Stillwater Mining Company (NYSE:SWC) today
reported financial results for the quarter and year ended December
31, 2015.
Fourth Quarter 2015 Highlights:
- All-in sustaining costs (AISC)* of $613 per mined ounce of
palladium and platinum, down 15.4% from $725 per mined ounce for
the fourth quarter of 2014
- Cash and cash equivalents plus highly liquid investments of
$463.8 million at quarter end, an increase of $3.5 million from the
end of the third quarter of 2015
- Mined palladium and platinum production of 132,400 ounces, down
slightly from the 137,600 ounces mined during the fourth quarter of
2014
- Processed 129,800 ounces of recycled palladium, platinum and
rhodium, an increase of 12.0% over 115,900 ounces recycled during
the fourth quarter of 2014
- General and administrative expenses of $6.4 million, a 9.5%
reduction from the fourth quarter of 2014
- Consolidated net income attributable to common stockholders of
$4.4 million or $0.04 per diluted share, reflecting the decrease in
average sales price per mined ounce (palladium and platinum) to
$667, a 24.4% decrease from $882 realized for the fourth quarter of
2014
Full-Year 2015 Highlights:
- Achieved or exceeded all 2015 guidance metrics
- Achieved the best safety results in the Company’s history with
a reportable incidence rate reduction of 8.5% from 2014
- AISC* of $709 per mined ounce of palladium and platinum, down
9.6% from $784 per mined ounce for 2014
- Mined palladium and platinum of 520,800 ounces, an increase
from 517,700 ounces mined during 2014
- Processed 551,100 ounces of recycled palladium, platinum and
rhodium, a 17.4% increase from 469,400 processed during 2014
- Consolidated net loss attributable to common stockholders of
$11.9 million or $0.10 per share, including a $46.8 million
(before-tax) impairment of the Marathon properties, a $4.0 million
(before-tax) net loss on the repurchase of a portion of the
Company’s convertible debentures and $1.7 million (before-tax)
reorganization charges
- Underlying earnings attributable to common stockholders* for
2015 were $26.1 million (after-tax) after adjusting for the
Marathon impairment charge, net loss on repurchase of convertible
debentures and reorganization charges
- East Boulder Mine four-year labor contract ratified; Stillwater
Mine and Columbus processing facilities four-year contract ratified
in early 2016
Commenting on the fourth quarter and full-year
2015 results, Mick McMullen, the Company’s President and Chief
Executive Officer stated, "Stillwater Mining Company continues to
deliver on our stated objectives. The Company has achieved or
exceeded every 2015 guidance metric provided. In fact, we met or
beat each of the original guidance metrics published prior to the
reorganization plan that was implemented during the third quarter.
AISC*, which is a key metric we use to evaluate our performance,
was reduced to $613 per mined ounce for the fourth quarter and an
average of $709 per mined ounce for the full-year 2015. This 2015
result is a reduction from $784 per mined ounce for 2014 and a
result that is well below the low end of our guidance range.
“In addition, our safety performance in 2015 was
the best in the Company’s history. The Company’s reportable safety
incidence rate declined 8.5% in 2015 compared to the prior year.
This is a remarkable accomplishment by our entire workforce as this
improvement took place in conjunction with many changes and
distractions including the negotiation of our two labor contracts
covering the majority of the Company’s employees and the
implementation of a significant reorganization plan at the
Stillwater Mine.
“As PGM prices have declined to levels not seen
in years, we are determined to continue our disciplined approach to
capital deployment and operational efficiencies. Even with
declining PGM prices and our continued investment in sustaining
capital and growth projects, the Company was able to grow its cash
and cash equivalents plus liquid investments balance during the
fourth quarter, ending the year with a total of $463.8 million.
This liquidity increase occurred despite the payment to buy out our
joint venture partner at Marathon. With our strong balance sheet,
cost reduction success and additional opportunities for operational
improvements going forward, I believe Stillwater is well situated
to withstand the current stage in the PGM price cycle. Stillwater
possesses a leading position in the industry that will benefit our
shareholders when a PGM price recovery occurs,” concluded Mr.
McMullen.
2016 Full-Year Guidance:
Management has provided the following guidance for the full-year
2016 as detailed in the table below.
|
|
|
2016 Guidance |
| Mined Production
(palladium and platinum ounces) |
|
515,000 - 535,000 |
| Total Cash Costs per
Mined Ounce (net of by-product and recycling credits)* |
|
$445 -
$485 |
| All-In Sustaining Costs
per Mined Ounce* |
|
$615 -
$665 |
| General and
Administrative (millions) |
|
$30 -
$40 |
| Exploration
(millions)(1) |
|
$8 -
$11 |
| Sustaining Capital
Expenditures (millions) |
|
$50 -
$60 |
| Project Capital
Expenditures (millions)(2) |
|
$40 -
$45 |
| Total Capital
Expenditures (millions)(2) |
|
$90 -
$105 |
(1) Exploration includes expenses for Marathon, Altar and
Montana operations.(2) Excludes project capitalized interest and
capitalized depreciation.
Fourth Quarter and Full-Year 2015 Results:
For the fourth quarter of 2015, the Company
reported consolidated net income attributable to common
stockholders of $4.4 million, or $0.04 per diluted share, compared
to consolidated net income attributable to common stockholders of
$14.7 million, or $0.12 per diluted share for the fourth quarter of
2014. Full-year 2015 consolidated net loss attributable to common
stockholders was $11.9 million or $0.10 per diluted share. This
compares to a 2014 consolidated net income attributable to common
shareholders of $70.3 million or $0.56 per diluted share. The
decrease for both the fourth quarter and full-year 2015 was
impacted by significantly lower realized metal prices and lower
sales volumes partially offset by lower costs. In addition, during
2015 the Company recorded a $46.8 million (before-tax) impairment
charge against the Marathon properties (second quarter), a net loss
of $4.0 million (before-tax) on the repurchase of a portion of the
Company's convertible debentures (third quarter) and $1.7 million
(before-tax) reorganization charges (third quarter). Underlying
earnings attributable to common stockholders* for the year were
$26.1 million (after-tax) after adjusting for the impairment
charge, net loss on repurchase of the convertible debentures and
reorganization charges, compared with underlying earnings
attributable to common stockholders* of $77.3 million (after-tax)
for 2014.
Mine Production Comparison:
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
| (Produced
ounces) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| Palladium |
|
63,400 |
|
69,500 |
|
246,400 |
|
262,500 |
| Platinum |
|
18,900 |
|
20,700 |
|
73,400 |
|
78,300 |
| Stillwater Mine
Total |
|
82,300 |
|
90,200 |
|
319,800 |
|
340,800 |
| |
|
|
|
|
|
|
|
|
| Palladium |
|
39,000 |
|
37,000 |
|
156,500 |
|
137,700 |
| Platinum |
|
11,100 |
|
10,400 |
|
44,500 |
|
39,200 |
| East Boulder Mine
Total |
|
50,100 |
|
47,400 |
|
201,000 |
|
176,900 |
| |
|
|
|
|
|
|
|
|
| Palladium |
|
102,400 |
|
106,500 |
|
402,900 |
|
|
400,200 |
|
| Platinum |
|
30,000 |
|
31,100 |
|
117,900 |
|
|
117,500 |
|
| Total |
|
132,400 |
|
137,600 |
|
520,800 |
|
|
517,700 |
|
Revenues from the Company’s Mine Production
segment (including proceeds from the sale of by-products) totaled
$84.7 million in the fourth quarter of 2015, down from $126.0
million for the fourth quarter of 2014. The combined average
realized price for the sales of mined palladium and platinum
decreased for the fourth quarter of 2015 to $667 per ounce,
compared to $882 per ounce realized in the fourth quarter of 2014.
