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Stillwater Mining Company Reports Fourth Quarter and Full-Year 2016 Results

LITTLETON, Colo., Feb. 16, 2017 (GLOBE NEWSWIRE) -- Stillwater Mining Company (“Stillwater” or “the Company") (NYSE:SWC) today reported financial results for the quarter and year ended December 31, 2016.

/EIN News/ -- Fourth Quarter 2016 Highlights:

  • Announced proposed acquisition of Stillwater by Sibanye Gold Limited ("Sibanye") for USD$18 per share in cash
  • PGM mined sales of 134,500 ounces, an increase of 11.8% from 120,300 ounces sold during the fourth quarter of 2015
  • Costs of metals sold of $525 per PGM mined ounce, down 1.7% from $534 per PGM mined ounce for the fourth quarter of 2015
  • PGM mined production of 132,100 ounces, compared to 132,400 PGM mined ounces during the fourth quarter of 2015; fourth quarter 2016 planned mined production was reduced by approximately 3,000 ounces due to weather-related road closures
  • All-in sustaining costs (AISC)* of $661 per PGM mined ounce produced, up 7.8% from $613 per PGM mined ounce for the fourth quarter of 2015
  • AISC for the fourth quarter of 2016 includes $15 per PGM mined ounce spend on productivity enhancement projects
  • Processed 169,200 ounces of recycled palladium, platinum and rhodium, an increase of 30.4% over 129,800 ounces recycled during the fourth quarter of 2015
  • Cash and cash equivalents plus highly liquid investments of $450.1 million at quarter end
  • Consolidated net income attributable to common stockholders of $6.0 million, equivalent to net income of $0.05 per diluted share

Full-Year 2016 Highlights:

  • Achieved all 2016 guidance metrics
  • Achieved a record safety performance for the second consecutive year, with a reportable incidence rate improvement of 14.2% compared to 2015
  • PGM mined sales of 549,200 ounces, an increase of 8.3% from 507,300 ounces sold during 2015
  • Costs of metals sold of $509 per PGM mined ounce, down 12.1% from $579 per PGM mined ounce for 2015
  • PGM mined production of 545,300 ounces, a 4.7% increase from 520,800 PGM mined ounces during 2015
  • AISC of $622 per PGM mined ounce produced, an improvement of 12.3% from $709 per PGM mined ounce for 2015
  • 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
  • Consolidated net income attributable to common stockholders of $9.5 million, equivalent to net income of $0.08 per diluted share

Proposed Transaction with Sibanye:

On December 9, 2016, the Company entered into an agreement with Sibanye, under which Sibanye will acquire the Company for $18.00 per share in cash, representing an aggregate enterprise value of $2.2 billion. The $18.00 per share transaction price represents a 61% premium to Stillwater's volume-weighted average share price over the 52 weeks prior to the announcement of the transaction, a 25% premium to its volume-weighted share price over the 30 trading days prior to the announcement and a 23% premium to its closing share price on December 8, 2016.

The closing of the merger is subject to certain conditions including shareholder and regulatory approvals. Additional details regarding the proposed transaction are available in the preliminary proxy statement that was filed with the United States Securities and Exchange Commission on January 24, 2017. Pending the receipt of all required approvals or waivers, the Company currently anticipates the completion of the merger during the second quarter of 2017.

Commenting on the fourth quarter and full-year 2016 results, Mick McMullen, the Company’s President and Chief Executive Officer stated, “We are proud to announce today that Stillwater has again achieved all annual guidance targets. These achievements during 2016 are significant as they have been accomplished in conjunction with another record safety performance and simultaneous progress on the Blitz project throughout the year. The Company improved on its previous safety record, achieved just last year, with a 14.2% safety incidence rate improvement for 2016. In addition, the Company achieved a recycling record, processing 668,300 ounces of palladium, platinum and rhodium during 2016.

“We continue our focus on Blitz, our primary growth project. The progress on the two critical path items to first production, the 56 East development heading and the 53 East decline continues ahead of plan. In addition, the Benbow access portal, on the east end of the Blitz project advanced over 240 feet during the fourth quarter of 2016 and continues to accelerate its development rates.

"AISC increased in the fourth quarter as spending on productivity improvement projects continued and we expect to see the benefits of this spend in the coming quarters. In addition, severe winter weather resulted in road closures that prevented access to the mines for several shifts during December and resulted in the loss of approximately 3,000 ounces of production. Despite this, the Company met its guidance for the year."

Mr. McMullen concluded, “I would like to thank our team for the continuous focus on improvement in all areas of the business. These efforts have resulted in another strong quarter and year in which our stated goals were achieved.”

Fourth Quarter and Full-Year 2016 Results:

For the fourth quarter of 2016, the Company reported consolidated net income attributable to common stockholders of $6.0 million, equivalent to net income of $0.05 per diluted share. For the fourth quarter of 2015, the Company reported consolidated net income attributable to common stockholders of $4.4 million, equivalent to net income of $0.04 per diluted share. The increase in net income for the fourth quarter of 2016 was impacted by the rise in the number of mined PGM ounces sold and the higher sales price per PGM mined ounce realized compared to the fourth quarter of 2015. Underlying earnings* attributable to common stockholders for the fourth quarter of 2016 were $7.1 million (after tax), which excluded transactional costs associated with the proposed acquisition of the Company by Sibanye.

