BILLINGS, MT--(Marketwired - May 1, 2014) - STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U)
- Consolidated net income attributable to common stockholders of $19.6 million or $0.15 per diluted share, an increase of 34.2% over the first quarter of 2013
- Mine production of 130,700 palladium and platinum ounces, an increase of 2.8% over the first quarter of 2013 and within guidance range
- All-in sustaining costs of $788 per mined ounce, compared to $845 per mined ounce for the first quarter of 2013, tracking ahead of guidance
- 101,500 ounces of recycled palladium, platinum and rhodium processed, down from 2013, primarily reflecting delays in deliveries due to weather related issues
- Corporate overhead reduced to $10.8 million, down 53% from the first quarter of 2013
- Cash and highly liquid investments totaling $474.3 million at March 31, 2014
Stillwater Mining Company today reported 2014 first quarter consolidated net income attributable to common stockholders of $19.6 million or $0.15 per diluted share, compared to 2013 first quarter consolidated net income attributable to common stockholders of $14.6 million or $0.12 per diluted share. The 34.2% increase in earnings has been achieved despite realized metal prices being 2% lower than in the corresponding period of 2013, primarily reflecting the Company's cost reduction efforts.
Commenting on the first quarter results, Mick McMullen, the Company's President and Chief Executive Officer stated, "I am pleased with our start to the year. Mined production was good and within our guidance range, while costs were below guidance. There was a drop in recycling volumes in part reflecting issues with the harsh winter weather, but shipments have picked up as the weather has improved. Very importantly, our team is focusing on productivity and cost control. Our corporate overhead costs were down sharply from last year and we reported all-in sustaining costs of $788 per ounce for the quarter, which is below last year and the low end of our previous guidance range. Total capital expenditures of about $25 million were incurred, which was also below guidance. Based on these results and current forecasts we are improving our 2014 guidance for all-in sustaining costs (a non-GAAP measure) to a range of $800 to $850 per mined ounce and reducing our total cash cost per mined ounce guidance (net of credits for by-products and recycling) to a range of $530 to $570. We are also decreasing our full-year 2014 capital expenditure guidance to a range of $130 to $140 million. In addition, we have established a longer term goal to reduce our all-in sustaining cash costs per ounce by circa $100 below our 2013 results, taking our all-in sustaining costs to the low $700's per ounce."
| |
| |
| 2014 Guidance: |
| |
|
Previous 2014 Guidance |
|
Current 2014 Guidance |
| Mined Production (palladium and platinum ounces) |
|
520,000 - 535,000 |
|
520,000 - 535,000 |
| Total Cash Cost per Mined Ounce (net of by-product and recycling credits) |
|
$540 - $590 |
|
$530 - $570 |
| All-In Sustaining Cost per Mined Ounce* |
|
$805 - $855 |
|
$800 - $850 |
| Corporate Overhead(1) (millions) |
|
$35 - $45 |
|
$35 - $45 |
| Capital Expenditures (millions) |
|
$145 - $155 |
|
$130 - $140 |
| |
Sustaining Capital Expenditures (millions) |
|
$97 - $103 |
|
$85 - $90 |
| |
Project Capital Expenditures (millions) |
|
$48 - $52 |
|
$45 - $50 |
*All-in sustaining cost per mined ounce guidance for 2014 assumes the exclusion of a $30 per ounce recycling credit and $20 per ounce of costs for foreign activities.
(1) Corporate Overhead includes: general and administrative, marketing, research and development and exploration expenses.
For the first quarter of 2014, the Company's Montana mines produced a total of 130,700 ounces of palladium and platinum, a 2.8% increase compared to mine production of 127,100 ounces in the first quarter of 2013. The 18.8% increase in East Boulder Mine production in this year's first quarter compared to the first quarter of 2013 was driven by slightly higher realized ore grades and higher tons mined. The 3.0% decline in ounces produced at the Stillwater Mine reflected lower ore tons mined and increased allocation of resources to development activities during the 2014 first quarter compared to the first quarter of 2013.
| |
| |
| 2014 Mine Production Comparison by Quarter: |
| (Produced ounces) |
|
2014 First Quarter |
|
2013 First Quarter |
|
Percentage Change |
| Stillwater Mine |
|
89,700 |
|
92,600 |
|
(3.1 |
)% |
| |
Palladium |
|
68,900 |
|
71,300 |
|
(3.4 |
)% |
| |
Platinum |
|
20,800 | |
21,300 |
|
(2.3 |
)% |
| East Boulder Mine |
|
41,000 |
|
34,500 |
|
18.8 |
% |
| |
Palladium |
|
31,900 |
|
26,800 |
|
19.0 |
% |
| |
Platinum |
|
9,100 |
|
7,700 |
|
18.2 |
% |
| Total |
|
130,700 |
|
127,100 |
|
2.8 |
% |
| |
Palladium |
|
100,800 |
|
98,100 |
|
2.8 |
% |
| |
Platinum |
|
29,900 |
|
29,000 |
|
3.1 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Revenue from the Company's Mine Production segment for the first quarter of 2014 (including proceeds from the sale of by-products) totaled $125.7 million, a 2.0% decrease from $128.3 million in the same period of 2013. Combined sales realizations for mined palladium and platinum decreased for the first quarter of 2014, averaging $907 per mined ounce, compared to $926 per mined ounce realized in the first quarter of 2013. The total quantity of mined palladium and platinum ounces sold in the first quarter of 2014 was 131,300 ounces compared to 130,400 ounces sold in the same period of 2013. As a result of earlier constraints on reprocessing slag inventories at the Stillwater Mine, the Company now expects the benefit of PGMs resident in its slag inventories at the end of 2013 to be realized in second quarter 2014 sales.
