Stillwater Mining Company
Stillwater Mine
East Boulder Mine
Forward Looking Statement
Some statements contained in this presentation are forward-looking 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. Additional information regarding factors which could cause results to differ materially is found in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K.
The Company intends that the forward-looking statements contained herein be subjected to the above-mentioned statutory safe harbors. Investors are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any obligation to update forward-looking statements.
Agenda
• Thursday, September 29Orientation, Stillwater MineReview of 2005 Operational FocusUnderground TourTour of Smelter, Refinery
• Friday, September 30Overview, East Boulder OperationsUnderground and Surface Tour, East Boulder Mine
Operations Focus
Goal: Sustainable operations after the auto contracts
• Cost Reduction
• Increase Production Levels
• Introduce/Re-introduce Selective Mining
• Improve the Developed State
• Develop and Advance the Safety Systems
• Establish sound environmental system
Advance the Safety Systems
• G.E.T. Safe introduced in 2001
• “Safety first, production will follow”
Safety Record
MSHA Reportable Accident Frequency Rate
0.02.04.06.08.0
10.012.014.016.0
Jan
2000 Ap
rJu
lO
ctJa
n 20
01 Apr
Jul
Oct
Jan
2002 Ap
rJu
lO
ctJa
n 20
03 Apr
Jul
Oct
Jan
2004 Ap
rJu
lO
ctJa
n 20
05 Apr
Jul
Oct
Inju
ries/
200,
000
Hou
rs
Safety Record
MSHA Reportable Accident Frequency Rate
0.02.04.06.08.0
10.012.014.016.0
Jan
2000 Ap
rJu
lO
ctJa
n 20
01 Apr
Jul
Oct
Jan
2002 Ap
rJu
lO
ctJa
n 20
03 Apr
Jul
Oct
Jan
2004 Ap
rJu
lO
ctJa
n 20
05 Apr
Jul
Oct
Inju
ries/
200,
000
Hou
rs
2004 Achievements
• MSHA recognition for “Most Improved Mine” in Rocky Mountain District
• OSHA award under SHARP for smelter, refinery
• 34% reduction in accident frequency rate compared to 2003
Safety Record
MSHA Reportable Accident Frequency Rate
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Jan
2000 Ap
rJu
lO
ctJa
n 20
01 Apr
Jul
Oct
Jan
2002 Ap
rJu
lO
ctJa
n 20
03 Apr
Jul
Oct
Jan
2004 Ap
rJu
lO
ctJa
n 20
05 Apr
Jul
Oct
Inju
ries/
200,
000
Hou
rs
2005 Update
• Laboratory recognized under SHARP by OSHA
• Further expansion of employee participation
• Implementation of internal audit processes
• A further reduction of 30% of injury frequency rate
Turning a historic operating weakness into a point of competitive strength
Operations Focus
• Cost Reduction
• Increase Production Levels
• Introduce/Re-introduce Selective Mining
• Improve the Developed State
• Develop and Advance the Safety Systems
Improved Developed State
• Significant investment in 2005
• Improved infrastructure to support higher production
• Increased primary development to expand proven reserves
Infrastructure- Stillwater Mine
• Sand Plant for Upper West
• Rail haulage on 35W
• Continued development on B32
Infrastructure – East Boulder
• Added tailings capacity
• Tunnel re-hab/improvement
• Ventilation
• Long-term ore/waste passes
Infrastructure – East Boulder
• Two raises, each 1800-ft • Will double ventilation flow at mine• Initially schedule for completion of both raises in Q3
2005• Transferred second raise to different contractor• First raise to be completed near year-end, second raise
in H2 of 2006
Developed State - Proven Reserves
• Reef – Unique type of deposit
• Formation of the Stillwater Complex
• Accessing the deposit
• Proven, probable reserves
Primary Platinum Group Metal Sources
Stillwater Complex – Pre Beartooth Uplift
Stillwater Complex – Post Beartooth Uplift
28 miles long
+1 mile deep
5 feet thick
Stillwater Complex Hanging Wall Projection – Looking West
Location of the Stillwater Complex
CORPORATEHEADQUARTERS
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Projection of the Stillwater Complex
Deposit Characteristics
- Large lateral extent
- Consistency in average over larger areas
- Local variability
- Limited surface access
Ore Reserves
- Proven ReservesBased primarily on diamond drilling results, typically on 50-foot spacing horizontally and vertically.
- Probable Reserve determinationProjection from known points up to a maximum of 1,000 ft. Estimation factors are based on proven reserve information (grade, reef thickness, % mineable, area, etc.)
