
           contracts.  The differences between the realized prices and market
           prices occur due to contract obligations and hedge positions.
 
 
      Stillwater Mining Company
      Key Factors (continued)
      (Unaudited)
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
       PER TON MILLED
 
       Cash operating costs                              $123           $120
       Royalties and taxes                                 28             22
       Total cash costs (1)                              $151           $142
       Depreciation and amortization                       26             23
 
       Total production costs (1)                        $177           $165
 
       PER OUNCE PRODUCED
 
       Cash operating costs                              $217           $196
       Royalties and taxes                                 48             36
       Total cash costs (1)                              $265           $232
       Depreciation and amortization                       45             39
 
       Total production costs (1)                        $310           $271
 
 
      Stillwater Mining Company
      Consolidated Statement of Operations
      (Unaudited)
      (in thousands, except per share amounts)
                                                        Three months ended
                                                            March 31,
                                                         2001           2000
 
     Revenues                                         $89,864        $42,135
 
     Costs and expenses
       Cost of metals sold                             38,245         17,496
       Depreciation and amortization                    5,613          4,302
         Total cost of sales                           43,858         21,798
 
       General and administrative expenses              5,452          2,055
         Total costs and expenses                      49,310         23,853
 
     Operating income                                  40,554         18,282
 
     Other income (expense)
       Interest income                                    568            280
       Interest expense, net of capitalized interest
        of $4,215 and $2,656                               --             --
     Income before income taxes and cumulative effect
      of accounting change                             41,122         18,562
 
     Income tax provision                             (11,720)        (5,197)
 
     Income before cumulative effect of accounting
      change                                           29,402         13,365
 
     Cumulative effect of change in accounting for
      revenue recognition, net of income tax benefit
      of $2,503                                            --         (6,435)
 
     Net income                                       $29,402         $6,930
 
     Basic earnings per share
     Income before cumulative effect of accounting
      change                                            $0.76          $0.35
     Cumulative effect of accounting change                --          (0.17)
     Net income                                         $0.76          $0.18
 
     Diluted earnings per share
     Income before cumulative effect of accounting
      change                                            $0.75          $0.34
     Cumulative effect of accounting change                --          (0.16)
     Net income                                         $0.75          $0.18
 
     Weighted average common shares outstanding
         Basic                                         38,671         38,271
         Diluted                                       39,406         39,305
 
 
      Stillwater Mining Company
      Statement of Comprehensive Income
      (Unaudited)
      (in thousands)
                                                       Three months ended
                                                           March 31,
                                                         2001           2000
 
     Net income                                       $29,402         $6,930
 
     Other comprehensive income:
       Realized and unrealized gain on derivative
        financial instruments, net of tax of $2,596     6,514             --
     Comprehensive income                             $35,916         $6,930
 
 
      Stillwater Mining Company
      Consolidated Balance Sheet
      (Unaudited)
      (in thousands, except share and
       per share amounts)
                                                     March 31,   December 31,
                                                       2001          2000
     ASSETS
       Current assets
         Cash and cash equivalents                    $13,484        $18,219
         Funds held in escrow                          45,487          2,636
         Inventories                                   38,366         42,625
         Accounts receivable                           27,360             --
         Deferred income taxes                          7,981          7,732
         Other current assets                           2,543          2,943
           Total current assets                       135,221         74,155
 
       Property, plant and equipment, net             645,681        602,110
       Other noncurrent assets                          6,600          2,761
 
     Total assets                                    $787,502       $679,026
 
     LIABILITIES and SHAREHOLDERS' EQUITY
       Current liabilities
         Accounts payable                             $17,327        $21,710
         Accrued payroll and benefits                   7,788          6,431
         Property, production and franchise taxes
          payable                                       7,387          8,068
         Current portion of long-term debt and
          capital lease obligations                     3,202          1,970
         Metals repurchase agreements payable           6,520          9,386
         Current income taxes payable                   3,467             97
         Other current liabilities                     10,541         11,533
           Total current liabilities                   56,232         59,195
 
         Long-term debt and capital lease
          obligations                                 230,348        157,256
         Deferred income taxes                         63,677         55,457
         Other noncurrent liabilities                   6,970          6,504
           Total liabilities                          357,227        278,412
 