The total quantity of mined palladium and platinum sold in the
fourth quarter of 2015 was 120,300 ounces compared to 134,600
ounces sold in the fourth quarter of 2014. Production ounces were
higher than sales ounces due to timing of sales and the desire to
sell inventory during periods of better prices.
For the full-year 2015, the Company reported Mine Production
segment revenue (including proceeds from the sale of by-products)
of $415.8 million, down from $536.0 million in 2014. The combined
average realized price for the sales of mined palladium and
platinum was $774 for 2015, a decrease from $934 per ounce realized
for 2014. The total quantity of mined palladium and platinum sold
in 2015 was 507,300 ounces compared to 542,300 sold during
2014.
Total costs of metals sold in the Mine
Production segment decreased to $64.3 million in the fourth quarter
of 2015 from $79.9 million in the fourth quarter of 2014. For the
full-year 2015 Mine Production costs of metals sold decreased to
$294.0 million from $332.6 million in 2014.
Recycling Activity Comparison:
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
| |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| Average tons of
catalyst fed per day |
|
17.9 |
|
|
18.4 |
|
|
20.9 |
|
|
18.6 |
|
| Tons processed |
|
1,651 |
|
|
1,690 |
|
|
7,638 |
|
|
6,790 |
|
| Tons tolled |
|
503 |
|
419 |
|
2,923 |
|
1,223 |
| Tons
purchased |
|
1,148 |
|
1,271 |
|
4,715 |
|
5,567 |
| PGM ounces fed |
|
129,800 |
|
|
115,900 |
|
|
551,100 |
|
|
469,400 |
|
| PGM ounces sold |
|
108,700 |
|
|
88,000 |
|
|
340,200 |
|
|
384,400 |
|
| PGM tolled ounces
returned |
|
54,700 |
|
|
18,900 |
|
|
205,000 |
|
|
72,800 |
|
Total recycle PGM ounces fed to the smelter were up 12.0% from
the prior year to 129,800 ounces, with a large amount of the growth
coming from tolled material.
PGM Recycling revenues totaled $87.2 million for
the 2015 fourth quarter, a decrease from $95.9 million in the same
period of 2014. The Company's combined average realized price for
sales of recycled palladium, platinum and rhodium was $782 per
ounce in the fourth quarter of 2015 compared to $1,076 per ounce in
the fourth quarter of 2014. Recycling sales volumes for the fourth
quarter of 2015 increased to 108,700 ounces from 88,000 ounces sold
in the fourth quarter of 2014. In conjunction, tolled ounces
returned to customers increased to 54,700 ounces for the fourth
quarter of 2015 from 18,900 ounces in the fourth quarter of
2014.
PGM Recycling revenue totaled $310.2 million for full-year 2015,
compared to $401.7 million in 2014. For 2015, the Company’s
combined average realized sales price for recycled palladium,
platinum and rhodium was $886 per ounce, down from $1,031 per ounce
for 2014. Recycling sales volumes for 2015 totaled 340,200 ounces,
a decrease from 384,400 ounces sold for 2014. For 2015, 205,000
tolled ounces were returned, an increase from 72,800 returned in
2014.
PGM Recycling costs of metals sold totaled $84.6
million in the fourth quarter of 2015, down from the $93.7 million
in the fourth quarter of 2014. For the full-year 2015 PGM Recycling
costs of metals sold decreased to $300.7 million from $391.5
million for 2014.
General and administrative costs were $6.4
million in the fourth quarter of 2015, a decrease of 9.5% from $7.1
million incurred during the same period of 2014. For the full-year
2015 general and administrative costs were $34.0 million, down from
$35.1 million in 2014.
All-In Sustaining Costs Per Mined Ounce:
AISC* per mined ounce totaled $613 for the
fourth quarter of 2015, a decrease from $725 recorded for the same
period of 2014. For the full-year 2015 the Company reported AISC*
of $709 per mined ounce, a decrease from $784 in 2014. Reductions
in cash costs, corporate costs and sustaining capital contributed
to the lower AISC result. The 46.6% reduction in sustaining capital
from the prior year for the fourth quarter was achieved whilst
maintaining the capital necessary to preserve the developed state
of the mines as productivity for development has improved.
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
|
All-In Sustaining Costs Per Mined Ounce Combined Montana
Mining Operations |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| Total Combined Cash
Costs per Mined Ounce (Net of Credits)* |
|
$ |
450 |
|
|
$ |
483 |
|
|
$ |
495 |
|
|
$ |
538 |
|
| PGM Recycling
income credit per mined ounce |
|
21 |
|
|
18 |
|
|
19 |
|
|
23 |
|
| Corporate
General & Administrative Costs (Before DD&A) |
|
44 |
|
|
47 |
|
|
61 |
|
|
60 |
|
| Capital Outlay
to Sustain Production at the Montana Operating Mines |
|
98 |
|
|
177 |
|
|
134 |
|
|
163 |
|
| All-In Sustaining Costs
per mined ounce* |
|
$ |
613 |
|
|
$ |
725 |
|
|
$ |
709 |
|
|
$ |
784 |
|
Cash Costs Per Mined Ounce:
Total combined cash costs per mined ounce (net
of by-product and recycling credits)* totaled $450 per ounce for
the fourth quarter of 2015, compared to $483 per ounce for the
fourth quarter of 2014. For the full-year 2015, total combined cash
costs per mined ounce (net of by-product and recycling credits)*
totaled $495 compared to $538 for 2014.
The table below illustrates the effect of
by-product and recycling credits on the total combined cash costs
per mined ounce, net of credits, for the Montana mining
operations.
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
|
Cash Costs Per Mined Ounce Combined Montana Mining
Operations |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| Total combined cash
costs per mined ounce, net of by-product and recycling
credits* |
|
$ |
450 |
|
|
$ |
483 |
|
|
$ |
495 |
|
|
$ |
538 |
|
| By-product
revenue credit per mined ounce |
|
34 |
|
|
53 |
|
|
44 |
|
|
57 |
|
| PGM Recycling
income credit per mined ounce |
|
21 |
|
|
18 |
|
|
19 |
|
|
23 |
|
|
Total combined cash costs per mined ounce, before by-product and
recycling credits* |
|
$ |
505 |
|
|
$ |
554 |
|
|
$ |
558 |
|
|
$ |
618 |
|
*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 GAAP Financial Measures to Non-GAAP Financial Measures
below.
Labor Matters:
On December 15, 2015, the union membership at the East Boulder
Mine ratified a new four-year contract. The new agreement
essentially rolls forward the previous contract, including a
provision for no increase in base wages for each of the first two
years of the agreement and other minor modifications. The effective
date for this contract was January 1, 2016.
Separately, on January 29, 2016, union employees located at the
Stillwater Mine and Columbus processing facilities voted and
ratified a new four-year contract following a negotiation process
that began in June of 2015. The new agreement includes a provision
for no increase in base wages for each of the first two years of
the contract, simplification of the incentive program and the
introduction of metrics in the incentive program that align
employee activities and shareholder outcomes. The contract was
retroactively effective as of June 2, 2015.
Cash Flow and Liquidity:
At December 31, 2015, the Company’s cash and
cash equivalents balance was $147.3 million, compared to $280.3
million at December 31, 2014. The Company’s cash and cash
equivalents plus highly liquid investments totaled $463.8 million
at December 31, 2015 (including $18.5 million of investments which
have been reserved as collateral on letters of credit), compared to
$531.5 million at December 31, 2014. A significant driver of
the decrease in cash was the Company’s repurchase of a portion of
its outstanding convertible debentures for $61.0 million during the
third quarter of 2015. Net working capital decreased to $523.0
million at December 31, 2015, compared to $619.4 million at the end
of 2014.
Net cash provided by operating activities (which
includes changes in working capital) totaled $110.4 million for the
year ended December 31, 2015, compared to $187.6 million of cash
provided by operating activities for the same period in 2014. Cash
capital expenditures were $107.4 million for the year ended
December 31, 2015, compared to $119.7 million in the same period in
2014.
