Taylor says buy Stillwater Mining
2014-06-25 17:13 ET - In the News
Jay Taylor, in the June 17, 2014, edition of Gold, Energy & Tech Stocks, says buy Stillwater Mining Company, recently $16.54. This is the first time he has recommended the stock. Mr. Taylor calls Stillwater the only serious primary producer of palladium and platinum in North America. He notes that 80 per cent of the company's production is of the former metal. He says that for the longer term, he is backing Wellgreen Platinum, but with PGM prices set to explode, he felt compelled to recommend a producer now. Stillwater operates two mines in Montana, East Boulder and Stillwater. They have a combined mine life of 35 to 40 years, and a 2P reserve of 22 million ounces of Pd plus Pt. Production guidance for 2014 is between 520,000 and 535,000 ounces. Mr. Taylor says Stillwater turned the corner in Q1, reporting a profit of $19.6-million. It produced 130,700 ounces of Pd and Pt, up by 2.8 per cent over Q1 2013. All-in sustaining costs fell to $788 an ounce compared with $845. Mr. Taylor believes with increasing global demand for Pt and Pd in a small market, the ability of "banksters" to suppress activity as they have done to gold is about to end. There is immediate joy to come for Stillwater, he says.
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