##### Table of Contents



UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934for the fiscal year ended December 31, 2009.
 OR
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934for the transition period from  to
 Commission File Number 1-13053
 STILLWATER MINING COMPANY
  DELAWARE
    
    81-0480654(State or other jurisdiction 
of incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 536 EAST PIKE AVENUE, COLUMBUS, MONTANA 59019
  (406) 373-8700
  Securities registered pursuant to Section 12(b) of the Act:
 TITLE OF EACH CLASS
    
    NAME OF EACH EXCHANGE
ON WHICH REGISTEREDCommon Stock, $0.01 par value
    
    The New York Stock ExchangePreferred Stock Purchase Rights
    
    The New York Stock Exchange
 Securities registered pursuant to Section 12(g) of the Act: None
 o þ
 o þ
 þ o
 o o
 þ
  Large
accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
   DOCUMENTS INCORPORATED BY REFERENCE
 Certain information required in Part III of this Annual Report on Form 10-K is incorporated
herein by reference to the registrants Proxy Statement for its 2010 Annual Meeting of
Stockholders.




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##### 



TABLE OF CONTENTS
 GLOSSARY
 PART IITEMS 1, 1A, AND 2 BUSINESS, RISK FACTORS AND PROPERTIES
    
    
    6ITEM 3
    
    LEGAL PROCEEDINGS
    
    
    42ITEM 4
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    42PART IIITEM 5
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
    
    
    43ITEM 6
    
    SELECTED FINANCIAL DATA
    
    
    44ITEM 7
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
    
    
    52ITEM 7A
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    67ITEM 8
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
    
    
    69ITEM 9
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 
ACCOUNTING AND FINANCIAL DISCLOSURE
    
    
    97ITEM 9A
    
    CONTROLS AND PROCEDURES
    
    
    97ITEM 9B
    
    OTHER INFORMATION
    
    
    98PART IIIITEM 10
    
    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
    
    
    98ITEM 11
    
    EXECUTIVE COMPENSATION
    
    
    100ITEM 12
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS
    
    
    100ITEM 13
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE
    
    
    100ITEM 14
    
    PRINCIPAL ACCOUNTING FEES AND SERVICES
    
    
    100PART IVITEM 15
    
    EXHIBITS, FINANCIAL STATEMENT SCHEDULES
    
    
    101SIGNATURES
    
    
    105EX-23.1EX-23.2EX-31.1EX-31.2EX-32.1EX-32.2




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GLOSSARY OF SELECTED MINING TERMS
  Adit
    
    A horizontal tunnel or drive, open to the surface at one end, which is used as an
entrance to a mine.Anorthosite
    
    Igneous rock composed almost wholly of the mineral plagioclase feldspar.Assay
    
    The analysis of the proportions of metals in ore, or the testing of an ore or mineral for
composition, purity, weight, or other properties of commercial interest.Catalysts
    
    Catalysts are materials that facilitate one or more chemical reactions without being
consumed in the reaction themselves. As referenced in this report, platinum-group metals
serve as catalysts within the catalytic converters used in automotive exhaust and
pollution control systems and, where so indicated, within similar applications in
petroleum refining or other chemical processes.Close-spaced drilling
    
    The drilling of holes designed to extract representative samples of rock in a target area.Concentrate
    
    A mineral processing product that generally describes the material that is produced after
crushing and grinding ore effecting significant separation of gangue (waste) minerals
from the metal and/or metal minerals, and discarding the waste and minor amounts of metal
and/or metal minerals. The resulting concentrate of metal and/or metal minerals
typically has an order of magnitude higher content of metal and/or metal minerals than
the beginning ore material.Crystallize
    
    Process by which matter becomes crystalline (solid) from a gaseous, fluid or dispersed
state. The separation, usually from a liquid phase on cooling, of a solid crystalline
phase.Cut-off grade
    
    The lowest grade of mineralized material that qualifies as ore in a given deposit. The
grade above which minerals are considered economically mineable considering the following
parameters: estimates over the relevant period of mining costs, ore treatment costs,
smelting and refining costs, process and refining recovery rates, royalty expenses,
by-product credits, general and administrative costs, and PGM prices.Decline
    
    A gently sloped underground excavation constructed for purposes of moving mobile
equipment, materials, supplies or personnel from surface openings to deeper mine workings
or as an alternative to hoisting in a shaft for mobilization of equipment and materials
between mine levels.Dilution
    
    An estimate of the amount of waste or low-grade mineralized rock which will be mined with
the ore as part of normal mining practices in extracting an ore body.Drift
    
    A major horizontal access tunnel used for the transportation of ore or waste.Ductility
    
    Property of a solid material that undergoes more or less plastic deformation before it
ruptures. The ability of a material to stretch without fracturing.Fault
    
    A geologic fracture or a zone of fractures along which there has been displacement of the
sides relative to one another parallel to the fracture.Filter cake
    
    The PGM-bearing product that is shipped from the base metal refinery, as the Companys
final product, to a third-party toll refinery for the final extractive stages in the
refining process.Footwall
    
    The underlying side of a fault, ore body, or mine working; especially the wall rock
beneath an inclined vein, fault, or reef.
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Gabbro rocks
(See Mafic/Ultramafic)
    
    A group of dark-colored igneous rocks composed primarily of the minerals plagioclase
feldspar and clinopyroxene, with minor orthopyroxene.Gangue material
    
    The non-metalliferous or waste metalliferous mineral in the ore.Grade
    
    The average metal content, as determined by assay of a volume of ore. For precious
metals, grade is normally expressed as troy ounces per ton of ore or as grams per metric
tonne of ore.Hanging wall
    
    The overlying side of a fault, ore body, or mine working; especially the wall rock above
an inclined vein, fault, or reef. (Compare footwall.)Hoist
    
    See shaftJackleg drill
    
    A manually operated rock drill, generally powered by compressed air, used to drill holes
for blasting rock and to install ground support hardware.Lenticular-shaped
    
    Resembling in shape the cross section of a double-convex lens.Load-haul-dump
    
    A vehicle used underground to scoop up mined material and move it to a central collection
or discharge point. Generally called an LHD by miners.Lode claims
    
    Claims to the mineral rights along a lode (vein) structure of mineralized material on
Federal land; typically in the U.S. lode claims are 1,500 feet in length and 600 feet
wide along the trend of the mineralized material.Mafic rocks
    
    Igneous rocks composed chiefly of dark, ferromagnesian minerals in addition to
lighter-colored feldspars.Matrix
    
    The finer-grained material between the larger particles of a rock or the material
surrounding mineral particles.Mill
    
    A processing plant that produces a concentrate of the valuable minerals or metals
contained in an ore. The concentrate must then be treated in some other type of plant,
such as a smelter, to effect recovery of the pure metal. Term used interchangeably with
concentrator.Mill site claims
    
    Claiming of Federal land for mill site purposes or other operations connected with mining
lode claims. Used for nonmineralized land not necessarily contiguous with the vein or
lode.Mineral beneficiation
    
    A treatment process separating the valuable minerals from the host material.Mineralization
    
    The concentration of metals and their compounds in rocks, and the processes involved
therein.Mineralized material
    
    A mineralized body which has been delineated by appropriately spaced drilling and/or
underground sampling to support a general estimate of available tonnage and average grade
of metals. Such a deposit does not qualify as a reserve until a comprehensive evaluation
based upon unit cost, grade, recoveries, and other material factors conclude legal and
economic feasibility.Mouat Agreement
    
    Mining and Processing Agreement dated March 16, 1984 regarding the Mouat family. The
Mouat royalty stems back to the formation of Stillwater Mining Company at which time
claims staked by the Mouats forebears in 1876 were leased to Stillwater Mining Company.Net smelter royalty
    
    A share of revenue paid by the Company to the owner of a royalty interest generally
calculated based on the imputed value of the PGM concentrate delivered to the smelter.
At Stillwater Mining Company, royalties are calculated on the mineral production subject
to each royalty as a percentage of the revenue received by the Company after deducting
treatment, refining and transportation charges paid to third parties, and certain other
costs incurred in connection with processing the concentrate at the Columbus smelter.
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Norite
    
    Coarse-grained igneous rock composed of the minerals plagioclase feldspar and
orthopyroxene.Ore
    
    That part of a mineral deposit which could be economically and legally extracted or
produced at the time of reserve determination.Outcrop
    
