a growth company producing rare precious metals palladium & platinum june 7, 2000
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A Growth Company Producing Rare Precious Metals
Palladium & Platinum
A Growth Company Producing Rare Precious Metals
Palladium & Platinum
June 7, 2000June 7, 2000
Stillwater Mining CompanyStillwater Mining Company
Only significant primary producer of palladium
Tripling production
Palladium supply shortfall continuing
Only significant primary producer of palladium
Tripling production
Palladium supply shortfall continuing
Growing ProfitabilityGrowing Profitability
($2.8) ($5.4)
$13.4
$37.2
$20.4
0
10
20
30
40
1996 1997 1998 1999 1Q2000
Net IncomeNet Income$ MM$ MM
($0.09) ($0.18)
$0.38
$0.96
$0.52
0.00
0.25
0.50
0.75
1.00
1.25
1996 1997 1998 1999 1Q2000
Earnings Per ShareEarnings Per Share
Increasing EarningsIncreasing Earnings$ $
Operating Cash FlowOperating Cash Flow$ in millions$ in millions
$14.5
($1.9)
$31.1
$67.8
$19.1
0
20
40
60
80
1996 1997 1998 1999 1Q2000
Strong Financial PerformanceStrong Financial Performance
0
100
200
300
400
500
600
1996 1997 1998 1999 1Q2000
Full Costs Margin
$ per oz$ per oz
Growing Profit MarginGrowing Profit MarginRealized
PriceRealized
Price
$375$375
$203$203
$548$548
$243$243
$204$204
($22)($22) ($21)($21)
$226$226 $224$224$50$50
$127$127
$260$260
$193$193 $248$248$288$288
ProductionProduction
255
355
444404
112
0
100
200
300
400
500
600
1996 1997 1998 1999 1Q2000
000 oz000 oz
Stillwater Mining:A Growth Story
Stillwater Mining:A Growth Story
J-M Reef:28-Mile Long Strike LengthJ-M Reef:28-Mile Long Strike Length
Proven and probable reserves: 36.3 mm tons @0.71 opt, containing 25.7 MM ozProven and probable reserves: 36.3 mm tons @0.71 opt, containing 25.7 MM oz
Proven & Probable Reserves
East Boulder AditStillwater Mine
0 5 miles
J-M Reef:28-Mile Long Strike LengthJ-M Reef:28-Mile Long Strike Length
Proven & Probable Reserves
East Boulder AditStillwater Mine
0 5 miles
Mineralized Material
Mineralized material:38.1 MM tons @0.72 optMineralized material:38.1 MM tons @0.72 opt
J-M Reef:28-Mile Long Strike LengthJ-M Reef:28-Mile Long Strike Length
Deposit is open at depth:Probable to 1,400 ft levelDeposit is open at depth:Probable to 1,400 ft level
Proven & Probable Reserves
East Boulder AditStillwater Mine
Mineralized Material
0 5 miles
Blue Sky Potential
Current Expansion PlanCurrent Expansion Plan
Stillwater Mine - 2,000 tpd to 3,000 tpd
Smelter - 500,000 to 1.2 MM oz
New East Boulder Mine - 2,000 tpd
Stillwater Mine - 2,000 tpd to 3,000 tpd
Smelter - 500,000 to 1.2 MM oz
New East Boulder Mine - 2,000 tpd
Expansion Delay: IssuesExpansion Delay: Issues
Inadequate long range planning
• Plan based on probable reserves
Development shortfall
• Lack of proven reserves & footwall lateral
Production constraints
• Tonnage capped at 5,500 tpd
Inadequate long range planning
• Plan based on probable reserves
Development shortfall
• Lack of proven reserves & footwall lateral
Production constraints
• Tonnage capped at 5,500 tpd
Expansion Delay: SolutionsExpansion Delay: Solutions Director of Planning hired
• Long range plan 3Q 00
Development ramped up significantly
• Proven reserves to increase to 3 mm tons (+1.2 mm)
• Development increased to 83,000 ft vs. 45,000 ft
• Diamond drilling increased to 588,000 ft vs. 324,000 ft
Bottlenecks being addressed
• Ore/waste movement
• Equipment availability
• Mine infrastructure
• Backfill systems
Director of Planning hired
• Long range plan 3Q 00
Development ramped up significantly
• Proven reserves to increase to 3 mm tons (+1.2 mm)
• Development increased to 83,000 ft vs. 45,000 ft
• Diamond drilling increased to 588,000 ft vs. 324,000 ft
Bottlenecks being addressed
• Ore/waste movement
• Equipment availability
• Mine infrastructure
• Backfill systems
Total Development Feet/Month Total Development Feet/Month
500
2500
4500
6500
8500
J-99 F-99 M-99 A-99 M-99 J-99 J-99 A-99 S-99 O-99 N-99 D-99 J-00 F-00 M-00
Average Total Tons/DayAverage Total Tons/Day
3000
4000
5000
6000
J-99
F-99
M-99
A-99
M-99
J-99
J-99
A-99
S-99
O-99
N-99
D-99
J-00
F-00
M-00