Outstanding total balance sheet debt reported at
December 31, 2015, was approximately $259.6 million, a decrease
from $296.2 million at December 31, 2014. The Company’s debt
balance at December 31, 2015, included approximately $258.4 million
of 1.75% convertible debentures (net of unamortized discount of
approximately $76.8 million), $0.5 million of 1.875% convertible
debentures and approximately $0.7 million for a capital lease and
financing for a small installment land purchase. The change in debt
balance is a result of the Company’s repurchase of a portion of its
convertible debentures during the third quarter, partially offset
by the accretion of the discount on the Company's outstanding 1.75%
convertible debentures.
2015 Fourth Quarter and Full-Year Results Webcast and Conference
Call:
Stillwater Mining Company will conduct a conference call to
discuss fourth quarter and Full-Year 2015 results at 12:00 noon
Eastern Standard Time on Monday, February 22, 2016.
| 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 13624356. In addition, the call transcript will be archived in
the Investor Relations section of the Company's website.
About Stillwater Mining Company
Stillwater Mining Company is the only U.S. 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 continuing to deliver on stated
objectives; determination to continue a disciplined approach to
capital deployment and operational efficiencies; additional
opportunities for operational improvements going forward;
Stillwater being well situated to withstand the current stage in
the PGM pricing cycle; Stillwater possessing a leading position in
the industry that will benefit shareholders when a PGM price
recovery occurs; estimated 2016 production, cash costs per mined
ounce, AISC, exploration expense, general and administrative costs
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 management in light of
experience and perception of historical trends, current conditions,
expected future developments, and other factors that are deemed
appropriate. 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 CompanyConsolidated
Statements of Comprehensive Income (Loss)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
|
(In thousands, except per share data) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
REVENUES |
|
|
|
|
|
|
|
|
| Mine Production |
|
$ |
84,709 |
|
|
$ |
126,043 |
|
|
$ |
415,774 |
|
|
$ |
536,010 |
|
| PGM Recycling |
|
87,176 |
|
|
95,924 |
|
|
310,156 |
|
|
401,684 |
|
| Other |
|
100 |
|
|
200 |
|
|
400 |
|
|
5,925 |
|
| Total revenues |
|
171,985 |
|
|
222,167 |
|
|
726,330 |
|
|
943,619 |
|
| COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
| Costs of metals sold |
|
|
|
|
|
|
|
|
| Mine Production |
|
64,280 |
|
|
79,902 |
|
|
293,955 |
|
|
332,632 |
|
| PGM Recycling |
|
84,636 |
|
|
93,708 |
|
|
300,710 |
|
|
391,481 |
|
| Other |
|
— |
|
|
— |
|
|
— |
|
|
5,357 |
|
| Total costs of metals sold
(excludes depletion, depreciation and amortization) |
|
148,916 |
|
|
173,610 |
|
|
594,665 |
|
|
729,470 |
|
| Depletion, depreciation and
amortization |
|
|
|
|
|
|
|
|
| Mine Production |
|
15,257 |
|
|
17,014 |
|
|
64,200 |
|
|
66,387 |
|
| PGM Recycling |
|
211 |
|
|
258 |
|
|
949 |
|
|
1,019 |
|
| Total depletion, depreciation and
amortization |
|
15,468 |
|
|
17,272 |
|
|
65,149 |
|
|
67,406 |
|
| Total costs of revenues |
|
164,384 |
|
|
190,882 |
|
|
659,814 |
|
|
796,876 |
|
| (Gain) loss on disposal of
property, plant and equipment |
|
— |
|
|
(75 |
) |
|
(216 |
) |
|
(337 |
) |
| Loss on long-term investments |
|
168 |
|
|
66 |
|
|
372 |
|
|
125 |
|
| Impairment of property, plant and
equipment and non-producing mineral properties |
|
— |
|
|
550 |
|
|
46,772 |
|
|
550 |
|
| Exploration |
|
924 |
|
|
389 |
|
|
3,591 |
|
|
2,768 |
|
| Reorganization |
|
— |
|
|
4,357 |
|
|
1,658 |
|
|
10,402 |
|
| General and administrative |
|
6,380 |
|
|
7,050 |
|
|
34,033 |
|
|
35,067 |
|
| Total costs and expenses |
|
171,856 |
|
|
203,219 |
|
|
746,024 |
|
|
845,451 |
|
| OPERATING
INCOME (LOSS) |
|
129 |
|
|
18,948 |
|
|
(19,694 |
) |
|
98,168 |
|
| OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
| Other |
|
2 |
|
|
55 |
|
|
920 |
|
|
904 |
|
| Loss on extinguishment of debt,
net |
|
— |
|
|
— |
|
|
(4,010 |
) |
|
— |
|
| Interest income |
|
763 |
|
|
801 |
|
|
2,955 |
|
|
3,551 |
|
| Interest expense |
|
(4,474 |
) |
|
(4,982 |
) |
|
(20,187 |
) |
|
(22,719 |
) |
| Foreign currency transaction gain
(loss) , net |
|
3,798 |
|
|
(122 |
) |
|
3,947 |
|
|
5,237 |
|
| INCOME (LOSS)
BEFORE INCOME TAX BENEFIT (PROVISION) |
|
218 |
|
|
14,700 |
|
|
(36,069 |
) |
|
85,141 |
|
| Income tax benefit (provision) |
|
4,206 |
|
|
(349 |
) |
|
12,333 |
|
|
(16,258 |
) |
| NET INCOME
(LOSS) |
|
$ |
4,424 |
|
|
$ |
14,351 |
|
|
$ |
(23,736 |
) |
|
$ |
68,883 |
|
| Net loss attributable
to noncontrolling interest |
|
— |
|
|
(331 |
) |
|
(11,808 |
) |
|
(1,414 |
) |
| NET INCOME
(LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
4,424 |
|
|
$ |
14,682 |
|
|
$ |
(11,928 |
) |
|
$ |
70,297 |
|
| Other comprehensive (loss) income,
net of tax |
|
|
|
|
|
|
|
|
| Net unrealized (loss) gain on
investments available-for-sale and deferred compensation |
|
(363 |
) |
|
53 |
|
|
(214 |
) |
|
11 |
|
| COMPREHENSIVE
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
4,061 |
|
|
$ |
14,735 |
|
|
$ |
(12,142 |
) |
|
$ |
70,308 |
|
| Comprehensive loss
attributable to noncontrolling interest |
|
— |
|
|
(331 |
) |
|
(11,808 |
) |
|
(1,414 |
) |
| TOTAL
COMPREHENSIVE INCOME (LOSS) |
