Stillwater Mining Company (NYSE:SWC) today
reported financial results for the year ended December 31, 2014.
Full-Year 2014 Highlights
- Consolidated net income attributable to common stockholders of
$70.3 million or $0.56 per diluted share, after expensing $10.4
million (before-tax) of reorganization costs
- Net growth in cash and cash equivalents plus highly liquid
investments of $65.5 million (before $30.0 million in debt
repayment), ending 2014 with total cash and investments of $531.5
million
- All-in Sustaining Costs (AISC)* averaged $784 per mined ounce
of palladium and platinum, at the low end of the guidance
range
- Mined palladium and platinum production of 517,700 ounces at
mid-point of guidance range
- Processed 469,400 ounces of recycled palladium, platinum and
rhodium
- Retired $30.0 million of State of Montana exempt facility
bonds
- Corporate overhead and exploration expense reduced 35%
year-on-year to $37.8 million
Fourth Quarter 2014 Highlights
- Consolidated net income attributable to common stockholders of
$14.7 million or $0.12 per diluted share, after expensing $4.4
million (before-tax) of reorganization costs
- Increase in cash and cash equivalents plus highly liquid
investments of $22.7 million
- Continued improvement in AISC to $725 per mined ounce of
palladium and platinum
- Mined palladium and platinum production of 137,600 ounces
- Processed 115,900 ounces of recycled palladium, platinum and
rhodium
Commenting on 2014 results, Mick McMullen, the Company's
President and Chief Executive Officer stated, "I am pleased to
report that 2014 was a year of significant progress on several key
fronts for Stillwater Mining Company. Our annual financial results
were solid, and we finished the year with a higher cash balance as
well as strong fourth quarter production and AISC reductions. This
momentum has continued into early 2015 which gives me confidence
that the hard work performed in 2014 is starting to pay off. We are
continuing to advance our objectives of growing profitability,
controlling costs and improving the efficiency of our operations.
Our businesses generated $65.5 million of net cash and liquid
investments during the year, before paying off $30.0 million of
outstanding 8% debt; we ended 2014 with $531.5 million of available
cash and investments on the balance sheet. AISC for the fourth
quarter dropped to $725 per mined ounce, reflecting both effective
cost control and strong mine production. This quarterly result
suggests that we are now within reach of our goal to bring down
AISC into the low $700 per ounce range. In addition, the developed
state of our Montana mines remains strong as we reported a slight
increase in total proven and probable ore reserves at year-end.
"During this past year we have seen considerable price
volatility in the PGM and other commodity markets. We witnessed
significant labor challenges early in 2014 facing the PGM mines in
South Africa, as well as the effect of geopolitical issues in
Russia. This sort of volatility, which is out of our control,
reinforces the importance of addressing costs and efficiency at our
Montana operations. While I am pleased with our accomplishments in
this area to date, we must remain focused on continuing to
strengthen the Company's financial and operating performance. This
is the only way to ensure we have the flexibility to manage the
business through the volatile cycles of fluctuating metals prices,"
concluded Mr. McMullen.
Full-year 2014 consolidated net income attributable to common
stockholders was $70.3 million, or $0.56 per diluted share. This
compares to a 2013 full-year consolidated net loss attributable to
common stockholders of $270.2 million, or $2.28 per share. Fourth
quarter 2014 consolidated net income attributable to common
stockholders was $14.7 million, or $0.12 per diluted share; the
comparable fourth quarter of 2013 consolidated net loss
attributable to common stockholders was $78.0 million, or a loss of
$0.65 per share. The Company recognized reorganization expenses for
the fourth quarter and full-year 2014 of $4.4 million and $10.4
million respectively; most of this represented severance costs
incurred to rationalize our staffing levels. Results for 2013
included before-tax impairment charges of $290.4 million ($226.5
million, after-tax) related to the Altar mineral property in
Argentina in the third quarter and $171.4 million ($123.6 million,
after-tax) related to the Marathon properties in Canada in the
fourth quarter. In addition, 2013 included proxy contest and
accelerated equity based compensation costs of $4.3 million and
$9.1 million, respectively.
2015 Guidance:
Management has provided the following guidance for the full-year
2015 as detailed in the table below.
|
2015 Guidance |
Mined Production (palladium and platinum
ounces) |
520,000 - 535,000 |
Total Cash Costs per Mined Ounce (net of
by-product and recycling credits)* |
$480 - $520 |
All-In Sustaining Costs per Mined
Ounce*(1) |
$730 - $780 |
General and Administrative
(millions) |
$30 - $40 |
Exploration (millions)(2) |
$4 - $6 |
Sustaining Capital Expenditures
(millions) |
$83 - $88 |
Project Capital Expenditures
(millions)(3) |
$42 - $47 |
Total Capital Expenditures (millions)(3) |
$125 - $135 |
|
(1) All-in sustaining costs per
mined ounce guidance for 2015 assumes the exclusion of
approximately $24 per ounce recycling credit and approximately $11
per ounce of costs for foreign activities. |
(2) Exploration includes expenses
for Marathon, Altar and Montana operations. |
(3) Excludes project capitalized
interest and capitalized depreciation. |
The fourth quarter of 2014 was the year's strongest mine
production quarter, with total mine output of 137,600 ounces of
palladium and platinum; however, this was down slightly compared to
mine production of 141,100 ounces in the fourth quarter of 2013.
For the year ended December 31, 2014, the Company's Montana mines
produced a total of 517,700 ounces of palladium and platinum
compared to mine production of 523,900 combined ounces in 2013. The
change in total mined ounces was driven by an increase in
production at the East Boulder Mine, offset by the planned deferral
of production at some of the less profitable mining stopes at the
Stillwater Mine until new infrastructure is in place to improve the
profitability of mining in those areas.