The Company processed recycling material containing 101,500 ounces of palladium, platinum and rhodium through its smelter and refinery during the first quarter of 2014. This represents a decrease of 34.2% over the total of 154,200 ounces processed during the first quarter of 2013. As noted, the decrease in recycling volumes during the first quarter of 2014 was primarily due to weather related issues. Recycling material deliveries have increased subsequent to the end of the first quarter as overall weather conditions have improved.
| |
| |
| 2014 Recycling Ounces Fed Comparison by Quarter: |
| |
|
2014 First
Quarter |
|
2013 First
Quarter |
|
Percentage Change |
| Total |
|
101,500 |
|
154,200 |
|
(34.2 |
)% |
| |
Palladium |
|
57,600 |
|
89,200 |
|
(35.4 |
)% |
| |
Platinum |
|
36,300 |
|
52,800 |
|
(31.3 |
)% |
| |
Rhodium |
|
7,600 |
|
12,200 |
|
(37.7 |
)% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Recycling sales volumes for the first quarter of 2014 decreased by 20.0%, to 93,500 ounces from 116,900 ounces sold in the first quarter of 2013. PGM Recycling revenue totaled $93.5 million for the 2014 first quarter, a 23.5% decrease from $122.3 million in the same period of 2013. The Company's combined average realized price for sales of recycled palladium, platinum and rhodium decreased by 6% to $980 per ounce in the first quarter of 2014 from $1,043 per ounce in the first quarter of 2013.
Combined total cash costs per mined ounce, net of by-product and recycling credits, (a non-GAAP measure) averaged $568 per ounce for the quarter ended March 31, 2014. See - "Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues." The table below illustrates the effect of by-product and recycling credits on the total cash costs per mined ounce net of credits for the combined Montana mining operations.
| |
|
|
|
|
| |
|
|
|
|
Combined Montana Mining Operations
Cash Costs Per Mined Ounce |
|
2014
First
Quarter |
|
2013
First
Quarter |
| Reported Total Cash Costs per Mined Ounce (Net of Credits) * |
|
$ |
568 |
|
$ |
523 |
| |
Add: By-Product Revenue Credit |
|
|
51 |
|
|
59 |
| |
Add: PGM Recycling Income Credit |
|
|
24 |
|
|
47 |
| Total Cash Costs per Mined Ounce (Before Credits) * |
|
$ |
643 |
|
$ |
629 |
* These are non-GAAP measures. For a full description and reconciliation of these and other non-GAAP measures to GAAP accounting measures, see Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues below.
The Company is also utilizing another, broader non-GAAP measure of mining efficiency, All-in Sustaining Cost, in monitoring and managing its performance going forward. This non-GAAP measure starts with total cash costs net of credits and adds back the recycling credit, plus U.S. corporate general and administrative costs (before depletion, depreciation and amortization) and capital outlays directed toward sustaining operations at the Company's operating mines. The resulting measure provides a comparative indication of the all-in resources consumed in any period to sustain the mining operations and produce at current levels.
| |
|
|
|
|
| |
|
|
|
|
Combined Montana Mining Operations
All-In Sustaining Cost Per Mined Ounce |
|
2014
First
Quarter |
|
2013
First
Quarter |
| Reported Total Cash Costs per Mined Ounce (Net of Credits) * |
|
$ |
568 |
|
$ |
523 |
| Add: PGM Recycling Income Credit |
|
|
24 |
|
|
47 |
| Add: Corporate General & Administrative Costs (Before DD&A) |
|
|
59 |
|
| 121 |
| Add: Capital Outlays to Sustain Production at the Montana Operating Mines |
|
|
137 |
|
|
154 |
| All-In Sustaining Cost per Mined Ounce |
|
$ |
788 |
|
$ |
845 |
* These are non-GAAP measures. For a full description and reconciliation of these and other non-GAAP measures to GAAP accounting measures, see Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues below.
Cash Flow and Liquidity
At March 31, 2014, the Company's consolidated available cash balance was $224.6 million, compared to $286.7 million at December 31, 2013. If highly liquid investments are included with available cash, the Company's balance sheet liquidity totaled $474.3 million at March 31, 2014, a decrease from $496.0 million at December 31, 2013. Essentially all of this decline in total balance sheet liquidity was attributable to a $19.9 million increase in accounts receivable at quarter end, reflecting a larger than normal share of sales revenue that was not collected until the first week of April. Of the Company's first quarter consolidated cash balance, $20.4 million is dedicated to the Marathon project (and other related Canadian 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 $628.0 million at March 31, 2014, from $614.8 million at the end of 2013.
Net cash provided by operating activities (which includes changes in working capital) totaled $4.8 million for the quarter ended March 31, 2014, compared to $15.5 million of cash provided for the same period of 2013. As noted above, most of this working capital change reflects the growth in accounts receivable resulting from the mix of customers paying during the first week of April instead of the last week of March. Capital expenditures, adjusted to a cash basis, were $26.1 million for the quarter ended March 31, 2014, compared to $29.4 million in the same period of 2013.
Outstanding debt at March 31, 2014, was $314.3 million, up from $310.7 million at December 31, 2013. The Company's reported debt balance currently includes approximately $278.2 million of 1.75% convertible debentures (net of unamortized discount of $118.6 million) and $2.2 million of 1.875% convertible debentures, $29.6 million of exempt facility revenue bonds, a capital lease of $4.1 million and approximately $0.2 million of financing for a small installment land purchase. The increase in the debt balance during 2014 is attributable to the accretion of the discount on the Company's outstanding bonds.
Other Matters
The Company continues to focus heavily on the efficient allocation of resources, with numerous initiatives underway to arrest and reduce rising costs experienced historically. Examples include evaluating more efficient alternatives for transporting employees and materials within the expanding underground mine infrastructure, improving material procurement methods to ensure the lowest costs are achieved and assessing the economics of the various mining areas to ensure each ounce of production is profitable. During 2014 the Company has initiated a restructuring process that has impacted positions at various levels within the organization. This restructuring was initiated as part of the ongoing effort to ensure a long-term sustainable business. Positions at the Company's Montana operations and at its Marathon and Altar project locations in Canada and Argentina, respectively, were affected. This action included the reduction of 48 salaried personnel and the opportunity for up to an additional 50 voluntary separations for the hourly workforce. As a result, it is estimated that restructuring costs of $4.3 million will be recognized in the second quarter of 2014 for the salaried positions and additional expenses associated with the voluntary separations that have not been finalized at this time.
The Company has scaled back its activities at Altar, its copper-gold prospect in Argentina, while determining how best to realize value from the property going forward. In the meantime, the Company is maintaining a minimum level of activity that permits it to retain its interest in the Altar concessions while limiting spending to essential services. The Company recently reached an agreement with IPEEM, the Argentine entity that granted the Rio Cenicero mineral leases at Altar, to renew the Company's exploration concessions there through August 2015.