|
$ |
4,061 |
|
|
$ |
14,404 |
|
|
$ |
(23,950 |
) |
|
$ |
68,894 |
|
| Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
| Basic |
|
120,996 |
|
|
120,262 |
|
|
120,809 |
|
|
119,953 |
|
| Diluted |
|
121,187 |
|
|
156,564 |
|
|
120,809 |
|
|
156,233 |
|
| Basic earnings (loss) per
share attributable to common stockholders |
|
$ |
0.04 |
|
|
$ |
0.12 |
|
|
$ |
(0.10 |
) |
|
$ |
0.59 |
|
| Diluted earnings (loss) per
share attributable to common stockholders |
|
$ |
0.04 |
|
|
$ |
0.12 |
|
|
$ |
(0.10 |
) |
|
$ |
0.56 |
|
Stillwater Mining CompanyConsolidated
Balance Sheets
| |
|
December 31, |
|
December 31, |
|
(In thousands, except per share data) |
|
2015 |
|
2014 |
|
ASSETS |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash
equivalents |
|
$ |
147,336 |
|
|
$ |
280,286 |
|
| Investments, at fair
value |
|
316,429 |
|
|
251,254 |
|
| Inventories |
|
102,072 |
|
|
130,307 |
|
| Trade receivables |
|
800 |
|
|
1,277 |
|
| Deferred income
taxes |
|
— |
|
|
21,055 |
|
| Prepaid expenses |
|
2,821 |
|
|
2,546 |
|
| Other current
assets |
|
21,628 |
|
|
14,671 |
|
| Total current assets |
|
591,086 |
|
|
701,396 |
|
| Mineral properties |
|
112,480 |
|
|
159,252 |
|
| Mine development,
net |
|
460,751 |
|
|
409,754 |
|
| Property, plant and
equipment, net |
|
109,957 |
|
|
118,881 |
|
| Deferred debt issuance
costs |
|
3,821 |
|
|
6,032 |
|
| Other noncurrent
assets |
|
4,115 |
|
|
4,012 |
|
| Total assets |
|
$ |
1,282,210 |
|
|
$ |
1,399,327 |
|
| LIABILITIES AND
EQUITY |
|
|
|
|
| Current
liabilities |
|
|
|
|
| Accounts payable |
|
$ |
18,205 |
|
|
$ |
26,806 |
|
| Accrued compensation
and benefits |
|
30,046 |
|
|
29,973 |
|
| Property, production
and franchise taxes payable |
|
13,907 |
|
|
15,828 |
|
| Current portion of
long-term debt and capital lease obligations |
|
657 |
|
|
2,144 |
|
| Other current
liabilities |
|
5,286 |
|
|
7,288 |
|
| Total current liabilities |
|
68,101 |
|
|
82,039 |
|
| Long-term debt and
capital lease obligations |
|
258,920 |
|
|
294,023 |
|
| Deferred income
taxes |
|
22,761 |
|
|
68,896 |
|
| Accrued workers
compensation |
|
6,070 |
|
|
6,060 |
|
| Asset retirement
obligation |
|
11,027 |
|
|
9,401 |
|
| Other noncurrent
liabilities |
|
6,102 |
|
|
7,200 |
|
| Total liabilities |
|
372,981 |
|
|
467,619 |
|
|
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; 121,049,471 and 120,381,746
issued and outstanding at December 31, 2015 and 2014,
respectively |
|
1,210 |
|
|
1,204 |
|
| Paid-in capital |
|
1,099,283 |
|
|
1,091,146 |
|
| Accumulated
deficit |
|
(191,067 |
) |
|
(179,139 |
) |
| Accumulated other
comprehensive (loss) income |
|
(197 |
) |
|
17 |
|
| Total stockholders’ equity |
|
909,229 |
|
|
913,228 |
|
| Noncontrolling
interest |
|
— |
|
|
18,480 |
|
| Total equity |
|
909,229 |
|
|
931,708 |
|
| Total liabilities and equity |
|
$ |
1,282,210 |
|
|
$ |
1,399,327 |
|
Stillwater Mining CompanyConsolidated
Statements of Cash Flows
| |
|
Twelve Months Ended |
| |
|
December 31, |
|
(In thousands) |
|
2015 |
|
2014 |
| CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
| Net (loss) income |
|
$ |
(23,736 |
) |
|
$ |
68,883 |
|
| Adjustments to
reconcile net (loss) income to net cash provided by operating
activities: |
|
|
|
|
| Depletion, depreciation and
amortization |
|
65,149 |
|
|
67,406 |
|
| Loss on long-term investments |
|
372 |
|
|
125 |
|
| Loss on extinguishment of debt,
net |
|
4,010 |
|
|
— |
|
| Impairment of property, plant and
equipment and non-producing mineral properties |
|
46,772 |
|
|
550 |
|
| Amortization/accretion of
investment premium/discount |
|
2,414 |
|
|
1,810 |
|
| (Gain) loss on disposal of
property, plant and equipment |
|
(216 |
) |
|
(337 |
) |
| Foreign currency transaction gain,
net |
|
(3,947 |
) |
|
(5,237 |
) |
| Deferred income taxes |
|
(17,711 |
) |
|
(4,590 |
) |
| Accretion of asset retirement
obligation |
|
812 |
|
|
747 |
|
| Amortization of deferred debt
issuance costs |
|
2,211 |
|
|
2,265 |
|
| Accretion of convertible debenture
debt discount |
|
17,222 |
|
|
17,156 |
|
| Share based compensation and other
benefits |
|
10,080 |
|
|
14,001 |
|
| Non-cash capitalized interest |
|
(4,068 |
) |
|
(3,278 |
) |
| Excess tax shortfall (benefit) from
stock-based compensation |
|
154 |
|
|
(46 |
) |
| Changes in operating
assets and liabilities: |
|
|
|
|
| Inventories |
|
28,440 |
|
|
27,062 |
|
| Trade receivables |
|
477 |
|
|
7,711 |
|
| Prepaid expenses |
|
(275 |
) |
|
1,366 |
|
| Accounts payable |
|
(4,611 |
) |
|
(7,952 |
) |
| Accrued compensation and
benefits |
|
73 |
|
|
(673 |
) |
| Property, production and franchise
taxes payable |
|
(3,019 |
) |
|
1,271 |
|
| Income taxes payable |
|
— |
|
|
(4,416 |
) |
| Accrued workers compensation |
|
10 |
|
|
29 |
|
| Other operating assets |
|
(6,792 |
) |
|
1,206 |
|
| Other operating liabilities |
|
(3,400 |
) |
|
2,493 |
|
| NET CASH
PROVIDED BY OPERATING ACTIVITIES |
|
110,421 |
|
|
187,552 |
|
| CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
| Capital expenditures |
|
(107,434 |
) |
|
(119,682 |
) |
| Proceeds from disposal of property,
plant and equipment |
|
387 |
|
|
465 |
|
| Purchases of investments |
|
(286,380 |
) |
|
(229,462 |
) |
| Proceeds from maturities and sales
of investments |
|
218,475 |
|
|
185,722 |
|
| NET CASH USED
IN INVESTING ACTIVITIES |
|
(174,952 |
) |
|
(162,957 |
) |
| CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
| Purchase of noncontrolling
interest |
|
(5,216 |
) |
|
— |
|
| Excess tax (shortfall) benefit from