    The part of a rock formation that appears at the earths surface often protruding above
the surrounding ground.PGM
    
    The platinum group metals collectively and in any combination of palladium, platinum,
rhodium, ruthenium, osmium, and iridium. Reference to PGM grades for the Companys mine
operations include measured quantities of palladium and platinum only. References to PGM
grades associated with recycle materials typically include palladium, platinum and
rhodium.PGM rich matte
    
    Matte is an intermediate product of smelting; an impure metallic sulfide mixture made by
melting sulfide ore concentrates. PGM rich matte is a matte with an elevated level of
platinum group metals.Probable
(indicated) 
reserves
    
    Reserves for which quantity and grade and/or quality are computed from information
similar to that used for proven (measured) reserves, but the sites for inspection,
sampling, and measurement are farther apart or are otherwise less adequately spaced. The
degree of assurance, although lower than that for proven (measured) reserves, is high
enough to assume continuity between points of observation.Proven (measured) 
reserves
    
    Reserves for which (a) quantity is computed from dimensions revealed in outcrops,
trenches, workings or drill holes; grade and/or quality are computed from the results of
detailed sampling; and (b) the sites for inspection, sampling and measurement are spaced
so closely and the geologic character is so well defined that size, shape, depth and
mineral content of reserves are well established.Recovery
    
    The percentage of contained metal actually extracted from ore in the course of processing
such ore.Reef
    
    A layer precipitated within the Stillwater Layered Igneous Complex enriched in platinum
group metal-bearing minerals, chalcopyrite, pyrrhotite, pentlandite, and other sulfide
materials. The J-M Reef, which the Company mines, occurs at a regular stratigraphic
position within the Stillwater Complex. Note: this use of reef is uncommon and
originated in South Africa where it is used to describe the PGM-bearing Merensky, UG2,
and other similar layers in the Bushveld Complex.Refining
    
    The final stage of metal production in which residual impurities are removed from the
metal.Reserves
    
    That part of a mineral deposit which could be economically and legally extracted or
produced at the time of the reserve determination.Recycling materials
    
    Spent PGM-bearing materials collected for reprocessing from automotive, petroleum,
chemical, medical, food and other catalysts. Additionally, PGMs for recycling may be
sourced from scrap electronics and thermocouples, old jewelry and materials used in
manufacturing glass.Shaft
    
    A vertical or steeply inclined excavation for the purposes of opening and servicing an
underground mine. It is usually equipped with a hoist at the top which lowers and raises
a conveyance for handling personnel and materials.Slag
    
    Slag is a nonmetallic product resulting from the mutual dissolution of flux and
nonmetallic impurities during smelting. A silica rich slag is a smelting slag that
contains a relatively high level of silica.Sill
    
    (1) With respect to a mine opening, the base or floor of the excavated area (stope); (2)
With respect to intrusive rock, a tabular intrusive unit that is conformable with
surrounding rock layers.
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Slusher
    
    (1) An electric double-drum winch with two steel ropes attached to an open-bottomed scoop
that transports (drags) ore from the rock face to a loading point, where the ore is
discharged. (2) A very selective mining method in which small ore stopes are mined using
a slusher.Smelting
    
    Heating ore or concentrate material with suitable flux materials at high temperatures
creating a fusion of these materials to produce a melt consisting of two layers with a
slag of the flux and gangue (waste) minerals on top and molten impure metals below. This
generally produces an unfinished product (matte) requiring refining.Sponge
    
    A granular (shot) form of PGM. Commonly, the form required for manufacture of many
PGM-based chemicals and catalysts.Stope
    
    A localized area of underground excavation from which ore is extracted.Strike
    
    The course, direction or bearing of a vein or a layer of rock.Tailings
    
    That portion of the mined material that remains after the valuable minerals have been
extracted.Tolling
    
    Processing of material owned by others for a fee without taking title to the material.Troy ounce
    
    A unit measure used in the precious metals industry. A troy ounce is equal to 31.10
grams. The amounts of palladium and platinum produced and/or sold by the Company are
reported in troy ounces. There are 12 troy ounces to a troy pound.Ultramafic rocks
    
    Igneous rocks composed chiefly of dark, ferromagnesian minerals in the absence of
significant lighter-colored feldspars.Vein
    
    A mineralized zone having regular development in length, width and depth that clearly
separates it from neighboring rock.Wall rock
    
    The rock adjacent to, enclosing, or including a vein, layer, or dissemination of ore
minerals. See Hanging wall and Footwall above.
 5




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PART I
 
 ITEMS 1, 1A, AND 2
BUSINESS, RISK FACTORS AND PROPERTIES
 INTRODUCTION AND 2009 HIGHLIGHTS
      Business, Risk Factors, and Properties  Proven and Probable Ore Reserves
 Worldwide Financial and Credit Crises
  6




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Business, Risk Factors and Properties
 Risk Factors
 2009  In Review:
 
    
    The Companys revenues, in terms of dollars and ounces sold, for 2009, 2008 and 2007 were:
 Year ended December 31,
    
    Sales Revenues
    
    
    Troy Ounces Sold(in thousands)
    
    Palladium
    
    
    Platinum
    
    
    Rhodium
    
    
    Other(1)
    
    
    Total
    
    
    Palladium
    
    
    Platinum
    
    
    Rhodium
    
    
    Other(3)
    
    
    Total2009Mine production
    
    $
    143,514
    
    
    $
    139,733
    
    
    $
    6,453
    
    
    $
    17,192
    
    
    $
    306,892
    
    
    
    393
    
    
    
    123
    
    
    
    4
    
    
    
    15
    
    
    
    535PGM recycling
    
    
    14,947
    
    
    
    45,736
    
    
    
    18,666
    
    
    
    2,439
    
    
    
    81,788
    
    
    
    53
    
    
    
    40
    
    
    
    9
    
    
    
    
    
    
    
    102Other (2)
    
    
    2,679
    
    
    
    3,028
    
    
    
    45
    
    
    
    
    
    
    
    5,752
    
    
    
    12
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    15Total
    
    $
    161,140
    
    
    $
    188,497
    
    
    $
    25,164
    
    
    $
    19,631
    
    
    $
    394,432
    
    
    
    458
    
    
    
    166
    
    
    
    13
    
    
    
    15
    
    
    
    6522008Mine production
    
    $
    163,433
    
    
    $
    160,171
    
    
    $
    16,474
    
    
    $
    20,286
    
    
    $
    360,364
    
    
    
    399
    
    
    
    115
    
    
    
    2
    
    
    
    19
    
    
    
    535PGM recycling
    
    
    47,760
    
    
    
    227,358
    
    
    
    197,469
    
    
    
    2,801
    
    
    
    475,388
    
    
    
    119
    
    
    
    131
    
    
    
    25
    
    
    
    
    
    
    
    275Other (2)
    
    
    19,980
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,980
    
    
    
    49
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49Total
    
    $
    231,173
    
    
    $
    387,529
    
    
    $
    213,943
    
    
    $
    23,087
    
    
    $
    855,732
    
    
    
    567
    
    
    
    246
    
    
    
    27
    
    
    
    19
    
    
    
    8592007Mine production
    
    $
    162,811
    
    
    $
    114,645
    
    
    $
    23,407
    
    
    $
    30,414
    
    
    $
    331,277
    
    
    
    425
    
    
    
    120
    
    
    
    4
    
    
    
    20
    
    
    
    569PGM recycling
    
    
    36,505
    
    
    
    149,061
    
    
    
    138,798
    
    
    
    2,030
    
    
    
    326,394
    
    
    
    102
    
    
    
    119
    
    
    
    24
    
    
    
    
    
    
    
    245Other (2)
    
    
    15,365
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,365
    
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44Total
    
    $
    214,681
    
    
    $
    263,706
    
    
    $
    162,205
    
    
    $
    32,444
    
    
    $
    673,036
    
    
    
    571
    
    
    
    239
    
    
    
    28
    
    
    
    20
    
    
    
    858
 
 (1)
    
    Other column includes gold, silver, nickel and copper by-product sales from mine
production and revenue from processing recycling materials on a toll basis.(2)
    
    Other row includes sales of metal purchased in the open market.(3)
    
    Other column includes gold and silver by-product ounces sold. Not reflected in the
other ounce column in the table above are approximately 856,000 pounds and 776,000 pounds
of nickel and copper, respectively, sold in 2009. Comparative sales in 2008 were
approximately 931,000 pounds and 940,000 pounds of nickel and copper, respectively. Sales
in 2007 included approximately 1.2 million pounds of nickel and approximately 942,000
pounds of copper. 
    