2014 Mine Production By Quarter:
(Produced ounces) |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Year 2014 |
Palladium |
68,900 |
64,700 |
59,400 |
69,500 |
262,500 |
Platinum |
20,800 |
19,300 |
17,500 |
20,700 |
78,300 |
Stillwater Mine |
89,700 |
84,000 |
76,900 |
90,200 |
340,800 |
|
|
|
|
|
|
Palladium |
31,900 |
33,000 |
35,800 |
37,000 |
137,700 |
Platinum |
9,100 |
9,400 |
10,300 |
10,400 |
39,200 |
East Boulder Mine |
41,000 |
42,400 |
46,100 |
47,400 |
176,900 |
|
|
|
|
|
|
Palladium |
100,800 |
97,700 |
95,200 |
106,500 |
400,200 |
Platinum |
29,900 |
28,700 |
27,800 |
31,100 |
117,500 |
Total |
130,700 |
126,400 |
123,000 |
137,600 |
517,700 |
Revenue from the Company's Mine Production segment for the
full-year 2014 (including proceeds from the sale of by-products)
totaled $536.0 million, an 11.9% increase from $478.9 million
reported for 2013. The combined average realized price for the
sales of mined palladium and platinum was $934 per ounce for 2014,
an increase from $887 per ounce realized for 2013. The total
quantity of mined palladium and platinum sold in 2014 was 542,300
ounces compared to 509,200 ounces sold in the same period of 2013.
The difference between ounces sold and produced during 2014 was
primarily the result of processing and sales of accumulated metal
inventory.
For the fourth quarter of 2014, the Company reported Mine
Production segment revenue (including proceeds from the sale of
by-products) of $126.0 million, a 9.9% increase from $114.7 million
in the same period of 2013. The 2014 combined average realized
price for the sales of mined palladium and platinum increased for
the fourth quarter to $882 per ounce, compared to $869 per ounce
realized in the fourth quarter of 2013. The total quantity of mined
palladium and platinum sold in the fourth quarter of 2014 was
134,600 ounces compared to 125,000 ounces sold in the same period
of 2013.
For the year ended December 31, 2014, the Company processed
recycling material containing 469,400 ounces of palladium, platinum
and rhodium through its facilities. This represents a 24% decrease
from the record 616,700 ounces processed during 2013. Recycling
material processed during the fourth quarter of 2014 contained
115,900 ounces of palladium, platinum and rhodium, a decrease of
3.4% from the total of 120,000 ounces processed during the fourth
quarter of 2013.
2014 Recycling Activity By Quarter:
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Year 2014 |
Average tons of catalyst fed per day |
17.0 |
20.4 |
18.7 |
18.4 |
18.6 |
PGM ounces fed |
101,500 |
134,300 |
117,700 |
115,900 |
469,400 |
PGM ounces sold |
93,600 |
101,400 |
101,400 |
88,000 |
384,400 |
PGM tolled ounces returned |
15,300 |
15,700 |
22,900 |
18,900 |
72,800 |
PGM Recycling revenue totaled $401.7 million for full-year 2014,
compared to a $560.6 million reported for 2013. For 2014, the
Company's combined average realized sales price for palladium,
platinum and rhodium was $1,031, flat with the prior year.
Recycling sales volumes for 2014 totaled 384,400 a decrease from
541,800 reported for 2013. (The third quarter of 2013 included
incremental revenue of $16.4 million on the sale of approximately
12,000 ounces of PGMs recovered internally from reprocessed smelter
furnace brick at low cost.)
PGM Recycling revenue totaled $95.9 million for the 2014 fourth
quarter, a decrease from $127.7 million in the same period of 2013.
The Company's combined average realized price for sales of recycled
palladium, platinum and rhodium increased to $1,076 per ounce in
the fourth quarter of 2014 from $985 per ounce in the fourth
quarter of 2013. Recycling sales volumes for the fourth quarter of
2014 decreased to 88,000 ounces from 129,200 ounces sold in the
fourth quarter of 2013.
All-In Sustaining Costs Per Mined Ounce
All-in Sustaining Costs per Mined Ounce (AISC) totaled $725 for
the fourth quarter of 2014, a decrease from $748 recorded for the
same period of 2013; cost per ounce in both quarters benefited from
strong mine production. For the full-year 2014 the Company reported
average AISC of $784 per ounce, a decrease from $813 recorded for
2013.
Combined Montana Mining
Operations All-In Sustaining Costs Per Mined Ounce |
2014 Fourth
Quarter |
2013 Fourth Quarter |
Year 2014 |
Year 2013 |
Reported Total Cash Costs per Mined Ounce
(Net of Credits)* |
$483 |
$500 |
$538 |
$496 |
PGM Recycling Income Credit |
18 |
25 |
23 |
68 |
Corporate General & Administrative
Costs (Before DD&A) |
47 |
41 |
60 |
81 |
Capital Outlay to Sustain Production at
the Montana Operating Mines |
177 |
182 |
163 |
168 |
All-In Sustaining Costs per Mined Ounce* |
$725 |
$748 |
$784 |
$813 |
Cash Costs Per Mined Ounce
Combined total cash costs per mined ounce, net of by-product and
recycling credits, (a non-GAAP financial measure) averaged $483 per
ounce for the fourth quarter of 2014, compared to $500 per ounce
for the fourth quarter of 2013. For the full-year 2014, combined
total cash costs per mined ounce, net of by-product and recycling
credits, totaled $538 compared to $496 for 2013. 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 Fourth
Quarter |
2013 Fourth Quarter |
Year 2014 |
Year 2013 |
Reported Total Cash Costs per Mined Ounce
(Net of Credits)* |
$483 |
$500 |
$538 |
$496 |
By-Product Revenue Credit |
53 |
43 |
57 |
52 |
PGM Recycling Income Credit |
18 |
25 |
23 |
68 |
Total Cash Costs per Mined Ounce (Before
Credits)* |
$554 |
$568 |
$618 |
$616 |
Cash Flow and Liquidity
At December 31, 2014, the Company's consolidated available cash
balance was $280.3 million, compared to $286.7 million at
December 31, 2013. Including highly liquid investments with
available cash, the Company's balance sheet liquidity totaled
$531.5 million at December 31, 2014, an increase from $496.0
million at December 31, 2013; this increase in available
liquidity came even after redeeming $30.0 million of 8.0% Exempt
Facility Revenue Bonds in early July 2014. Net working capital
increased to $619.4 million at December 31, 2014, from $614.8
million at the end of 2013.