stock-based compensation |
|
(154 |
) |
|
46 |
|
| Payments on debt and capital lease
obligations |
|
(63,109 |
) |
|
(32,035 |
) |
| Proceeds from issuance of common
stock |
|
60 |
|
|
993 |
|
| NET CASH USED
IN FINANCING ACTIVITIES |
|
(68,419 |
) |
|
(30,996 |
) |
| CASH AND CASH
EQUIVALENTS |
|
|
|
|
| Net decrease |
|
(132,950 |
) |
|
(6,401 |
) |
| Balance at beginning of period |
|
280,286 |
|
|
286,687 |
|
| BALANCE AT END
OF PERIOD |
|
$ |
147,336 |
|
|
$ |
280,286 |
|
Stillwater Mining CompanyKey Operating
Factors
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
|
(In thousands, except where noted) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| OPERATING AND
COST DATA FOR MINE PRODUCTION |
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
| Ounces produced |
|
|
|
|
|
|
|
|
| Palladium |
|
103 |
|
|
106 |
|
|
403 |
|
|
400 |
|
| Platinum |
|
30 |
|
|
32 |
|
|
118 |
|
|
118 |
|
| Total |
|
133 |
|
|
138 |
|
|
521 |
|
|
518 |
|
| Tons milled |
|
309 |
|
|
329 |
|
|
1,216 |
|
|
1,174 |
|
| Mill head grade (ounce
per ton) |
|
0.45 |
|
|
0.45 |
|
|
0.45 |
|
|
0.47 |
|
| Sub-grade tons milled
(1) |
|
27 |
|
|
30 |
|
|
115 |
|
|
91 |
|
| Sub-grade tons mill
head grade (ounce per ton) |
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
|
0.16 |
|
| Total tons
milled(1) |
|
336 |
|
|
359 |
|
|
1,331 |
|
|
1,265 |
|
| Combined mill head
grade (ounce per ton) |
|
0.43 |
|
|
0.43 |
|
|
0.43 |
|
|
0.45 |
|
| Total mill recovery
(%) |
|
92 |
|
|
92 |
|
|
92 |
|
|
92 |
|
| Total mine concentrate
shipped (tons) (3) |
|
8,178 |
|
|
8,149 |
|
|
31,915 |
|
|
29,350 |
|
| Platinum grade in
concentrate (ounce per ton) (3) |
|
3.92 |
|
|
3.97 |
|
|
3.90 |
|
|
4.31 |
|
| Palladium grade in
concentrate (ounce per ton) (3) |
|
12.94 |
|
|
13.43 |
|
|
13.02 |
|
|
14.27 |
|
| Total combined cash
costs per ounce - net of credits (Non-GAAP) (2) |
|
$ |
450 |
|
|
$ |
483 |
|
|
$ |
495 |
|
|
$ |
538 |
|
| Total combined cash
costs per ton milled - net of credits (Non-GAAP) (2) |
|
$ |
177 |
|
|
$ |
186 |
|
|
$ |
194 |
|
|
$ |
220 |
|
| Stillwater
Mine: |
|
|
|
|
|
|
|
|
| Ounces produced |
|
|
|
|
|
|
|
|
| Palladium |
|
64 |
|
|
70 |
|
|
247 |
|
|
263 |
|
| Platinum |
|
19 |
|
|
20 |
|
|
73 |
|
|
78 |
|
| Total |
|
83 |
|
|
90 |
|
|
320 |
|
|
341 |
|
| Tons milled |
|
176 |
|
|
197 |
|
|
676 |
|
703 |
|
| Mill head grade (ounce
per ton) |
|
0.49 |
|
|
0.49 |
|
|
0.49 |
|
|
0.51 |
|
| Sub-grade tons milled
(1) |
|
15 |
|
|
18 |
|
|
72 |
|
|
46 |
|
| Sub-grade tons mill
head grade (ounce per ton) |
|
0.22 |
|
|
0.20 |
|
|
0.19 |
|
|
0.21 |
|
| Total tons milled
(1) |
|
191 |
|
|
215 |
|
|
748 |
|
|
749 |
|
| Combined mill head
grade (ounce per ton) |
|
0.47 |
|
|
0.46 |
|
|
0.46 |
|
|
0.50 |
|
| Total mill recovery
(%) |
|
93 |
|
|
92 |
|
|
93 |
|
|
93 |
|
| Total mine concentrate
shipped (tons) (3) |
|
4,640 |
|
|
4,625 |
|
|
17,202 |
|
|
16,463 |
|
| Platinum grade in
concentrate (ounce per ton) (3) |
|
4.50 |
|
|
4.67 |
|
|
4.63 |
|
|
5.19 |
|
| Palladium grade in
concentrate (ounce per ton) (3) |
|
14.35 |
|
|
15.53 |
|
|
14.99 |
|
|
16.83 |
|
| Total cash costs per
mined ounce - net of credits (Non-GAAP) (2) |
|
$ |
430 |
|
|
$ |
486 |
|
|
$ |
487 |
|
|
$ |
533 |
|
| Total cash costs per
ton milled - net of credits (Non-GAAP) (2) |
|
$ |
185 |
|
|
$ |
204 |
|
|
$ |
208 |
|
|
$ |
243 |
|
Stillwater Mining CompanyKey Operating
Factors (Continued)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
December 31, |
| (In thousands, except
where noted) |
2015 |
|
2014 |
|
2015 |
|
2014 |
| OPERATING AND
COST DATA FOR MINE PRODUCTION (Continued) |
| East Boulder
Mine: |
|
|
|
|
|
|
|
|
| Ounces produced |
|
|
|
|
|
|
|
|
| Palladium |
|
39 |
|
|
36 |
|
|
156 |
|
|
137 |
|
| Platinum |
|
11 |
|
|
12 |
|
|
45 |
|
|
40 |
|
| Total |
|
50 |
|
|
48 |
|
|
201 |
|
|
177 |
|
| Tons milled |
|
133 |
|
|
132 |
|
|
540 |
|
|
471 |
|
| Mill head grade (ounce
per ton) |
|
0.40 |
|
|
0.39 |
|
|
0.40 |
|
|
0.41 |
|
| Sub-grade tons milled
(1) |
|
12 |
|
|
12 |
|
|
43 |
|
|
45 |
|
| Sub-grade tons mill
head grade (ounce per ton) |
|
0.10 |
|
|
0.10 |
|
0.10 |
|
|
0.10 |
| Total tons milled
(1) |
145 |
|
144 |
|
583 |
|
516 |
| Combined mill head
grade (ounce per ton) |
|
0.38 |
|
|
0.37 |
|
0.38 |
|
|
0.38 |
| Total mill recovery
(%) |
91 |
|
90 |
|
91 |
|
90 |
| Total mine concentrate
shipped (tons) (3) |
|
3,538 |
|
|
3,524 |
|
|
14,713 |
|
|
12,887 |
|
| Platinum grade in
concentrate (ounce per ton) (3) |
|
3.17 |
|
|
3.05 |
|
|
3.05 |
|
|
3.19 |
|
| Palladium grade in
concentrate (ounce per ton) (3) |
|
11.08 |
|
|
10.68 |
|
|
10.71 |
|
|
11.00 |
|
| Total cash costs per
mined ounce - net of credits (Non-GAAP) (2) |
|
$ |
483 |
|
|
$ |
477 |
|
|
$ |
508 |
|
|
$ |
547 |
|
| Total cash costs per
ton milled - net of credits (Non-GAAP) (2) |
|
$ |
167 |
|
|
$ |
158 |
|
|
$ |
175 |
|
|
$ |
187 |
|
(1) Sub-grade tons milled includes reef waste material
only. Reef waste material is PGM-bearing mined material below the
cutoff grade for proven and probable reserves but with sufficient
economic value to justify processing it through the concentrator
along with the mined ore. Total tons milled includes ore tons and
sub-grade tons only. See “Proven and Probable Ore Reserves –
Discussion” in the Company’s 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. Total cash costs per
mined ounce, net of credits is a non-GAAP financial measure that
management uses to monitor and evaluate the efficiency of its
mining operations. This measure of cost is not defined under U.S.