    The Company reported a net loss of $9.2 million, or $0.10 per diluted share, for the
year ended December 31, 2009, compared to a net loss of $116.9 million, or $1.26 per diluted
share, in 2008. Contributing to the net loss in 2009 was an $8.1 million non-cash charge
related to the issuance in October of approximately 1.8 million common shares in exchange for
$15 million principal amount of the Companys outstanding 1.875% convertible debentures.
Additional
charges taken in 2009 included $10.9 million of lower-of-cost-or-market inventory adjustments,
$0.6 million to write-off certain trade receivables and a $0.5 million write-down of advances on
recycling inventory purchases. See Managements Discussion and Analysis of Financial Condition
and Results of Operations  Year Ended December 31, 2009 Compared to Year Ended December 31,
2008.
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
    
    In 2009, the Companys mining operations produced a total of 529,900 ounces of palladium
and platinum, 6.2% better than the 498,900 ounces produced in 2008. Total consolidated cash
cost per ounce (a non-GAAP measure of extraction efficiency) averaged $360 in 2009, compared
with $405 in 2008. This decrease in cash costs per ounce reflected the effect of an
approximate 27% reduction in workforce (including contractors) late in 2008, and the resulting
efficiency improvements achieved in various mining and support functions, as well as generally
lower material costs. Mine production for 2010 is projected at 515,000 combined ounces of
palladium and platinum, and as in 2009, the Company plans to continue its emphasis on mining
efficiency and cost reduction, rather than pushing to increase mine production at this time.
Total consolidated cash costs per ounce (a non-GAAP measure) for 2010 currently are projected
to be in line with 2009 at $360 per ounce. See Part II, Item 6 Selected Financial and
Operating Data for further discussion of non-GAAP measures.
    
    Revenues from PGM recycling fell 82.8% during 2009, decreasing to $81.8 million in 2009,
from $475.4 million in 2008, a direct result of the decrease in volumes processed and lower
PGM prices. Recycled ounces sold decreased in 2009 to 102,000 ounces compared to 275,000
ounces in 2008 and the Companys combined average realization on recycling sales (which
include palladium, platinum and rhodium) decreased to $779 per ounce in 2009 from $1,715 per
ounce in 2008, reflecting much lower PGM prices. In addition to purchased material, the
Company processed 128,000 ounces of PGMs on a tolling basis in 2009 up from 126,000 tolled
ounces in 2008. Recycled volumes fed to the smelter totaled 251,000 ounces of PGMs in 2009,
down 36.9% from 398,100 ounces in 2008; mostly the result of lower availability of recycling
materials in the market in early 2009 but also resulting from the Companys modified
commercial approach to the business. Recycling volumes gradually strengthened as 2009
progressed. As recycling volumes diminished in late 2008, the Companys cash balances
benefitted from a reduction in the amount of working capital required to sustain recycling
activities; these volumes, and the associated working capital have increased somewhat as the
recycling market gradually recovered during 2009. Working capital associated with recycling
activities in the form of inventories and advances was $28.6 million and $22.1 million at
December 31, 2009 and 2008, respectively. The year-end 2009 balance reflects the write-down
of $0.5 million against advances on inventory purchases during 2009; the year-end 2008 balance
is shown net of the $26.0 million write-off against advances on inventory purchases recorded
in 2008.
 
    
    The Companys 2009 capital expenditures totaled $39.5 million, down from $82.3 million in
2008. Capital spending in 2009 reflected scaled-back development spending in the mines and
completion of various critical infrastructure projects. Capitalized development expenditures
totaled $25.9 million in 2009, down substantially from $55.9 million in 2008 and somewhat
below that necessary to sustain production over the long term. One major infrastructure
project completed during 2009 was construction of a second electric furnace at the smelter, a
project that was begun during 2008. Capital spending in 2010 is budgeted at about $50
million, which management believes is adequate to sustain the developed state of both mines at
current levels of production. For a discussion of certain risks associated with the Companys
business, see Business, Risk Factors and Properties  Current Operations,and  Risk
Factorsand Managements Discussion and Analysis of Financial Condition and Results of
Operations.
 2010  Looking Forward
  
    
    Although commodity prices have improved from their lows in the fourth quarter of 2008, the
Company is not proposing at this time any significant changes to its restructured mining plan
adopted at the end of 2008 and continuously fine-tuned during 2009. It will continue to
emphasize mining efficiency and cost reduction rather than returning to a focus on increasing
mine production. The Company believes it is prudent to monitor the worldwide industrial
recession and recovery, as well as commodity prices, before directing its attention toward
increased production and broadened capital spending. The year 2010 will include some growth in
development spending at both mines, but only by an amount sufficient to sustain their current
production levels going forward. The Company views its existing cash balance ($201.2 million
at December 31, 2009) as an important cushion to be utilized carefully as circumstances
require. In light of tight credit markets and relatively high borrowing costs, the Company has
not sought to put a revolving line of credit into place at this time.
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
    
    The Company believes it has seen signs of a recovery in its PGM recycling business and
expects to increase its recycling volumes processed as conditions permit. However, the
Company also expects to maintain tighter controls over funding advances, which may constrain
achieving the kind of strong revenue growth in this business seen in 2007 and early 2008. At
the same time, the Company expects the tighter controls to result in the funding advances
being more secure.
 
    
    The Company will continue to review potential growth opportunities in other sectors of the
business in an effort to address concerns over its narrow focus on a single commodity at a
single location in an effort to diversify business risks and opportunities. While the
Companys relatively low debt and stable balance sheet may be helpful in this effort, a need
to avoid over-leveraging the Company or unduly diluting existing shareholders is likely to
limit the size of potential acquisitions. Management intends to balance the benefits and
risks of any such opportunity carefully before moving ahead.
 HISTORY OF THE COMPANY
    GEOLOGY OF THE J-M REEF
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Selected Financial and Operating Data
 ORE RESERVE DETERMINATION
 proven probable
 Methodology
   Proven and
Probable Ore Reserves  Discussion
 10




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SEC Guidelines
     Results
 Business, Risk Factors and Properties  Risk Factors  Ore Reserves Are Very
Difficult to Estimate and Ore Reserve Estimates May Require Adjustment in the Future; Changes in
Ore Grades, Mining Practices and Economic Factors Could Materially Affect the Companys Production
and Reported Results
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PROVEN AND PROBABLE ORE RESERVES
    DECEMBER 31, 2009
    
    DECEMBER 31, 2008
    
    
    
    
    
    DECEMBER 31, 2007AVERAGE
    
    CONTAINED
    
    
    
    
    
    AVERAGE
    
    CONTAINED
    
    
    
    
    
    AVERAGE
    
    CONTAINEDTONS
    
    GRADE
    
    OUNCES
    
    TONS
    
    GRADE
    
    OUNCES
    
    TONS
    
    GRADE
    
    OUNCES(000s)
    
    (OUNCE/TON)
    
    (000S)
    
    (000s)
    
    (OUNCE/TON)
    
    (000S)
    
    (000s)
    
    (OUNCE/TON)
    
    (000S)Stillwater Mine (2)Proven Reserves
    
    
    2,606
    
    
    
    0.66
    
    
    
    1,712
    
    
    
    2,911
    
    
    
    0.65
    
    
    
    1,898
    
    
    
    2,784
    
    
    
    0.65
    
    
    
    1,796Probable Reserves
    
    
    13,748
    
    
    
    0.63
    
    
    
    8,688
    
    
    
    14,030
    
    
    
    0.64
    
    
    
    8,911
    
    
    
    14,360
    
    
    
    0.61
    
    
    
    8,791Total Proven and Probable
Reserves (1)
    
    
    16,354
    
    
    
    0.64
    
    
    
    10,400
    
    
    
    16,941
    
    
    
    0.64
    
    
    
    10,809
    
    
    
    17,144
    
    
    
    0.62
    
    
    
    10,586
    (4)East Boulder Mine (2)Proven Reserves
    
    
    2,036
    
    
    
    0.43
    
    
    
    867
    
    
    
    2,066
    
    
    
    0.45
    
    
    
    935
    
    
    
    2,017
    
    
    
    0.46
    
    
    