For the full-year 2016, the Company reported consolidated net income attributable to common stockholders of $9.5 million, equivalent to net income of $0.08 per diluted share. In 2015, the Company reported a consolidated net loss attributable to common shareholders of $11.9 million, equivalent to a loss of $0.10 per share. The increase in net income reflects the larger number of mined PGM ounces sold and the decrease in average sales price per mined PGM ounce during 2016. Underlying earnings* for 2016 were $10.6 million (after-tax) adjusted for transactional costs associated with the proposed acquisition of the Company by Sibanye, compared to underlying earnings of $26.1 million (after-tax) for 2015, adjusted for an impairment charge, loss on repurchase of a portion of the convertible debentures and reorganization charges.

PGM Mine Production Comparison:

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(Produced ounces)   2016   2015   2016   2015
Palladium   60,600   63,400   250,500   246,400
Platinum   18,400   18,900   76,500   73,400
Stillwater Mine Total   79,000   82,300   327,000   319,800
                 
Palladium   41,200   39,000   169,700   156,500
Platinum   11,900   11,100   48,600   44,500
East Boulder Mine Total   53,100   50,100   218,300   201,000
                 
Palladium   101,800   102,400   420,200     402,900  
Platinum   30,300   30,000   125,100     117,900  
Total   132,100   132,400   545,300     520,800  

Mine Production segment revenues (including proceeds from the sale of by-products) totaled $105.9 million in the fourth quarter of 2016, an increase from $84.7 million for the fourth quarter of 2015. The combined average realized price for the sales of mined palladium and platinum increased for the fourth quarter of 2016 to $741 per ounce, compared to $667 per ounce realized in the fourth quarter of 2015. The total quantity of mined palladium and platinum sold in the fourth quarter of 2016 was 134,500 ounces compared to 120,300 ounces sold in the fourth quarter of 2015.

For the full-year 2016, the Company reported Mine Production segment revenues (including the proceeds for the sale of by-products) of $405.1 million, down from $415.8 million in 2015. The combined average realized price for the sales of mined palladium and platinum was $694 for 2016, a decrease from $774 per ounce realized in 2015. The total quantity of mined palladium and platinum sold in 2016 was 549,200 ounces compared to 507,300 sold during 2015.

Total costs of metals sold from PGM mined production increased to $70.7 million in the fourth quarter of 2016 from $64.3 million in the fourth quarter of 2015. For the full-year 2016 Mine Production costs of metals sold decreased to $279.3 million from $294.0 million in 2015.

Recycling Activity Comparison:

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2016   2015   2016   2015
Average tons of catalyst fed per day   24.3     17.9     24.7     20.9  
Tons processed   2,239     1,651     8,999     7,638  
Tons tolled   430     503     2,671     2,923  
Tons purchased   1,809     1,148     6,328     4,715  
PGM ounces fed   169,200     129,800     668,300     551,100  
PGM ounces sold   134,900     108,700     401,100     340,200  
PGM tolled ounces returned   31,800     54,700     228,300     205,000  

Total recycled PGM ounces fed to the smelter during the fourth quarter of 2016 were up 30.4% from the prior year quarter to 169,200 ounces. For the full-year 2016, the Company processed a record 668,300 recycled PGM ounces, an increase of 21.3% from 2015.

PGM Recycling segment revenues totaled $109.4 million for the 2016 fourth quarter, an increase from $87.2 million in the same period of 2015. The Company's combined average realized price for sales of recycled palladium, platinum and rhodium increased to $792 per ounce in the fourth quarter of 2016 compared to $782 per ounce in the fourth quarter of 2015. Recycling sales volumes for the fourth quarter of 2016 increased to 134,900 ounces from 108,700 ounces sold in the fourth quarter of 2015. In conjunction, tolled ounces returned to customers decreased to 31,800 ounces for the fourth quarter of 2016 from 54,700 ounces in the fourth quarter of 2015.

PGM Recycling segment revenues totaled $305.9 million for full-year 2016, compared to $310.2 million in 2015. For 2016, the Company’s combined average realized sales price for recycled palladium, platinum and rhodium was $736 per ounce, down from $886 per ounce for 2015.  Recycling sales volumes for 2016 totaled 401,100 ounces, an increase from 340,200 ounces sold for 2015. For 2016, tolled ounces returned totalled 228,300, an increase from 205,000 returned in 2015.

PGM Recycling segment costs of metals sold totaled $106.1 million in the fourth quarter of 2016, an increase from $84.6 million in the fourth quarter of 2015. For the full-year 2016, PGM Recycling segment costs of metals sold decreased to $294.9 million from $300.7 million for 2015. A majority of the costs of metals sold from recycling in each period is attributable to the acquisition cost of purchasing recyclable materials for the Company's own account; therefore, the aggregate costs of metals sold from the PGM Recycling segment is driven by the volume and the value of the PGMs in the materials purchased by the Company.

General and administrative costs were $9.4 million in the fourth quarter of 2016, compared to $6.4 million incurred during the same period of 2015. Contributing to the increase in the fourth quarter of 2016 was the $1.7 million of transactional costs associated with the potential acquisition of the Company by Sibanye. For the full-year 2016, general and administrative costs were $34.7 million compared to $34.0 million in 2015.

Costs of Metals Sold Per PGM Mined Ounce:

Costs of metals sold per PGM mined ounce totaled $525 for the fourth quarter of 2016, a decrease from $534 recorded for the fourth quarter of 2015. For the full-year 2016, costs of metals sold per PGM mined ounce totaled $509, a decrease from $579 for 2015.

All-In Sustaining Costs Per PGM Mined Ounce Produced:

AISC per PGM mined ounce produced totaled $661 for the fourth quarter of 2016, an increase from $613 recorded for the same period of 2015. AISC per PGM mined ounce produced during the full-year 2016 was $622, a decrease from $709 for 2015.