Net cash provided by operating activities (which includes
changes in working capital) totaled $187.6 million for the year
ended December 31, 2014, compared to $149.4 million of cash
provided for the same period of 2013. Cash flow from operations
benefited from lower corporate overhead and higher metal prices
during 2014. Capital expenditures, adjusted to a cash basis, were
$119.7 million for the year ended December 31, 2014, compared to
$129.0 million in the same period of 2013.
Outstanding balance sheet debt reported at December 31, 2014,
was approximately $296.2 million, a decrease from $310.7 million at
December 31, 2013. The Company's reported debt balance at
December 31, 2014, included approximately $291.1 million of 1.75%
convertible debentures (net of unamortized discount of
approximately $105.6 million) and $2.2 million of 1.875%
convertible debentures and approximately $2.9 million for a capital
lease and financing for a small installment land purchase. The
decrease in the debt balance is attributable to the retirement of
the $30.0 million, 8.0% Exempt Facility Revenue Bonds offset in
part by the accretion of the discount on the Company's outstanding
1.75% convertible debentures.
Fourth Quarter Results -
Details
For the fourth quarter of 2014, the Company's Stillwater Mine
produced 90,200 ounces of palladium and platinum, a decrease of
8.6% from the 98,700 ounces produced in the fourth quarter of 2013.
Production at the Company's East Boulder Mine of 47,400 ounces in
the fourth quarter of 2014 reflected an increase of 11.8% over the
42,400 ounces produced in the same quarter of 2013.
Total costs of metals sold (before depletion, depreciation and
amortization, and corporate overhead expenses) decreased 13.8% to
$173.6 million in the fourth quarter of 2014 from $201.4 million in
the fourth quarter of 2013. Mine Production costs included in costs
of metals sold increased to $79.9 million in the 2014 fourth
quarter from $76.9 million in the 2013 fourth quarter.
PGM Recycling costs totaled $93.7 million in the fourth quarter
of 2014, down from the $124.5 million reported in the fourth
quarter of 2013. This decrease was due to significantly lower
recycling volumes processed and sold and the corresponding decrease
in the total cost of acquiring recycling material for
processing.
General and administrative costs were $7.1 million in the fourth
quarter of 2014 compared to $6.3 million incurred during the same
period of 2013. Reorganization costs of $4.4 million were
recognized during the fourth quarter of 2014.
2014 Full-Year Results - Details
During the year ended December 31, 2014, the Company's
Stillwater Mine produced 340,800 ounces of palladium and platinum,
a decrease of 6.9% from the 366,100 ounces produced in the same
period of 2013. Production at the Company's East Boulder Mine of
176,900 ounces for the year ended December 31, 2014 reflected a
12.1% increase from the 157,800 ounces produced in the same period
of 2013.
Total costs of metals sold (before depletion, depreciation and
amortization, and corporate overhead expenses) decreased to $729.5
million for the year ended December 31, 2014, from $841.3 million
in the same period of 2013. Mine Production costs included in costs
of metals sold increased to $332.6 million for the year ended
December 31, 2014, from $314.0 million in the same period of
2013.
PGM Recycling costs, totaled $391.5 million for the year ended
December 31, 2014, down from the $527.4 million reported in the
same period of 2013. The decrease was due to lower volumes sold and
the related reduction in total cost to acquire materials for
processing.
General and administrative costs were $35.1 million for the year
ended December 31, 2014, a decrease from the $46.6 million incurred
during the same period of 2013. The decrease for 2014 is due
primarily to reductions in marketing expenditures, reflecting the
curtailment of marketing palladium for jewelry ($0.4 million in
2014 compared to $4.4 million in 2013) and reduced personnel costs
due to reorganization efforts. Reorganization costs of $10.4
million were recognized during 2014. Proxy contest expenses of $4.3
million, and non-cash accelerated equity-based compensation of $9.1
million were recognized in 2013.
The Company recognized $2.8 million in total exploration
expenses related to its mineral properties in Canada and South
America for the year ended December 31, 2014, compared to $11.2
million for the same period of 2013.
* These are non-GAAP financial measures. For a full description
and reconciliation of these and other non-GAAP financial measures
to GAAP financial measures, see Reconciliation of Non-GAAP
Financial Measures to Consolidated Costs of Revenues below.
2014 Year End Results Webcast and Conference Call
Stillwater Mining Company will conduct a conference call to
discuss fourth quarter and full year 2014 results at 12:00 noon
Eastern Standard Time on Friday, February 20, 2015.
Dial-In Numbers: |
United States: |
(877) 407-8037 |
|
International: |
(201) 689-8037 |
A simultaneous webcast and presentation to accompany the
conference call will be available through the Investor Relations
section of the Company's website at www.stillwatermining.com.
A telephone replay of the call will be available for one week
following the event. The replay dial-in numbers are (877) 660-6853
(U.S.) and (201) 612-7415 (International), access code 13600641. 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. miner 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 automobile catalysts, fuel cells, hydrogen
purification, electronics, jewelry, dentistry, medicine and
coinage. The Company is engaged in the development, extraction and
processing of PGMs from a geological formation in south-central
Montana known as the J-M Reef. The J-M Reef is the only known
significant source of PGMs in the U.S. and the highest-grade PGM
resource known in the world. The Company also recycles PGMs from
spent catalytic converters and other industrial sources. The
Company 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. Information about the
Company can be found at its website: www.stillwatermining.com.
Cautionary Note Concerning Forward-Looking
Statements
Some statements contained in this press 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 from management's expectations. These statements
may contain words such as "believes," "anticipates," "plans,"
"expects," "intends," "estimates," "predicts," "should," "will,"
"may" or similar expressions. Such statements also include, but are
not limited to, comments regarding growing profitability;
controlling costs; improving the efficiency of our operations;
strengthening our financial and operating performance; managing our
business through volatile metal prices; estimated 2015 production,
cash costs per mined ounce, AISC, general and administrative costs,
exploration expense, and capital expenditures; and the usefulness
of non-GAAP financial measures. The forward-looking statements in
this release 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
Annual Report on Form 10-K. 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 forward-looking
statements herein speak only as of the date of this release. The
Company disclaims any obligation to update forward-looking
statements.