    921Probable Reserves
    
    
    22,607
    
    
    
    0.41
    
    
    
    9,347
    
    
    
    19,202
    
    
    
    0.45
    
    
    
    8,717
    
    
    
    20,868
    
    
    
    0.46
    
    
    
    9,660Total Proven and Probable
Reserves (1)
    
    
    24,643
    
    
    
    0.41
    
    
    
    10,214
    
    
    
    21,268
    
    
    
    0.45
    
    
    
    9,652
    
    
    
    22,885
    
    
    
    0.46
    
    
    
    10,581Total Company Reserves (2)Proven Reserves
    
    
    4,642
    
    
    
    0.56
    
    
    
    2,579
    
    
    
    4,977
    
    
    
    0.57
    
    
    
    2,833
    
    
    
    4,800
    
    
    
    0.57
    
    
    
    2,717Probable Reserves
    
    
    36,355
    
    
    
    0.50
    
    
    
    18,035
    
    
    
    33,232
    
    
    
    0.53
    
    
    
    17,628
    
    
    
    35,228
    
    
    
    0.52
    
    
    
    18,451Total Proven and Probable
Reserves (1)
    
    
    40,997
    
    
    
    0.50
    
    
    
    20,614
    
    
    
    38,209
    
    
    
    0.54
    
    
    
    20,461
    
    
    
    40,028
    
    
    
    0.53
    
    
    
    21,167
    (3)(4)
 
 (1)
    
    Reserves are defined as that part of a mineral deposit that could be economically and
legally extracted or produced at the time of the reserve determination. Proven ore reserves
are defined as ore reserves for which (a) quantity is computed from dimensions revealed in
outcrops, trenches, workings or drill holes; grade and/or quality are computed from the
results of detailed sampling and (b) the sites for inspection, sampling and measurement are
spaced so closely and the geologic character is so well defined that size, shape, depth and
mineral content of ore reserves are well-established. Probable ore reserves are defined as
ore reserves for which quantity and grade and/or quality are computed from information similar
to that used for proven ore reserves, but the sites for inspection, sampling, and measurement
are farther apart or are otherwise less adequately spaced. The degree of assurance, although
lower than that for proven ore reserves, is high enough to assume continuity between points of
observation. The
proven and probable ore reserves reflect variations in the PGM content and structural impacts on
the J-M Reef. These variations are the result of localized depositional and structural
influences on the distributions of economic PGM mineralization. Geologic domains within the
reserve boundaries of the two mines include areas where as little as 0% and up to 100% of the J-M
Reef is economically mineable. The ore reserve estimate gives effect to these assumptions. See
Business, Risk Factors and Properties  Risk Factors and Managements Discussion and Analysis
of Financial Condition and Results of Operations  Factors That May Affect Future Results and
Financial Condition.(2)
    
    Expressed as palladium plus platinum in-situ ounces at a ratio of approximately 3.57 parts
palladium to 1 part platinum. The Stillwater Mine is at a 3.53 to 1 ratio and the East
Boulder Mine is 3.60 to 1. 12




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##### Table of Contents



(3)
    
    Average mining and processing losses of approximately 18.1% must be deducted to arrive at the
estimated saleable ounces.(4)
    
    Columns do not add mathematically due to rounding. Discussion
    
    
    Additions to proven ore reserves from new definition drilling,
    
    Deletions as proven reserves are mined,
    
    Deletions from probable ore reserves as areas are converted by new drilling from
probable to proven ore reserves,
    
    Additions from development activity to convert mineralized inventory to probable ore
reserves,
    
    Additions and deletions from adjustments to ore reserve estimation factors and mine
planning criteria. The cut-off grade used in mine planning is .3 ounces of platinum and
palladium per ton for the Stillwater Mine and is .2 ounces of platinum and palladium per
ton for the East Boulder Mine, depending on the mining method employed. The economic value
of this cut-off grade varies with platinum and palladium prices and with the different
mining methods employed, their costs and their efficiency.
  
  13




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IMPAIRMENT OF LONG-LIVED ASSETS
    CURRENT OPERATIONS
  14




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##### Table of Contents




    
    Surface access limitations (property ownership and environmental sensitivity);
 
    
    Topographic and climatic extremes involving rugged mountainous terrain and substantial
elevation differences;
 
    
    Specific configuration of the mineralized zone (narrow  average width 5 feet, depth  up
to 1.5 miles of vertical extent, and long  approximately 28 miles in length), dipping
downward at an angle varying from near vertical to 38 degrees;
 
    
    A deposit which extends both laterally and to depth from available mine openings, with
travel distances underground from portal to working face of up to six miles; and
 
    
    Proven and probable ore reserves extending for a lateral distance of approximately 34,000
feet at the Stillwater Mine and approximately 17,000 feet at the East Boulder Mine  a
combined extent underground of approximately 9.7 miles, with active underground travelways and
ramps on multiple levels totaling more than 100 miles in extent that must be maintained and
supported logistically.
 SAFETY
  15




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##### Table of Contents



EMPLOYEES
  Number of Employeesat December 31,SITE
    
    2009
    
    2008
    
    2007Stillwater Mine
    
    
    797
    
    
    
    869
    
    
    
    845East Boulder Mine
    
    
    265
    
    
    
    261
    
    
    
    551Smelter and Refinery Complex
    
    
    158
    
    
    
    169
    
    
    
    161Administrative Support
    
    
    53
    
    
    
    65
    
    
    
    68Total
    
    
    1,273
    
    
    
    1,364
    
    
    
    1,625
  Business, Risk Factors and Properties  Risk Factors  Limited Availability of Additional
Mining Personnel and Uncertainty of Labor Relations May Affect the Companys Ability to Achieve Its
Production Targets.
 STILLWATER MINE
  16




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##### Table of Contents



Business, Risk Factors and Properties  Risk Factors 
Uncertainty of Title to Properties  The Validity of Unpatented Mining Claims is Subject to Title
Risk
      17




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##### Table of Contents



Business, Risk Factors and Properties  Current Operations  Regulatory and Environmental
Matters  Permitting and Reclamation
 Selected Financial
and Operating Data
 EAST BOULDER MINE
   18




---



##### Table of Contents



Selected Financial and Operating Data
 EXPLORATION AND DEVELOPMENT
   19




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##### Table of Contents



Location and Development Activity
    
    2009
    
    2008
    
    2007Stillwater MineNew Primary Development (equivalent feet)(1)
    
    
    12,323
    
    
    
    25,047
    
    
    
    26,033New Footwall Lateral (equivalent feet)(1)
    
    
    8,430
    
    
    
    10,836
    
    
    
    10,987New Definition drilling (feet)
    
    
    292,701
    
    
    
    358,761
    
    
    
    311,607East Boulder MineNew Primary Development (equivalent feet)(1)
    
    
    3,602
    
    
    
    9,963
    
    
    
    13,015New Footwall Lateral (equivalent feet)(1)
    
    
    1,522
    
    
    
    4,254
    
    
    
    6,283New Definition drilling (feet)
    
    
    64,448
    
    
    
    140,944
    
    
    
    179,845
 
 (1)
    
    Based on one linear foot of excavation, 11 feet wide by 12 feet high (cross-section of 132
ft.2). METALLURGICAL COMPLEX
 Smelter
    Base Metal Refinery
  20




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PGM RECYCLING
       OTHER PROPERTIES
  21




---



##### Table of Contents



LONG-TERM FINANCING
 Convertible Debentures
       22




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##### Table of Contents



PGM SALES AND HEDGING
 Mine Production
    Derivative Instruments
 PGM Recycling
 Business, Risk
Factors and Properties  Risk Factors Reliance on Third Parties for Sourcing of Recycling
Materials and the Concentration of Recycling Sources Creates the Potential for Losses.
  23




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Derivative Instruments
 Other
  TITLE AND ROYALTIES
   24




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##### Table of Contents



REGULATORY AND ENVIRONMENTAL MATTERS
 General Business, Risk Factors and Properties  Risk Factors  Changes to Regulations and
Compliance with Regulations Could Affect Production, Increase Costs and Cause Delays
 Business, Risk Factors
and Properties  Risk Factors  Changes to Regulations and Compliance with Regulations Could
Affect Production, Increase Costs and Cause Delays
  Business, Risk Factors and Properties  Risk
Factors  If the Company is Unable to Obtain Surety Coverage to Collateralize Its Reclamation
Liabilities, Operating Permits May Be Affected
   25




