Stillwater Mining Company Reports Third Quarter Results

BILLINGS, MT--(Marketwired - November 12, 2013) - STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U)

• Consolidated net loss attributable to common stockholders of $201.5 million or $1.69 per diluted share, including a $290.4 million (before-tax) impairment charge taken against the carrying value of the Company's Altar mineral property in Argentina
• Third quarter mine production of 124,200 PGM ounces, 2013 full-year mine production guidance increased to a range of 505,000 to 515,000 ounces of PGMs
• 167,500 ounces of PGMs processed from recycled material during the third quarter, a 74.1% increase over the third quarter of 2012
• Third quarter total cash costs of $427 per mined ounce - 2013 total cash costs guidance reduced to a range of $530 to $540 per ounce
• Capital expenditure guidance for 2013 reduced further to a range of $125 to $135 million
• Cash and highly liquid investments totaling $464.2 million at September 30, 2013
  
  

Stillwater Mining Company today reported a consolidated net loss attributable to common stockholders for the 2013 third quarter of $201.5 million, or $1.69 per diluted share. The third quarter result includes a $290.4 million (before-tax) impairment charge reducing the carrying value of the Altar mineral property in Argentina to its estimated fair value of $102.0 million. Consolidated net income attributable to common stockholders reported for the 2012 third quarter was $13.1 million, or $0.11 per diluted share. Total revenues for the 2013 third quarter were $280.0 million, an increase of 54.7% compared to revenues of $181.0 million for the third quarter of 2012. The increase in revenue was driven by higher average palladium prices during the third quarter of 2013 and by strong results from the PGM Recycling business segment.

The third-quarter impairment charge at Altar also resulted in a reduction in the deferred tax liability associated with the Altar property. Consequently, the net after-tax effect of the Altar impairment was a $226.5 million reduction in third-quarter 2013 income. Before reflecting the impairment, third-quarter 2013 after-tax consolidated net income attributable to common stockholders would have been $25.0 million.

For the first nine months of 2013, the Company reported a consolidated net loss attributable to common stockholders of $192.2 million, or $1.62 per diluted share, on revenues of $797.1 million, compared to net income of $38.2 million, or $0.33 per diluted share, on revenues of $596.9 million, for the same period in 2012.

The Company's Montana mines produced a total of 124,200 ounces of palladium and platinum during the third quarter of 2013 compared to production of 127,000 ounces in the third quarter of 2012. Production for the first nine months of 2013 was 382,800 ounces compared to 381,200 ounces in the first nine months of 2012. The fluctuation in ounces produced is driven primarily by the normal result of changes in mining conditions and the array of stopes available for mining in any period.

Revenue from the Mine Production segment for the third quarter of 2013 (including proceeds from the sale of by-products) totaled $123.2 million, a 15.0% increase from $107.1 million in the same period last year. Combined sales realizations increased during the third quarter of 2013 for mined palladium and platinum ounces, averaging $887 per ounce, a 10.5% increase from the $803 per ounce realized in the third quarter of 2012. The total quantity of mined palladium and platinum sold increased by 5.7% to 131,400 ounces in the third quarter of 2013, compared to the 124,300 ounces sold during the same period in 2012.

The Company processed recycling material containing 167,500 ounces of palladium, platinum and rhodium through its smelter and refinery during the third quarter of 2013. This represents an increase of 74.1% over the total of 96,200 ounces processed during the third quarter of 2012. During the first nine months of 2013, the Company processed a record 496,700 ounces of PGMs from recycled material, a 52.1% increase from approximately 326,600 ounces processed during the same period of 2012. The increased volumes were primarily attributable to the addition of several new suppliers of recycling material and the reprocessing of furnace brick from the Company's own smelting facility. The PGM Recycling segment ounces recovered from the reprocessed furnace brick were sold during the third quarter of 2013, generating approximately $16.4 million of incremental revenue in the third quarter of 2013.

Recycling sales volumes increased 104.6%, to 152,600 ounces in the third quarter of 2013, from 74,600 ounces in the third quarter of 2012. PGM Recycling revenues totaled $156.8 million for the 2013 third quarter, more than double the $74.0 million in the same period of 2012. The Company's combined average realized price for sales of recycled palladium, platinum and rhodium increased to $1,026 per ounce in the third quarter of 2013 from $985 per ounce in the third quarter of 2012.

Total recycled ounces processed in the third quarter of 2013 included approximately 4,200 PGM ounces from reprocessed furnace brick. During the second quarter of 2013, approximately 8,000 PGM ounces reprocessed from furnace brick were attributed to recycling.

The ounces processed during the second and third quarters of 2013 from furnace brick were recovered as saleable ounces during the third quarter. As a result, the ounces recovered from reprocessed furnace brick, which were allocated to the PGM Recycling segment were sold and the associated revenues were recognized in the third quarter of 2013.

During the third quarter of 2013, approximately 7,700 PGM ounces recovered from reprocessed furnace brick were allocated to the Mine Production segment. While these ounces are blended with mine concentrates and are difficult to track, the Company estimates that these recovered PGM ounces will generate approximately $7.1 million of incremental revenue, to be realized mainly in the third and fourth quarters of 2013.