The Company owns a 75% interest in the Marathon PGM-copper project and related properties in Canada. Mitsubishi Corporation owns the remaining 25%. As announced during the first quarter of this year, it has become clear that at current PGM and copper prices, the project as presently conceived would not provide an acceptable economic rate of return for shareholders. The Company and its partner are examining various alternatives to enhance project returns. However, at this time there is no assurance that these alternatives will provide the economic improvement to make the project viable. Several of these changes, if implemented, could result in changes to the project scope that are not contemplated in the current economic assessment process. Consequently, the Company agreed with the joint environmental review panel that is addressing the Marathon project to suspend the review process until there is further clarity as to the direction of the project. The Company is maintaining its position at Marathon and looking for opportunities to realize value there in the future. However, until such time as the project is able to demonstrate viable economics, the Company is scaling back spending on the Marathon project.
First Quarter Results - Details
For the first quarter of 2014, the Company's Stillwater Mine produced 89,700 ounces of palladium and platinum, a decrease of 3.1% from the 92,600 ounces produced in the first quarter of 2013. Production at the Company's East Boulder Mine of 41,000 ounces in the first quarter of 2014 reflected an increase of 18.8% over the 34,500 ounces produced in the same quarter of 2013.
Costs of metals sold (before depletion, depreciation and amortization expense) decreased to $168.8 million in the first quarter of 2014 from $192.6 million in the first quarter of 2013. Mine Production costs included in costs of metals sold increased to $78.0 million in the 2014 first quarter from $75.8 million in the 2013 first quarter. PGM Recycling costs, which primarily reflect the cost of acquiring spent catalytic materials for processing, totaled $90.7 million in the first quarter of 2014, down from the $116.9 million reported in the first quarter of 2013.
General and administrative costs were $9.6 million in the first quarter of 2014, down from the $15.2 million incurred during the same period of 2013. The higher G&A costs in the first quarter of 2013 reflected additional legal and advisory fees of approximately $2.8 million in connection with the proxy contest as well as higher compensation benefits of approximately $2.0 million. Exploration expenses were $1.0 million in the first quarter of 2014 compared to $6.0 million in the same period of 2013 as a result of steps taken to scale back exploration at the Altar and Marathon projects. Marketing expenses declined to $0.2 million in the 2014 first quarter compared to $1.7 million in the same quarter of 2013, reflecting the curtailment of palladium jewelry marketing efforts.
Interest expense reported for the first quarter of 2014 and 2013 was $5.9 million and $6.7 million, respectively. This decrease is due in part to the paying down on the outstanding debt associated with the 1.875% convertible early in the first quarter of 2013, offset in part by 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. Interest expense also is reduced by capitalized interest accrued on the Company's ongoing projects.
During the first quarter of 2014, the Company recorded a net foreign currency transaction gain of $4.2 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 first quarter of 2013 was flat with the current year's first quarter at $4.2 million.
2014 First Quarter Results Webcast and Conference Call
Stillwater Mining Company will conduct a conference call to discuss first quarter 2014 results at 12:00 noon Eastern Standard Time on Thursday, May 1, 2014.
Dial-In Numbers:
United States: (877) 531-2988
International: (612) 332-0718
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 324973. In addition, the call transcript will be archived in the Investor Relations section of the Company's website.
About Stillwater Mining Company
Headquartered in Billings, Montana, Stillwater Mining Company is the only U.S. producer of platinum group metals (PGMs) and the largest primary producer of PGMs outside of South Africa and the Russian Federation. PGMs are rare precious metals used in a wide variety of applications, including auto catalysts, fuel cells, hydrogen purification, electronics, jewelry, dentistry, medicine, coinage and other applications. Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of PGMs from a geological formation in southern Montana known as the J-M Reef and from the recycling of spent catalytic converters. The J-M Reef is the only known significant source of PGMs in the United States and the highest-grade PGM resource in the world. The Company also owns the Marathon PGM-copper deposit in Ontario, Canada, and the Altar porphyry copper-gold deposit located in the San Juan province of Argentina. 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 about Stillwater Mining Company can be found at its website: www.stillwatermining.com.