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##### Table of Contents



Permitting and Reclamation
 Managements Discussion and Analysis of Financial Condition and Results of Operations
    26




---



##### Table of Contents



COMPETITION: PALLADIUM AND PLATINUM MARKET
 GENERAL
   Global Supply Business, Risk Factors and Properties  Risk Factors
and Managements Discussion and Analysis of Financial Condition and Results of Operations
 GLOBAL DEMAND
  Platinum 2009 Interim Review
Report
  27




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##### Table of Contents



Charts reproduced from the Johnson Matthey Platinum 2009 Interim Review. Permission to
reproduce was neither sought nor obtained.
  28




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##### Table of Contents



Business, Risk Factors and Properties  Risk Factors  Users of PGMs May
Reduce Their Consumption and Substitute Other Materials for Palladium and Platinum
 GLOBAL SUPPLY
   
 Charts reproduced from the Johnson Matthey Platinum 2009 Interim Review. Permission to
reproduce was neither sought nor obtained.
 29




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##### Table of Contents



PRICES
 Managements Discussion and Analysis of
Financial Condition and Results of Operations  Revenue Factors That May Affect Future
Results and Financial Condition Business, Risk Factors and Properties  Risk Factors  Vulnerability to Metals
Price Volatility  Changes in Supply and Demand Could Reduce Market Prices
 PALLADIUM
    
    
    PLATINUMYEAR
    
    HIGH
    
    
    LOW
    
    
    AVERAGE
    
    
    HIGH
    
    
    LOW
    
    
    AVERAGE1999
    
    $
    454
    
    
    $
    285
    
    
    $
    358
    
    
    $
    457
    
    
    $
    342
    
    
    $
    3772000
    
    $
    970
    
    
    $
    433
    
    
    $
    680
    
    
    $
    622
    
    
    $
    414
    
    
    $
    5442001
    
    $
    1,090
    
    
    $
    315
    
    
    $
    604
    
    
    $
    640
    
    
    $
    415
    
    
    $
    5292002
    
    $
    435
    
    
    $
    222
    
    
    $
    338
    
    
    $
    607
    
    
    $
    453
    
    
    $
    5392003
    
    $
    269
    
    
    $
    148
    
    
    $
    201
    
    
    $
    840
    
    
    $
    603
    
    
    $
    6912004
    
    $
    333
    
    
    $
    178
    
    
    $
    230
    
    
    $
    936
    
    
    $
    767
    
    
    $
    8462005
    
    $
    295
    
    
    $
    172
    
    
    $
    201
    
    
    $
    1,012
    
    
    $
    844
    
    
    $
    8972006
    
    $
    404
    
    
    $
    261
    
    
    $
    320
    
    
    $
    1,355
    
    
    $
    982
    
    
    $
    1,1432007
    
    $
    382
    
    
    $
    320
    
    
    $
    355
    
    
    $
    1,544
    
    
    $
    1,118
    
    
    $
    1,3032008
    
    $
    582
    
    
    $
    164
    
    
    $
    352
    
    
    $
    2,273
    
    
    $
    763
    
    
    $
    1,5762009
    
    $
    393
    
    
    $
    179
    
    
    $
    264
    
    
    $
    1,494
    
    
    $
    918
    
    
    $
    1,2042010*
    
    $
    462
    
    
    $
    395
    
    
    $
    434
    
    
    $
    1,627
    
    
    $
    1,475
    
    
    $
    1,563
 
 *
    
    (Through February 17, 2010) AVAILABLE INFORMATION
 http://www.stillwatermining.com
 30




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##### Table of Contents



RISK FACTORS
  THE WORLDWIDE FINANCIAL AND CREDIT CRISES CREATE VULNERABILITY FOR THE COMPANY
      31




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VULNERABILITY TO METALS PRICE VOLATILITY-CHANGES IN SUPPLY AND DEMAND COULD REDUCE MARKET PRICES
   
  32




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Business, Risk Factors and Properties  Competition: Palladium
and Platinum Market
 Risk Factors
 Users of PGMs May Reduce Their Consumption and Substitute Other Materials for Palladium and
Platinum
 THE COMPANY DEPENDS UPON A FEW CUSTOMERS AND ITS SALES AND OPERATIONS COULD SUFFER IF IT LOSES ANY OF THEM
 Business, Risk Factors and Properties  Current
Operations  PGM Sales and Hedging Activities. Risk Factors  Hedging and Sales Agreements Could Limit the Realization of Higher Metal Prices
  33




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FAILURE TO RENEW SALES AGREEMENTS FOR OUNCES PRODUCED FROM MINE PRODUCTION COULD RESULT IN CURTAILMENT OR CLOSURE OF OPERATIONS
  RELIANCE ON THIRD PARTIES FOR SOURCING OF RECYCLING MATERIALS AND THE CONCENTRATION OF RECYCLING SOURCES CREATES THE POTENTIAL FOR LOSSES
  34




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##### Table of Contents



AN EXTENDED PERIOD OF LOW RECYCLING VOLUMES AND WEAK PGM PRICES COULD PUT THE COMPANYS OPERATIONS AT ADDITIONAL RISK
   THE COMPANY MAY BE COMPETITIVELY DISADVANTAGED AS A PRIMARY PGM PRODUCER WITH A PREPONDERANCE OF PALLADIUM.
   ACHIEVEMENT OF THE COMPANYS PRODUCTION GOALS IS SUBJECT TO UNCERTAINTIES
  35




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##### Table of Contents



Risk Factors 
Limited Availability of Additional Mining Personnel and Uncertainty of Labor Relations May Affect
the Companys Ability to Achieve Its Production Targets
 ORE RESERVES ARE VERY DIFFICULT TO ESTIMATE AND ORE RESERVE ESTIMATES MAY REQUIRE ADJUSTMENT IN THE
FUTURE; CHANGES IN ORE GRADES, MINING PRACTICES AND ECONOMIC FACTORS COULD MATERIALLY AFFECT THE
COMPANYS PRODUCTION AND REPORTED RESULTS
   Business, Risk Factors, and Properties  Proven
 36




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##### Table of Contents



and Probable Ore Reserves
  HistoricYear ended
    
    WeightedDecember 31,
    
    Average (2)
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000(in percent)Stillwater Mine
    
    
    90
    
    
    
    83
    
    
    
    74
    
    
    
    68
    
    
    
    94
    
    
    
    101
    
    
    
    62
    
    
    
    52
    
    
    
    71
    
    
    
    104
    
    
    
    111East Boulder Mine (1)
    
    
    95
    
    
    
    24
    
    
    
    71
    
    
    
    107
    
    
    
    91
    
    
    
    110
    
    
    
    125
    
    
    
    86
    
    
    
    91
    
    
    
    88
    
    
    
    *
 
 (1)
    
    The East Boulder Mine commenced full-time commercial production on January 1, 2002.(2)
    
    Historic Weighted Average period is 1997 to 2009.  AN EXTENDED PERIOD OF LOW PGM PRICES COULD RESULT IN A REDUCTION OF ORE RESERVES AND POTENTIAL FURTHER ASSET IMPAIRMENT CHARGE
   Business,
Risk Factors and Properties  Proven and Probable Ore Reserves
  37




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USERS OF PGMS MAY REDUCE THEIR CONSUMPTION AND SUBSTITUTE OTHER MATERIALS FOR PALLADIUM AND PLATINUM
    IF THE COMPANY IS UNABLE TO OBTAIN SURETY COVERAGE TO COLLATERALIZE ITS RECLAMATION LIABILITIES, OPERATING PERMITS MAY BE AFFECTED
  MINING RISKS AND POTENTIAL INADEQUACY OF INSURANCE COVERAGE  THE COMPANYS BUSINESS IS SUBJECT TO SIGNIFICANT RISKS THAT MAY NOT BE COVERED BY INSURANCE
  
    
    unusual and unexpected rock formations affecting ore or wall rock characteristics,
 38




