Stillwater Mining Co. has agreed to a five-year platinum group metal (PGM) refining and sales contract with Johnson Matthey, a leading manufacturer of auto catalysts and precious metals refiner. The key terms of the agreement are: Johnson Matthey will purchase all of Stillwater's mined palladium and a significant share of their mined platinum based on an annual pricing mechanism linked to various industry benchmarks, with Stillwater retaining the ability to opt out of the metal sales agreement under certain terms and the payment of a nominal fee.

Stillwater will use Johnson Matthey's refining services for all of its mined production and recycling material at competitive terms Stillwater will realize a one-time working capital release in the range of $17 million to $22 million because of the timing of the new sales agreement.

Stillwater and Johnson Matthey agree to cooperate, where appropriate, to secure material for Stillwater's recycling business. Johnson Matthey will provide its proprietary PGM market analysis services to Stillwater. Both companies agree to actively collaborate on technical items in an effort to optimize the PGM smelting and refining process. 

“We believe that this agreement provides numerous benefits to both parties at a time in the PGM industry when supplies are constrained and demand for our products continue to grow,” said Mick McMullen, president and CEO, Stillwater Mining Co. “For Stillwater, we secure favorable long-term pricing for our mined metal, competitive refining terms, and an excellent partner to help us grow our recycling business which we have identified as being a core business." The agreement becomes effective on July 1, 2014.

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