Saleable Ounces Recovered from Furnace Brick
Third Quarter 2013
		Platinum		Palladium		Rhodium
PGM Recycling Segment		10,133		1,271		564
Mine Production Segment		1,848		5,691		117
Total Ounces Recovered from Brick		11,981		6,962		681

Total cash costs per mined ounce (a non-GAAP measure defined below) averaged $427 in the third quarter of 2013, compared to total cash costs of $496 per mined ounce for the third quarter of 2012, a decrease of 13.9%. The Company's measurement of total cash costs per mined ounce includes the benefit of credits for by-product sales and PGM Recycling segment earnings and as discussed above, during the third quarter of 2013, the Company's PGM Recycling segment received significant revenue allocated from the sale of PGM ounces recycled from furnace brick. These larger than normal PGM Recycling segment credits are the primary cause of the significant decrease in total cash costs per mined ounce in the third quarter of 2013. The table below illustrates the effect of applying these credits to the average cash costs per mined ounce for the combined Montana mining operations.

Cash Costs Per Mined Ounce - Combined Montana Mining Operations			Third Quarter 2013			Third Quarter 2012			First Nine Months 2013			First Nine Months 2012
Reported Total Cash Costs per Mined Ounce			$	427		$	496		$	495		$	487
	Add Back By-Product Revenue Credit			54			57			55			62
	Add Back PGM Recycling Income Credit			165			16			83			22
Total Cash Costs per Mined Ounce before Credits			$	646		$	569		$	633		$	571

Guidance

Based on results for the first nine months and projections for the remainder of the year, the Company has reviewed its mined production, cash cost per mined ounce and capital expenditure guidance. As a result of this review, the Company has increased its previous 2013 production guidance of 500,000 ounces to a range of 505,000 to 515,000 ounces of mined palladium and platinum. The Company has reduced its full-year 2013 guidance for total cash costs from $560 to a range of $530 to $540 per mined ounce. In addition, the Company has concluded to reduce its most recent capital expenditure guidance for 2013 by approximately 13% to a range of $125 to $135 million from the previous range of $145 to $155 million.

Cash Flow and Liquidity

At September 30, 2013, the Company's available cash was $235.1 million, compared to $379.7 million at December 31, 2012. If highly liquid investments are included with available cash, the Company's balance sheet liquidity totaled $464.2 million at September 30, 2013, a decrease from $641.7 million at December 31, 2012. Most of this decrease was related to debt redemption during the first quarter of 2013. Of the Company's current cash balance, $28.6 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 investments), less current liabilities -- increased to $619.3 million at September 30, 2013, from $606.0 million at 2012 year end.

Net cash provided by operating activities (which includes changes in working capital) totaled $81.7 million for the first nine months of 2013, compared to $100.4 million of cash provided in the first nine months of 2012. The lower cash generation in the first nine months of 2013 largely reflected growth in recycling working capital attributable to the greater volumes being processed this year. Capital expenditures were $91.2 million in the first nine months of 2013 compared to $84.7 million in the first nine months of 2012. Of the capital expenditures for the first nine months of 2013, $81.9 million was attributable to ongoing investments in the Montana mines and processing facility. Year-to-date capital expenditures include $17.1 million attributable to the major developments underway on the J-M Reef in Montana.

Outstanding balance sheet debt at September 30, 2013 was $307.1 million, down from $461.1 million at December 31, 2012. In March 2013, the Company repaid $164.3 million of its 1.875% convertible debentures. The Company's debt balance currently includes $269.9 million of 1.75% convertible debentures and $2.2 million of 1.875% convertible debentures, $29.6 million of exempt facility revenue bonds, a capital lease of $5.1 million and $0.3 million of financing for a small installment land purchase.

Other Matters

Notwithstanding the accounting impairment charge recorded in the third quarter of 2013, the Company is reviewing alternatives to optimize its investment in the Altar project in Argentina. Some minimum level of annual expenditures will be required in order to maintain the Company's good standing and preserve its asset position at Altar. Future levels of exploration spending at Altar are discretionary and will be evaluated year by year.

The Company is engaged in preparing the final feasibility study and an updated economic assessment of the Marathon project. The feasibility study will include final project design, updated ore reserves, mining rates and costs, and overall project economics. A decision to proceed with project construction requires receipt of a positive Environmental Assessment finding by the joint review panel, receipt of other necessary permits and government approvals, a determination that the economics of the project are acceptable to each of the partners and receipt of firm financing commitments.

Third Quarter Results - Details

For the third quarter of 2013, the Company's Stillwater Mine produced 83,800 ounces of palladium and platinum, a decrease of 10.9% from the 94,100 ounces produced in the third quarter of 2012. Production at the Company's East Boulder Mine of 40,400 ounces in the third quarter of 2013 reflected an increase of 22.8% over the 32,900 ounces produced in the same quarter of 2012. The Stillwater Mine continued to experience variations in ore grade delivered to the mill during the 2013 third quarter, resulting in an overall reduction in the reported mill head grade. The loss of a muck pass at the Stillwater Mine earlier in the year has resulted in higher grade variability than planned and lower than forecasted ore grades. This issue is being addressed but has not been completely remedied to date. The current advanced developed state of the Montana mines is providing the operational flexibility to work through this issue without having to modify the Company's development and production goals.