Stillwater Mining
Company |
|
|
|
|
Consolidated Statements of
Comprehensive Income (Loss) |
|
|
|
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except per share
data) |
2014 |
2013 |
2014 |
2013 |
REVENUES |
|
|
|
|
Mine Production |
$126,043 |
$114,669 |
$536,010 |
$478,918 |
PGM Recycling |
95,924 |
127,691 |
401,684 |
560,588 |
Other |
200 |
— |
5,925 |
— |
Total revenues |
222,167 |
242,360 |
943,619 |
1,039,506 |
COSTS AND EXPENSES |
|
|
|
|
Costs of metals sold |
|
|
|
|
Mine Production |
79,902 |
76,921 |
332,632 |
313,963 |
PGM Recycling |
93,708 |
124,525 |
391,481 |
527,384 |
Other |
— |
— |
5,357 |
— |
Total costs of metals sold (excludes
depletion, depreciation and amortization) |
173,610 |
201,446 |
729,470 |
841,347 |
Depletion, depreciation and
amortization |
|
|
|
|
Mine Production |
17,014 |
14,377 |
66,387 |
58,201 |
PGM Recycling |
258 |
312 |
1,019 |
1,116 |
Total depletion, depreciation and
amortization |
17,272 |
14,689 |
67,406 |
59,317 |
Total costs of revenues |
190,882 |
216,135 |
796,876 |
900,664 |
Losses on trade receivable and inventory
purchases |
— |
632 |
— |
632 |
(Gain) loss on disposal of property,
plant and equipment |
(75) |
(38) |
(337) |
68 |
Loss on long-term investments |
66 |
128 |
125 |
1,894 |
Impairment of property, plant and
equipment and non-producing mineral properties |
550 |
171,338 |
550 |
461,755 |
Exploration |
389 |
922 |
2,768 |
11,169 |
Proxy contest |
— |
— |
— |
4,307 |
Accelerated equity based compensation for
change-in-control |
— |
— |
— |
9,063 |
Reorganization |
4,357 |
— |
10,402 |
— |
General and administrative |
7,050 |
6,342 |
35,067 |
46,577 |
Total costs and expenses |
203,219 |
395,459 |
845,451 |
1,436,129 |
OPERATING INCOME (LOSS) |
18,948 |
(153,099) |
98,168 |
(396,623) |
OTHER INCOME (EXPENSE) |
|
|
|
|
Other |
55 |
3 |
904 |
1,173 |
Interest income |
801 |
965 |
3,551 |
4,481 |
Interest expense |
(4,982) |
(5,311) |
(22,719) |
(22,957) |
Foreign currency transaction (loss) gain,
net |
(122) |
2,521 |
5,237 |
18,200 |
INCOME (LOSS) BEFORE INCOME TAX
(PROVISION) BENEFIT |
14,700 |
(154,921) |
85,141 |
(395,726) |
Income tax (provision) benefit |
(349) |
46,185 |
(16,258) |
93,653 |
NET INCOME (LOSS) |
$14,351 |
$(108,736) |
$68,883 |
$(302,073) |
Net loss attributable to noncontrolling
interest |
(331) |
(30,750) |
(1,414) |
(31,867) |
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS |
$14,682 |
$(77,986) |
$70,297 |
$(270,206) |
Other comprehensive income, net of
tax |
|
|
|
|
Net unrealized gains (losses) on
investments available-for-sale |
53 |
(183) |
11 |
105 |
COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$14,735 |
$(78,169) |
$70,308 |
$(270,101) |
Comprehensive loss attributable to
noncontrolling interest |
(331) |
(30,750) |
(1,414) |
(31,867) |
TOTAL COMPREHENSIVE INCOME
(LOSS) |
$14,404 |
$(108,919) |
$68,894 |
$(301,968) |
Weighted average common shares
outstanding |
|
|
|
|
Basic |
120,262 |
119,381 |
119,953 |
118,607 |
Diluted |
156,564 |
119,381 |
156,233 |
118,607 |
Basic earnings (loss) per share
attributable to common stockholders |
$0.12 |
$(0.65) |
$0.59 |
$(2.28) |
Diluted earnings (loss) per share
attributable to common stockholders |
$0.12 |
$(0.65) |
$0.56 |
$(2.28) |
|
|
|
|
|
Stillwater Mining
Company |
|
|
Consolidated Balance
Sheets |
|
|
(Audited) |
|
|
|
|
|
|
December 31, |
December 31, |
(In thousands, except per share
data) |
2014 |
2013 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
$280,286 |
$286,687 |
Investments, at fair market value |
251,254 |
209,338 |
Inventories |
130,307 |
158,650 |
Trade receivables |
1,277 |
8,988 |
Deferred income taxes |
21,055 |
21,547 |
Prepaids |
2,546 |
3,912 |
Other current assets |
14,671 |
14,757 |
Total current assets |
701,396 |
703,879 |
Mineral properties |
159,252 |
159,252 |
Mine development, net |
409,754 |
346,346 |
Property, plant and equipment, net |
118,881 |
124,731 |
Deferred debt issuance costs |
6,032 |
7,945 |
Other noncurrent assets |
4,012 |
4,527 |
Total assets |
$1,399,327 |
$1,346,680 |
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$26,806 |
$32,088 |
Accrued compensation and benefits |
29,973 |
30,646 |
Property, production and franchise taxes
payable |
15,828 |
14,495 |
Current portion of long-term debt and capital
lease obligations |
2,144 |
2,035 |
Income taxes payable |
— |
4,416 |
Other current liabilities |
7,288 |
5,368 |
Total current liabilities |
82,039 |
89,048 |
Long-term debt and capital lease
obligations |
294,023 |
308,667 |
Deferred income taxes |
68,896 |
79,159 |
Accrued workers compensation |
6,060 |
6,031 |
Asset retirement obligation |
9,401 |
8,654 |
Other noncurrent liabilities |
7,200 |
7,262 |
Total liabilities |
467,619 |
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; 120,381,746 and 119,466,449 shares issued and
outstanding |
1,204 |
1,195 |
Paid-in capital |
1,091,146 |
1,076,200 |
Accumulated deficit |
(179,139) |
(249,436) |
Accumulated other comprehensive income |
17 |
6 |
Total stockholders' equity |
913,228 |
827,965 |
Noncontrolling interest |
18,480 |
19,894 |
Total equity |