Some statements contained in this report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), and, therefore, involve uncertainties or risks that could cause actual results to differ materially. These statements may contain words such as "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. The forward-looking statements in this report are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments, and other factors that we believe are appropriate under the circumstances. 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 2013 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 Income |
| (Unaudited) |
| |
| |
|
Three Months Ended |
| |
|
March 31, |
| (In thousands, except per share data) |
|
2014 |
|
|
2013 |
|
| REVENUES |
|
|
|
|
|
|
| |
Mine Production |
|
$ |
125,729 |
|
|
$ |
128,314 |
|
| |
PGM Recycling |
|
|
93,535 |
|
|
|
122,334 |
|
| |
Other |
|
|
235 |
|
|
|
- |
|
| |
|
Total revenues |
|
|
219,499 |
|
|
|
250,648 |
|
| COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
| |
Costs of metals sold |
|
|
|
|
|
|
|
|
| |
|
Mine Production |
|
|
77,992 |
|
|
|
75,753 |
|
| |
|
PGM Recycling |
|
|
90,706 |
|
|
|
116,862 |
|
| |
|
Other |
|
|
79 |
|
|
|
- |
|
| |
|
|
Total costs of metals sold (excludes depletion, depreciation and amortization) |
|
|
168,777 |
|
|
|
192,615 |
|
| |
Depletion, depreciation and amortization |
|
|
|
|
|
|
|
|
| |
|
Mine Production |
|
|
14,910 |
|
|
|
15,025 |
|
| |
|
PGM Recycling |
|
|
241 |
|
|
|
258 |
|
| |
|
|
Total depletion, depreciation and amortization |
|
|
15,151 |
|
|
|
15,283 |
|
| |
|
|
|
Total costs of revenues |
|
|
183,928 |
|
|
|
207,898 |
|
| |
Marketing |
|
|
151 |
|
|
|
1,727 |
|
| |
Exploration |
|
|
1,046 |
|
|
|
5,951 |
|
| |
Research and development |
|
|
31 |
|
|
|
63 |
|
| |
General and administrative |
|
|
9,604 |
|
|
|
15,187 |
|
| | Loss on long-term investments |
|
|
- |
|
|
|
562 |
|
| |
(Gain)/loss on disposal of property, plant and equipment |
|
|
(238 |
) |
|
|
36 |
|
| |
|
|
|
Total costs and expenses |
|
|
194,522 |
|
|
|
231,424 |
|
| OPERATING INCOME |
|
|
24,977 |
|
|
|
19,224 |
|
| OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
| |
Other |
|
|
33 |
|
|
|
1,145 |
|
| |
Interest income |
|
|
825 |
|
|
|
1,200 |
|
| |
Interest expense |
|
|
(5,850 |
) |
|
|
(6,652 |
) |
| |
Foreign currency transaction gain, net |
|
|
4,179 |
|
|
|
4,237 |
|
| INCOME BEFORE INCOME TAX PROVISION |
|
|
24,164 |
|
|
|
19,154 |
|
| |
Income tax provision |
|
|
(5,125 |
) |
|
|
(4,850 |
) |
| NET INCOME |
|
$ |
19,039 |
|
|
$ |
14,304 |
|
| Net loss attributable to noncontrolling interest |
|
|
(533 |
) | |
|
(279 |
) |
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
19,572 |
|
|
$ |
14,583 |
|
| Other comprehensive (loss) income, net of tax |
|
|
|
|
|
|
|
|
| |
Net unrealized (losses)/gains on investments available-for-sale |
|
|
(37 |
) |
|
|
74 |
|
| COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
19,535 |
|
|
$ |
14,657 |
|
| Comprehensive loss attributable to noncontrolling interest |
|
|
(533 |
) |
|
|
(279 |
) |
| TOTAL COMPREHENSIVE INCOME |
|
$ |
19,002 |
|
|
$ |
14,378 |
|
| Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
| |
Basic |
|
|
119,608 |
|
|
|
117,433 |
|
| |
Diluted |
|
|
155,754 |
|
|
|
159,695 |
|
| Basic earnings per share attributable to common stockholders |
|
$ |
0.16 |
|
|
$ |
0.12 |
|
| Diluted earnings per share attributable to common stockholders |
|
$ |
0.15 |
|
|
$ |
0.12 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Stillwater Mining Company |
| Consolidated Balance Sheets |
| (Unaudited) |
| |
| (In thousands, except per share data) |
|
March
31, 2014 |
|
December 31, 2013 |
| ASSETS |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
224,624 |
|
|
$ |
286,687 |
|
| Investments, at fair market value |
|
|
249,630 |
|
|
|
209,338 |
|
| Inventories |
|
|
165,336 |
|
|
|
158,650 |
|
| Trade receivables |
|
|
28,871 |
|
|
|
8,988 |
|
| Deferred income taxes |
|
|
18,855 |
|
|
|
21,547 |
|
| Prepaids |
|
|
1,873 |
|
|
|
3,912 |
|
| Other current assets |
|
|
19,993 |
|
|
|
14,757 |
|
| |
|
Total current assets |
|
|
709,182 |
|
|
|
703,879 |
|
| Mineral properties |
|
|
159,252 |
|
|
|
159,252 |
|
| Mine development, net |
|
|
357,676 |
|
|
|
346,346 |
|
| Property, plant and equipment, net |
|
|
121,421 |
|
|
|
124,731 |
|
| Deferred debt issuance costs |
|
|
7,581 |
|
|
|
7,945 |
|
| Other noncurrent assets |
|
|
3,738 |
|
|
|
4,527 |
|
| |
|
Total assets |
|
$ |
1,358,850 |
|
|
$ |
1,346,680 |
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
21,668 |
|
|
$ |
32,088 |
|
| Accrued compensation and benefits |
|
|
29,486 |
|
|
|
30,646 |
|
| Property, production and franchise taxes payable |
|
|
12,867 |
|
|
|
14,495 |
|
| Current portion of long-term debt and capital lease obligations |
|
|
2,062 |
|
|
|
2,035 |
|
| Income taxes payable |
|
|
6,099 |
|
|
|
4,416 |
|
| Other current liabilities |
|
|
8,967 |
|
|
|
5,368 |
|
| |
|
Total current liabilities |
|
|
81,149 |
|
|
|
89,048 |
|
| |
Long-term debt and capital lease obligations | |
|
312,245 |
|
|
|
308,667 |
|
| |
Deferred income taxes |
|
|
70,099 |
|
|
|
79,159 |
|
| |
Accrued workers compensation |
|
|
5,998 |
|
|
|
6,031 |
|
| |
Asset retirement obligation |
|
|
8,835 |
|
|
|
8,654 |
|
| |
Other noncurrent liabilities |
|
|
9,960 |