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
All-In Sustaining Costs Per PGM Mined Ounce
Combined Montana Mining Operations
  2016   2015   2016   2015
Total combined cash costs per PGM mined ounce, net of by-product and recycling credits *   $ 454     $ 450     $ 438     $ 495  
PGM Recycling income credit per mined ounce   29     21     23     19  
Corporate general and administrative costs (before depreciation, depletion and amortization)   60     44     58     61  
Capital outlay to sustain production at the Montana operating mines   118     98     103     134  
All-In Sustaining Costs per PGM mined ounce *   $ 661     $ 613     $ 622     $ 709  

Cash Costs Per PGM Mined Ounce:

Total combined cash costs per PGM mined ounce (net of by-product and recycling credits)* totaled $454 per ounce for the fourth quarter of 2016, an increase over the $450 per ounce for the fourth quarter of 2015. For the full-year 2016, total combined cash costs per PGM mined ounce (net of by-product and recycling credits)* totaled $438 compared to $495 for 2015.

The table below illustrates the effect of applying the by-product and PGM Recycling segment credits to the total cash costs per PGM mined ounce for the Montana mining operations.

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,

Combined Montana Mining Operations
  2016   2015   2016   2015
Total combined cash costs per PGM mined ounce, before by-product and recycling credits *   $ 531     $ 505     $ 504     $ 558  
By-product revenue credit per mined ounce   (48 )   (34 )   (43 )   (44 )
PGM Recycling income credit per mined ounce   (29 )   (21 )   (23 )   (19 )
Total combined cash costs per PGM mined ounce, net of by-product and recycling credits *   $ 454     $ 450     $ 438     $ 495  
                                 
*Indicates 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 and Reconciliation of Total Cash Costs Guidance and AISC Guidance below.

Cash Flow and Liquidity:

At December 31, 2016, the Company’s cash and cash equivalents balance was $123.2 million, compared to $147.3 million at December 31, 2015. The Company’s cash and cash equivalents plus highly liquid investments totaled $450.1 million at December 31, 2016 compared to $463.8 million at December 31, 2015. The cash and cash equivalents plus highly liquid investments for both 2016 and 2015 includes $18.5 million of investments which have been reserved as collateral on letters of credit. Net working capital increased to $527.0 million at December 31, 2016, compared to $523.0 million at December 31, 2015.

Net cash provided by operating activities (which includes changes in working capital) totaled $78.3 million for the year ended December 31, 2016, compared to $110.4 million for the same period in 2015. Cash capital expenditures were $88.7 million for the year ended December 31, 2016, compared to $107.4 million in the same period in 2015.

Outstanding total balance sheet debt reported at December 31, 2016 was approximately $274.8 million, an increase from $255.8 million at December 31, 2015. The Company’s debt balance at December 31, 2016 included approximately $274.3 million of 1.75% convertible debentures (net of unamortized discount of approximately $57.9 million and $2.9 million of deferred debt issuance costs) and $0.5 million of 1.875% convertible debentures. The change in debt balance is a result of the accretion of the discount on the Company's outstanding 1.75% convertible debentures.

2016 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 2016 results at 12:00 noon Eastern Standard Time on Thursday, February 16, 2017.

Dial-In Numbers:       United States:         (877) 407-8037
        International:         (201) 689-8037

A simultaneous webcast of the conference call and related presentation materials will be accessible in 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 13649180. 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 recognized 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.

IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC

This press release does not constitute the solicitation of any vote, proxy or approval. The Company has filed with the SEC a preliminary proxy statement and plans to file with the SEC and mail to its shareholders a definitive proxy statement in connection with the proposed transaction with Sibanye. The preliminary proxy statement contains, and other relevant documents, including the definitive proxy statement, will contain, important information about the proposed transaction and related matters. STILLWATER AND SIBANYE SHAREHOLDERS ARE ADVISED TO READ THE PRELIMINARY PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE DEFINITIVE PROXY STATEMENT, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The preliminary proxy statement and other relevant documents, including the definitive proxy statement, may also be obtained, free of charge, on the SEC’s website (http://www.sec.gov), when available. Stillwater shareholders may obtain free copies of the definitive proxy statement by contacting Stillwater’s Investor Relations department at (720) 502-7671 or via e-mail at investor-relations@stillwatermining.com.

PARTICIPANTS IN THE SOLICITATION

Stillwater, Sibanye and their respective directors and officers may be deemed participants in the solicitation of proxies of Stillwater’s shareholders in connection with the proposed transaction. Stillwater’s shareholders and other interested persons may obtain, without charge, more detailed information regarding the officers of Stillwater in Stillwater’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which will be filed with the SEC today, and regarding the directors of Stillwater in Stillwater’s proxy statement filed with the SEC on March 23, 2016, for its 2016 Annual Meeting of Shareholders. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed transaction will be included in the definitive proxy statement that Stillwater intends to file with the SEC.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "target," "will," "forecast," "expect," "potential," "intend," "estimate," "anticipate," "can" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Statements related to expected timing of the transaction with Sibanye (including completion), pricing expectations, levels of output, supply and demand, information related to the Blitz Project and estimations or expectations of enterprise value, EBITDA and net asset values, are forward-looking statements. The forward-looking statements contained in this press release involve a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and generally beyond the control of Stillwater, that could cause Stillwater's actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, without limitation: Sibanye's or Stillwater's ability to complete the proposed transaction; the inability to complete the proposed transaction due failure to obtain approval of the shareholders of Sibanye or Stillwater or other conditions in the Merger Agreement; and changes in the market price of gold, platinum group metals ("PGMs") and/or uranium. These forward-looking statements speak only as of the date of this press release.