931,708 |
847,859 |
Total liabilities and equity |
$1,399,327 |
$1,346,680 |
|
|
|
Stillwater Mining
Company |
|
|
Consolidated Statements of Cash
Flows |
|
|
(Audited) |
|
|
|
|
|
|
Twelve Months
Ended |
|
December
31, |
(In thousands) |
2014 |
2013 |
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
Net income (loss) |
$68,883 |
$(302,073) |
Adjustments to reconcile net income (loss) to
net cash provided by operating activities: |
|
|
Depletion, depreciation and
amortization |
67,406 |
59,317 |
Losses on trade receivable and inventory
purchases |
— |
632 |
(Gain) Loss on disposal of property,
plant and equipment |
(337) |
68 |
Impairment of property, plant and
equipment and non-producing mineral properties |
550 |
461,755 |
Loss on long-term investments |
125 |
1,894 |
Amortization/accretion of investment
premium/discount |
1,810 |
3,079 |
Deferred taxes |
(4,590) |
(108,543) |
Foreign currency transaction gain,
net |
(5,237) |
(18,200) |
Accretion of asset retirement
obligation |
747 |
689 |
Amortization of deferred debt issuance
costs |
2,265 |
1,664 |
Accretion of convertible debenture debt
discount |
17,156 |
15,783 |
Accelerated equity based compensation for
change-in-control |
— |
9,063 |
Share based compensation and other
benefits |
14,001 |
15,242 |
Non-cash capitalized interest |
(3,278) |
(2,878) |
Excess tax benefit from stock-based
compensation |
(46) |
(2,756) |
Changes in operating assets and
liabilities: |
|
|
Inventories |
27,062 |
(4,252) |
Trade receivables |
7,711 |
333 |
Prepaids |
1,366 |
1,108 |
Accounts payable |
(7,952) |
3,187 |
Accrued compensation and benefits |
(673) |
(723) |
Property, production and franchise taxes
payable |
1,271 |
2,006 |
Income taxes payable |
(4,416) |
4,416 |
Accrued workers compensation |
29 |
216 |
Other operating assets |
1,206 |
6,790 |
Other operating liabilities |
2,493 |
1,616 |
NET CASH PROVIDED BY OPERATING
ACTIVITIES |
187,552 |
149,433 |
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
Capital expenditures |
(119,682) |
(129,029) |
Proceeds from disposal of property, plant
and equipment |
465 |
218 |
Purchases of investments |
(229,462) |
(151,567) |
Proceeds from maturities of
investments |
185,722 |
201,255 |
NET CASH USED IN INVESTING
ACTIVITIES |
(162,957) |
(79,123) |
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
Excess tax benefit from stock-based
compensation |
46 |
2,756 |
Payments on debt and capital lease
obligations |
(32,035) |
(166,187) |
Proceeds from issuance of common
stock |
993 |
128 |
NET CASH USED IN FINANCING
ACTIVITIES |
(30,996) |
(163,303) |
CASH AND CASH
EQUIVALENTS |
|
|
Net decrease |
(6,401) |
(92,993) |
Balance at beginning of period |
286,687 |
379,680 |
BALANCE AT END OF
PERIOD |
$280,286 |
$286,687 |
|
|
|
Stillwater Mining
Company |
|
|
|
|
Key Operating Factors |
|
|
|
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
Three
Months Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except where
noted) |
2014 |
2013 |
2014 |
2013 |
OPERATING AND COST DATA FOR MINE
PRODUCTION |
|
|
|
|
Consolidated: |
|
|
|
|
Ounces produced |
|
|
|
|
Palladium |
106 |
109 |
400 |
404 |
Platinum |
32 |
32 |
118 |
120 |
Total |
138 |
141 |
518 |
524 |
Tons milled |
329 |
299 |
1,174 |
1,201 |
Mill head grade (ounce per ton) |
0.45 |
0.51 |
0.47 |
0.47 |
Sub-grade tons milled (1) |
30 |
17 |
91 |
73 |
Sub-grade tons mill head grade (ounce per
ton) |
0.16 |
0.17 |
0.16 |
0.17 |
Total tons milled(1) |
359 |
316 |
1,265 |
1,274 |
Combined mill head grade (ounce per ton) |
0.43 |
0.49 |
0.45 |
0.45 |
Total mill recovery (%) |
92 |
92 |
92 |
92 |
Total mine concentrate shipped (tons)
(3) |
8,149 |
7,308 |
29,350 |
28,669 |
Platinum grade in concentrate (ounce per ton)
(3) |
3.97 |
4.65 |
4.31 |
4.50 |
Palladium grade in concentrate (ounce per
ton) (3) |
13.43 |
15.28 |
14.27 |
14.59 |
Total cash costs per ounce - net of credits
(Non-GAAP) (2) |
$483 |
$500 |
$538 |
$496 |
Total cash costs per ton milled - net of
credits (Non-GAAP) (2) |
$186 |
$223 |
$220 |
$204 |
Stillwater Mine: |
|
|
|
|
Ounces produced |
|
|
|
|
Palladium |
70 |
76 |
263 |
282 |
Platinum |
20 |
23 |
78 |
84 |
Total |
90 |
99 |
341 |
366 |
Tons milled |
197 |
186 |
703 |
765 |
Mill head grade (ounce per ton) |
0.49 |
0.57 |
0.51 |
0.51 |
Sub-grade tons milled (1) |
18 |
7 |
46 |
36 |
Sub-grade tons mill head grade (ounce per
ton) |
0.20 |
0.26 |
0.21 |
0.23 |
Total tons milled (1) |
215 |
193 |
749 |
801 |
Combined mill head grade (ounce per ton) |
0.46 |
0.55 |
0.50 |
0.50 |
Total mill recovery (%) |
92 |
93 |
93 |
92 |
Total mine concentrate shipped (tons)
(3) |
4,625 |
4,253 |
16,463 |
16,975 |
Platinum grade in concentrate (ounce per ton)
(3) |
4.67 |
5.73 |
5.19 |
5.22 |
Palladium grade in concentrate (ounce per
ton) (3) |
15.53 |
18.50 |
16.83 |
17.12 |
Total cash costs per ounce - net of credits
(Non-GAAP) (2) |
$486 |
$469 |
$533 |
$484 |
Total cash costs per ton milled - net of
credits (Non-GAAP) (2) |
$204 |
$240 |
$243 |
$221 |
|
|
|
|
|
Stillwater Mining
Company |
|
|
|
|
Key Operating Factors
(Continued) |
|
|
|
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
