Sep 26, 2012 (Marketwire via COMTEX) --STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U) in an investor statement today reported that demand for palladium is intensifying worldwide resulting from price-driven substitution of palladium for platinum in gasoline and diesel catalytic converter applications, expanding automotive production and ever more stringent governmental emission regulations.
Amplifying on these developments, Stillwater has posted a 15-point review on its website entitled "Palladium Fundamentals" confirming the positive outlook for palladium and dispelling misconceptions prevalent in the market and among some analysts as to the status of catalytic converter technology. Direct link - www.stillwatermining.com/market/fundamentals-2012.
The Company commented further that these primary demand drivers for palladium are buttressed by some compelling, but often misunderstood, palladium fundamentals. Such fundamentals include the fact that today's gasoline emission catalytic converters, building on technological advances first introduced a decade ago, allow for the substitution of palladium for platinum on a one-for-one, ounce-for-ounce basis. Further, a notable recent development is that today most gasoline catalytic converters manufactured are predominantly palladium-based, contain essentially no platinum, and are augmented only with a small dose of rhodium to facilitate the reduction of nitrogen oxides. The Company observed that the technological advance permitting one-for-one substitution of palladium for platinum apparently has strengthened the market for palladium in gasoline catalytic converters.
Further, price-driven substitution of palladium in the platinum based diesel catalytic converter technology reportedly now can accommodate a theoretical limit of up to 50% palladium, with the actual penetration rate in today's diesel applications now approaching 30%.
The Company further noted that if the 775,000 ounces in sales of palladium reportedly supplied from the dwindling Russian government stockpile are excluded from 2011 supply figures, the share of palladium supply from primary mine production, used for catalytic converters increases from approximately 67% to 73% of total consumption. Analysts indicate that Russian government inventory shipments into Switzerland for the first seven months of 2012 have amounted to approximately 132,000 ounces, or less than 2% of market supply, whereas over the last 20 years such inventory shipments have on average constituted approximately 25% of the palladium supplied to the market. With Russian state inventories diminished, palladium supply growth extremely constrained, and demand increasing steadily, the market is expected to be under supplied going forward.
Speaking to the fundamentals, Frank McAllister, Chairman and CEO of Stillwater Mining Company commented, "Our white paper on palladium fundamentals has been prepared in order to dispel misconceptions and clarify the vital role of palladium in catalytic converters, a technology that provides the means by which otherwise noxious auto emissions are rendered harmless and the quality of our environment is improved."
About Stillwater Mining Company
Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. The Company's shares are traded on the New York Stock Exchange under the symbol SWC and on the Toronto Stock Exchange under the symbol SWC.U. Information on Stillwater Mining can be found at its website: www.stillwatermining.com.
Some statements contained in this news 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. These statements may contain words such as "desires," "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. 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 2011 Annual Report on Form 10-K, in its quarterly Form 10-Q filings, and in corresponding filings with Canadian securities regulatory authorities. 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 Company disclaims any obligation to update forward-looking statements.