Stillwater Mining Company
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except per share data)   2016   2015   2016   2015
REVENUES                
Mine Production   $ 105,947     $ 84,709     $ 405,070     $ 415,774  
PGM Recycling   109,350     87,176     305,865     310,156  
Other   100     100     400     400  
Total revenues   215,397     171,985     711,335     726,330  
COSTS AND EXPENSES                
Costs of metals sold                
Mine Production   70,662     64,280     279,274     293,955  
PGM Recycling   106,138     84,636     294,850     300,710  
Total costs of metals sold (excludes depletion, depreciation and amortization)   176,800     148,916     574,124     594,665  
Depletion, depreciation and amortization                
Mine Production   17,907     15,257     73,080     64,200  
PGM Recycling   159     211     728     949  
Total depletion, depreciation and amortization   18,066     15,468     73,808     65,149  
Total costs of revenues   194,866     164,384     647,932     659,814  
Exploration   540     924     5,474     3,591  
Reorganization               1,658  
General and administrative   9,364     6,380     34,664     34,033  
Impairment of non-producing mineral properties               46,772  
Loss / (gain) on long-term investments       168     (678 )   372  
Gain on disposal of property, plant and equipment   (76 )       (148 )   (216 )
Total costs and expenses   204,694     171,856     687,244     746,024  
OPERATING INCOME (LOSS)   10,703     129     24,091     (19,694 )
OTHER INCOME (EXPENSE)                
Other   23     2     118     920  
Loss on extinguishment of debt, net               (4,010 )
Interest income   1,333     763     4,216     2,955  
Interest expense, net of capitalized interest   (4,284 )   (4,474 )   (16,491 )   (20,187 )
Foreign currency transaction (loss) gain, net   (441 )   3,798     1,219     3,947  
INCOME (LOSS) BEFORE INCOME TAX (PROVISION) BENEFIT   7,334     218     13,153     (36,069 )
Income tax (provision) benefit   (1,313 )   4,206     (3,680 )   12,333  
NET INCOME (LOSS)   $ 6,021     $ 4,424     $ 9,473     $ (23,736 )
Net loss attributable to noncontrolling interest               (11,808 )
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS   $ 6,021     $ 4,424     $ 9,473     $ (11,928 )
Other comprehensive income, net of tax                
Net unrealized (loss) gain on investments available-for-sale and deferred compensation   (354 )   (363 )   (17 )   (214 )
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS   $ 5,667     $ 4,061     $ 9,456     $ (12,142 )
Comprehensive loss attributable to noncontrolling interest               (11,808 )
TOTAL COMPREHENSIVE INCOME (LOSS)   $ 5,667     $ 4,061     $ 9,456     $ (23,950 )
Weighted average shares of common stock outstanding                
Basic   121,080     120,996     121,072     120,809  
Diluted   121,755     121,187     121,576     120,809  
Basic income (loss) per share attributable to common stockholders   $ 0.05     $ 0.04     $ 0.08     $ (0.10 )
Diluted income (loss) per share attributable to common stockholders   $ 0.05     $ 0.04     $ 0.08     $ (0.10 )
 

Stillwater Mining Company
Consolidated Balance Sheets
(Unaudited)

    December 31,   December 31,
(In thousands, except per share data)   2016   2015
ASSETS        
Current assets        
Cash and cash equivalents   $ 123,238     $ 147,336  
Investments, at fair value   326,884     316,429  
Inventories   138,653     102,072  
Trade receivables   1,621     800  
Prepaid expenses   3,239     2,821  
Other current assets   20,684     21,628  
Total current assets   614,319     591,086  
Mineral properties   112,480     112,480  
Mine development, net   484,452     460,751  
Property, plant and equipment, net   111,396     109,957  
Other noncurrent assets   4,390     4,115  
Total assets   $ 1,327,037     $ 1,278,389  
LIABILITIES AND EQUITY        
Current liabilities        
Accounts payable   $ 37,056     $ 18,205  
Accrued compensation and benefits   29,589     30,046  
Property, production and franchise taxes payable   13,791     13,907  
Current portion of long-term debt and capital lease obligations       657  
Income taxes payable   2,230      
Other current liabilities   4,642     5,286  
Total current liabilities   87,308     68,101  
Long-term debt   274,806     255,099  
Deferred income taxes   16,403     22,761  
Accrued workers compensation   6,426     6,070  
Asset retirement obligation   11,596     11,027  
Other noncurrent liabilities   9,652     6,102  
Total liabilities   406,191     369,160  
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; 121,234,192 and 121,049,471 issued and outstanding at December 31, 2016 and December 31, 2015, respectively   1,212     1,210  
Paid-in capital   1,101,442     1,099,283  
Accumulated deficit   (181,594 )   (191,067 )
Accumulated other comprehensive loss   (214 )   (197 )
Total equity   920,846     909,229  
Total liabilities and equity   $ 1,327,037     $ 1,278,389  
 

Stillwater Mining Company
Consolidated Statements of Cash Flows
(Unaudited)