---



##### Table of Contents




    
    ground or slope failures,
    
    cave-ins, ground water influx, rock bursts and other mining or ground-related problems,
    
    environmental hazards,
    
    industrial accidents,
    
    organized labor disputes or work slow-downs,
    
    metallurgical and other processing, smelting or refining problems,
    
    wild fires, flooding and periodic interruptions due to inclement or hazardous weather
conditions or other acts of God,
    
    mechanical equipment failure and facility performance problems, and
    
    availability and cost of critical materials, equipment and skilled manpower.
  HEDGING AND SALES AGREEMENTS COULD LIMIT THE REALIZATION OF HIGHER METAL PRICES
 Business, Risk
Factors and Properties  Current Operations  PGM Sales and Hedging Activities
 Business, Risk Factors and Properties  Current Operations 
PGM Sales and Hedging Activities
 CHANGES TO REGULATIONS AND COMPLIANCE WITH REGULATIONS COULD AFFECT PRODUCTION, INCREASE COSTS AND CAUSE DELAYS
 Business, Risk Factors and
Properties  Current Operations 
 39




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##### Table of Contents



Regulatory and Environmental Matters.
 Business, Risk Factors and Properties  Current
Operations  Regulatory and Environmental Matters
      THE COMPANYS CREDIT RATING IS BELOW INVESTMENT GRADE, POTENTIALLY LIMITING FUTURE CREDIT AVAILABILITY AND INCREASING POTENTIAL BORROWING COSTS
  40




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##### Table of Contents



LIMITED AVAILABILITY OF ADDITIONAL MINING PERSONNEL AND UNCERTAINTY OF LABOR RELATIONS MAY AFFECT
THE COMPANYS ABILITY TO ACHIEVE ITS PRODUCTION TARGETS
    UNCERTAINTY OF TITLE TO PROPERTIES  THE VALIDITY OF UNPATENTED MINING CLAIMS IS SUBJECT TO TITLE RISK
 Business, Risk
Factors and Properties  Current Operations Title and Royalties
 THE COMPLEXITY OF PROCESSING PLATINUM GROUP METALS POSES OPERATIONAL AND ENVIRONMENTAL RISKS IN ADDITION TO TYPICAL MINING RISKS
  41




---



##### Table of Contents



ITEM 3
 LEGAL PROCEEDINGS
   
 ITEM 4
 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  42




---



##### Table of Contents



PART II
 
 ITEM 5
 MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
 PERFORMANCE GRAPH
  
 Cumulative Total Return
 12/31/05
    
    
    12/31/06
    
    
    12/31/07
    
    
    12/31/08
    
    
    12/31/09Stillwater Mining Company
    
    $
    102.75
    
    
    $
    110.92
    
    
    $
    85.79
    
    
    $
    43.87
    
    
    $
    84.19Russell 2000
    
    
    104.55
    
    
    
    123.76
    
    
    
    121.82
    
    
    
    80.66
    
    
    
    102.58Peer Group
    
    
    185.75
    
    
    
    314.05
    
    
    
    403.52
    
    
    
    160.63
    
    
    
    306.97
  43




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##### Table of Contents



ITEM 6
 SELECTED FINANCIAL DATA
 (in thousands, except per share and current ratio data)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005INCOME STATEMENT DATARevenuesMine production (2)
    
    $
    306,892
    
    
    $
    360,364
    
    
    $
    331,277
    
    
    $
    334,834
    
    
    $
    285,641PGM recycling
    
    
    81,788
    
    
    
    475,388
    
    
    
    326,394
    
    
    
    269,941
    
    
    
    90,695Sales of palladium received in Norilsk Nickel transaction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,637
    
    
    
    87,309Other
    
    
    5,752
    
    
    
    19,980
    
    
    
    15,365
    
    
    
    33,366
    
    
    
    65,252Total revenues
    
    $
    394,432
    
    
    $
    855,732
    
    
    $
    673,036
    
    
    $
    655,778
    
    
    $
    528,897Costs and ExpensesCosts of metals sold:Mine production (2)
    
    
    209,140
    
    
    
    283,793
    
    
    
    256,942
    
    
    
    242,612
    
    
    
    211,606PGM recycling(3)
    
    
    76,483
    
    
    
    449,497
    
    
    
    306,757
    
    
    
    249,861
    
    
    
    84,336Sales of palladium received in Norilsk Nickel transaction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,785
    
    
    
    74,542Other
    
    
    5,741
    
    
    
    19,892
    
    
    
    14,289
    
    
    
    32,300
    
    
    
    65,163Total costs of metals sold
    
    
    291,364
    
    
    
    753,182
    
    
    
    577,988
    
    
    
    535,558
    
    
    
    435,647Depreciation and amortizationMine production
    
    
    70,239
    
    
    
    82,792
    
    
    
    82,396
    
    
    
    83,583
    
    
    
    79,032PGM recycling
    
    
    178
    
    
    
    192
    
    
    
    142
    
    
    
    100
    
    
    
    55Total depreciation and amortization
    
    
    70,417
    
    
    
    82,984
    
    
    
    82,538
    
    
    
    83,683
    
    
    
    79,087General and administrative
    
    
    28,926
    
    
    
    70,816
    
    
    
    28,285
    
    
    
    28,018
    
    
    
    20,333Impairment of property, plant and equipment
    
    
    
    
    
    
    67,254
    
    
    
    
    
    
    
    
    
    
    
    Operating income (loss)
    
    $
    3,725
    
    
    $
    (118,504
    )
    
    $
    (15,775
    )
    
    $
    8,519
    
    
    $
    (6,170
    )Induced conversion loss
    
    $
    (8,097
    )
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Total income tax benefit (provision)
    
    $
    30
    
    
    $
    32
    
    
    $
    
    
    
    $
    (10
    )
    
    $
    (13
    )Net income (loss)
    
    $
    (9,218
    )
    
    $
    (116,943
    )
    
    $
    (15,103
    )
    
    $
    8,512
    
    
    $
    (12,688
    )Other comprehensive income (loss), net of tax
    
    $
    70
    
    
    $
    5,865
    
    
    $
    9,578
    
    
    $
    1,799
    
    
    $
    (12,437
    )Comprehensive income (loss)
    
    $
    (9,148
    )
    
    $
    (111,078
    )
    
    $
    (5,525
    )
    
    $
    10,311
    
    
    $
    (25,125
    )Pro-forma net income (loss) assuming the new amortization method is applied retroactively (1)
    
    $
    (9,218
    )
    
    $
    (116,943
    )
    
    $
    (15,103
    )
    
    $
    8,512
    
    
    $
    (12,688
    )Weighted average common shares outstandingBasic
    
    
    94,852
    
    
    
    93,025
    
    
    
    92,016
    
    
    
    91,260
    
    
    
    90,702Diluted
    
    
    94,852
    
    
    
    93,025
    
    
    
    92,016
    
    
    
    91,580
    
    
    
    90,702Basic earnings (loss) per share
    
    $
    (0.10
    )
    
    $
    (1.26
    )
    
    $
    (0.16
    )
    
    $
    0.09
    
    
    $
    (0.14
    )Diluted earnings (loss) per share
    
    $
    (0.10
    )
    
    $
    (1.26
    )
    
    $
    (0.16
    )
    
    $
    0.09
    
    
    $
    (0.14
    )Pro-forma amounts assuming the new amortization method is applied retroactively (1)Basic earnings (loss) per share
    
    $
    (0.10
    )
    
    $
    (1.26
    )
    
    $
    (0.16
    )
    
    $
    0.09
    
    
    $
    (0.14
    )Diluted earnings (loss) per share
    
    $
    (0.10
    )
    
    $
    (1.26
    )
    
    $
    (0.16
    )
    
    $
    0.09
    
    
    $
    (0.14
    )CASH FLOW DATANet cash provided by operating activities
    
    $
    59,672
    
    
    $
    114,243
    
    
    $
    56,422
    
    
    $
    96,963
    
    
    $
    141,134Net cash used in investing activities
    
    $
    (54,723
    )
    
    $
    (74,567
    )
    
    $
    (80,967
    )
    
    $
    (78,909
    )
    
    $
    (134,261
    )Net cash (used in) provided by financing activities
    
    $
    (88
    )
    
    $
    60,683
    
    
    $
    (2,379
    )
    
    $
    (9,954
    )
    
    $
    (22,665
    )
 
 (1)
    
    See Note 3 Change in Amortization Method for Mine Development Assets to the Companys
audited financial statements as filed in the Companys 2006 Annual Report on Form 10-K.(2)
    
    See Note 2 Reclassifications to the Companys 2008 audited financial statements for
further information.(3)
    
    Costs from PGM recycling have been revised to include additional recycling costs for the
years 2008, 2007, 2006 and 2005. See Note 3 Correction of Immaterial Errorto the Companys
2009 and 2008 audited financial statements for further information. 44