       Shareholders' equity
         Preferred stock, $0.01 par value,
          1,000,000 shares authorized; none issued         --             --
         Common stock, $0.01 par value,
          100,000,000 shares authorized;
          38,698,742 and 38,645,886 shares issued
          and outstanding, respectively                   387            386
         Paid-in capital                              289,096        288,212
         Retained earnings                            141,418        112,016
         Accumulated other comprehensive loss            (626)            --
           Total shareholders' equity                 430,275        400,614
 
     Total liabilities and shareholders' equity      $787,502       $679,026
 
 
      Stillwater Mining Company
      Consolidated Statement of Cash Flows
      (Unaudited)
      (in thousands)
                                                         Three months ended
                                                             March 31,
                                                         2001           2000
     Cash flows from operating activities
     Net income                                       $29,402         $6,930
 
     Adjustments to reconcile net income to net cash
      provided by operating activities:
       Depreciation and amortization                    5,613          4,302
       Deferred income taxes                            8,220           (306)
       Cumulative effect of change in accounting
        for revenue recognition                            --          6,435
 
     Changes in operating assets and liabilities:
       Inventories                                      4,259         (6,103)
       Accounts receivable                            (27,360)            --
       Accounts payable                                (4,383)        (3,609)
       Other                                            3,152          1,382
 
     Net cash provided by operating activities         18,903          9,031
 
     Cash flows from investing activities
       Capital expenditures                           (49,184)       (42,314)
 
     Net cash used in investing activities            (49,184)       (42,314)
 
     Cash flows from financing activities
       Issuance of long-term debt                     157,149         23,100
       Payments on long-term debt and capital
        lease obligations                            (125,676)          (651)
       Payments for debt issuance costs                (3,946)            --
       Net metals repurchase agreement transactions    (2,866)        10,054
       Issuance of common stock                           885          8,826
 
     Net cash provided by financing activities         25,546         41,329
 
     Cash and cash equivalents
       Net increase (decrease)                         (4,735)         8,046
       Balance at beginning of period                  18,219          2,846
 