|
|
|
7,262 |
|
| |
|
Total liabilities |
|
|
488,286 |
|
|
|
498,821 |
|
| 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; 119,726,425 and 119,466,449 shares issued and outstanding |
|
|
1,197 |
|
|
|
1,195 |
|
| Paid-in capital |
|
|
1,079,901 |
|
|
|
1,076,200 |
|
| Accumulated deficit |
|
|
(229,864 |
) |
|
|
(249,436 |
) |
| Accumulated other comprehensive (loss) income |
|
|
(31 |
) |
|
|
6 |
|
| | |
Total stockholders' equity |
|
|
851,203 |
|
|
|
827,965 |
|
| Noncontrolling interest |
|
|
19,361 |
|
|
|
19,894 |
|
| |
|
Total equity |
|
|
870,564 |
|
|
|
847,859 |
|
| |
|
Total liabilities and equity |
|
$ |
1,358,850 |
|
|
$ |
1,346,680 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Stillwater Mining Company |
| Consolidated Statements of Cash Flows |
| (Unaudited) |
| |
| |
|
Three Months Ended |
| |
|
March 31, |
| (In thousands) |
|
2014 |
|
|
2013 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
| Net income |
|
$ |
19,039 |
|
|
$ |
14,304 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
| |
Depletion, depreciation and amortization |
|
|
15,151 |
|
|
|
15,283 |
|
| |
(Gain)/Loss on disposal of property, plant and equipment |
|
|
(238 |
) |
| |
36 |
|
| |
Loss on long-term investments |
|
|
- |
|
|
|
562 |
|
| |
Amortization/accretion on investment premium/discount |
|
|
574 |
|
|
|
885 |
|
| |
Deferred taxes |
|
|
(2,131 |
) |
|
|
1,830 |
|
| |
Foreign currency transaction gain, net |
|
|
(4,179 |
) |
|
|
(4,237 |
) |
| |
Accretion of asset retirement obligation |
|
|
181 |
|
|
|
167 |
|
| |
Amortization of debt issuance costs |
|
|
364 |
|
|
|
557 |
|
| |
Accretion of convertible debenture debt discount |
|
|
4,170 |
|
|
|
3,832 |
|
| |
Share based compensation and other benefits |
|
|
3,180 |
|
|
|
4,246 |
|
| |
Non-cash capitalized interest |
|
|
(679 |
) |
|
|
(422 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| |
Inventories |
|
|
(6,133 |
) |
|
|
(34,017 |
) |
| |
Trade receivables |
|
|
(19,883 |
) |
|
|
(4,350 |
) |
| |
Prepaids |
|
|
2,039 |
|
|
|
665 |
|
| |
Accrued compensation and benefits | |
|
(1,164 |
) |
|
|
(780 |
) |
| |
Accounts payable |
|
|
(7,579 |
) |
|
|
11,567 |
|
| |
Property, production and franchise taxes payable |
|
|
1,070 |
|
|
|
1,612 |
|
| |
Income taxes payable |
|
|
1,683 |
|
|
|
669 |
|
| |
Workers compensation |
|
|
(33 |
) |
|
|
384 |
|
| |
Other operating assets |
|
|
(4,234 |
) |
|
|
1,346 |
|
| |
Other operating liabilities |
|
|
3,567 |
|
|
|
1,363 |
|
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
4,765 |
|
|
|
15,502 |
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
Capital expenditures |
|
|
(26,133 |
) |
|
|
(29,406 |
) |
| |
Proceeds from disposal of property, plant and equipment |
|
|
259 |
|
|
|
19 |
|
| |
Purchases of investments |
|
|
(76,352 |
) |
|
|
(21,996 |
) |
| |
Proceeds from maturities of investments |
|
|
35,419 |
|
|
|
24,025 |
|
| NET CASH USED IN INVESTING ACTIVITIES |
|
|
(66,807 |
) |
|
|
(27,358 |
) |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
Payments on debt and capital lease obligations |
|
|
(557 |
) |
|
|
(164,787 |
) |
| |
Issuance of common stock |
|
|
536 |
|
|
|
56 |
|
| NET CASH USED IN FINANCING ACTIVITIES |
|
|
(21 |
) |
|
|
(164,731 |
) |
| CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
| |
Net decrease |
|
|
(62,063 |
) |
|
|
(176,587 |
) |
| |
Balance at beginning of period |
|
|
286,687 |
|
|
|
379,680 |
|
| BALANCE AT END OF PERIOD |
|
$ |
224,624 |
|
|
$ |
203,093 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Stillwater Mining Company |
| Key Operating Factors |
| (Unaudited) |
| |
| |
|
Three Months Ended March 31, |
| (In thousands, except where noted) |
|
2014 |
|
2013 |
| OPERATING AND COST DATA FOR MINE PRODUCTION |
| |
|
|
| Consolidated: |
|
|
|
|
| Ounces produced |
|
|
|
|
| Palladium |
|
|
101 |
|
|
98 |
| Platinum |
|
|
30 |
|
|
29 |
| Total |
|
|
131 |
|
|
127 |
| Tons milled |
|
|
277 |
|
|
293 |
| Mill head grade (ounce per ton) |
|
|
0.50 |
|
|
0.46 |
| Sub-grade tons milled (1) |
|
|
18 |
|
|
20 |
| Sub-grade tons mill head grade (ounce per ton) |
|
|
0.19 |
|
|
0.16 |
| Total tons milled(1) |
|
|
295 |
|
|
313 |
| Combined mill head grade (ounce per ton) |
|
|
0.48 |
|
|
0.44 |
| Total mill recovery (%) |
|
|
92 |
|
|
92 |
| Total mine concentrate shipped (tons) (3) |
|
|
7,301 |
|
|
7,160 |
| Platinum grade in concentrate (ounce per ton) (3) |
|
|
4.70 |
|
|
4.30 |
| Palladium grade in concentrate (ounce per ton) (3) |
|
|
14.93 |
|
|
14.27 |
| Total cash costs per ounce - net of credits (Non-GAAP) (2) |
|
$ |
568 |
|
$ |
523 |
| Total cash costs per ton milled - net of credits (Non-GAAP) (2) |
|
$ |
251 |
|
$ |
213 |
| Stillwater Mine: |
|
|
|
|
|
|
| Ounces produced |
|
|
|
|
|
|
| Palladium |
|
|
69 |
|
|
71 |
| Platinum |
|
|
21 |
|
|
21 |
| Total |
|
|
90 |
|
|
92 |
| Tons milled |
|
|
170 |
|
|
192 |
| Mill head grade (ounce per ton) |
|
|
0.56 |
|
|
0.51 |
| Sub-grade tons milled (1) |
|
|
8 |
|
|
10 |
| Sub-grade tons mill head grade (ounce per ton) |
|
|
0.28 |
|
|
0.21 |
| Total tons milled (1) |
|
|
178 |
|
|
202 |
| Combined mill head grade (ounce per ton) |
|
|
0.55 |
|
|
0.49 |
| Total mill recovery (%) |
|
|
93 |
|
|
93 |
| Total mine concentrate shipped (tons) (3) |