Three
Months Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except where noted) |
2014 |
2013 |
2014 |
2013 |
OPERATING AND COST DATA
FOR MINE PRODUCTION (Continued) |
|
|
|
East Boulder Mine: |
|
|
|
|
Ounces produced |
|
|
|
|
Palladium |
36 |
33 |
137 |
122 |
Platinum |
12 |
9 |
40 |
36 |
Total |
48 |
42 |
177 |
158 |
Tons milled |
132 |
114 |
471 |
436 |
Mill head grade (ounce per ton) |
0.39 |
0.41 |
0.41 |
0.40 |
Sub-grade tons milled (1) |
12 |
9 |
45 |
37 |
Sub-grade tons mill head grade (ounce per
ton) |
0.10 |
0.10 |
0.10 |
0.10 |
Total tons milled (1) |
144 |
123 |
516 |
473 |
Combined mill head grade (ounce per ton) |
0.37 |
0.39 |
0.38 |
0.37 |
Total mill recovery (%) |
90 |
90 |
90 |
90 |
Total mine concentrate shipped (tons)
(3) |
3,524 |
3,055 |
12,887 |
11,694 |
Platinum grade in concentrate (ounce per ton)
(3) |
3.05 |
3.16 |
3.19 |
3.45 |
Palladium grade in concentrate (ounce per
ton) (3) |
10.68 |
10.80 |
11.00 |
10.93 |
Total cash costs per ounce - net of credits
(Non-GAAP) (2) |
$477 |
$573 |
$547 |
$525 |
Total cash costs per ton milled - net of
credits (Non-GAAP) (2) |
$158 |
$198 |
$187 |
$175 |
|
(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 forthcoming 2014 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, reorganization 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
financial measure 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).
See "Reconciliation of Non-GAAP Financial 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 internal furnace brick PGM bearing materials. |
|
|
|
|
|
Stillwater Mining
Company |
|
|
|
|
Key Operating Factors
(Continued) |
|
|
|
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
Three
Months Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except for
average prices) |
2014 |
2013 |
2014 |
2013 |
SALES AND PRICE DATA |
|
|
|
|
Ounces sold |
|
|
|
|
Mine Production: |
|
|
|
|
Palladium (oz.) |
106 |
98 |
421 |
398 |
Platinum (oz.) |
28 |
27 |
121 |
111 |
Total |
134 |
125 |
542 |
509 |
PGM Recycling: (1) |
|
|
|
|
Palladium (oz.) |
50 |
76 |
221 |
306 |
Platinum (oz.) |
31 |
42 |
134 |
192 |
Rhodium (oz.) |
7 |
11 |
29 |
44 |
Total |
88 |
129 |
384 |
542 |
Other: (5) |
|
|
|
|
Palladium (oz.) |
— |
— |
6 |
— |
By-products from Mine Production: (2) |
|
|
|
|
Rhodium (oz.) |
1 |
1 |
4 |
3 |
Gold (oz.) |
2 |
2 |
10 |
9 |
Silver (oz.) |
1 |
1 |
6 |
5 |
Copper (lb.) |
220 |
258 |
875 |
903 |
Nickel (lb.) |
388 |
310 |
1,454 |
1,350 |
Average realized price per ounce
(3) |
|
|
|
|
Mine Production: |
|
|
|
|
Palladium ($/oz.) |
$789 |
$723 |
$804 |
$721 |
Platinum ($/oz.) |
$1,227 |
$1,395 |
$1,386 |
$1,481 |
Combined ($/oz.)(4) |
$882 |
$869 |
$934 |
$887 |
PGM Recycling: (1) |
|
|
|
|
Palladium ($/oz.) |
$850 |
$723 |
$786 |
$713 |
Platinum ($/oz.) |
$1,420 |
$1,449 |
$1,428 |
$1,526 |
Rhodium ($/oz.) |
$1,191 |
$980 |
$1,059 |
$1,091 |
Combined ($/oz.)(4) |
$1,076 |
$985 |
$1,031 |
$1,031 |
Other: (5) |
|
|
|
|
Palladium ($/oz.) |
$— |
$— |
$882 |
$— |
By-products from Mine Production: (2) |
|
|
|
|
Rhodium ($/oz.) |
$1,203 |
$931 |
$1,177 |
$1,047 |
Gold ($/oz.) |
$1,198 |
$1,271 |
$1,261 |
$1,394 |
Silver ($/oz.) |
$16 |
$20 |
$19 |
$24 |
Copper ($/lb.) |
$2.80 |
$3.08 |
$2.92 |
$3.14 |
Nickel ($/lb.) |
$5.49 |
$5.19 |
$6.47 |
$5.47 |
Average market price per ounce
(3) |
|
|
|
|
Palladium ($/oz.) |
$787 |
$726 |
$803 |
$725 |
Platinum ($/oz.) |
$1,230 |
$1,400 |
$1,386 |
$1,487 |
Combined ($/oz.)(4) |
$881 |
$873 |
$933 |
$891 |
|
|
|
|
|
(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 price in the London market 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. |
(5) Ounces sold and average
realized price per ounce from Other relate to ounces acquired
periodically in the open market and simultaneously resold to third
parties. |
Reconciliation of Non-GAAP Financial Measures to
Consolidated Costs of Revenues
The Company utilizes certain non-GAAP financial 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 financial measure
included in the Company's Consolidated Statements of Comprehensive
Income (Loss)) appropriately reflects the expense associated with
the materials sold in any period, the Company has developed certain
non-GAAP financial 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 financial
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 financial measures are not
standardized across the mining industry and in most cases will not
be comparable to similar measures that may be provided by other
companies. These non-GAAP financial 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 directly comparable GAAP financial measure, for
each period shown is provided as part of the following tables, and
a description of each non-GAAP financial 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 (Loss). For the Stillwater Mine, the East
Boulder Mine, and PGM Recycling and Other, 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 PGM Recycling and Other are equal in total to
total consolidated costs of revenues as reported in the Company's
Consolidated Statements of Comprehensive Income (Loss).