Costs of metals sold (before depletion, depreciation and amortization expense) increased to $220.8 million in the third quarter of 2013 from $142.0 million in the third quarter of 2012. Mine Production costs included in costs of metals sold increased to $83.9 million in the 2013 third quarter from $69.9 million in the 2012 third quarter. PGM Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, totaled $136.8 million in the third quarter of 2013, significantly more than the $72.1 million reported in the third quarter of 2012. The increase was due to higher volumes sold and the associated higher total market value of the materials acquired for processing.

General and administrative costs were $9.3 million in the third quarter of 2013, down from the $9.9 million incurred during the same period of 2012. The decrease was due to lower share-based compensation costs following vesting associated with the second quarter's technical change in control, offset in part by an increase in legal and consulting costs. Exploration expenses were $2.1 million in the third quarter of 2013 compared to $1.7 million, in the same period of 2012. The majority of the increase was due to exploration efforts on property holdings adjacent to the Marathon project in Canada. Marketing expenses declined to $0.2 million in the 2013 third quarter compared to $1.9 million in the same quarter of 2012, reflecting the curtailment of palladium marketing efforts in 2013.

Interest expense reported for the third quarter of 2013 and 2012 was $5.6 million and $1.5 million, respectively. This increase is principally the result of the interest expense related to the 1.75% convertible debentures, including the accretion of the debt discount that is charged to earnings over the expected life of the convertible debentures and offset by capitalized interest recognized as a cost of the Company's ongoing projects. The non-cash accretion of the debt discount and non-cash capitalized interest in the third quarter of 2013 were $4.0 million and $0.5 million, respectively.

During the third quarter of 2013, the Company recorded a net foreign currency transaction gain of $6.2 million, primarily related to the deferred tax liability recorded in association with the acquisition of Peregrine Metals Ltd. The net foreign currency transaction gain recorded for the third quarter of 2012 was $6.4 million.

First Nine Months' Results - Details

For the first nine months of 2013, the Company's Stillwater Mine produced 267,400 ounces, a decrease of 4.5% from the 279,900 ounces produced in the first nine months of 2012. Production at the Company's East Boulder Mine of 115,400 ounces in the first nine months of 2013 reflected a 13.9% increase from the 101,300 ounces produced in the same period of 2012.

Costs of metals sold (before depletion, depreciation and amortization expense) increased to $639.9 million in the first nine months of 2013 from $468.3 million in the first nine months of 2012. Mine Production costs included in costs of metals sold increased to $237.0 million in the first nine months of 2013 from $218.9 million in the same period of 2012. PGM Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, totaled $402.9 million in the first nine months of 2013, more than the $249.4 million reported in the first nine months of 2012. The increase was due to higher volumes sold and the related higher total cost to acquire materials for processing.

General and administrative costs were $35.8 million in the first nine months of 2013, up from the $32.5 million incurred during the same period of 2012. The Company recognized $10.2 million in total exploration expenses related to its mineral properties in both Canada and South America in the first nine months of 2013 and $13.8 million in the first nine months of 2012. Marketing expenses declined to $4.2 million in the first nine months of 2013 compared to $7.9 million in the same time period of 2012, reflecting the curtailment of palladium marketing in the second half of 2013. As a result of the recent proxy contest and the change in control provisions in the Company's employee and director equity incentive plans, the Company recognized costs of $4.3 million and $9.1 million, (non-cash charge) respectively, for the nine-month period ended September 30, 2013. These costs were incurred during the first and second quarters of the year.

Interest expense reported for the first nine months of 2013 and 2012 was $17.6 million and $4.4 million, respectively. This increase is principally the result of the interest expense related to the 1.75% convertible debentures, including the accretion of the debt discount that is charged to earnings over the expected life of the convertible debentures and offset by capitalized interest recognized as a cost of the Company's ongoing projects. The non-cash accretion of the debt discount and the non-cash capitalized interest in the first nine months of 2013 were $11.7 million and $1.9 million, respectively.

During the first nine months of 2013, the Company recorded a net foreign currency transaction gain of $15.7 million, primarily related to the deferred tax liability recorded in association with the acquisition of Peregrine Metals Ltd. The foreign currency transaction gain recorded for the first nine months of 2012 was $13.0 million. Approximately $17.4 million and $12.7 million of the 2013 and 2012 net gain, respectively, related to the remeasurement into U.S. dollars of the deferred taxes recorded in association with the acquisition of Peregrine Metals Ltd. The gain reflects the result of the high inflation rate in Argentina as the obligation is remeasured from pesos into U.S. dollars.

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 Standard Time on Wednesday, November 13, 2013.

