Denver —
The company earned US$23.5 million (or 60 per share) in the 3-month period, compared with US$13.4 million (35 per share) in the corresponding period of 1999.
For the year, net earnings totalled US$61.5 million ($1.57 per share), up from US$37.2 million (96 per share) in 1999.
Driven by uncertainties over Russian shipments of the metals, palladium prices skyrocketed during 2000, almost reaching US$1,000 per oz. by year-end (and this was achieved in the new year). Platinum went along for the ride, reaching US$610 per oz. by year-end (falling to US$440 per oz. in January).
Stillwater realized US$627 per oz. of platinum and palladium during the fourth quarter, and US$541 per oz. for the year, compared with US$428 in the previous fourth quarter and US$375 in all of 1999.
Higher prices meant higher revenues from production at the Stillwater mine in southwestern Montana. For the fourth quarter, the company took in US$78.7 million on production of 122,000 oz. combined platinum and palladium, compared with US$45.1 million on 110,000 oz. in the year-ago period.
Production topped 430,000 oz. in 2000, up from 409,000 in 1999, while revenues jumped nearly 50% to US$225.2 million.
Although total cash costs were higher, they were offset by higher metal prices, so the company realized higher operating margins. In the fourth quarter, total cash costs were US$264 per oz., up from US$207 per oz. in the previous fourth quarter, owing to higher labour costs associated with increased development activities. The operating margin improved to US$294 per oz., up from US$167 per oz. in the fourth quarter of 1999.
Higher royalties
For the year, total cash costs were US$264, up from US$198 in the previous year. Total production costs were higher as well, owing to increased royalties and taxes associated with higher metal prices. Operating margins reached US$214 per oz., up from US$127 per oz. in 1999.
Operations at the Stillwater mine improved significantly in the fourth quarter. The underground mine yielded 196,310 tons of ore during the last three months of the year, averaging more than 2,100 tons per day. However, the mine averaged 1,900 tons per day for the year, down slightly from 1999.
Stillwater hopes to improve throughput to 2,800 tons per day by 2003, by which time annual production is expected to be 665,000 oz.
At the end of the year, the mine had 65 available stopes and 81 working faces, which shows a steady improvement from the previous-end, when there were 54 available stopes and 70 working faces.
Meanwhile, Stillwater is nearing mechanical completion of the East Boulder project, 13 miles west of the Stillwater mine. The company expects to continue developing underground reserves.
At the end of the year, the Stillwater mine had proven and probable reserves totalling 15.8 million oz. platinum and palladium within 22.2 million tons averaging 0.73 oz. per ton. The mine contains another 21.7 million tons of resources grading 0.72 oz. per ton.
East Boulder has reserves of 9.4 million oz. in 13.3 million tons grading 0.71 oz. per ton, plus resources of 16.5 million tons grading 0.72 oz. per ton.
Despite the recent spike in metal prices, reserves are calculated at US$225 per oz. palladium and US$350 per oz. platinum.
Be the first to comment on "Record palladium prices propel Stillwater Snap Lake"