|
|
4,395 |
|
|
4,308 |
| Platinum grade in concentrate (ounce per ton) (3) |
|
|
5.56 |
|
|
5.22 |
| Palladium grade in concentrate (ounce per ton) (3) |
|
|
17.19 |
|
|
17.09 |
| Total cash costs per ounce - net of credits (Non-GAAP) (2) |
|
$ |
546 |
|
$ |
498 |
| Total cash costs per ton milled - net of credits (Non-GAAP) (2) |
|
$ |
275 |
|
$ |
229 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Stillwater Mining Company |
| Key Operating Factors (Continued) |
| (Unaudited) |
| |
| |
|
Three Months Ended
March 31, |
| (In thousands, except where noted) |
|
2014 |
|
|
2013 |
| OPERATING AND COST DATA FOR MINE PRODUCTION (Continued) |
|
|
|
|
|
| East Boulder Mine: |
|
|
|
|
|
| Ounces produced |
|
|
|
|
|
| Palladium |
|
|
32 |
|
|
|
27 |
| Platinum |
|
|
9 |
|
|
|
8 |
| Total |
|
|
41 |
|
|
|
35 |
| Tons milled |
|
|
107 |
|
|
|
101 |
| Mill head grade (ounce per ton) |
|
|
0.41 |
|
|
|
0.37 |
| Sub-grade tons milled (1) |
|
|
10 |
|
|
|
10 |
| Sub-grade tons mill head grade (ounce per ton) |
|
|
0.11 |
|
|
|
0.11 |
| Total tons milled (1) |
|
|
117 |
|
|
|
111 |
| Combined mill head grade (ounce per ton) |
|
|
0.39 |
|
|
|
0.34 |
| Total mill recovery (%) |
|
|
90 |
|
|
|
90 |
| Total mine concentrate shipped (tons) (3) |
|
|
2,906 |
|
|
|
2,852 |
| Platinum grade in concentrate (ounce per ton) (3) | |
|
3.41 |
|
|
|
2.93 |
| Palladium grade in concentrate (ounce per ton) (3) |
|
|
11.52 |
|
|
|
10.00 |
| Total cash costs per ounce - net of credits (Non-GAAP) (2) |
|
$ |
614 |
|
|
$ |
590 |
| Total cash costs per ton milled - net of credits (Non-GAAP) (2) |
|
$ |
215 |
|
|
$ |
184 |
| |
|
| (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 2013 Annual Report on Form 10-K for further information. |
| |
|
| (2) |
Total cash costs include total operating costs plus royalties, insurance and taxes other than income taxes. 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 cash costs. Cash costs per ton and cash 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 Consolidated Costs of Revenues" and the accompanying discussion for additional detail. |
| |
|
| (3) |
The concentrate tonnage and grade values are inclusive of periodic re-processing of smelter slag and brick PGM bearing materials. |
| |
| |
| |
| Stillwater Mining Company |
| Key Operating Factors (Continued) |
| (Unaudited) |
| |
| |
|
Three Months Ended
March 31, |
| (In thousands, except for average prices) |
|
2014 |
|
2013 |
| SALES AND PRICE DATA |
|
|
|
|
| Ounces sold |
|
|
|
|
| Mine Production: |
|
|
|
|
| |
Palladium (oz.) |
|
|
100 |
|
|
101 |
| |
Platinum (oz.) |
|
|
31 |
|
|
29 |
| |
|
Total |
|
|
131 |
|
|
130 |
| PGM Recycling: (1) |
|
|
|
|
|
|
| |
Palladium (oz.) |
|
|
54 |
|
|
66 |
| |
Platinum (oz.) |
|
|
32 |
|
|
42 |
| |
Rhodium (oz.) |
|
|
8 |
|
|
9 |
| |
|
Total |
|
|
94 |
|
|
117 |
| By-products from Mine Production: (2) |
|
|
|
|
|
|
| |
Rhodium (oz.) |
|
|
1 |
|
|
1 |
| |
Gold (oz.) |
|
|
3 |
|
|
2 |
| |
Silver (oz.) |
|
|
2 |
|
|
2 |
| |
Copper (lb.) |
|
|
176 |
|
|
214 |
| |
Nickel (lb.) |
|
|
365 |
|
|
339 |
| Average realized price per ounce (3) |
|
|
|
|
|
|
| Mine Production: |
|
|
|
|
|
|
| |
Palladium ($/oz.) |
|
$ |
743 |
|
$ |
725 |
| |
Platinum ($/oz.) |
|
$ |
1,431 |
|
$ |
1,628 |
| |
|
Combined ($/oz.)(4) |
|
$ |
907 |
|
$ |
926 |
| PGM Recycling: (1) |
|
|
|
|
|
|
| |
Palladium ($/oz.) |
|
$ |
729 |
|
$ | 674 |
| |
Platinum ($/oz.) |
|
$ |
1,410 |
|
$ |
1,607 |
| |
Rhodium ($/oz.) |
|
$ |
857 |
|
$ |
1,122 |
| |
|
Combined ($/oz.)(4) |
|
$ |
980 |
|
$ |
1,043 |
| By-products from Mine Production: (2) |
|
|
|
|
|
|
| |
Rhodium ($/oz.) |
|
$ |
1,060 |
|
$ |
1,200 |
| |
Gold ($/oz.) |
|
$ |
1,295 |
|
$ |
1,622 |
| |
Silver ($/oz.) |
|
$ |
21 |
|
$ |
30 |
| |
Copper ($/lb.) |
|
$ |
3.05 |
|
$ |
3.39 |
| |
Nickel ($/lb.) |
|
$ |
5.81 |
|
$ |
6.43 |
| Average market price per ounce (3) |
|
|
|
|
|
|
| |
Palladium ($/oz.) |
|
$ |
745 |
|
$ |
739 |
| |
Platinum ($/oz.) |
|
$ |
1,429 |
|
$ |
1,634 |
| |
|
Combined ($/oz.)(4) |
|
$ |
908 |
|
$ |
939 |
| |
|
| (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 Consolidated 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 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, the most comparable measure under GAAP, for each period shown is provided as part of the following tables, and a description of each non-GAAP measure is provided below.
Total Consolidated Costs of Revenues: For the Company as a whole, this measure is equal to total costs of revenues, as reported in the Consolidated Statements of Comprehensive 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 the Stillwater Mine, the East Boulder Mine and other PGM activities are equal in total to total consolidated costs of revenues as reported in the Company's Consolidated Statements of Comprehensive Income.
Total Cash Costs (Non-GAAP): This non-GAAP measure is 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 mine by-products, depreciation and amortization and asset retirement costs, and timing differences resulting from changes in product inventories. The Company uses this measure as a comparative indication of the cash costs related to production and processing operations in any period. It is a measure of extraction efficiency.