Dial-In Numbers:
United States: (800) 611-1148
International: (612) 332-0342

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 306549. 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 Company 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. Such statements also include, but are not limited to, comments regarding expansion plans, costs, grade, production and recovery rates; permitting; financing needs and the terms of future credit facilities; exchange rates; capital expenditures; increases in processing capacity; cost reduction measures; safety; timing for engineering studies; environmental permitting and compliance; litigating; labor matters; and the palladium, platinum, copper and gold market. 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 2012 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 Comprehensive (Loss) Income
(Unaudited)
(In thousands, except per share data)
						Three Months Ended								Nine Months Ended
						September 30,								September 30,
						2013				2012				2013				2012
REVENUES
	Mine Production					$	123,193			$	107,057			$	364,249			$	339,951
	PGM Recycling						156,814				73,987				432,897				256,919
			Total revenues				280,007				181,044				797,146				596,870
COSTS AND EXPENSES
	Costs of metals sold
		Mine Production					83,913				69,910				237,042				218,935
		PGM Recycling					136,843				72,096				402,859				249,360
			Total costs of metals sold				220,756				142,006				639,901				468,295
	Depletion, depreciation and amortization
		Mine Production					15,057				13,843				43,824				42,848
		PGM Recycling					285				264				804				793
			Total depletion, depreciation and amortization				15,342				14,107				44,628				43,641
				Total costs of revenues			236,098				156,113				684,529				511,936
	Marketing						207				1,886				4,197				7,874
	Exploration						2,143				1,668				10,247				13,785
	Research and development						104				82				192				864
	Proxy contest expense						--				--				4,307				--
	Accelerated equity based compensation expense						--				--				9,063				--
	General and administrative						9,316				9,882				35,846				32,477
	Loss on long-term investments						112				1,697				1,766				1,697
	Impairment of non-producing mineral property						290,417				--				290,417				--
	Abandonment of non-producing property						--				--				--				2,835
	Loss on disposal of property, plant and equipment						66				71				106				363
				Total costs and expenses			538,463				171,399				1,040,670				571,831
OPERATING (LOSS) INCOME							(258,456	)			9,645				(243,524	)			25,039
OTHER INCOME (EXPENSE)
	Other						8				82				1,170				667
	Interest income						1,102				271				3,516				1,706
	Interest expense						(5,556	)			(1,493	)			(17,646	)			(4,361	)
	Foreign currency transaction gain, net						6,220				6,407				15,679				12,981
(LOSS) INCOME BEFORE INCOME TAX BENEFIT (PROVISION)							(256,682	)			14,912				(240,805	)			36,032
Income tax benefit (provision)							54,698				(2,109	)			47,468				1,508
NET (LOSS) INCOME						$	(201,984	)		$	12,803			$	(193,337	)		$	37,540
Net loss attributable to noncontrolling interest							(489	)			(273	)			(1,117	)			(631	)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS						$	(201,495	)		$	13,076			$	(192,220	)		$	38,171
Other comprehensive income, net of tax
	Net unrealized gains on securities available-for-sale						219				421				288				620
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS						$	(201,276	)		$	13,497			$	(191,932	)		$	38,791
Comprehensive loss attributable to noncontrolling interest							(489	)			(273	)			(1,117	)			(631	)
TOTAL COMPREHENSIVE (LOSS) INCOME						$	(201,765	)		$	13,224			$	(193,049	)		$	38,160
Weighted average common shares outstanding
	Basic						119,153				116,377				118,347				115,918
	Diluted						119,153				117,145				118,347				116,847
Basic (loss) earnings per share attributable to common stockholders						$	(1.69	)		$	0.11			$	(1.62	)		$	0.33
Diluted (loss) earnings per share attributable to common stockholders						$	(1.69	)		$	0.11			$	(1.62	)		$	0.33

Stillwater Mining Company
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data)
			September 30, 2013				December 31, 2012
ASSETS
Current assets
Cash and cash equivalents			$	235,055			$	379,680
Investments, at fair market value				229,174				261,983
Inventories				181,888				153,208
Trade receivables				18,739				9,953
Deferred income taxes				21,304				21,304
Prepaids				6,340				4,967
Other current assets				23,475				21,767
	Total current assets			715,975				852,862
Mineral properties				285,942				576,359
Mine development, net				373,357				322,866
Property, plant and equipment, net				121,105				122,677
Deferred debt issuance costs				8,315				9,609
Other noncurrent assets				6,795				6,390
	Total assets		$	1,511,489			$	1,890,763
LIABILITIES AND EQUITY
Current liabilities
Accounts payable			$	32,226			$	28,623
Accrued compensation and benefits				32,340				31,369
Property, production and franchise taxes payable				12,057				13,722
Current portion of long-term debt and capital lease obligations				2,009				168,432
Income taxes payable				9,454				--
Other current liabilities				8,549				4,702
	Total current liabilities			96,635				246,848
Long-term debt and capital lease obligations				305,105				292,685
Deferred income taxes				130,911				199,802
Accrued workers compensation				5,851				5,815
Asset retirement obligation				8,477				7,965
Other noncurrent liabilities				9,023				5,068
	Total liabilities			556,002				758,183
EQUITY
Stockholders' equity
Preferred stock, $0.01 par value, 1,000,000 shares authorized; none issued				--				--
Common stock, $0.01 par value, 200,000,000 shares authorized; 119,246,710 and 116,951,081 shares issued and outstanding				1,192				1,170
Paid-in capital				1,074,913				1,058,978
Accumulated (deficit) earnings				(171,451	)			20,770
Accumulated other comprehensive income (loss)				189				(99	)
	Total stockholders' equity			904,843				1,080,819
Noncontrolling interest				50,644				51,761
	Total equity			955,487				1,132,580
	Total liabilities and equity		$	1,511,489			$	1,890,763