    Twelve Months Ended
    December 31,
(In thousands)   2016   2015
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss)   $ 9,473     $ (23,736 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
Depletion, depreciation and amortization   73,808     65,149  
(Gain) / loss on long-term investments   (678 )   372  
Loss on extinguishment of debt, net       4,010  
Impairment of non-producing mineral properties       46,772  
Amortization / accretion of premiums / discounts for investments   2,405     2,414  
Gain on disposal of property, plant and equipment   (148 )   (216 )
Foreign currency transaction gain, net   (1,219 )   (3,947 )
Deferred income taxes   (4,444 )   (17,711 )
Accretion of asset retirement obligation   858     812  
Amortization of deferred debt issuance costs   892     2,211  
Accretion of convertible debenture debt discount   18,815     17,222  
Share based compensation and other benefits   3,771     10,080  
Non-cash capitalized interest   (6,504 )   (4,068 )
Excess tax (benefit) shortfall from stock-based compensation   (108 )   154  
Changes in operating assets and liabilities:        
Inventories   (38,010 )   28,440  
Trade receivables   (821 )   477  
Prepaid expenses   (418 )   (275 )
Accounts payable   15,273     (4,611 )
Accrued compensation and benefits   (457 )   73  
Property, production and franchise taxes payable   (112 )   (3,019 )
Income taxes payable   2,230      
Accrued workers compensation   356     10  
Other operating assets   1,030     (6,792 )
Other operating liabilities   2,263     (3,400 )
NET CASH PROVIDED BY OPERATING ACTIVITIES   78,255     110,421  
CASH FLOWS FROM INVESTING ACTIVITIES        
Capital expenditures   (88,696 )   (107,434 )
Proceeds from sale of long-term investments   1,099      
Proceeds from disposal of property, plant and equipment   224     387  
Purchases of investments   (281,303 )   (286,380 )
Proceeds from maturities and sales of investments   268,590     218,475  
NET CASH USED IN INVESTING ACTIVITIES   (100,086 )   (174,952 )
CASH FLOWS FROM FINANCING ACTIVITIES        
Purchase of noncontrolling interest       (5,216 )
Excess tax benefit (shortfall) from stock-based compensation   108     (154 )
Payments on debt and capital lease obligations   (657 )   (63,109 )
Payments of tax obligations for share-based compensation   (1,752 )    
Proceeds from issuance of common stock   34     60  
NET CASH USED IN FINANCING ACTIVITIES   (2,267 )   (68,419 )
CASH AND CASH EQUIVALENTS        
Net decrease   (24,098 )   (132,950 )
Balance at beginning of period   147,336     280,286  
BALANCE AT END OF PERIOD   $ 123,238     $ 147,336  
 

Stillwater Mining Company
Key Operating Factors
(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except ounce, ton and percentage data)   2016   2015   2016   2015
OPERATING AND COST DATA FOR PGM MINE PRODUCTION                
Consolidated:                
Ounces produced                
Palladium   101.8   102.4   420.2   402.9
Platinum   30.3   30.0   125.1   117.9
Total   132.1   132.4   545.3   520.8
Tons milled   323.7   309.6   1,286.7   1,216.5
Mill head grade (ounce per ton)   0.44   0.45   0.45   0.45
Sub-grade tons milled (1)   17.9   26.4   84.5   114.9
Sub-grade tons mill head grade (ounce per ton)   0.14   0.17   0.15   0.16
Total tons milled(1)   341.6   336.0   1,371.2   1,331.4
Combined mill head grade (ounce per ton)   0.42   0.43   0.44   0.43
Total mill recovery (%)   92   92   92   92
Total mine concentrate shipped (tons) (3)   7,928   8,178   32,097   31,915
Platinum grade in concentrate (ounce per ton) (3)   4.04   3.92   4.16   3.90
Palladium grade in concentrate (ounce per ton) (3)   13.23   12.94   14.13   13.02
Costs of metals sold per PGM mined ounce   $ 525   $ 534   $ 509   $ 579
Total combined cash costs per ounce - net of credits (Non-GAAP) (2)   $ 454   $ 450   $ 438   $ 495
Total combined cash costs per ore ton milled - net of credits (Non-GAAP) (2)   $ 176   $ 177   $ 174   $ 194
Stillwater Mine:                
Ounces produced                
Palladium   60.6   63.4   250.5   246.4
Platinum   18.4   18.9   76.5   73.4
Total   79.0   82.3   327.0   319.8
Tons milled   176.2   176.1   683.2   675.8
Mill head grade (ounce per ton)   0.48   0.49   0.51   0.49
Sub-grade tons milled (1)   6.0   15.0   32.0   72.1
Sub-grade tons mill head grade (ounce per ton)   0.23   0.22   0.23   0.19
Total tons milled (1)   182.2   191.1   715.2   747.9
Combined mill head grade (ounce per ton)   0.47   0.47   0.49   0.46
Total mill recovery (%)   93   93   93   93
Total mine concentrate shipped (tons) (3)   4,130   4,640   16,905   17,202
Platinum grade in concentrate (ounce per ton) (3)   4.84   4.50   4.99   4.63
Palladium grade in concentrate (ounce per ton) (3)   15.36   14.35   16.72   14.99
Costs of metals sold per PGM mined ounce   $ 507   $ 510   $ 486   $ 558
Total cash costs per PGM mined ounce - net of credits (Non-GAAP) (2)   $ 464   $ 430   $ 437   $ 487
Total cash costs per ore ton milled - net of credits (Non-GAAP) (2)   $ 201   $ 185   $ 200   $ 208
                         