Generally Accepted Accounting Principles (GAAP). Please see
Reconciliation of GAAP Financial Measures to Non-GAAP Financial
Measures 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 CompanyKey Operating
Factors (Continued)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
December 31, |
| (In thousands, except for
average prices) |
2015 |
|
2014 |
|
2015 |
|
2014 |
| SALES AND PRICE
DATA |
| Ounces
sold |
|
|
|
|
|
|
|
|
| Mine Production: |
|
|
|
|
|
|
|
|
| Palladium (oz.) |
|
95 |
|
|
106 |
|
|
397 |
|
|
421 |
|
| Platinum (oz.) |
|
25 |
|
|
28 |
|
|
110 |
|
|
121 |
|
| Total |
|
120 |
|
|
134 |
|
|
507 |
|
|
542 |
|
| PGM Recycling: (1) |
|
|
|
|
|
|
|
|
| Palladium (oz.) |
|
61 |
|
|
50 |
|
|
198 |
|
|
221 |
|
| Platinum (oz.) |
|
41 |
|
|
31 |
|
|
118 |
|
|
134 |
|
| Rhodium (oz.) |
|
7 |
|
|
7 |
|
|
24 |
|
|
29 |
|
| Total |
|
109 |
|
|
88 |
|
|
340 |
|
|
384 |
|
| Other: (5) |
|
|
|
|
|
|
|
|
| Palladium (oz.) |
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
| By-products from Mine
Production: (2) |
|
|
|
|
|
|
|
|
| Rhodium (oz.) |
|
— |
|
|
1 |
|
|
3 |
|
|
4 |
|
| Gold (oz.) |
|
2 |
|
|
2 |
|
|
10 |
|
|
10 |
|
| Silver (oz.) |
|
1 |
|
|
1 |
|
|
6 |
|
|
6 |
|
| Copper (lb.) |
|
220 |
|
|
220 |
|
|
964 |
|
|
875 |
|
| Nickel (lb.) |
|
325 |
|
|
388 |
|
|
1,456 |
|
|
1,454 |
|
| Average
realized price per ounce (3) |
|
|
|
|
|
|
|
|
| Mine Production: |
|
|
|
|
|
|
|
|
| Palladium ($/oz.) |
|
$ |
603 |
|
|
$ |
789 |
|
|
$ |
694 |
|
|
$ |
804 |
|
| Platinum ($/oz.) |
|
$ |
905 |
|
|
$ |
1,227 |
|
|
$ |
1,060 |
|
|
$ |
1,386 |
|
| Combined ($/oz.)(4) |
|
$ |
667 |
|
|
$ |
882 |
|
|
$ |
774 |
|
|
$ |
934 |
|
| PGM Recycling: (1) |
|
|
|
|
|
|
|
|
| Palladium ($/oz.) |
|
$ |
635 |
|
|
$ |
850 |
|
|
$ |
729 |
|
|
$ |
786 |
|
| Platinum ($/oz.) |
|
$ |
994 |
|
|
$ |
1,420 |
|
|
$ |
1,117 |
|
|
$ |
1,428 |
|
| Rhodium ($/oz.) |
|
$ |
826 |
|
|
$ |
1,191 |
|
|
$ |
1,038 |
|
|
$ |
1,059 |
|
| Combined ($/oz.)(4) |
|
$ |
782 |
|
|
$ |
1,076 |
|
|
$ |
886 |
|
|
$ |
1,031 |
|
| Other: (5) |
|
|
|
|
|
|
|
|
| Palladium ($/oz.) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
882 |
|
| By-products from Mine
Production: (2) |
|
|
|
|
|
|
|
|
| Rhodium ($/oz.) |
|
$ |
751 |
|
|
$ |
1,203 |
|
|
$ |
979 |
|
|
$ |
1,177 |
|
| Gold ($/oz.) |
|
$ |
1,107 |
|
|
$ |
1,198 |
|
|
$ |
1,164 |
|
|
$ |
1,261 |
|
| Silver ($/oz.) |
|
$ |
15 |
|
|
$ |
16 |
|
|
$ |
16 |
|
|
$ |
19 |
|
| Copper ($/lb.) |
|
$ |
2.01 |
|
|
$ |
2.80 |
|
|
$ |
2.33 |
|
|
$ |
2.92 |
|
| Nickel ($/lb.) |
|
$ |
2.99 |
|
|
$ |
5.49 |
|
|
$ |
3.93 |
|
|
$ |
6.47 |
|
| Average market
price per ounce (3) |
|
|
|
|
|
|
|
|
| Palladium ($/oz.) |
|
$ |
609 |
|
|
$ |
787 |
|
|
$ |
692 |
|
|
$ |
803 |
|
| Platinum ($/oz.) |
|
$ |
909 |
|
|
$ |
1,230 |
|
|
$ |
1,053 |
|
|
$ |
1,386 |
|
| Combined ($/oz.)(4) |
|
$ |
673 |
|
|
$ |
881 |
|
|
$ |
770 |
|
|
$ |
933 |
|
(1) Ounces sold and average realized price per ounce from PGM
Recycling relate to ounces produced from processing of spent
catalyst from catalytic converters and other industrial sources.(2)
By-product metals sold reflect contained metal. 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,
hedging gains and losses realized on commodity instruments and
agreement discounts, divided by ounces sold. The average market
price represents the average London market for the actual months of
the period.(4) The Company reports a combined average
realized and market price of palladium and platinum at the same
ratio as ounces 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 GAAP FINANCIAL MEASURES TO NON-GAAP
FINANCIAL MEASURES
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
(Loss) Income) 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 directly 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 Company's Consolidated Statements of
Comprehensive (Loss) Income. 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 the
aggregate, to total consolidated costs of revenues as reported in
the Company’s Consolidated Statements of Comprehensive (Loss)
Income.
Total Cash Costs (Non-GAAP): These non-GAAP
financial measures are calculated as total costs of revenues
adjusted to exclude costs of metals sold from PGM Recycling and
Other, depletion and depreciation and amortization for Mine
Production and PGM Recycling and Other, asset retirement costs, and
timing differences resulting from changes in product inventories to
arrive at Total Cash Costs before by-product and recycling credits.
From this calculation, the Company deducts by-product and recycling
income credits to arrive at Total Cash Costs, net of by-product and
recycling credits. Total Cash Costs is a measure of extraction
efficiency. The Company uses this measure as a comparative
indication of the cash costs related to production and processing
in its mining operations in any period.
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.
When divided by the total tons milled in the respective period,
Total Cash Costs per Ore Ton Milled (Non-GAAP),
measured for each mine or combined, provides an indication of the
level of cash costs incurred per ore 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 Ore 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.
With respect to 2016 guidance regarding Total Cash Costs per
Mined ounce (net of by-product and recycling credits) and AISC per
Mined Ounce, the Company cannot provide a quantitative
reconciliation to the most directly comparable GAAP measure without
unreasonable effort. However, the Company would expect to
calculate these non-GAAP measures in the same manner they were
calculated in the reconciliations included this press release.