Stillwater Mining Company
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
			Nine Months Ended
			September 30,
			2013				2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income			$	(193,337	)		$	37,540
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
	Depletion, depreciation and amortization			44,628				43,641
	Loss on disposal of property, plant and equipment			106				363
	Impairment of non-producing mineral property			290,417				--
	Abandonment of non-producing property			--				2,835
	Loss on long-term investments			1,766				1,697
	Deferred taxes			(64,098	)			(4,913	)
	Foreign currency transaction gain, net			(15,679	)			(12,981	)
	Accretion of asset retirement obligation			512				470
	Amortization of debt issuance costs			1,294				944
	Accretion of convertible debenture debt discount			11,722				--
	Accelerated equity based compensation expense			9,063				--
	Share based compensation and other benefits			13,673				12,899
	Non-cash capitalized interest			(1,918	)			--
Changes in operating assets and liabilities:
	Inventories			(28,961	)			6,221
	Trade receivables			(8,786	)			(3,727	)
	Prepaids			(1,373	)			(1,870	)
	Accrued compensation and benefits			989				2,258
	Accounts payable			2,270				(1,270	)
	Property, production and franchise taxes payable			1,330				1,041
	Income taxes payable			12,809				(1,235	)
	Workers compensation			36				490
	Restricted cash			--				15,825
	Other			5,238				206
NET CASH PROVIDED BY OPERATING ACTIVITIES				81,701				100,434
CASH FLOWS FROM INVESTING ACTIVITIES
	Capital expenditures			(91,187	)			(84,688	)
	Proceeds from disposal of property, plant and equipment			126				39
	Purchases of investments			(116,769	)			(68,286	)
	Proceeds from maturities of investments			147,103				42,003
NET CASH USED IN INVESTING ACTIVITIES				(60,727	)			(110,932	)
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 debt and capital lease obligations			(165,714	)			(946	)
	Payments for debt issuance costs			--				(219	)
	Issuance of common stock			115				44
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES				(165,599	)			99,876
CASH AND CASH EQUIVALENTS
	Net (decrease) increase			(144,625	)			89,378
	Balance at beginning of period			379,680				109,097
BALANCE AT END OF PERIOD			$	235,055			$	198,475

Stillwater Mining Company
Key Operating Factors
(Unaudited)
		Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except where noted)		2013			2012			2013			2012
OPERATING AND COST DATA FOR MINE PRODUCTION
Consolidated:
Ounces produced
Palladium			96			98			296			294
Platinum			28			29			87			87
Total			124			127			383			381
Tons milled			301			262			902			801
Mill head grade (ounce per ton)			0.45			0.52			0.46			0.51
Sub-grade tons milled (1)			15			19			56			49
Sub-grade tons mill head grade (ounce per ton)			0.16			0.18			0.17			0.17
Total tons milled (1)			316			281			958			850
Combined mill head grade (ounce per ton)			0.43			0.50			0.44			0.49
Total mill recovery (%)			91			92			92			92
Total operating costs per ounce (Non-GAAP) (2)		$	339		$	417		$	407		$	406
Total cash costs per ounce (Non-GAAP) (2)		$	427		$	496		$	495		$	487
Total production costs per ounce (Non-GAAP) (2)		$	546		$	608		$	610		$	600
Total operating costs per ton milled (Non-GAAP) (2)		$	133		$	189		$	163		$	182
Total cash costs per ton milled (Non-GAAP) (2)		$	168		$	225		$	198		$	219
Total production costs per ton milled (Non-GAAP) (2)		$	214		$	276		$	244		$	269
Stillwater Mine:
Ounces produced
Palladium			65			72			206			215
Platinum			19			22			61			65
Total			84			94			267			280
Tons milled			188			156			579			496
Mill head grade (ounce per ton)			0.48			0.64			0.49			0.61
Sub-grade tons milled (1)			7			10			29			27
Sub-grade tons mill head grade (ounce per ton)			0.25			0.24			0.23			0.22
Total tons milled (1)			195			166			608			523
Combined mill head grade (ounce per ton)			0.47			0.62			0.48			0.59
Total mill recovery (%)			91			92			92			92
Total operating costs per ounce (Non-GAAP) (2)		$	351		$	395		$	405		$	382
Total cash costs per ounce (Non-GAAP) (2)		$	434		$	469		$	490		$	457
Total production costs per ounce (Non-GAAP) (2)		$	569		$	582		$	616		$	574
Total operating costs per ton milled (Non-GAAP) (2)		$	151		$	224		$	178		$	204
Total cash costs per ton milled (Non-GAAP) (2)		$	187		$	266		$	215		$	244
Total production costs per ton milled (Non-GAAP) (2)		$	245		$	330		$	271		$	307