Stillwater Mining Company
Key Operating Factors (Continued)
(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except ounce, ton and percentage data)   2016   2015   2016   2015
OPERATING AND COST DATA FOR PGM MINE PRODUCTION (Continued)                
East Boulder Mine:                
Ounces produced                
Palladium   41.2     39.0     169.7     156.5
Platinum   11.9     11.1     48.6     44.5
Total   53.1     50.1     218.3     201.0
Tons milled   147.5     133.5     603.5     540.7
Mill head grade (ounce per ton)   0.40     0.40     0.40     0.40
Sub-grade tons milled (1)   11.9     11.4     52.5     42.8
Sub-grade tons mill head grade (ounce per ton)   0.10       0.10     0.10       0.10
Total tons milled (1)     159.4       144.9       656       583.5
Combined mill head grade (ounce per ton)     0.37       0.38       0.37       0.38
Total mill recovery (%)   90     91     90     91
Total mine concentrate shipped (tons) (3)   3,798     3,538     15,192     14,713
Platinum grade in concentrate (ounce per ton) (3)   3.17     3.17     3.22     3.05
Palladium grade in concentrate (ounce per ton) (3)   10.91     11.08     11.25     10.71
Costs of metals sold per PGM mined ounce   $ 554     $ 573     $ 545     $ 616
Total cash costs per PGM mined ounce - net of credits (Non-GAAP) (2)   $ 440     $ 483     $ 441     $ 508
Total cash costs per ore ton milled - net of credits (Non-GAAP) (2)   $ 146     $ 167     $ 147     $ 175


(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 2015 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 PGM 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 Company
Key Operating Factors (Continued)

(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except for average prices)   2016   2015   2016   2015
SALES AND PRICE DATA                
Ounces sold                
PGM Mine Production:                
Palladium (oz.)   104.9   94.7   430.1   396.8
Platinum (oz.)   29.6   25.6   119.1   110.5
Total   134.5   120.3   549.2   507.3
PGM Recycling: (1)                
Palladium (oz.)   82.2   61   242.6   197.9
Platinum (oz.)   42.4   40.5   129.9   118.6
Rhodium (oz.)   10.3   7.2   28.6   23.7
Total   134.9   108.7   401.1   340.2
By-products from Mine Production: (2)                
Rhodium (oz.)   0.8   0.5   3.3   3.1
Gold (oz.)   2.9   2.4   11.0   10.3
Silver (oz.)   1.5   1.4   6.5   6.5
Copper (lb.)   264.1   220.4   1,094.4   964.5
Nickel (lb.)   424.5   325.4   1,609.4   1,455.8
Average realized price per ounce (3)                
PGM Mine Production:                
Palladium ($/oz.)   $ 685     $ 603     $ 614     $ 694  
Platinum ($/oz.)   $ 938     $ 905     $ 986     $ 1,060  
Combined ($/oz.) (5)   $ 741     $ 667     $ 694     $ 774  
PGM Recycling: (1)                
Palladium ($/oz.)   $ 673     $ 635     $ 604     $ 729  
Platinum ($/oz.)   $ 1,060     $ 994     $ 998     $ 1,117  
Rhodium ($/oz.)   $ 634     $ 826     $ 664     $ 1,038  
Combined ($/oz.) (5)   $ 792     $ 782     $ 736     $ 886  
By-products from Mine Production: (2)                
Rhodium ($/oz.)   $ 760     $ 751     $ 690     $ 979  
Gold ($/oz.)   $ 1,197     $ 1,107     $ 1,244     $ 1,164  
Silver ($/oz.)   $ 17     $ 15     $ 17     $ 16  
Copper ($/lb.)   $ 2.19     $ 2.01     $ 1.99     $ 2.33  
Nickel ($/lb.)   $ 3.96     $ 2.99     $ 3.42     $ 3.93  
Average market price per ounce (4)                
Palladium ($/oz.)   $ 685     $ 609     $ 614     $ 692  
Platinum ($/oz.)   $ 946     $ 909     $ 989     $ 1,053  
Combined ($/oz.) (5)   $ 742     $ 673     $ 695     $ 770  


(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 net values of realized prices (discounted due to product form) per unit sold.
(3)  The Company’s average realized price represents revenues, hedging gains and losses realized on commodity instruments and agreement discounts, divided by ounces sold.
(4)  The average market price represents the average London market for the actual months of the period.
(5)  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.

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. Costs of metals sold - Mine Production, the Company's most directly comparable GAAP financial measure, in any period includes some portion of material mined and processed from prior periods as the process is completed. Consequently, while costs of metals sold - Mine Production (a GAAP 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 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 metals sold - Mine Production, they cannot meaningfully be used to develop measures of earnings or profitability. A reconciliation of these measures to costs of metals sold - Mine Production, 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.

Costs of Metals Sold - Mine Production: For the Company as a whole, this measure is equal to total costs of metals sold - Mine Production, as reported in the Company's Consolidated Statements of Comprehensive Income (Loss). For the Stillwater Mine and the East Boulder Mine, the Company segregates the expenses within total costs of metals sold - Mine Production 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 metals sold - Mine Production measures for the Stillwater Mine, and the East Boulder Mine are equal, in the aggregate, to total consolidated costs of metals sold - Mine Production as reported in the Company’s Consolidated Statements of Comprehensive Income (Loss).

When divided by the total PGM mined ounces sold in the respective period, Costs of metals sold - Mine Production, measured for each mine or combined, provides an indication of the level of combined cash costs incurred per PGM mined ounce sold in that period. Consequently, Total Combined Cash Costs per PGM mined ounce sold (Non-GAAP) is a general measure of operating efficiency, and is affected both by the level of Total Combined Cash Costs (Non-GAAP) and by the total of PGM mined ounces sold.

Total Combined Cash Costs (Non-GAAP): This non-GAAP financial measure is calculated as total costs of metals sold - Mine Production adjusted for the change in mined inventories to calculate Total Combined Cash Costs before by-product and recycling income credits, (Non-GAAP). From this calculation, the Company deducts by-product and recycling income credits to arrive at Total Combined Cash Costs, net of by-product and recycling income credits. Total Combined 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 PGM ounces produced in the respective period, Total Combined Cash Costs, net of by-products and recycling income credits (Non-GAAP), measured for each mine or combined, provides an indication of the level of combined cash costs incurred per PGM ounce produced in that period.

