Stillwater Mining Posts 4Q Profit On Higher Sales, PricesBy Kitco News
Thursday February 16, 2017 09:15
(Kitco News) - Stillwater Mining Co. (NYSE: SWC), which has agreed to be acquired by Sibanye Gold Ltd., Thursday reported fourth-quarter income of $6 million, or 5 cents per share.
This is up from $4.4 million, or 4 cents, in the same period of 2015. The company said the increase for the October-December period was due to more mined ounces of platinum group metals sold and higher prices for the metals.
Stillwater, the only producer of platinum group metals in the U.S., reported that sales of mined PGMs totaled 134,500 ounces, an increase of 11.8% from 120,300 ounces sold during the fourth quarter of 2015.
However, mined production during the quarter was 132,100 ounces, down slightly from 132,400 ounces a year earlier, with the Montana-based producer saying output was reduced by some 3,000 ounces due to weather-related road closures. All-in sustaining costs of $661 per PGM mined ounce were up from $613 in the fourth quarter of 2015.
The company also processed 169,200 ounces of recycled palladium, platinum and rhodium in the fourth quarter, an increase of 30.4% from 129,800 ounces in the fourth quarter of 2015.
Mick McMullen, president and chief executive officer, said the company achieved its annual guidance targets for 2016.
The company listed mined PGM production of 545,300 ounces, a 4.7% increase from 520,800 ounces in 2015. AISC were $622 per ounce, down 12.3% from $709 in 2015. Stillwater said it processed a company record 668,300 ounces of recycled palladium, platinum and rhodium, an increase of 21.3% over 551,100 ounces recycled during 2015.
For full-year 2016, Stillwater reported net income of $9.5 million, or 8 cents per share. In 2015, the company listed a net loss of $11.9 million, or 10 cents.
The acquisition by Sibanye was announced in December. The deal was for $18 per share in cash. The acquisition is subject to certain conditions, including shareholder and regulatory approvals. Officials say they anticipate completion of the merger during the second quarter.