Stillwater Mining CompanyReconciliation
of GAAP Financial Measures to Non-GAAP Financial
Measures
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
December 31, |
| (In thousands, except per
ounce and per ton data) |
2015 |
|
2014 |
|
2015 |
|
2014 |
|
Consolidated: |
| Reconciliation
from costs of revenues: |
|
|
|
|
|
|
|
|
| Total costs of
revenues |
|
$ |
164,383 |
|
|
$ |
190,882 |
|
|
$ |
659,814 |
|
|
$ |
796,876 |
|
| Costs of metals
sold |
|
|
|
|
|
|
|
|
| PGM Recycling |
|
(84,636 |
) |
|
(93,708 |
) |
|
(300,710 |
) |
|
(391,481 |
) |
| Depletion, depreciation
and amortization |
|
|
|
|
|
|
|
|
| Mine Production |
|
(15,257 |
) |
|
(17,014 |
) |
|
(64,200 |
) |
|
(66,387 |
) |
| PGM Recycling |
|
(211 |
) |
|
(258 |
) |
|
(949 |
) |
|
(1,019 |
) |
| Depletion, depreciation
and amortization (in inventory) |
|
(1,270 |
) |
|
(567 |
) |
|
(206 |
) |
|
1,281 |
|
| Change in product
inventories |
|
4,010 |
|
|
(2,757 |
) |
|
(1,725 |
) |
|
(18,847 |
) |
| Asset retirement
costs |
|
(223 |
) |
|
(193 |
) |
|
(812 |
) |
|
(747 |
) |
| Total combined cash
costs, before by-product and recycling credits
(Non-GAAP) |
|
$ |
66,796 |
|
|
$ |
76,385 |
|
|
$ |
291,212 |
|
|
$ |
319,676 |
|
| By-product credit |
|
(4,451 |
) |
|
(7,354 |
) |
|
(23,114 |
) |
|
(29,592 |
) |
| Recycling income
credit |
|
(2,727 |
) |
|
(2,494 |
) |
|
(10,151 |
) |
|
(11,702 |
) |
| Total combined cash
costs, net of by-product and recycling credits
(Non-GAAP) |
|
$ |
59,618 |
|
|
$ |
66,537 |
|
|
$ |
257,947 |
|
|
$ |
278,382 |
|
| |
|
|
|
|
|
|
|
|
| Mined ounces
produced |
|
133 |
|
|
138 |
|
|
521 |
|
|
518 |
|
| |
|
|
|
|
|
|
|
|
| Total combined cash
costs per mined ounce, before by-product and recycling
credits (Non-GAAP) |
|
$ |
505 |
|
|
$ |
554 |
|
|
$ |
558 |
|
|
$ |
618 |
|
| By-product credit per
mined ounce |
|
(34 |
) |
|
(53 |
) |
|
(44 |
) |
|
(57 |
) |
| Recycling income credit
per mined ounce |
|
(21 |
) |
|
(18 |
) |
|
(19 |
) |
|
(23 |
) |
| Total combined cash
costs per mined ounce, net of by-product and recycling
credits (Non-GAAP) |
|
$ |
450 |
|
|
$ |
483 |
|
|
$ |
495 |
|
|
$ |
538 |
|
| |
|
|
|
|
|
|
|
|
| Ore tons milled |
|
336 |
|
|
358 |
|
|
1,331 |
|
|
1,265 |
|
| |
|
|
|
|
|
|
|
|
| Total combined cash
costs per ore ton milled, before by-product and recycling
credits (Non-GAAP) |
|
$ |
198 |
|
|
$ |
214 |
|
|
$ |
219 |
|
|
$ |
252 |
|
| By-product credit per
ore ton milled |
|
(13 |
) |
|
(21 |
) |
|
(17 |
) |
|
(23 |
) |
| Recycling income credit
per ore ton milled |
|
(8 |
) |
|
(7 |
) |
|
(8 |
) |
|
(9 |
) |
| Total combined cash
costs per ore ton milled, net of by-product and recycling
credits (Non-GAAP) |
|
$ |
177 |
|
|
$ |
186 |
|
|
$ |
194 |
|
|
$ |
220 |
|
Stillwater Mining CompanyReconciliation
of GAAP Financial Measures to Non-GAAP Financial Measures
(Continued)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
December 31, |
| (In thousands, except per
ounce and per ton data) |
2015 |
|
2014 |
|
2015 |
|
2014 |
| Stillwater
Mine: |
| Reconciliation
from costs of revenues: |
|
|
|
|
|
|
|
|
| Total costs of
revenues |
|
$ |
48,809 |
|
|
$ |
63,611 |
|
|
$ |
223,464 |
|
|
$ |
266,060 |
|
| Depletion, depreciation
and amortization |
|
|
|
|
|
|
|
|
| Mine Production |
|
(10,844 |
) |
|
(12,337 |
) |
|
(45,447 |
) |
|
(49,271 |
) |
| Depletion, depreciation
and amortization (in inventory) |
|
(1,108 |
) |
|
(491 |
) |
|
(337 |
) |
|
1,716 |
|
| Change in product
inventories |
|
2,870 |
|
|
(827 |
) |
|
(2,404 |
) |
|
(11,309 |
) |
| Asset retirement
costs |
|
(214 |
) |
|
(180 |
) |
|
(778 |
) |
|
(700 |
) |
| Total cash costs,
before by-product and recycling credits (Non-GAAP) |
|
$ |
39,513 |
|
|
$ |
49,776 |
|
|
$ |
174,498 |
|
|
$ |
206,496 |
|
| By-product credit |
|
(2,394 |
) |
|
(4,261 |
) |
|
(12,525 |
) |
|
(17,115 |
) |
| Recycling income
credit |
|
(1,695 |
) |
|
(1,628 |
) |
|
(6,174 |
) |
|
(7,695 |
) |
| Total cash costs, net
of by-product and recycling credits (Non-GAAP) |
|
$ |
35,424 |
|
|
$ |
43,887 |
|
|
$ |
155,799 |
|
|
$ |
181,686 |
|
| |
|
|
|
|
|
|
|
|
| Mined ounces
produced |
|
83 |
|
|
90 |
|
|
320 |
|
|
341 |
|
| |
|
|
|
|
|
|
|
|
| Total cash costs per
mined ounce, before by-product and recycling credits
(Non-GAAP) |
|
$ |
480 |
|
|
$ |
551 |
|
|
$ |
545 |
|
|
$ |
606 |
|
| By-product credit per
mined ounce |
|
(29 |
) |
|
(47 |
) |
|
(39 |
) |
|
(50 |
) |
| Recycling income credit
per mined ounce |
|
(21 |
) |
|
(18 |
) |
|
(19 |
) |
|
(23 |
) |
| Total cash costs per
mined ounce, net of by-product and recycling credits
(Non-GAAP) |
|
$ |
430 |
|
|
$ |
486 |
|
|
$ |
487 |
|
|
$ |
533 |
|
| |
|
|
|
|
|
|
|
|
| Ore tons milled |
|
191 |
|
|
215 |
|
|
748 |
|
|
749 |
|
| |
|
|
|
|
|
|
|
|
| Total cash costs per
ore ton milled, before by-product and recycling credits
(Non-GAAP) |
|
$ |
207 |
|
|
$ |
232 |
|
|
$ |
233 |
|
|
$ |
276 |
|
| By-product credit per
ore ton milled |
|
(13 |
) |
|
(20 |
) |
|
(17 |
) |
|
(23 |
) |
| Recycling income credit
per ore ton milled |
|
(9 |
) |
|
(8 |
) |
|
(8 |
) |
|
(10 |
) |
| Total cash costs per
ore ton milled, net of by-product and recycling credits
(Non-GAAP) |
|
$ |
185 |
|
|
$ |
204 |
|
|
$ |
208 |
|
|
$ |
243 |
|
Stillwater Mining CompanyReconciliation
of GAAP Financial Measures to Non-GAAP Financial Measures
(Continued)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
December 31, |
|
(In thousands, except per ounce and per ton
data) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| East Boulder
Mine: |
|
|
|
|
|
|
|
|
| Reconciliation
from costs of revenues: |
|
|
|
|
|
|
|
|
| Total costs of
revenues |
|
$ |
30,728 |
|
|
$ |
33,305 |
|
|
$ |
134,691 |
|
|
$ |
132,960 |
|
| Depletion, depreciation
and amortization |
|
|
|
|
|
|
|
|
| Mine
Production |
|
(4,413 |
) |
|
(4,677 |
) |
|
(18,753 |
) |
|
(17,116 |
) |
| Depletion, depreciation
and amortization (in inventory) |
|
(162 |
) |
|
(76 |
) |
|
131 |
|
|
(435 |
) |
| Change in product
inventories |
|
1,140 |
|
|
(1,930 |
) |
|
679 |
|
|
(2,182 |
) |
| Asset retirement
costs |
|
(9 |
) |
|
(13 |
) |
|
(34 |
) |
|
(47 |
) |
| Total cash costs,
before by-product and recycling credits (Non-GAAP) |
|
$ |
27,284 |
|
|
$ |
26,609 |
|
|
$ |
116,714 |
|
|
$ |
113,180 |
|
| By-product credit |
|
(2,057 |
) |
|
(3,093 |
) |
|
(10,589 |
) |
|
(12,477 |
) |
| Recycling income
credit |
|
(1,032 |
) |
|
(866 |
) |
|
(3,977 |
) |
|
(4,007 |
) |
| Total cash costs, net
of by-product and recycling credits (Non-GAAP) |
|
$ |
24,195 |
|
|
$ |
22,650 |
|