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##### Table of Contents



ITEM 6
 SELECTED FINANCIAL DATA
 (Continued)
 (in thousands, except per share and current ratio data)
    
    2009
    
    2008
    
    2007
    
    2006
    
    2005BALANCE SHEET DATACash and cash equivalents
    
    $
    166,656
    
    
    $
    161,795
    
    
    $
    61,436
    
    
    $
    88,360
    
    
    $
    80,260Inventories
    
    $
    88,544
    
    
    $
    72,178
    
    
    $
    119,586
    
    
    $
    108,664
    
    
    $
    87,820Total current assets
    
    $
    318,598
    
    
    $
    282,535
    
    
    $
    259,854
    
    
    $
    286,108
    
    
    $
    270,097Property, plant and equipment, net
    
    $
    358,866
    
    
    $
    393,412
    
    
    $
    465,054
    
    
    $
    460,328
    
    
    $
    445,199Total assets
    
    $
    724,772
    
    
    $
    723,029
    
    
    $
    743,330
    
    
    $
    757,792
    
    
    $
    722,643Current portion of long-term debt and capital lease obligations
    
    $
    
    
    
    $
    97
    
    
    $
    1,209
    
    
    $
    1,674
    
    
    $
    1,776Portion of debt repayable upon liquidation of finished palladium
in inventory
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    7,324Total current liabilities
    
    $
    49,476
    
    
    $
    55,108
    
    
    $
    68,974
    
    
    $
    85,590
    
    
    $
    69,087Long-term debt and capital lease obligations
    
    $
    195,977
    
    
    $
    210,947
    
    
    $
    126,841
    
    
    $
    129,007
    
    
    $
    132,307Total liabilities
    
    $
    278,384
    
    
    $
    301,735
    
    
    $
    225,003
    
    
    $
    243,467
    
    
    $
    227,913Stockholders equity
    
    $
    446,388
    
    
    $
    421,294
    
    
    $
    518,327
    
    
    $
    514,325
    
    
    $
    494,730Working capital
    
    $
    269,122
    
    
    $
    229,213
    
    
    $
    190,880
    
    
    $
    200,518
    
    
    $
    201,010Current ratio
    
    
    6.4
    
    
    
    5.2
    
    
    
    3.8
    
    
    
    3.3
    
    
    
    3.9
 45




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##### Table of Contents



OPERATING AND COST DATA
 (in thousands, except per ounce and per ton costs)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Consolidated:Ounces produced:Palladium
    
    
    407
    
    
    
    384
    
    
    
    413
    
    
    
    463
    
    
    
    428Platinum
    
    
    123
    
    
    
    115
    
    
    
    124
    
    
    
    138
    
    
    
    126Total
    
    
    530
    
    
    
    499
    
    
    
    537
    
    
    
    601
    
    
    
    554Tons milled
    
    
    1,086
    
    
    
    1,060
    
    
    
    1,169
    
    
    
    1,289
    
    
    
    1,206Mill head grade (ounce per ton)
    
    
    0.52
    
    
    
    0.50
    
    
    
    0.50
    
    
    
    0.51
    
    
    
    0.50Sub-grade tons milled (1)
    
    
    98
    
    
    
    146
    
    
    
    75
    
    
    
    62
    
    
    
    80Sub-grade mill head grade (ounce per ton)
    
    
    0.20
    
    
    
    0.17
    
    
    
    0.12
    
    
    
    0.13
    
    
    
    0.15Total tons milled (1)
    
    
    1,184
    
    
    
    1,206
    
    
    
    1,244
    
    
    
    1,351
    
    
    
    1,286Combined mill head grade (ounce per ton)
    
    
    0.50
    
    
    
    0.46
    
    
    
    0.48
    
    
    
    0.49
    
    
    
    0.48Total mill recovery (%)
    
    
    91
    
    
    
    91
    
    
    
    91
    
    
    
    91
    
    
    
    91Total operating costs per ounce (Non-GAAP)(2) (8)
    
    $
    310
    
    
    $
    336
    
    
    $
    268
    
    
    $
    239
    
    
    $
    277Total cash costs per ounce (Non-GAAP)(2) (8)
    
    $
    360
    
    
    $
    405
    
    
    $
    330
    
    
    $
    294
    
    
    $
    322Total production costs per ounce (Non-GAAP)(2) (8)
    
    $
    495
    
    
    $
    569
    
    
    $
    487
    
    
    $
    431
    
    
    $
    470Total operating costs per ton milled (Non-GAAP) (2) (8)
    
    $
    139
    
    
    $
    139
    
    
    $
    116
    
    
    $
    106
    
    
    $
    119Total cash costs per ton milled (Non-GAAP)(2) (8)
    
    $
    161
    
    
    $
    167
    
    
    $
    143
    
    
    $
    131
    
    
    $
    139Total production costs per ton milled (Non-GAAP)(2) (8)
    
    $
    222
    
    
    $
    236
    
    
    $
    210
    
    
    $
    192
    
    
    $
    202Stillwater Mine:Ounces produced:Palladium
    
    
    302
    
    
    
    268
    
    
    
    274
    
    
    
    314
    
    
    
    293Platinum
    
    
    92
    
    
    
    81
    
    
    
    85
    
    
    
    95
    
    
    
    88Total
    
    
    394
    
    
    
    349
    
    
    
    359
    
    
    
    409
    
    
    
    381Tons milled
    
    
    727
    
    
    
    690
    
    
    
    640
    
    
    
    739
    
    
    
    710Mill head grade (ounce per ton)
    
    
    0.58
    
    
    
    0.54
    
    
    
    0.60
    
    
    
    0.60
    
    
    
    0.57Sub-grade tons milled(1)
    
    
    50
    
    
    
    78
    
    
    
    75
    
    
    
    62
    
    
    
    80Sub-grade mill head grade (ounce per ton)
    
    
    0.20
    
    
    
    0.16
    
    
    
    0.12
    
    
    
    0.13
    
    
    
    0.15Total tons milled(1)
    
    
    777
    
    
    
    768
    
    
    
    715
    
    
    
    801
    
    
    
    790Combined mill head grade (ounce per ton)
    
    
    0.56
    
    
    
    0.51
    
    
    
    0.55
    
    
    
    0.56
    
    
    
    0.53Total mill recovery (%)
    
    
    92
    
    
    
    91
    
    
    
    92
    
    
    
    92
    
    
    
    92Total operating costs per ounce (Non-GAAP) (2) (8)
    
    $
    297
    
    
    $
    318
    
    
    $
    233
    
    
    $
    227
    
    
    $
    269Total cash costs per ounce (Non-GAAP)(2) (8)
    
    $
    344
    
    
    $
    383
    
    
    $
    294
    
    
    $
    280
    
    
    $
    313Total production costs per ounce (Non-GAAP)(2) (8)
    
    $
    469
    
    
    $
    521
    
    
    $
    425
    
    
    $
    400
    
    
    $
    453Total operating costs per ton milled (Non-GAAP)(2) (8)
    
    $
    150
    
    
    $
    144
    
    
    $
    117
    
    
    $
    116
    
    
    $
    130Total cash costs per ton milled (Non-GAAP)(2) (8)
    
    $
    174
    
    
    $
    174
    
    
    $
    147
    
    
    $
    143
    
    
    $
    151Total production costs per ton milled (Non-GAAP)(2) (8)
    
    $
    238
    
    
    $
    237
    
    
    $
    214
    
    
    $
    204
    
    
    $
    218East Boulder Mine:Ounces produced:Palladium
    
    
    105
    
    
    
    116
    
    
    
    139
    
    
    
    149
    
    
    
    135Platinum
    
    
    31
    
    
    
    34
    
    
    
    39
    
    
    
    43
    
    
    
    38Total
    
    
    136
    
    
    
    150
    
    
    
    178
    
    
    
    192
    
    
    
    173Tons milled
    
    
    359
    
    
    
    370
    
    
    
    529
    
    
    
    550
    
    
    
    496Mill head grade (ounce per ton)
    
    
    0.40
    
    
    
    0.42
    
    
    
    0.38
    
    
    
    0.39
    
    
    
    0.40Sub-grade tons milled (1)
    
    
    48
    
    
    
    68
    
    
    
    
    
    
    
    
    
    
    