When divided by the total ore tons milled in the respective period, Total Combined Cash Costs per PGM mined ounce, net of by-product and recycling income credits (Non-GAAP), measured for each mine or combined, provides an indication of the level of combined cash costs incurred per ton milled in that period. Because of variability of ore grade in the Company’s mining operations, 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 production tons are measured precisely. Consequently, Total Combined Cash Costs per Ore Ton Milled (Non-GAAP) is a general measure of production efficiency, and is affected both by the level of Total Combined Cash Costs (Non-GAAP) and by the volume of tons produced and fed to the mill.

Stillwater Mining Company
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except per ounce and per ton data)   2016   2015   2016   2015
Consolidated:                
                 
Costs of metals sold - Mine Production   $ 70,662     $ 64,280     $ 279,274     $ 293,955  
Change in mined inventories (palladium and platinum)   (579 )   2,516     (4,147 )   (2,743 )
Total combined cash costs, before by-product and recycling credits  (Non-GAAP)   $ 70,083     $ 66,796     $ 275,127     $ 291,212  
By-product revenue credit   (6,326 )   (4,451 )   (23,704 )   (23,114 )
PGM Recycling income credit   (3,781 )   (2,727 )   (12,392 )   (10,151 )
Total combined cash costs, net of by-product and recycling credits  (Non-GAAP)   $ 59,976     $ 59,618     $ 239,031     $ 257,947  
                 
PGM mined ounces sold     134.5       120.3       549.2       507.3  
Costs of metals sold per PGM mined ounce   $ 525     $ 534     $ 509     $ 579  
                 
PGM mined ounces produced     132.1       132.4       545.3       520.8  
                 
Total combined cash costs per PGM mined ounce, before by-product and recycling credits  (Non-GAAP)   $ 531     $ 505     $ 504     $ 558  
By-product credit per mined ounce   (48 )   (34 )   (43 )   (44 )
Recycling income credit per mined ounce   (29 )   (21 )   (23 )   (19 )
Total combined cash costs PGM per mined ounce, net of by-product and recycling credits  (Non-GAAP)   $ 454     $ 450     $ 438     $ 495  
                 
Ore tons milled   341.6     336.0     1,371.2     1,331.4  
                 
Total combined cash costs per ore ton milled, before by-product and recycling credits (Non-GAAP)   $ 206     $ 198     $ 200     $ 219  
By-product credit per ore ton milled   (19 )   (13 )   (17 )   (17 )
Recycling income credit per ore ton milled   (11 )   (8 )   (9 )   (8 )
Total combined cash costs per ore ton milled, net of by-product and recycling credits (Non-GAAP)   $ 176     $ 177     $ 174     $ 194  
   

Stillwater Mining Company
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Continued)
(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except per ounce and per ton data)   2016   2015   2016   2015
Stillwater Mine:                
                 
Costs of metals sold - Mine Production   $ 41,952     $ 37,965     $ 163,954     $ 178,017  
Change in mined inventories (palladium and platinum)   292     1,548     (1,316 )   (3,519 )
Total cash costs, before by-product and recycling credits (Non-GAAP)   $ 42,244     $ 39,513     $ 162,638     $ 174,498  
By-product revenue credit   (3,350 )   (2,394 )   (12,404 )   (12,525 )
PGM Recycling income credit   (2,258 )   (1,695 )   (7,419 )   (6,174 )
Total cash costs, net of by-product and recycling credits (Non-GAAP)   $ 36,636     $ 35,424     $ 142,815     $ 155,799  
                 
PGM mined ounces sold   82.7
      74.4       337.7       319.2  
Costs of metals sold per PGM mined ounce   $ 507     $ 510     $ 486     $ 558  
                 
PGM mined ounces produced   79.0       82.3       327.0       319.8  
                 
Total cash costs per PGM mined ounce, before by-product and recycling credits  (Non-GAAP)   $ 535     $ 480     $ 498     $ 545  
By-product credit per mined ounce   (42 )   (29 )   (38 )   (39 )
Recycling income credit per mined ounce   (29 )   (21 )   (23 )   (19 )
Total cash costs per PGM mined ounce, net of by-product and recycling credits  (Non-GAAP)   $ 464     $ 430     $ 437     $ 487  
                 
Ore tons milled   182.2   191.1   715.2   747.9
                 
Total cash costs per ore ton milled, before by-product and recycling credits (Non-GAAP)   $ 231     $ 207     $ 227     $ 233  
By-product credit per ore ton milled   (18 )   (13 )   (17 )   (17 )
Recycling income credit per ore ton milled   (12 )   (9 )   (10 )   (8 )
Total cash costs per ore ton milled, net of by-product and recycling credits (Non-GAAP)   $ 201     $ 185     $ 200     $ 208  
                                 

Stillwater Mining Company
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Continued)
(Unaudited)

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except per ounce and per ton data)   2016   2015   2016   2015
East Boulder Mine:                
                 
Costs of metals sold - Mine Production   $ 28,710     $ 26,315     $ 115,320     $ 115,938  
Change in mined inventories (palladium and platinum)   (871 )   969     (2,831 )   776  
Total cash costs, before by-product and recycling credits  (Non-GAAP)   $ 27,839     $ 27,284     $ 112,489     $ 116,714  
By-product revenue credit   (2,976 )   (2,057 )   (11,300 )   (10,589 )
PGM Recycling income credit   (1,523 )   (1,032 )   (4,973 )   (3,977 )
Total cash costs, net of by-product and recycling credits  (Non-GAAP)   $ 23,340     $ 24,195     $ 96,216     $ 102,148  
                 