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 ultimately 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.
| |
| |
| Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues |
| (Unaudited) |
| |
|
Three Months Ended March 31, |
| (In thousands, except per ounce and per ton data) |
|
2014 |
|
|
2013 |
|
| Consolidated: |
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits (Non-GAAP) |
|
$ |
84,051 |
|
|
$ |
80,023 |
|
| Less: By-product credit |
|
|
(6,681 |
) |
|
|
(7,509 |
) |
| Less: Recycling income credit |
|
|
(3,167 |
) |
|
|
(6,032 |
) |
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
74,203 |
|
|
$ |
66,482 |
|
| |
|
|
|
|
|
|
| |
| Divided by platinum/palladium ounces produced |
|
|
131 |
|
|
|
127 |
|
| |
|
|
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits per ounce Pt/Pd produced (Non-GAAP) |
|
$ |
643 |
|
|
$ |
629 |
|
| Less: By-product credit per ounce Pt/Pd produced |
|
|
(51 |
) |
|
|
(59 |
) |
| Less: Recycling income credit per ounce Pt/Pd produced |
|
|
(24 |
) |
|
|
(47 |
) |
| Total cash cost net of by-product and recycling credits per ounce Pt/Pd produced (Non-GAAP) |
|
$ |
568 |
|
|
$ |
523 |
|
| |
|
|
|
|
|
|
|
|
| Divided by ore tons milled |
|
|
295 |
|
|
|
313 |
|
| |
|
|
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits per ore ton milled (Non-GAAP) |
|
$ |
285 |
|
|
$ |
256 |
|
| Less: By-product credit per ore ton milled |
|
|
(23 |
) |
|
|
(24 |
) |
| Less: Recycling income credit per ore ton milled |
|
|
(11 |
) |
|
|
(19 |
) |
| Total cash cost net of by-product and recycling credits per ore ton milled (Non-GAAP) |
|
$ |
251 |
|
|
$ |
213 |
|
| |
|
|
|
|
| |
|
|
| Reconciliation to consolidated costs of revenues: |
|
|
|
|
|
|
|
|
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
74,203 |
|
|
$ |
66,482 |
|
| Asset retirement costs |
|
|
181 |
|
|
|
167 |
|
| Depletion, depreciation and amortization |
|
|
14,910 |
|
|
|
15,025 |
|
| Depletion, depreciation and amortization (in inventory) |
|
|
553 |
|
|
|
(753 |
) |
| Change in product inventories |
|
|
(6,714 |
) |
|
|
(3,683 |
) |
| Cost of PGM Recycling |
|
|
90,706 |
|
|
|
116,862 |
|
| PGM Recycling - depreciation |
|
|
241 |
|
|
|
258 |
|
| By-product credit |
|
|
6,681 |
|
|
|
7,509 |
|
| Profit from PGM Recycling (before bad debt expense and gain/loss on asset disposals) |
|
|
3,167 |
|
|
|
6,031 |
|
| Total consolidated cost of revenues |
|
$ |
183,928 |
|
|
$ |
207,898 |
|
| Memo: Royalties, Taxes and Other included in Total consolidated cost of revenues |
|
$ |
12,013 |
|
|
$ |
11,692 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Stillwater Mining Company |
| Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues (Continued) |
| (Unaudited) |
| |
| |
|
Three Months Ended March 31, |
| (In thousands, except per ounce and per ton data) |
|
2014 |
|
|
2013 |
|
| Stillwater Mine: |
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits (Non-GAAP) |
|
$ |
55,228 |
|
|
$ |
55,205 |
|
| Less: By-product credit |
|
|
(4,016 |
) |
|
|
(4,665 |
) |
| Less: Recycling income credit |
|
|
(2,170 |
) |
|
|
(4,397 |
) |
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
49,042 |
|
|
$ |
46,143 |
|
| |
|
|
|
|
|
|
|
|
| Divided by platinum/palladium ounces produced |
|
|
90 |
|
|
|
93 |
|
| |
|
|
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits per ounce Pt/Pd produced (Non-GAAP) |
|
$ |
615 |
|
|
$ |
595 |
|
| Less: By-product credit per ounce Pt/Pd produced |
|
|
(45 |
) |
|
|
(50 |
) |
| Less: Recycling income credit per ounce Pt/Pd produced |
|
|
(24 |
) |
|
|
(47 |
) |
| Total cash cost net of by-product and recycling credits per ounce Pt/Pd produced (Non-GAAP) |
|
$ |
546 |
| |
$ |
498 |
|
| |
|
|
|
|
|
|
|
|
| Divided by ore tons milled |
|
|
178 |
|
|
|
202 |
|
| |
|
|
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits per ore ton milled (Non-GAAP) |
|
$ |
310 |
|
|
$ |
274 |
|
| Less: By-product credit per ore ton milled |
|
|
(23 |
) |
|
|
(23 |
) |
| Less: Recycling income credit per ore ton milled |
|
|
(12 |
) |
|
|
(22 |
) |
| Total cash cost net of by-product and recycling credits per ore ton milled (Non-GAAP) |
|
$ |
275 |
|
|
$ |
29 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation to costs of revenues: |
|
|
|
|
|
|
|
|
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
49,042 |
|
|
$ |
46,143 |
|
| Asset retirement costs |
|
|
169 |
|
|
|
155 |
|
| Depletion, depreciation and amortization |
|
|
11,385 |
|
|
|
11,609 |
|
| Depletion, depreciation and amortization (in inventory) |
|
|
372 |
|
|
|
(600 |
) |
| Change in product inventories |
|
|
(4,050 |
) | |
|
(2,114 |
) |
| By-product credit |
|
|
4,016 |
|
|
|
4,665 |
|
| Profit from PGM Recycling (before bad debt expense and gain/loss on asset disposals) |
|
|
2,170 |
|
|
|
4,397 |
|
| Total cost of revenues |
|
$ |
63,104 |
|
|
$ |
64,255 |
|
| Memo: Royalties, Taxes and Other included in Total cost of revenues |
|
$ |
7,933 |
|
|
$ |
8,248 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Stillwater Mining Company |
| Reconciliation of Non-GAAP Measures to Consolidated Costs of Revenues (Continued) |
| (Unaudited) |
| |
| |
|
Three Months Ended March 31, |
| (In thousands, except per ounce and per ton data) |
|
2014 |
|
|
2013 |
|
| East Boulder |
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits (Non-GAAP) |
|
$ |
28,823 |
|
|