Stillwater Mining Company
Key Operating Factors (continued)
(Unaudited)
		Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except where noted)		2013			2012			2013			2012
OPERATING AND COST DATA FOR MINE PRODUCTION
East Boulder Mine:
Ounces produced
Palladium			31			26			90			79
Platinum			9			7			26			22
Total			40			33			116			101
Tons milled			113			106			323			305
Mill head grade (ounce per ton)			0.40			0.34			0.39			0.36
Sub-grade tons milled (1)			8			9			27			22
Sub-grade tons mill head grade (ounce per ton)			0.10			0.10			0.10			0.11
Total tons milled (1)			121			115			350			327
Combined mill head grade (ounce per ton)			0.37			0.32			0.37			0.35
Total mill recovery (%)			90			90			90			90
Total operating costs per ounce (Non-GAAP) (2)		$	314		$	480		$	412		$	472
Total cash costs per ounce (Non-GAAP) (2)		$	412		$	574		$	507		$	570
Total production costs per ounce (Non-GAAP) (2)		$	499		$	684		$	595		$	674
Total operating costs per ton milled (Non-GAAP) (2)		$	104		$	138		$	136		$	147
Total cash costs per ton milled (Non-GAAP) (2)		$	137		$	165		$	167		$	177
Total production costs per ton milled (Non-GAAP) (2)		$	166		$	197		$	196		$	209

(1)		Sub-grade tons milled includes reef waste material only. Total tons milled includes ore tons and sub-grade tons only. See "Proven and Probable Ore Reserves - Discussion" in the Company's 2012 Annual Report on Form 10-K for further information.
(2)		Total operating costs include costs of mining, processing and administrative expenses at the mine site (including mine site overhead and credits for metals produced other than palladium and platinum from mine production). Total cash costs include total operating costs plus royalties, insurance and taxes other than income taxes. Total production costs include total cash costs plus asset retirement costs and depreciation and amortization. Income taxes, corporate general and administrative expenses, asset impairment write-downs, gain or loss on disposal of property, plant and equipment, restructuring costs and interest income and expense are not included in total operating costs, total cash costs or total production costs. Operating costs per ton, operating costs per ounce, cash costs per ton, cash costs per ounce, production costs per ton and production costs per ounce are non-GAAP measurements that management uses to monitor and evaluate the efficiency of its mining operations. These measures of cost are not defined under U.S. Generally Accepted Accounting Principles (GAAP). Please see "Reconciliation of Non-GAAP Measures to Costs of Revenues" and the accompanying discussion for additional detail.

Stillwater Mining Company
Key Operating Factors (continued)
(Unaudited)
				Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except for average prices)				2013			2012			2013			2012
SALES AND PRICE DATA
Ounces sold
Mine Production:
	Palladium (oz.)				101			97			300			290
	Platinum (oz.)				30			27			84			85
		Total			131			124			384			375
PGM Recycling: (1)
	Palladium (oz.)				83			42			230			145
	Platinum (oz.)				57			27			149			86
	Rhodium (oz.)				12			6			33			19
		Total			152			75			412			250
By-products from Mine Production: (2)
	Rhodium (oz.)				1			1			3			3
	Gold (oz.)				2			2			7			7
	Silver (oz.)				1			1			5			4
	Copper (lb.)				171			219			645			568
	Nickel (lb.)				353			295			1,040			836
Average realized price per ounce(3)
Mine Production:
	Palladium ($/oz.)			$	722		$	605		$	721		$	640
	Platinum ($/oz.)			$	1,447		$	1,513		$	1,509		$	1,536
		Combined ($/oz.)(4)		$	887		$	803		$	893		$	843
PGM Recycling: (1)
	Palladium ($/oz.)			$	716		$	620		$	709		$	651
	Platinum ($/oz.)			$	1,459		$	1,491		$	1,548		$	1,545
	Rhodium ($/oz.)			$	1,097		$	1,327		$	1,127		$	1,449
		Combined ($/oz.)(4)		$	1,026		$	985		$	1,046		$	1,020
By-products from Mine Production: (2)
	Rhodium ($/oz.)			$	975		$	1,124		$	1,086		$	1,310
	Gold ($/oz.)			$	1,346		$	1,692		$	1,431		$	1,659
	Silver ($/oz.)			$	21		$	32		$	24		$	31
	Copper ($/lb.)			$	3.05		$	3.34		$	3.16		$	3.42
	Nickel ($/lb.)			$	5.11		$	6.16		$	5.55		$	6.77
Average market price per ounce(3)
	Palladium ($/oz.)			$	722		$	611		$	725		$	641
	Platinum ($/oz.)			$	1,449		$	1,496		$	1,515		$	1,535
		Combined ($/oz.)(4)		$	887		$	804		$	897		$	843

(1)		Ounces sold and average realized price per ounce from PGM Recycling relate to ounces produced from processing of catalyst materials.
(2)		By-product metals sold reflect contained metal produced from mined ore alongside the Company's primary production of palladium and platinum. Realized prices reflect net values (discounted due to product form and transportation and marketing charges) per unit received.
(3)		The Company's average realized price represents revenues, which include the effect of hedging gains and losses realized on commodity instruments and agreement discounts, divided by ounces sold. The average market price represents the average London Bullion Market Association afternoon postings for the actual months of the period.
(4)		The Company calculates the combined average realized and a combined average market price of palladium and platinum using the same ratio as the rate of ounces of each respective metal that are produced from the base metal refinery.