PGM mined ounces sold   51.8     45.9     211.5     188.1  
Costs of metals sold per PGM mined ounce   $ 554     $ 573     $ 545     $ 616  
                 
PGM mined ounces produced   53.1     50.1     218.3     201.0  
                 
Total cash costs per PGM mined ounce, before by-product and recycling credits  (Non-GAAP)   $ 525     $ 545     $ 516     $ 581  
By-product credit per mined ounce   (56 )   (41 )   (52 )   (53 )
Recycling income credit per mined ounce   (29 )   (21 )   (23 )   (20 )
Total cash costs, per PGM mined ounce, net of by-product and recycling credits  (Non-GAAP)   $ 440     $ 483     $ 441     $ 508  
                 
Ore tons milled   159.4   144.9   656.0   583.5
                 
Total cash costs per ore ton milled, before by-product and recycling credits (Non-GAAP)   $ 175     $ 188     $ 172     $ 200  
By-product credit per ore ton milled   (19 )   (14 )   (17 )   (18 )
Recycling income credit per ore ton milled   (10 )   (7 )   (8 )   (7 )
Total cash costs per ore ton milled, net of by-product and recycling credits (Non-GAAP)   $ 146     $ 167     $ 147     $ 175  
   

Stillwater Mining Company
All-In Sustaining Costs (a Non-GAAP Financial Measure)
(Unaudited)

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 Costs of metal sold - Mine Production, the Company's most directly comparable GAAP financial measure and adding to it the change in mined inventories, and adjusting for the by-product and recycling income credits, domestic corporate general and administrative costs (excluding any depreciation, one-time event charges and general and administrative costs of foreign subsidiaries) and that portion of total capital expenditures associated with sustaining the current level of mining operations. Capital expenditures, however, for Blitz and certain other one-time projects are not included in the calculation.

When divided by the total recoverable PGM mined ounces produced in the respective period, All-In Sustaining Costs per PGM Mined Ounce Produced (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 PGM mined 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.)   2016   2015   2016   2015
All-In Sustaining Costs                
Costs of metals sold - Mine Production   $ 70,662     $ 64,280     $ 279,274     $ 293,955  
Change in mined inventories (palladium and platinum)   (579 )   2,516     (4,147 )   (2,743 )
Total combined cash costs, before by-product and recycling credits  (Non-GAAP)   $ 70,083     $ 66,796     $ 275,127     $ 291,212  
By-product revenue credit   (6,326 )   (4,451 )   (23,704 )   (23,114 )
PGM Recycling income credit   (3,781 )   (2,727 )   (12,392 )   (10,151 )
Total combined cash costs, net of by-product and recycling credits  (Non-GAAP)   $ 59,976     $ 59,618     $ 239,031     $ 257,947  
PGM Recycling income credit   3,781     2,727     12,392     10,151  
Total combined cash costs, net of by-product credit  (Non-GAAP)   $ 63,757     $ 62,345     $ 251,423     $ 268,098  
                 
Consolidated corporate general and administrative costs   $ 9,364     $ 6,380     $ 34,664     $ 34,033  
Corporate depreciation and costs associated with the potential merger included in consolidated corporate general and administrative costs   (1,775 )   (121 )   (2,078 )   (499 )
General and administrative costs - foreign subsidiaries   335     (406 )   (1,272 )   (1,650 )
Total general and administrative costs   $ 7,924     $ 5,853     $ 31,314     $ 31,884  
                 
Total capitalized costs   $ 30,067     $ 23,485     $ 102,562     $ 111,850  
Capital associated with expansion   (14,393 )   (10,451 )   (46,302 )   (42,450 )
Total Capital incurred to sustain existing operations   $ 15,674     $ 13,034     $ 56,260     $ 69,400  
                 
All-In Sustaining Costs  (Non-GAAP)   $ 87,355     $ 81,232     $ 338,997     $ 369,382  
                 
PGM mined ounces sold   134.5     120.3     549.2     507.3  
PGM mined ounces produced   132.1     132.4     545.3     520.8  
                 
Costs of metals sold per PGM mined ounce   $ 525     $ 534     $ 509     $ 579  
All-In Sustaining Costs per PGM Mined Ounce Produced  (Non-GAAP)   $ 661     $ 613     $ 622     $ 709  
 

Stillwater Mining Company
Underlying Earnings (Loss)
(Non-GAAP Financial Measure)
(Unaudited)

Underlying Earnings (Loss) (Non-GAAP): This non-GAAP financial measure is considered by the Company to be reflective of the actual income / loss 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 income (loss) attributable to common stockholders and adding back impairment charges, one-time event charges and charges infrequent to the Company's continuing operations and the income tax effect of such adjustments. 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 (loss) 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 (loss) attributable to common stockholders and Underlying earnings (loss) as follows:

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands)   2016   2015   2016   2015
Net income (loss) attributable to common stockholders   $ 6,021     $ 4,424     $ 9,473     $ (11,928 )
Impairment of property, plant and equipment and non-producing mineral properties               46,772  
Income tax effect of adjustment               (997 )
Reorganization, net of tax               1,078  
Loss on extinguishment of debt, net of tax               2,606  
Transactional costs associated with the pending acquisition by Sibanye, net of tax   1,100         1,100      
Adjusted net income (loss) attributable to common stockholders  (Non-GAAP)   $ 7,121     $ 4,424     $ 10,573     $ 37,531  
Impairment loss attributable to noncontrolling interest               (11,444 )
Underlying earnings (loss)  (Non-GAAP)   $ 7,121     $ 4,424     $ 10,573     $ 26,087  
   


INVESTOR CONTACT:
Mike Beckstead
(720) 502-7671
investor-relations@stillwatermining.com

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