- Economic analysis
- Reviewed and opined on by Behre Dolbear
Probable Conversion
• Typically, each year a portion of the area carried as probable reserve is accessed, drilled and placed into proven reserves
• Probable conversion rate is an indicator of past success in converting probable reserve tons to proven reserve tons
• Year to year there is considerable variability
• Stillwater’s probable estimation technique is based on cumulative geologic experience
Ore Reserves – Block Model
Block Area 8
Block-81997 to 2004 Reef Main Zone Composites
Block-81997 to 2004 Reef Undiluted Block Model
Block-81997 Reef Undiluted Block Model
Conversion rate – 1,160%
Block-81998 Reef Undiluted Block Model
Conversion rate – 24%
Block-81999 Reef Undiluted Block Model
Conversion rate – 70%
Block-82000 Reef Undiluted Block Model
Conversion rate – 41%
Block-82001 Reef Undiluted Block Model
Conversion rate – 67%
Block-82002 Reef Undiluted Block Model
Conversion rate – 55%
Block-82003 Reef Undiluted Block Model
Conversion rate – 103%
Block-82004 Reef Undiluted Block Model
Conversion rate – 133%
Block-81997 to 2004 Reef Undiluted Block Model
Probable to proven conversion rate 1997-2004…. 84%
Historical – Overall Mine Conversion
Stillwater Mine East Boulder Mine1997 163%1998 150%1999 66%2000 111%2001 104% 88%2002 71% 91%2003 52% 86%2004 62% 125%
Overall Stillwater Mine 92% Overall East Boulder Mine 100%
Annual Conversion of Probable to Proven Tons
Drill Results – Off Shaft
Three Month Rolling Average
0
50
100
150
200
250
300
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04
Num
ber o
f Def
initi
on H
oles
0%
10%
20%
30%
40%
50%
60%
% E
cono
mic
Hol
es
# Holes % Economic
Avg. ~ 36%
Drill Results – Off Shaft
• Off Shaft – Grade-Thickness 11.9 (oz x HT)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04
Hor
izon
tal G
rade
-Thi
ckne
ss
MonthlyThree-Month Average
Drill Results – Upper West
Three Month Rolling Average
0
20
40
60
80
100
120
140
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04
Num
ber o
f Def
initi
on H
oles
0%
10%
20%
30%
40%
50%
60%
70%
80%
% E
cono
mic
Hol
es
# Holes % Economic
Avg. ~ 54%
Drill Results – Upper West
• Upper West Grade-Thickness 9.4 (oz x HT)
0.0
5.0
10.0
15.0
20.0
25.0
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04
Hor
izon
tal G
rade
-Thi
ckne
ss
Monthly Three-Month Average
Actual vs Predicted
Percent of Holes with “economic” intercepts
JM RenduPredicted
SMC 2000-2004Actual
Off-Shaft Area 36-40% 36%
Upper West Area 54% 54%
Rendu used a threshold grade-thickness of 1.8 opt-ft
SMC uses a grade-thickness of 2.1
Grade Trends in Drill Results
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04
Ave
rage
Gra
de (o
z/to
n)
Off-Shaft Upper West Linear (Off-Shaft) Linear (Upper West)
Probable Conversion
• One year results are highly variable
• Continual updating of key factors based on probable to proven results and geologic understanding
• Apparent conversion can be impacted by non-geologic factors– Metal price changes– Changes in mining methodology
Resource Development Sequence
14 to 23 MONTHS FROM FWL TO PRODUCTION; 17 MONTHS AVG
Proven Reserves
• Indicator short-term productive capacity– Number of working areas, levels available
• Targeting proven reserves of 3-4 years of production– More complete understanding of an area before development– More consistent mix of mining methods
• Development plans need to realistically reflect development sequence– Ramping up development creates a backlog of undrilled FWL,
etc– Secondary access, infrastructure needed before mining in new
reserves
East Boulder Proven Reserves
Year Proven ReserveTons
Target RateTPD
Proven ReserveMonths
2001 528,685 930 18.7
2002 647,882 1,270 16.8
2003 660,346 1,520 14.5
2004 1,225,490 1,375 29.3
A production rate of 2,000 tpd indicates a targeted proven reserve of 2.2-2.9 million tons.
Stillwater Proven Reserves
Year Proven ReserveTons
Target RateTPD
Proven ReserveMonths
2000 2,693,826 2,600 34.1
2001 2,778,550 3,000 30.5
2002 2,489,883 2,120 38.6
2003 2,052,112 2,000 33.7
2004 1,971,248 1,900 34.1
A production rate of 2,600-2,800 tpd indicates a targetedproven reserve of 2.8-4.0 million tons.