Total Cash Costs (Non-GAAP): This non-GAAP
financial 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 mine 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 Costs 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,
mine 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 mine production tons are measured
precisely. Consequently, Total Cash Costs 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 Costs 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 Costs 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.
Stillwater Mining
Company |
Reconciliation of
Non-GAAP Financial Measures to Consolidated Costs of
Revenues |
(Audited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except per ounce
and per ton data) |
2014 |
2013 |
2014 |
2013 |
Consolidated: |
|
|
|
|
Total cash costs before by-product and
recycling credits (Non-GAAP) |
$76,385 |
$80,099 |
$319,676 |
$322,564 |
By-product credit |
(7,354) |
(5,982) |
(29,592) |
(27,085) |
Recycling income credit |
(2,494) |
(3,590) |
(11,702) |
(35,463) |
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$66,537 |
$70,527 |
$278,382 |
$260,016 |
|
|
|
|
|
Divided by platinum/palladium ounces
produced |
138 |
141 |
518 |
524 |
|
|
|
|
|
Total cash costs before by-product and
recycling credits per ounce Pt/Pd produced (Non-GAAP) |
$554 |
$568 |
$618 |
$616 |
By-product credit per ounce Pt/Pd
produced |
(53) |
(43) |
(57) |
(52) |
Recycling income credit per ounce Pt/Pd
produced |
(18) |
(25) |
(23) |
(68) |
Total cash costs net of by-product and
recycling credits per ounce Pt/Pd produced (Non-GAAP) |
$483 |
$500 |
$538 |
$496 |
|
|
|
|
|
Divided by ore tons milled |
358 |
316 |
1,265 |
1,274 |
|
|
|
|
|
Total cash costs before by-product and
recycling credits per ore ton milled (Non-GAAP) |
$214 |
$253 |
$252 |
$253 |
By-product credit per ore ton milled |
(21) |
(19) |
(23) |
(21) |
Recycling income credit per ore ton
milled |
(7) |
(11) |
(9) |
(28) |
Total cash costs net of by-product and
recycling credits per ore ton milled (Non-GAAP) |
$186 |
$223 |
$220 |
$204 |
|
|
|
|
|
Reconciliation to consolidated costs
of revenues: |
|
|
|
|
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$66,537 |
$70,527 |
$278,382 |
$260,016 |
Asset retirement costs |
193 |
177 |
747 |
689 |
Depletion, depreciation and amortization |
17,014 |
14,377 |
66,387 |
58,201 |
Depletion, depreciation and amortization (in
inventory) |
567 |
1,472 |
(1,281) |
1,190 |
Change in product inventories |
2,757 |
(4,828) |
18,847 |
(10,480) |
Cost of PGM Recycling |
93,708 |
124,526 |
391,481 |
527,384 |
PGM Recycling - depreciation |
258 |
312 |
1,019 |
1,116 |
By-product credit |
7,354 |
5,982 |
29,592 |
27,085 |
Profit from PGM Recycling (before gain/loss
on asset disposals) |
2,494 |
3,590 |
11,702 |
35,463 |
Total consolidated cost of revenues |
$190,882 |
$216,135 |
$796,876 |
$900,664 |
|
|
|
|
|
Stillwater Mining
Company |
Reconciliation of
Non-GAAP Financial Measures to Consolidated Costs of Revenues
(Continued) |
(Audited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except per ounce
and per ton data) |
2014 |
2013 |
2014 |
2013 |
Stillwater Mine: |
|
|
|
|
Total cash costs before by-product and
recycling credits (Non-GAAP) |
$49,776 |
$52,401 |
$206,496 |
$217,921 |
By-product credit |
(4,261) |
(3,636) |
(17,115) |
(16,270) |
Recycling income credit |
(1,628) |
(2,495) |
(7,695) |
(24,470) |
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$43,887 |
$46,270 |
$181,686 |
$177,181 |
|
|
|
|
|
Divided by platinum/palladium ounces
produced |
90 |
99 |
341 |
366 |
|
|
|
|
|
Total cash costs before by-product and
recycling credits per ounce Pt/Pd produced (Non-GAAP) |
$551 |
$529 |
$606 |
$595 |
By-product credit per ounce Pt/Pd
produced |
(47) |
(37) |
(50) |
(44) |
Recycling income credit per ounce Pt/Pd
produced |
(18) |
(25) |
(23) |
(67) |
Total cash costs net of by-product and
recycling credits per ounce Pt/Pd produced (Non-GAAP) |
$486 |
$467 |
$533 |
$484 |
|
|
|
|
|
Divided by ore tons milled |
215 |
193 |
749 |
801 |
|
|
|
|
|
Total cash costs before by-product and
recycling credits per ore ton milled (Non-GAAP) |
$232 |
$272 |
$276 |
$272 |
By-product credit per ore ton milled |
(20) |
(19) |
(23) |
(20) |
Recycling income credit per ore ton
milled |
(8) |
(13) |
(10) |
(31) |
Total cash costs net of by-product and
recycling credits per ore ton milled (Non-GAAP) |
$204 |
$240 |
$243 |
$221 |
|
|
|
|
|
Reconciliation to costs of
revenues: |
|
|
|
|
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$43,887 |
$46,270 |
$181,686 |
$177,181 |
Asset retirement costs |
180 |
165 |
700 |
639 |
Depletion, depreciation and amortization |
12,337 |
11,030 |
49,271 |
44,696 |
Depletion, depreciation and amortization (in
inventory) |
491 |
1,111 |
(1,716) |
896 |
Change in product inventories |
827 |
(2,158) |
11,309 |
(5,110) |
By-product credit |
4,261 |
3,636 |
17,115 |
16,270 |
Profit from PGM Recycling (before gain/loss
on asset disposals) |
1,628 |
2,495 |
7,695 |
24,470 |
Total cost of revenues |
$63,611 |
$62,549 |
$266,060 |
$259,042 |
|
|
|
|
|
Stillwater Mining
Company |
Reconciliation of