     Balance at end of period                         $13,484        $10,892
 
 
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SOURCE Stillwater Mining Company
    COLUMBUS, Mont., April 20 /PRNewswire Interactive News Release/ --
 STILLWATER MINING COMPANY (Amex:   SWC) reported net income of $29.4 million or
 $0.75 per share for the first quarter of 2001 on revenue of $89.9 million
 compared to net income of $6.9 million or $0.18 per share on revenue of
 $42.1 million for the first quarter of 2000.  Results for the first quarter of
 2000 have been restated to give effect to a change in accounting related to
 the Company's method of revenue recognition, which was implemented in the
 fourth quarter of 2000.  Prior to the cumulative effect of the change in
 accounting, income for the first quarter of 2000 was $13.4 million, or
 $0.34 per share.
     During the first quarter of 2001 the Company produced 124,000 ounces of
 palladium and platinum compared to 112,000 ounces for the first quarter of
 2000.  Realized prices per ounce for the first quarter 2001 were $704 for
 palladium, and $529 for platinum, compared to $467 and $441, respectively, in
 the first quarter of 2000.  Cash costs before royalties and taxes for the
 first quarter of 2001 were $217 per ounce compared to $196 per ounce in 2000.
 Total cash costs per ounce for the first quarter of 2001 were $265 compared to
 $232 for the same period in 2000.
     In the first quarter of 2001, the Company amended the long-term sales
 contracts with two of its customers to amend the terms and to modify the
 pricing structures.  As a result of these amendments, the Company has
 committed an additional 10% of its palladium and platinum production for the
 years 2001 to 2010.  Such contracts have price ceilings and floors providing
 price protection between the Company and its customers.
     For 2001, the combination of all contracts and hedge positions result in
 an average ceiling, limiting the Company's realized prices to $447 per ounce
 for 36% of palladium ounces sold, and to $556 per ounce for 39% of platinum
 ounces sold.  During the first quarter of 2001 these contracts and hedge
 positions limited the Company's combined realized price, when compared to the
 combined market price, by $185 per ounce.  For 2001, the average floor
 supporting realized prices, including the Company's forward sales portfolio,
 are $368 per ounce for 96% of palladium sales, and $402 per ounce for 87% of
 platinum sales.
     At the Stillwater Mine, palladium and platinum production continued to
 improve from mid-year 2000.  Production grew from 98,000 ounces in the
 third quarter 2000, to 122,000 ounces in the fourth quarter 2000, to the
 124,000 ounces produced in the first quarter 2001.  The increased production
 was the result of a 19% increase in mill throughput, which was partially
 offset by a 6% decrease in the average mill head grade.  Production of
 palladium and platinum for the year 2001 at the Stillwater Mine is expected to
 be 500,000 ounces.
     At East Boulder, an additional 155 holes were added during this first
 quarter to the diamond drilling program of 132 holes completed during the
 fourth quarter to delineate ore reserves in the initial mining area.  The
 information from the drilling program is being utilized to refine the initial
 mine plan including development plans, production profile and operating and
 capital cost estimates.
     The grade that is indicated from the limited drill program is comparable
 to the previously calculated undiluted grade of 0.63 ounce per ton with
 horizontal widths of 6.8 feet, compared to 7.2 feet at the Stillwater Mine.
 The drill program also indicates that mill feed grades from the initial mining
 area will be in the range of 0.51 ounce per ton, compared to the probable
 reserve average of 0.71 ounce per ton for the entire East Boulder deposit.
     The drill program does indicate a high degree of continuity in the orebody
 at East Boulder, making available 140 tons of ore per foot of footwall
 lateral, compared to 70 tons at the Stillwater Mine.  This higher tonnage
 yield will have a beneficial effect on mine productivity and the cost of
 production.  The higher yield may also allow for the selection of more
 mechanized mining methods and also reduce sustaining development necessary to
 maintain a given production rate.
     These limited drill results are instructive but not necessarily indicative
 of results that will be realized from continuing mine development and
 drilling.  Ongoing sill excavation, diamond drilling and a test stope planned
 for the second half of 2001 will provide additional data for planning
 analysis.  The total effect of these changes on the economics of the East
 Boulder Mine will be better understood when the additional drilling together
 with the work to refine the detailed mine plan and the test stoping is
 completed later in 2001.
     During 2001, the Company expects to continue underground development,
 detailed engineering and commissioning of the concentrator and ancillary
 facilities at East Boulder.  The East Boulder Mine is expected to begin
 commercial production during 2002.  The Company currently estimates the cost
 of developing the project to enable it to commence initial production at
 approximately $370 million, compared to the previous estimate of $270 million.
 Of the $100 million increase, $41 million is attributable to project scope
 changes, $27 million is due to additional ground supports and schedule
 slippage due to unforeseen ground conditions in the tunnel driving process,
 $23 million is attributable to the use of mining contractors rather than
 Stillwater crews for mine development and construction and the remaining
 $9 million is a reserve for unforeseen project risks.  Additional sustaining
 capital expenditures will be necessary to achieve and maintain the mine's
 initial design capacity of 2,000 tons of ore per day.  This estimated cost and
 schedule may change based upon the results of the mining planning work to be
 completed during 2001.
     Announcing the Company's results, Stillwater Chairman and Chief Executive
 Officer, Francis McAllister said, "We are pleased with the continued increase
 in production from the Stillwater Mine.  During 2000, the Company implemented
 a number of aggressive programs to address the issues of inadequate mine
 development, mine infrastructure and mine planning.  Commencing with the
 fourth quarter of 2000 and continuing into this year, we are beginning to see
 the benefits of the programs in terms of increased mine production and lower
 operating costs.  At the start of the second quarter, we took steps to ensure
 that our 500,000-ounce production target is achieved.  The Stillwater Mine
 concentrator and the Columbus processing facilities were idle for a scheduled
 six-day maintenance program.  During that period, the mine continued to
 operate normally and the material was stockpiled.  As a result, annual
 production will not be impacted by the scheduled shut down."
     "At the East Boulder Mine, we are beginning to see the operating plan take
 shape.  While the initial average mill feed grade is 0.51 ounces per ton
 compared to the 0.71 ounces per ton for the entire deposit, it is important to
 note that at this time only 70,000 tons of minable material has been defined
 and modeled and the East Boulder Mine will be better understood when
 additional drilling, the work to refine the detailed mine plan and test
 stoping is completed later during 2001.  With regard to the capital costs, we
 feel the results of the drilling program, along with additional detailed
 engineering, have allowed us the opportunity to estimate the cost with greater
 certainty.  Our ability to fund the revised cost is supported by the Company's
 excellent operating cash flows and new credit agreement."
 
