Stillwater PGMs Supply Deal To Expire End 2010; Less Critical
July 15 2010 - 5:28AM
Dow Jones News
Stillwater Mining Company's (SWC) palladium and platinum supply
deal with a major automotive company is being renegotiated as it
draws to an end but is less important than it used to be, the
company's Chairman and Chief Executive said late Wednesday.
"Our remaining long-term platinum group metals supply contract
with Ford Motor Company (F) will expire at the end of 2010,"
Francis McAllister said in a letter to employees.
"The floor prices in this and other previous automotive supply
contracts have provided great benefit to Stillwater during periods
of low palladium prices. Whether or not we will be able to renew
them on similar terms is not yet known," he added.
But McAllister said the contracts "are no longer as critical to
our future as they once were."
This is because the company believes a fundamental palladium
market deficit potentially lies directly ahead which will leave
incremental supply reliant on existing stocks and recycling, but
will still fall short of meeting demand.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413;
andrea.hotter@dowjones.com
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