Non-GAAP Financial Measures to Consolidated Costs of Revenues
(Continued) |
(Audited) |
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except per ounce
and per ton data) |
2014 |
2013 |
2014 |
2013 |
East Boulder |
|
|
|
|
Total cash costs before by-product and
recycling credits (Non-GAAP) |
$26,609 |
$27,698 |
$113,180 |
$104,643 |
By-product credit |
(3,093) |
(2,346) |
(12,477) |
(10,815) |
Recycling income credit |
(866) |
(1,095) |
(4,007) |
(10,993) |
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$22,650 |
$24,257 |
$96,696 |
$82,835 |
|
|
|
|
|
Divided by platinum/palladium ounces
produced |
48 |
42 |
177 |
158 |
|
|
|
|
|
Total cash costs before by-product and
recycling credits per ounce Pt/Pd produced (Non-GAAP) |
$560 |
$659 |
$641 |
$664 |
By-product credit per ounce Pt/Pd
produced |
(65) |
(56) |
(71) |
(69) |
Recycling income credit per ounce Pt/Pd
produced |
(18) |
(26) |
(23) |
(70) |
Total cash costs net of by-product and
recycling credits per ounce Pt/Pd produced (Non-GAAP) |
$477 |
$577 |
$547 |
$525 |
|
|
|
|
|
Divided by ore tons milled |
144 |
123 |
516 |
473 |
|
|
|
|
|
Total cash costs before by-product and
recycling credits per ore ton milled (Non-GAAP) |
$186 |
$225 |
$219 |
$221 |
By-product credit per ore ton milled |
(22) |
(19) |
(24) |
(23) |
Recycling income credit per ore ton
milled |
(6) |
(9) |
(8) |
(23) |
Total cash costs net of by-product and
recycling credits per ore ton milled (Non-GAAP) |
$158 |
$197 |
$187 |
$175 |
|
|
|
|
|
Reconciliation to costs of
revenues: |
|
|
|
|
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$22,650 |
$24,257 |
$96,696 |
$82,835 |
Asset retirement costs |
13 |
13 |
47 |
50 |
Depletion, depreciation and amortization |
4,677 |
3,346 |
17,116 |
13,505 |
Depletion, depreciation and amortization (in
inventory) |
76 |
361 |
435 |
294 |
Change in product inventories |
1,930 |
(2,670) |
2,181 |
(5,370) |
By-product credit |
3,093 |
2,346 |
12,477 |
10,815 |
Profit from PGM Recycling (before gain/loss
on asset disposals) |
866 |
1,095 |
4,007 |
10,993 |
Total cost of revenues |
$33,305 |
$28,748 |
$132,959 |
$113,122 |
|
|
|
|
|
PGM Recycling and Other:
(1) |
|
|
|
|
Cost of open market acquisitions |
$— |
$— |
$5,357 |
$— |
Cost of PGM Recycling |
93,708 |
124,526 |
391,481 |
527,384 |
PGM Recycling - depreciation |
258 |
312 |
1,019 |
1,116 |
Total cost of revenues |
$93,966 |
$124,838 |
$397,857 |
$528,500 |
|
|
|
|
|
(1) PGM Recycling and Other
include PGM recycling and metal acquired periodically in the open
market and simultaneously resold to third parties. |
Stillwater Mining Company
All-In Sustaining Costs (a Non-GAAP Financial
Measure)
(Audited)
All-In Sustaining Costs (Non-GAAP): This
non-GAAP financial measure is used as an indicator from period to
period of the level of total cash required by the Company 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
financial measure, described above), and adding to it the recycling
income credit, domestic corporate overhead and marketing costs
(excluding any depreciation, research and development, and
reorganization costs included in corporate overhead costs) and that
portion of total capital expenditures associated with sustaining
the current level of mining operations. (Capital expenditures for
Blitz, Graham Creek and certain other one-time projects are not
included in the calculation.)
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 costs 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 |
Twelve Months
Ended |
|
December
31, |
December
31, |
(In thousands, except
$/oz.) |
2014 |
2013 |
2014 |
2013 |
All-In Sustaining Costs |
|
|
|
|
Total cash costs net of by-product and
recycling credits (Non-GAAP) |
$66,537 |
$70,527 |
$278,382 |
$260,016 |
Recycling income credit |
2,494 |
3,590 |
11,702 |
35,463 |
|
$69,031 |
$74,117 |
$290,084 |
$295,479 |
|
|
|
|
|
Consolidated Corporate General &
Administrative costs |
$7,050 |
$6,342 |
$35,067 |
$46,577 |
Corporate depreciation and R&D included
in Consolidated Corporate General & Administrative costs
(1) |
(118) |
(141) |
(482) |
(610) |
General & Administrative Costs -
Foreign Subsidiaries |
(465) |
(446) |
(3,588) |
(3,661) |
|
$6,467 |
$5,755 |
$30,997 |
$42,306 |
|
|
|
|
|
Total capitalized costs |
$36,117 |
$39,268 |
$129,813 |
$139,011 |
Capital associated with expansion
projects |
(11,723) |
(13,714) |
(45,054) |
(50,696) |
Total Capital incurred to sustain existing
operations |
$24,394 |
$25,554 |
$84,759 |
$88,315 |
|
|
|
|
|
All-In Sustaining Costs (Non-GAAP) |
$99,892 |
$105,426 |
$405,840 |
$426,100 |
|
|
|
|
|
Mined ounces produced |
137.7 |
141.0 |
517.7 |
523.9 |
|
|
|
|
|
All-In Sustaining Costs per Mined Ounce
($/oz.) (Non-GAAP) |
$725 |
$748 |
$784 |
$813 |
|
(1) Consolidated Corporate
General & Administrative Costs includes Marketing and Research
and Development (R&D) costs. The Marketing and R&D costs in
prior years were separate line items on the Company's Consolidated
Statements of Comprehensive Income (Loss). |
Prior year numbers have been
restated to conform with current year presentation. |
CONTACT: Mike Beckstead
(406) 373-8971
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