     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 first quarter 2001 at
 12:00 noon Eastern Standard 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 production, capital
 costs to develop East Boulder Mine, ore grades, tonnage yield of ore per foot
 of footwall lateral, continuity of grade, lowering costs of production,
 planned improvements in operations, construction and mining plans,
 management's expectations regarding objectives, development work, materials
 handling and other improvements, increased hiring, drilling programs, reserve
 increases and expansion work at the Stillwater Mine and the East Boulder
 Project, ore pass additions and modifications, ventilation improvements and
 other service improvements, paste-fill system improvements and supply and
 demand for palladium and platinum.  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,
 ability to access bank or other financing, economic developments affecting the
 capital markets, loss of a significant customer, dependence on a few
 customers, labor difficulties, inadequate insurance coverage, government
 regulations, property title uncertainty, risk of cost overruns, inaccurate
 forecasts, problems with productivity, unexpected events during expansion or
 development, fluctuations in ore grade, tons mined, crushed or milled, amounts
 and prices of the Company's forward metals sales under hedging and supply
 contracts, complexity of processing platinum group metals, 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.  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 Mining Company
      Key Factors
      (Unaudited)
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
     Ounces produced (000)(2)
       Palladium                                           96             86
       Platinum                                            28             26
         Total                                            124            112
 
     Tons mined (000)                                     199            169
 
     Tons milled (000)                                    200            169
     Mill head grade (ounce per ton)                     0.68           0.73
     Total mill recovery (%)                               90             91
 
     Sub-grade tons milled (000)                           18             14
     Sub-grade mill head grade (ounce per ton)           0.21           0.12
 
     Total tons milled (000)                              218            183
     Combined mill head grade (ounce per ton)            0.64           0.68
 
     Ounces sold (000)(2)
       Palladium                                          109             67
       Platinum                                            28             27
         Total                                            137             94
 
     Average realized price per ounce(2)
       Palladium                                         $704           $467
       Platinum                                          $529           $441
       Combined(1)                                       $668           $460
 
     Average market price per ounce
       Palladium                                         $930           $589
       Platinum                                          $602           $479
       Combined(1)                                       $853           $563
 
      (1)  Stillwater Mining reports a combined average realized and market
           price of palladium and platinum at the same ratio as ounces are
           produced from the base metals refinery.  The combined average
           realized price represents revenues of the company excluding contract
           discounts divided by ounces sold.  The combined average market price
           represents the London PM Fix for the actual months of the period.
 
      (2)  Effective January 1, 2000, the company changed its method of
           accounting for revenue recognition.  The company now recognizes
           revenue as title passes to the customer.  Ounces sold and average
           realized prices for the first quarter of 2000 have been restated
           accordingly.  The differences in ounces produced and ounces sold are
           caused by the length of time required by the smelting and refining
           processes and the specified delivery dates under the long-term sales
           contracts.  The differences between the realized prices and market
           prices occur due to contract obligations and hedge positions.
 
 
      Stillwater Mining Company
      Key Factors (continued)
      (Unaudited)
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
       PER TON MILLED
 
       Cash operating costs                              $123           $120
       Royalties and taxes                                 28             22
       Total cash costs (1)                              $151           $142
       Depreciation and amortization                       26             23
 
       Total production costs (1)                        $177           $165
 
       PER OUNCE PRODUCED
 
       Cash operating costs                              $217           $196
       Royalties and taxes                                 48             36
       Total cash costs (1)                              $265           $232
       Depreciation and amortization                       45             39
 
       Total production costs (1)                        $310           $271
 
 
      Stillwater Mining Company
      Consolidated Statement of Operations
      (Unaudited)
      (in thousands, except per share amounts)
                                                        Three months ended
                                                            March 31,
                                                         2001           2000
 
     Revenues                                         $89,864        $42,135
 
     Costs and expenses
       Cost of metals sold                             38,245         17,496
       Depreciation and amortization                    5,613          4,302
         Total cost of sales                           43,858         21,798
 
       General and administrative expenses              5,452          2,055
         Total costs and expenses                      49,310         23,853
 
     Operating income                                  40,554         18,282
 
     Other income (expense)
       Interest income                                    568            280
       Interest expense, net of capitalized interest
        of $4,215 and $2,656                               --             --
     Income before income taxes and cumulative effect
      of accounting change                             41,122         18,562
 
     Income tax provision                             (11,720)        (5,197)
 
     Income before cumulative effect of accounting
      change                                           29,402         13,365
 
     Cumulative effect of change in accounting for
      revenue recognition, net of income tax benefit
      of $2,503                                            --         (6,435)
 
     Net income                                       $29,402         $6,930
 
     Basic earnings per share
     Income before cumulative effect of accounting
      change                                            $0.76          $0.35
     Cumulative effect of accounting change                --          (0.17)
     Net income                                         $0.76          $0.18
 