Reconciliation of Non-GAAP Measures to Costs of Revenues

The Company utilizes certain non-GAAP measures as indicators in assessing the performance of its mining and processing operations during any period. Because of the processing time required to complete the extraction of finished PGM products, there are typically lags of one to three months between ore production and sale of the finished product. Sales in any period include some portion of material mined and processed from prior periods as the revenue recognition process is completed. Consequently, while costs of revenues (a GAAP measure included in the Company's Consolidated Statements of Comprehensive (Loss) Income) appropriately reflects the expense associated with the materials sold in any period, the Company has developed certain non-GAAP measures to assess the costs associated with its producing and processing activities in a particular period and to compare those costs between periods.

While the Company believes that these non-GAAP measures may also be of value to outside readers, both as general indicators of the Company's mining efficiency from period to period and as insight into how the Company internally measures its operating performance, these non-GAAP measures are not standardized across the mining industry and in most cases will not be directly comparable to similar measures that may be provided by other companies. These non-GAAP measures are only useful as indicators of relative operational performance in any period, and because they do not take into account the inventory timing differences that are included in costs of revenues, they cannot meaningfully be used to develop measures of earnings or profitability. A reconciliation of these measures to costs of revenues for each period shown is provided as part of the following tables, and a description of each non-GAAP measure is provided below.

Total Costs of Revenues: For the Company as a whole, this measure is equal to total costs of revenues, as reported in the Company's Consolidated Statements of Comprehensive (Loss) Income. For the Stillwater Mine, the East Boulder Mine, and other PGM activities, the Company segregates the expenses within total costs of revenues that are directly associated with each of these activities and then allocates the remaining facility costs included in total cost of revenues in proportion to the monthly volumes from each activity. The resulting total costs of revenues measures for Stillwater Mine, East Boulder Mine and other PGM activities are equal in total to total costs of revenues as reported in the Company's Consolidated Statements of Comprehensive (Loss) Income.

Total Production Costs (Non-GAAP): Calculated as total costs of revenues (for each mine or combined) adjusted to exclude gains or losses on asset dispositions, costs and profit from recycling activities, revenues from the sale of mined by-products and timing differences resulting from changes in product inventories. This non-GAAP measure provides a comparative measure of the total costs incurred in association with production and processing activities in a period, and may be compared to prior periods or between the Company's mines.

When divided by the total tons milled in the respective period, Total Production Cost per Ton Milled (Non-GAAP) -- measured for each mine or combined -- provides an indication of the cost per ton milled in that period. Because of variability of ore grade in the Company's mining operations, production efficiency underground is frequently measured against ore tons produced rather than contained PGM ounces. Because ore tons are first actually weighed as they are fed into the mill, mill feed is the first point at which production tons are measured precisely. Consequently, Total Production Cost per Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Production Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the respective period, Total Production Cost per Ounce (Non-GAAP) -- measured for each mine or combined -- provides an indication of the cost per ounce produced in that period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because extracting PGM material is ultimately the objective of mining, the cost per ounce of extracting and processing PGM ounces in a period is a useful measure for comparing extraction efficiency between periods and between the Company's mines. Consequently, Total Production Cost per Ounce (Non-GAAP) in any period is a general measure of extraction efficiency, and is affected by the level of Total Production Costs (Non-GAAP), by the grade of the ore produced and by the volume of ore produced in the period.

Total Cash Costs (Non-GAAP): This non-GAAP measure is calculated by excluding the depreciation and amortization and asset retirement costs from Total Production Costs (Non-GAAP) for each mine or combined. The Company uses this measure as a comparative indication of the cash costs related to production and processing in any period.

When divided by the total tons milled in the respective period, Total Cash Cost per Ton Milled (Non-GAAP) -- measured for each mine or combined -- provides an indication of the level of cash costs incurred per ton milled in that period. Because of variability of ore grade in the Company's mining operations, production efficiency underground is frequently measured against ore tons produced rather than contained PGM ounces. Because ore tons are first weighed as they are fed into the mill, mill feed is the first point at which production tons are measured precisely. Consequently, Total Cash Cost per Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Cash Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the respective period, Total Cash Cost per Ounce (Non-GAAP) -- measured for each mine or combined -- provides an indication of the level of cash costs incurred per PGM ounce produced in that period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because extracting PGM material is the objective of mining, the cash cost per ounce of extracting and processing PGM ounces in a period is a useful measure for comparing extraction efficiency between periods and between the Company's mines. Consequently, Total Cash Cost per Ounce (Non-GAAP) in any period is a general measure of extraction efficiency, and is affected by the level of Total Cash Costs (Non-GAAP), by the grade of the ore produced and by the volume of ore produced in the period.