Smelter/BMR ExpansionSmelter/BMR Expansion
Largely complete
Sized for current expansion plus future
Largely complete
Sized for current expansion plus future
New East Boulder MineNew East Boulder Mine Two 18,500 ft tunnels to access ore body
• 2Q 2000
Surface infrastructure complete in 2000
Underground construction and development to begin mid-year 2000
Production start-up in 2001
Full capacity in late 2002
Two 18,500 ft tunnels to access ore body
• 2Q 2000
Surface infrastructure complete in 2000
Underground construction and development to begin mid-year 2000
Production start-up in 2001
Full capacity in late 2002
Palladium Price HistoryPalladium Price History$/oz$/oz
$128$178
$285$359
$589
0
100
200
300
400
500
600
700
1996 1997 1998 1999 1Q2000
Palladium DemandPalladium DemandMM ozMM oz
0
2
4
6
8
10
12
1992 1993 1994 1995 1996 1997 1998 1999
Other Dental Electronic Auto
3.9 4.34.9
6.1 6.2
7.68.6
9.4
Source: Johnson Matthey
Palladium Supply by SourcePalladium Supply by SourceMM ozMM oz
Stockpile Sales .30 .60 1.5 2.4 3.8 2.8 3.3 2.9
Cumulative Destocking .72 1.3 2.8 5..2 9.0 11.8 15.1 18.0
Stockpile Sales .30 .60 1.5 2.4 3.8 2.8 3.3 2.9
Cumulative Destocking .72 1.3 2.8 5..2 9.0 11.8 15.1 18.0
0
3
6
9
1992 1993 1994 1995 1996 1997 1998 1999
Other North America South Africa Russian Production Russian Stockpile Sales
3.94.3
5.3
6.3
7.87.3
8.48.1
Source: Johnson Matthey
Palladium Mine Supply & DemandPalladium Mine Supply & Demand
3.6 3.9 3.74.3
3.8
4.94.0
6.1
4.1
6.2
4.5
7.6
5.1
8.6
5.2
9.4
0
2
4
6
8
10
1992 1993 1994 1995 1996 1997 1998 1999
Mine Supply Demand
MM ozMM oz
Source: Johnson Matthey
Palladium -- The FuturePalladium -- The Future Demand growth leveling off
• “Thrifting” by car companies(offset by tighter emission standards)
• Substituting in electronics and dental(partially offset by end-use growth)
Supply shortfall continues
• Mine supply growth 5% year by 2003
• Russian stockpile filling gap
• Surplus very unlikely
Demand growth leveling off• “Thrifting” by car companies
(offset by tighter emission standards)
• Substituting in electronics and dental(partially offset by end-use growth)
Supply shortfall continues
• Mine supply growth 5% year by 2003
• Russian stockpile filling gap
• Surplus very unlikely
Platinum Price HistoryPlatinum Price History
$397 $395$372 $377
$479
200
300
400
500
1996 1997 1998 1999 1Q2000
$/oz$/oz
0
1
2
3
4
5
6
1992 1993 1994 1995 1996 1997 1998 1999
Auto Jewelry Other
Platinum Demand & SupplyPlatinum Demand & SupplyMM ozMM oz
3.84.1
4.6 4.8 5.0 5.15.4
5.6 5.8
Platinum supplySource: Johnson Matthey
Platinum -- The FuturePlatinum -- The Future
Supply increasing 4% per year
Growth from jewelry and fuel cells
Positive pricing environment
Supply increasing 4% per year
Growth from jewelry and fuel cells
Positive pricing environment
Stillwater: A Growth FutureStillwater: A Growth Future Production triples, 10% of palladium
world demand
Lowest cost producer
Long reserve life: 50+ years
Strong political/environmental position
Palladium production dedicated to clean air
Production triples, 10% of palladium world demand
Lowest cost producer
Long reserve life: 50+ years
Strong political/environmental position
Palladium production dedicated to clean air
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this presentation are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward looking statements include comments regarding operating performance, recovery rates, expansion plans, cost reduction measures and platinum and palladium markets. Factors that could cause actual results to differ materially include price volatility of platinum and palladium, fluctuations in ore grade, tons mined, crushed or milled, variations in smelter or refinery operation, amounts and prices of the Company’s forward metals sales and geological, technical, mining or processing problems. These and other factors are discussed in more detail in the Company’s filings with the Securities and Exchange Commission. The Company disclaims any obligation to update forward-looking statements.
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