     Diluted earnings per share
     Income before cumulative effect of accounting
      change                                            $0.75          $0.34
     Cumulative effect of accounting change                --          (0.16)
     Net income                                         $0.75          $0.18
 
     Weighted average common shares outstanding
         Basic                                         38,671         38,271
         Diluted                                       39,406         39,305
 
 
      Stillwater Mining Company
      Statement of Comprehensive Income
      (Unaudited)
      (in thousands)
                                                       Three months ended
                                                           March 31,
                                                         2001           2000
 
     Net income                                       $29,402         $6,930
 
     Other comprehensive income:
       Realized and unrealized gain on derivative
        financial instruments, net of tax of $2,596     6,514             --
     Comprehensive income                             $35,916         $6,930
 
 
      Stillwater Mining Company
      Consolidated Balance Sheet
      (Unaudited)
      (in thousands, except share and
       per share amounts)
                                                     March 31,   December 31,
                                                       2001          2000
     ASSETS
       Current assets
         Cash and cash equivalents                    $13,484        $18,219
         Funds held in escrow                          45,487          2,636
         Inventories                                   38,366         42,625
         Accounts receivable                           27,360             --
         Deferred income taxes                          7,981          7,732
         Other current assets                           2,543          2,943
           Total current assets                       135,221         74,155
 
       Property, plant and equipment, net             645,681        602,110
       Other noncurrent assets                          6,600          2,761
 
     Total assets                                    $787,502       $679,026
 
     LIABILITIES and SHAREHOLDERS' EQUITY
       Current liabilities
         Accounts payable                             $17,327        $21,710
         Accrued payroll and benefits                   7,788          6,431
         Property, production and franchise taxes
          payable                                       7,387          8,068
         Current portion of long-term debt and
          capital lease obligations                     3,202          1,970
         Metals repurchase agreements payable           6,520          9,386
         Current income taxes payable                   3,467             97
         Other current liabilities                     10,541         11,533
           Total current liabilities                   56,232         59,195
 
         Long-term debt and capital lease
          obligations                                 230,348        157,256
         Deferred income taxes                         63,677         55,457
         Other noncurrent liabilities                   6,970          6,504
           Total liabilities                          357,227        278,412
 
       Shareholders' equity
         Preferred stock, $0.01 par value,
          1,000,000 shares authorized; none issued         --             --
         Common stock, $0.01 par value,
          100,000,000 shares authorized;
          38,698,742 and 38,645,886 shares issued
          and outstanding, respectively                   387            386
         Paid-in capital                              289,096        288,212
         Retained earnings                            141,418        112,016
         Accumulated other comprehensive loss            (626)            --
           Total shareholders' equity                 430,275        400,614
 
     Total liabilities and shareholders' equity      $787,502       $679,026
 
 
      Stillwater Mining Company
      Consolidated Statement of Cash Flows
      (Unaudited)
      (in thousands)
                                                         Three months ended
                                                             March 31,
                                                         2001           2000
     Cash flows from operating activities
     Net income                                       $29,402         $6,930
 
     Adjustments to reconcile net income to net cash
      provided by operating activities:
       Depreciation and amortization                    5,613          4,302
       Deferred income taxes                            8,220           (306)
       Cumulative effect of change in accounting
        for revenue recognition                            --          6,435
 
     Changes in operating assets and liabilities:
       Inventories                                      4,259         (6,103)
       Accounts receivable                            (27,360)            --
       Accounts payable                                (4,383)        (3,609)
       Other                                            3,152          1,382
 
     Net cash provided by operating activities         18,903          9,031
 
     Cash flows from investing activities
       Capital expenditures                           (49,184)       (42,314)
 
     Net cash used in investing activities            (49,184)       (42,314)
 
     Cash flows from financing activities
       Issuance of long-term debt                     157,149         23,100
       Payments on long-term debt and capital
        lease obligations                            (125,676)          (651)
       Payments for debt issuance costs                (3,946)            --
       Net metals repurchase agreement transactions    (2,866)        10,054
       Issuance of common stock                           885          8,826
 
     Net cash provided by financing activities         25,546         41,329
 
     Cash and cash equivalents
       Net increase (decrease)                         (4,735)         8,046
       Balance at beginning of period                  18,219          2,846
 
     Balance at end of period                         $13,484        $10,892
 
 
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 SOURCE  Stillwater Mining Company