$ |
24,817 |
|
| Less: By-product credit |
|
|
(2,665 |
) |
|
|
(2,844 |
) |
| Less: Recycling income credit |
|
|
(997 |
) |
|
|
(1,634 |
) |
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
25,161 |
|
|
$ |
20,339 |
|
| |
|
|
|
|
|
| |
|
| Divided by platinum/palladium ounces produced |
|
|
41 |
|
|
|
34 |
|
| |
|
|
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits per ounce Pt/Pd produced (Non-GAAP) |
|
$ |
703 |
|
|
$ |
719 |
|
| Less: By-product credit per ounce Pt/Pd produced |
|
|
(65 |
) |
|
|
(82 |
) |
| Less: Recycling income credit per ounce Pt/Pd produced |
|
|
(24 |
) |
|
|
(47 |
) |
| Total cash cost net of by-product and recycling credits per ounce Pt/Pd produced (Non-GAAP) |
|
$ |
614 |
|
|
$ |
590 |
|
| |
|
|
|
|
|
|
|
|
| Divided by ore tons milled |
|
|
117 |
|
|
|
111 |
|
| |
|
|
|
|
|
|
|
|
| Total cash cost before by-product and recycling credits per ore ton milled (Non-GAAP) |
|
$ |
247 |
|
|
$ |
225 |
|
| Less: By-product credit per ore ton milled |
|
|
(23 |
) |
|
|
(26 |
) |
| Less: Recycling income credit per ore ton milled |
|
|
(9 |
) |
|
|
(15 |
) |
| Total cash cost net of by-product and recycling credits per ore ton milled (Non-GAAP) |
|
$ |
215 |
|
|
$ |
184 |
|
| |
|
|
|
| |
|
|
|
| Reconciliation to costs of revenues: |
|
|
|
|
|
|
|
|
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
25,161 |
|
|
$ |
20,339 |
|
| Asset retirement costs |
|
|
12 |
|
|
|
12 |
|
| Depletion, depreciation and amortization |
|
|
3,525 |
|
|
|
3,416 |
|
| Depletion, depreciation and amortization (in inventory) |
|
|
181 |
|
|
|
(153 |
) |
| Change in product inventories |
|
|
(2,743 |
) |
|
|
(1,569 |
) |
| By-product credit |
|
|
2,665 |
|
|
|
2,844 |
|
| Profit from PGM Recycling (before bad debt expense and gain/loss on asset disposals) |
|
|
997 |
|
|
|
1,634 |
|
| Total cost of revenues |
|
$ |
29,798 |
|
|
$ |
26,523 |
|
| Memo: Royalties, Taxes and Other included in Total cost of revenues |
|
$ |
4,080 |
|
|
$ |
3,444 |
|
| |
|
|
|
|
|
|
|
|
| PGM Recycling and Other: (1) |
|
|
|
|
|
|
|
|
| Cost of open market purchases |
|
$ |
79 |
|
|
$ |
- |
|
| Cost of PGM Recycling |
|
| 90,706 |
|
|
|
116,862 |
|
| PGM Recycling - depreciation |
|
|
241 |
|
|
|
258 |
|
| Total cost of revenues |
|
$ |
91,026 |
|
|
$ |
117,120 |
|
| |
|
|
|
|
|
|
|
|
| (1) |
PGM Recycling and Other include PGM recycling and metal purchased on the open market for resale. |
| |
|
Stillwater Mining Company
All-In Sustaining Cost a Non-GAAP Measure
(Unaudited)
All-In Sustaining Costs (Non-GAAP): This non-GAAP measure is used as an indicator from period to period of the level of total cash required by the business to maintain and operate the existing mines, including corporate administrative costs and replacement capital. The measure is calculated beginning with total cash costs (another non-GAAP measure, described above), and adding to it the recycling income credit, corporate overhead costs (excluding any depreciation and amortization costs and other non-recurring non-cash costs included in corporate overhead costs), marketing costs, and that portion of total capital expenditures associated with sustaining the current level of mining operations.
When divided by the total recoverable PGM ounces in the respective period, All-In Sustaining Costs per Mined Ounce (non-GAAP) provides an indication of the level of total cash required to maintain and operate the mines per PGM ounce produced in the period. Recoverable PGM ounces from production are an indication of the amount of PGM product extracted through mining in any period. Because the objective of PGM mining activity is to extract PGM material, the all-in cash cost per ounce to produce PGM material, administer the business and sustain the operating capacity of the mines is a useful measure for comparing overall extraction efficiency between periods. This measure is affected by the total level of spending in the period and by the grade and volume of ore produced.
| |
|
|
| |
|
Three Months Ended |
| |
|
March 31, |
| (In thousands, except $/oz.) |
|
2014 |
|
|
2013 |
|
| All-In Sustaining Costs |
|
|
|
|
|
|
| Total cash cost net of by-product and recycling credits (Non-GAAP) |
|
$ |
74,203 |
|
|
$ |
66,482 |
|
| Add: Recycling income credit |
|
|
3,167 |
|
|
|
6,031 |
|
| |
|
$ |
77,370 |
|
|
$ |
72,513 |
|
| |
|
|
|
|
|
|
|
|
| Consolidated Corporate General & Administrative costs |
|
$ |
9,604 |
|
|
$ |
15,187 |
|
| Less: Depreciation and amortization included in Consolidated Corporate General & Administrative costs | |
|
(112 |
) |
|
|
(81 |
) |
| Less: General & Administrative Costs in Foreign Subsidiaries |
|
|
(1,856 |
) |
|
|
(1,512 |
) |
| Add: Marketing costs |
|
|
151 |
|
|
|
1,727 |
|
| |
|
$ |
7,787 |
|
|
$ |
15,321 |
|
| |
|
|
|
|
|
|
|
|
| Total Capitalized Costs accrued |
|
$ |
24,674 |
|
|
$ |
28,447 |
|
| Less: Capital associated with expansion projects |
|
|
(6,799 |
) |
|
|
(8,891 |
) |
| Total Capital incurred to sustain existing operations |
|
$ |
17,875 |
|
|
$ |
19,556 |
|
| |
|
|
|
|
|
|
|
|
| All-In Sustaining Cost (Non-GAAP) |
|
$ |
103,032 |
|
|
$ |
107,390 |
|
| |
|
|
|
|
|
|
|
|
| Mined ounces produced |
|
|
130.7 |
|
|
|
127.1 |
|
| |
|
|
|
|
|
|
|
|
| All-In Sustaining Cost per Mined Ounce ($/oz.) (Non-GAAP) |
|
$ |
788 | |
|
$ |
845 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|