|
$ |
102,148 |
|
|
$ |
96,696 |
|
| |
|
|
|
|
|
|
|
|
| Mined ounces
produced |
|
50 |
|
|
48 |
|
|
201 |
|
|
177 |
|
| |
|
|
|
|
|
|
|
|
| Total cash costs per
mined ounce, before by-product and recycling credits
(Non-GAAP) |
|
$ |
545 |
|
|
$ |
560 |
|
|
$ |
581 |
|
|
$ |
641 |
|
| By-product credit per
mined ounce |
|
(41 |
) |
|
(65 |
) |
|
(53 |
) |
|
(71 |
) |
| Recycling income credit
per mined ounce |
|
(21 |
) |
|
(18 |
) |
|
(20 |
) |
|
(23 |
) |
| Total cash cost, per
mined ounce, net of by-product and recycling credits
(Non-GAAP) |
|
$ |
483 |
|
|
$ |
477 |
|
|
$ |
508 |
|
|
$ |
547 |
|
| |
|
|
|
|
|
|
|
|
| Ore tons milled |
|
145 |
|
|
144 |
|
|
583 |
|
|
516 |
|
| |
|
|
|
|
|
|
|
|
| Total cash costs per
ore ton milled, before by-product and recycling credits
(Non-GAAP) |
|
$ |
188 |
|
|
$ |
186 |
|
|
$ |
200 |
|
|
$ |
219 |
|
| By-product credit per
ore ton milled |
|
(14 |
) |
|
(22 |
) |
|
(18 |
) |
|
(24 |
) |
| Recycling income credit
per ore ton milled |
|
(7 |
) |
|
(6 |
) |
|
(7 |
) |
|
(8 |
) |
| Total cash costs per
ore ton milled, net of by-product and recycling credits
(Non-GAAP) |
|
$ |
167 |
|
|
$ |
158 |
|
|
$ |
175 |
|
|
$ |
187 |
|
| |
|
|
|
|
|
|
|
|
| PGM Recycling
and Other: (1) |
|
|
|
|
|
|
|
|
| Cost of open market
acquisitions |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(5,357 |
) |
| Cost of metals
sold |
|
|
|
|
|
|
|
|
| PGM
Recycling |
|
(84,636 |
) |
|
(93,708 |
) |
|
(300,710 |
) |
|
(391,481 |
) |
| Depletion, depreciation
and amortization |
|
|
|
|
|
|
|
|
| PGM
Recycling |
|
(211 |
) |
|
(258 |
) |
|
(949 |
) |
|
(1,019 |
) |
| Total costs of
revenues |
|
$ |
(84,847 |
) |
|
$ |
(93,966 |
) |
|
$ |
(301,659 |
) |
|
$ |
(397,857 |
) |
(1) PGM Recycling and Other include PGM recycling and metal
acquired periodically in the open market and simultaneously resold
to third parties.
Stillwater Mining CompanyAll-In
Sustaining Costs (a Non-GAAP Financial Measure)
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 combined 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 (prior to 2015) 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 mined ore produced.
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
December 31, |
| (In thousands, except
$/oz.) |
2015 |
|
2014 |
|
2015 |
|
2014 |
| All-In
Sustaining Costs |
| Total combined cash
costs, net of by-product and recycling credits (Non-GAAP)
* |
|
$ |
59,618 |
|
|
$ |
66,537 |
|
|
$ |
257,947 |
|
|
$ |
278,382 |
|
| Recycling income
credit |
|
2,727 |
|
|
2,494 |
|
|
10,151 |
|
|
11,702 |
|
| |
|
$ |
62,345 |
|
|
$ |
69,031 |
|
|
$ |
268,098 |
|
|
$ |
290,084 |
|
| |
|
|
|
|
|
|
|
|
| Consolidated Corporate
General & Administrative costs |
|
$ |
6,380 |
|
|
$ |
7,050 |
|
|
$ |
34,033 |
|
|
$ |
35,067 |
|
| Corporate depreciation
included in Consolidated Corporate General & Administrative
costs |
|
(121 |
) |
|
(118 |
) |
|
(499 |
) |
|
(482 |
) |
| General &
Administrative Costs - Foreign Subsidiaries |
|
(406 |
) |
|
(465 |
) |
|
(1,650 |
) |
|
(3,588 |
) |
| Total General &
Administrative costs |
|
$ |
5,853 |
|
|
$ |
6,467 |
|
|
$ |
31,884 |
|
|
$ |
30,997 |
|
| |
|
|
|
|
|
|
|
|
| Total capitalized
costs |
|
$ |
23,485 |
|
|
$ |
36,117 |
|
|
$ |
111,850 |
|
|
$ |
129,813 |
|
| Capital associated with
expansion |
|
(10,451 |
) |
|
(11,723 |
) |
|
(42,450 |
) |
|
(45,054 |
) |
| Total Capital incurred
to sustain existing operations |
|
$ |
13,034 |
|
|
$ |
24,394 |
|
|
$ |
69,400 |
|
|
$ |
84,759 |
|
| |
|
|
|
|
|
|
|
|
| All-In Sustaining
Costs (Non-GAAP) |
|
$ |
81,232 |
|
|
$ |
99,892 |
|
|
$ |
369,382 |
|
|
$ |
405,840 |
|
| |
|
|
|
|
|
|
|
|
| Mined ounces
produced |
|
132.5 |
|
|
137.7 |
|
|
520.8 |
|
|
517.7 |
|
| |
|
|
|
|
|
|
|
|
| All-In Sustaining Costs
per Mined Ounce ($/oz.) (Non-GAAP) |
|
$ |
613 |
|
|
$ |
725 |
|
|
$ |
709 |
|
|
$ |
784 |
|
Stillwater Mining
Company Underlying
Earnings (Non-GAAP Financial
Measure)
Underlying Earnings (Non-GAAP): This non-GAAP
financial measure is considered by the Company to be reflective of
the actual income position. This non-GAAP financial measure
provides to investors and analysts the ability to understand the
results of the continuing operations of the Company relating to the
production, processing and sale of PGMs, by excluding certain items
that have a disproportionate impact on the results for the reported
periods. The measure is calculated beginning with Net (loss) income
attributable to common stockholders and adding back to it
impairment charges, one-time event charges and charges infrequent
to the Company's continuing operations. The net (loss) income
adjustments are presented net of tax. Net loss attributable to
noncontrolling interest has been adjusted for the noncontrolling
interest's ownership percentage of any applicable impairment
charges to which the noncontrolling interest has an ownership. The
Company's determination of the components of Underlying earnings -
net (loss) income attributable to common stockholders are evaluated
periodically and based, in part, on a review of non-GAAP financial
measures used by mining industry analysts.
Net income (loss) attributable to common stockholders is
reconciled to Adjusted net income attributable to common
stockholders as follows:
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
December 31, |
| (In
thousands) |
2015 |
|
2014 |
|
2015 |
|
2014 |
| Net income (loss)
attributable to common stockholders |
$ |
4,424 |
|
$ |
14,682 |
|
$ |
(11,928) |
|
$ |
70,297 |
| Impairment of property, plant and
equipment and non-producing mineral properties, net of tax |
|
— |
|
|
357 |
|
|
45,775 |
|
|
357 |
|
| Proxy contest, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Accelerated equity based
compensation for change-in-control, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Reorganization, net of tax |
|
— |
|
|
2,832 |
|
|
1,078 |
|
|
6,761 |
|
| Loss on extinguishment of debt, net
of tax |
|
— |
|
|
— |
|
|
2,606 |
|
|
— |
|
| Adjusted net income
attributable to common stockholders |
|
$ |
4,424 |
|
|
$ |
17,871 |
|
|
$ |
37,531 |
|
|
$ |
77,415 |
|
| Impairment loss attributable to
noncontrolling interest |
|
— |
|
|
(89 |
) |
|
(11,444 |
) |
|
(89 |
) |
| Underlying earnings
(Net income attributable to common stockholders) |
|
$ |
4,424 |
|
|
$ |
17,782 |
|
|
$ |
26,087 |
|
|
$ |
77,326 |
|
INVESTOR CONTACT:
Mike Beckstead
(720) 502-7671
investor-relations@stillwatermining.com
Stillwater Mining (NYSE:SWC)
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