Total Operating Costs (Non-GAAP): This non-GAAP measure is derived from Total Cash Costs (Non-GAAP) for each mine or combined by excluding royalty, tax and insurance expenses from Total Cash Costs (Non-GAAP). Royalties, taxes and insurance costs are contractual or governmental obligations outside of the control of the Company's mining operations, and in the case of royalties and most taxes, are driven more by the level of sales realizations rather than by operating efficiency. Consequently, Total Operating Costs (Non-GAAP) is a useful indicator of the level of production and processing costs incurred in a period that are under the control of mining operations.

When divided by the total tons milled in the respective period, Total Operating Cost per Ton Milled (Non-GAAP) -- measured for each mine or combined -- provides an indication of the level of controllable cash costs incurred per ton milled in that period. Because of variability of ore grade in the Company's mining operations, production efficiency underground is frequently measured against ore tons produced rather than contained PGM ounces. Because ore tons are first actually weighed as they are fed into the mill, mill feed is the first point at which production tons are measured precisely. Consequently, Total Operating Cost per Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Operating Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

When divided by the total recoverable PGM ounces from production in the respective period, Total Operating Cost per Ounce (Non-GAAP) -- measured for each mine or combined -- provides an indication of the level of controllable cash costs incurred per PGM ounce produced in that period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because ultimately extracting PGM material is the objective of mining, the cost per ounce of extracting and processing PGM ounces in a period is a useful measure for comparing extraction efficiency between periods and between the Company's mines. Consequently, Total Operating Cost per Ounce (Non-GAAP) in any period is a general measure of extraction efficiency, and is affected by the level of Total Operating Costs (Non-GAAP), by the grade of the ore produced and by the volume of ore produced in the period.

Stillwater Mining Company
Reconciliation of Non-GAAP Measures to Costs of Revenues
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
(In thousands)			2013				2012				2013				2012
Consolidated:
Reconciliation to consolidated costs of revenues:
Total operating costs (Non-GAAP)			$	42,106			$	52,943			$	155,734			$	154,686
	Royalties, taxes and other			10,981				10,108				33,755				31,023
Total cash costs (Non-GAAP)			$	53,087			$	63,051			$	189,489			$	185,709
	Asset retirement costs			174				160				512				471
	Depletion, depreciation and amortization			15,057				13,843				43,824				42,848
	Depletion, depreciation and amortization (in inventory)			(410	)			217				(282	)			(141	)
Total production costs (Non-GAAP)			$	67,908			$	77,271			$	233,543			$	228,887
	Change in product inventories			3,857				(2,764	)			(5,653	)			973
	Cost of PGM Recycling			136,843				72,096				402,859				249,360
	PGM Recycling - depreciation			285				264				804				793
	Add: Profit from by-products			6,652				7,212				21,103				23,563
	Add: Profit from PGM Recycling			20,553				2,034				31,873				8,360
Total consolidated costs of revenues			$	236,098			$	156,113			$	684,529			$	511,936
Stillwater Mine:
Reconciliation to costs of revenues:
Total operating costs (Non-GAAP)			$	29,400			$	37,147			$	108,209			$	106,839
	Royalties, taxes and other			7,014				7,025				22,702				21,079
Total cash costs (Non-GAAP)			$	36,414			$	44,172			$	130,911			$	127,918
	Asset retirement costs			161				148				474				436
	Depletion, depreciation and amortization			11,539				10,439				33,666				32,676
	Depletion, depreciation and amortization (in inventory)			(407	)			31				(215	)			(453	)
Total production costs (Non-GAAP)			$	47,707			$	54,790			$	164,836			$	160,577
	Change in product inventories			3,261				(2,206	)			(2,953	)			1,088
	Add: Profit from by-products			3,886				4,692				12,634				15,294
	Add: Profit from PGM Recycling			13,934				1,504				21,975				6,119
Total costs of revenues			$	68,788			$	58,780			$	196,492			$	183,078
East Boulder Mine:
Reconciliation to costs of revenues:
Total operating costs (Non-GAAP)			$	12,706			$	15,796			$	47,525			$	47,848
	Royalties, taxes and other			3,967				3,083				11,053				9,943
Total cash costs (Non-GAAP)			$	16,673			$	18,879			$	58,578			$	57,791
	Asset retirement costs			13				12				38				35
	Depletion, depreciation and amortization			3,518				3,404				10,158				10,173
	Depletion, depreciation and amortization (in inventory)			(3	)			186				(67	)			311
Total production costs (Non-GAAP)			$	20,201			$	22,481			$	68,707			$	68,310
	Change in product inventories			596				(558	)			(2,700	)			(115	)
	Add: Profit from by-products			2,766				2,520				8,469				8,269
	Add: Profit from PGM Recycling			6,619				530				9,898				2,241
Total costs of revenues			$	30,182			$	24,973			$	84,374			$	78,705
PGM Recycling:
Reconciliation to costs of revenues:
	PGM Recycling - depreciation		$	285			$	264			$	804			$	793
	Cost of PGM Recycling			136,843				72,096				402,859				249,360
Total costs of revenues			$	137,128			$	72,360			$	403,663			$	250,153