Increasing Proven Reserves
• Development of Proven Reserves dependent on:– Primary Development Footage
• Footwall lateral (FWL) advance– Diamond Drilling– Sound mining practice
• Historic yields of 70 tons per foot-FWL at Stillwater, 115 tons per foot-FWL at East Boulder
2005 Development Efforts
• Stillwater: – 34,700 feet of primary development, including 19,500 feet of
FWL– 465,000 feet of diamond drilling
• East Boulder: – 16,849 of primary development, including 11,500 feet of FWL– 165,000 feet of diamond drilling
• Capitalized Development cost of $62.3 million
Key Indicators – Developed State
• Primary Development Footage– Footwall Lateral Advance
• Diamond Drilling Footage
• Year-End Proven Reserves
• Conversion Rate
Year-to-Date Progress - Developed State
Goal Mid-Year Forecast
Stillwater Mine
Primary Development 34,700 Feet 36,000 Feet
Footwall Lateral 19,500 Feet 20,500 Feet
Diamond Drilling 465,000 Feet 485,000 Feet
East Boulder Mine
Primary Development 16,849 Feet 19,000 Feet
Footwall Lateral 11,500 Feet 12,500 Feet
Diamond Drilling 165,000 Feet 250,000 Feet
Long Term Development Rates
East Boulder Stillwater
Historic Yield, ton/ft-FWL 110-130 70
Long Term Production Target 2,000 tpd 2,600-2,800 tpd
Steady State –FWL Advance 6,100 ft/yr 14,100 ft/yr
2005 Forecast FWL 12,500 ft 20,500 ft
Operations Focus
• Cost Reduction
• Increase Production Levels
• Introduce/Re-introduce Selective Mining
• Improve the Developed State
• Develop and Advance the Safety Systems
Selective Mining
• Benefits– Increased ounces produced– Increased mining recovery of deposit
• Narrower – access to marginal areas• Ability to mine smaller stopes
– Decreased secondary development requirements
• Opportunities– Adding ramp and fill mining to Upper West at Stillwater– Increased conventional (slusher) mining in Off-Shaft area at
Stillwater (including Alimak mining)– Increasing ramp and fill at East Boulder– Adding conventional mining at East Boulder
Selective Mining – Increased Recoveryof Deposit
Undiluted Grade
Selective Mining – Increased Recoveryof Deposit
Bulk Mining Method
Selective Mining – Increased Recoveryof Deposit
Selective Mining Methods
Selective Mining – Increased Recoveryof Deposit
Selective Mining
Bulk Mining
Selective Mining – Reduced Secondary Development
29W6100 StopeMining Method Ramp and Fill Alimak/SlusherStope Tons 62,815 51,547Ore Tons to Mill 54,431 48,039Average Grade 0.84 0.94Contained Oz 46,566 46,566
Secondary DevelopmentFootage 2,360 840Tonnage 19,412 6,125
Total Tons Mined 82,227 57,672Tons per Recovered Oz 1.92 1.35
Selective Mining – Improved Grade
• Focus at East Boulder – Increase Grade
• Average Grade (2003-2005): 0.389 opt– 2,000 tpd at 0.39 not an acceptable outcome– Limited opportunity for significant change without modifying mining
method
• Ore body: 5.0 feet wideSills 8.0-8.5 feet wide
• Selective (slusher) mining aim is to narrow mining width to 6.0-6.5 feet
• Less secondary development required
Selective Mining – 2005 Efforts
• Sand Plant for Upper West scheduled for completion Q2 of 2006
• Contractor on site at Stillwater with initial Alimak units; first mining in Q2 of 2005
• Initial conventional stopes at East Boulder in 2005
Key Indicators – Selective Mining
• Completion of Sand Plant in 2006
• East Boulder– Tonnage from selective mining– Grade
• Stillwater– Tonnage by mining method
• Year-End Proven Reserves
• Conversion Rate
Operations Focus
• Cost Reduction
• Increase Production Levels
• Introduce/Re-introduce Selective Mining
• Improve the Developed State
• Develop and Advance the Safety Systems
Production Increases
• Long range targets:– East Boulder 2,000 tpd– Stillwater 2,600-2,800 tpd
• Foundation needed in infrastructure, reserves and workforce to achieve and sustain
• Timing dependent on rate of success in development, but can begin in parallel with development
Operations Focus
• Cost Reduction
• Increase Production Levels
• Introduce/Re-introduce Selective Mining
• Improve the Developed State
• Develop and Advance the Safety Systems
Cost Reduction
• Initial actions serve to reduce operating costs
• Capital expenditures currently driven by investment in reserves, infrastructure– Longer term gain expected from less mechanized mining
• Operating cost reduced through selective mining– Less secondary development– Reduced support per ounce
• Economy of scale
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