A 20% increase in production and a 13% drop in operating costs enabled Stillwater Mining to post a US$777,000 profit (or 4 cents per share) for the first quarter.
These results compare with a loss of US$73,000 for the same period in 1994. Moreover, the company generated US$13.3 million in revenue in the recent 3-month period, up from US$12.5 million a year ago.
Stillwater produces platinum and palladium at its namesake mine in southern Montana. It is the only producer of these metals in the U.S.
Head grades fell below target levels, although the average realized price for platinum and palladium increased by 20%.
In order to process the larger amounts of ore mined, the plant was pushed beyond its design limits, which led to a drop in concentrator recovery. Concentrator feed has since been cut back to about 1,000 tons per day, and excess ore is being stockpiled. The company plans to double its capacity later this year.
In addition, a new shop/warehouse is fully operational, a new ball mill is being installed, and ground has been broken on a base metals refinery.
Production is expected to double by mid-1997.
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