    Sub-grade mill head grade (ounce per ton)
    
    
    0.20
    
    
    
    0.19
    
    
    
    
    
    
    
    
    
    
    
    Total tons milled (1)
    
    
    407
    
    
    
    438
    
    
    
    529
    
    
    
    550
    
    
    
    496Combined mill head grade (ounce per ton)
    
    
    0.38
    
    
    
    0.38
    
    
    
    0.38
    
    
    
    0.39
    
    
    
    0.40Total mill recovery (%)
    
    
    89
    
    
    
    90
    
    
    
    90
    
    
    
    89
    
    
    
    89Total operating costs per ounce (Non-GAAP)(2) (8)
    
    $
    347
    
    
    $
    378
    
    
    $
    338
    
    
    $
    264
    
    
    $
    295Total cash costs per ounce (Non-GAAP)(2) (8)
    
    $
    407
    
    
    $
    456
    
    
    $
    404
    
    
    $
    324
    
    
    $
    343Total production costs per ounce (Non-GAAP)(2) (8)
    
    $
    572
    
    
    $
    682
    
    
    $
    613
    
    
    $
    498
    
    
    $
    508Total operating costs per ton milled (Non-GAAP) (2) (8)
    
    $
    116
    
    
    $
    130
    
    
    $
    114
    
    
    $
    92
    
    
    $
    103Total cash costs per ton milled (Non-GAAP)(2) (8)
    
    $
    136
    
    
    $
    156
    
    
    $
    136
    
    
    $
    113
    
    
    $
    120Total production costs per ton milled (Non-GAAP)(2) (8)
    
    $
    191
    
    
    $
    234
    
    
    $
    206
    
    
    $
    174
    
    
    $
    177
 46




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##### Table of Contents



(in thousands, where noted)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005SALES AND PRICE DATAOunces sold (000)Mine production:Palladium (oz.)
    
    
    393
    
    
    
    399
    
    
    
    425
    
    
    
    466
    
    
    
    431Platinum (oz.)
    
    
    123
    
    
    
    115
    
    
    
    120
    
    
    
    138
    
    
    
    135Total
    
    
    516
    
    
    
    514
    
    
    
    545
    
    
    
    604
    
    
    
    566PGM recycling:(5)Palladium (oz.)
    
    
    53
    
    
    
    119
    
    
    
    102
    
    
    
    100
    
    
    
    46Platinum (oz.)
    
    
    40
    
    
    
    131
    
    
    
    119
    
    
    
    127
    
    
    
    68Rhodium (oz.)
    
    
    9
    
    
    
    25
    
    
    
    24
    
    
    
    22
    
    
    
    12Total
    
    
    102
    
    
    
    275
    
    
    
    245
    
    
    
    249
    
    
    
    126Other:(6)Palladium (oz.)
    
    
    12
    
    
    
    49
    
    
    
    44
    
    
    
    96
    
    
    
    456Platinum (oz.)
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    13Rhodium (oz.)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    26Total
    
    
    15
    
    
    
    49
    
    
    
    44
    
    
    
    105
    
    
    
    495By-products from mining: (7)Rhodium (oz.)
    
    
    4
    
    
    
    2
    
    
    
    4
    
    
    
    4
    
    
    
    3Gold (oz.)
    
    
    9
    
    
    
    9
    
    
    
    11
    
    
    
    11
    
    
    
    11Silver (oz.)
    
    
    6
    
    
    
    10
    
    
    
    9
    
    
    
    6
    
    
    
    6Copper (lb.)
    
    
    776
    
    
    
    940
    
    
    
    942
    
    
    
    892
    
    
    
    911Nickel (lb.)
    
    
    856
    
    
    
    932
    
    
    
    1,171
    
    
    
    1,585
    
    
    
    1,307Average
realized price per
ounce(3)Mine production:Palladium ($/oz.)
    
    $
    365
    
    
    $
    410
    
    
    $
    384
    
    
    $
    370
    
    
    $
    356Platinum ($/oz.)
    
    $
    1,137
    
    
    $
    1,387
    
    
    $
    953
    
    
    $
    868
    
    
    $
    821Combined ($/oz.) (4)
    
    $
    549
    
    
    $
    630
    
    
    $
    509
    
    
    $
    484
    
    
    $
    467PGM recycling:(5)Palladium ($/oz.)
    
    $
    282
    
    
    $
    401
    
    
    $
    353
    
    
    $
    319
    
    
    $
    195Platinum ($/oz.)
    
    $
    1,143
    
    
    $
    1,735
    
    
    $
    1,247
    
    
    $
    1,124
    
    
    $
    873Rhodium ($/oz.)
    
    $
    2,088
    
    
    $
    7,807
    
    
    $
    5,732
    
    
    $
    4,374
    
    
    $
    1,740Other:(6)Palladium ($/oz.)
    
    $
    213
    
    
    $
    409
    
    
    $
    351
    
    
    $
    292
    
    
    $
    199Platinum ($/oz.)
    
    $
    1,041
    
    
    $
    
    
    
    $
    
    
    
    $
    1,028
    
    
    $
    893Rhodium ($/oz.)
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    3,222
    
    
    $
    1,916By-products from mining: (7)Rhodium ($/oz.)
    
    $
    1,543
    
    
    $
    7,939
    
    
    $
    6,217
    
    
    $
    4,516
    
    
    $
    2,155Gold ($/oz.)
    
    $
    983
    
    
    $
    877
    
    
    $
    699
    
    
    $
    603
    
    
    $
    444Silver ($/oz.)
    
    $
    15
    
    
    $
    14
    
    
    $
    13
    
    
    $
    12
    
    
    $
    7Copper ($/lb.)
    
    $
    2.14
    
    
    $
    2.94
    
    
    $
    3.34
    
    
    $
    2.91
    
    
    $
    1.55Nickel ($/lb.)
    
    $
    7.48
    
    
    $
    9.72
    
    
    $
    16.91
    
    
    $
    10.04
    
    
    $
    5.96Average market price per ounce
(4)Palladium ($/oz.)
    
    $
    263
    
    
    $
    352
    
    
    $
    355
    
    
    $
    320
    
    
    $
    201Platinum ($/oz.)
    
    $
    1,204
    
    
    $
    1,578
    
    
    $
    1,303
    
    
    $
    1,143
    
    
    $
    897Combined ($/oz.)(4)
    
    $
    487
    
    
    $
    628
    
    
    $
    564
    
    
    $
    508
    
    
    $
    366
 
 (1)
    
    Sub-grade tons milled includes reef waste material only. Total tons milled includes ore tons
and sub-grade tons only.(2)
    
    Total operating costs include costs of mining, processing and administrative expenses at the
mine site (including mine site overhead and credits for metals produced other than palladium
and platinum from mine production). Total cash costs include total operating costs plus
royalties, insurance and taxes other than income taxes. Total production costs include total
cash costs plus asset retirement costs and depreciation and amortization. Income taxes,
corporate general and administrative expenses, asset impairment write-downs, gain or loss on
disposal of property, plant and 47




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##### Table of Contents



equipment, restructuring costs, interest income and expense
are not included in total operating costs, total cash costs or total production costs.
Operating costs per ton, operating costs per ounce, cash costs per ton, cash costs per ounce,
production costs per ton and production costs per ounce are non-GAAP measurements that
management uses to monitor and evaluate the efficiency of its mining operations. These
measures of cost are not defined under U.S. Generally Accepted Accounting Principles (GAAP).
Please see Reconciliation of Non-GAAP Measures to Costs of Revenues and the accompanying
discussion for additional detail.(3)
    
    The Companys average realized price represents revenues, which include the effect of any
applicable agreement floor and ceiling prices, hedging gains and losses realized on commodity
instruments and agreement discounts, divided by ounces sold. The average market price
represents the average London Bullion Market Association afternoon postings for the actual
months of the period.(4)
    
    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.(5)
    
    Ounces sold and average realized price per ounce from PGM recycling relate to ounces produced
from processing of catalyst materials.(6)
    
    Ounces sold and average realized price per ounce from other relate to ounces purchased in the
open market for resale. Ounces in the years 2006 and 2005 also included palladium ounces
received in the Norilsk Nickel transaction.(7)
    
    By-product metals sold reflect contained metal. Realized prices reflect net values
(discounted due to product form and transportation and marketing charges) per unit received.(8)
    
    Costs per ounce/ton have been revised due to a correction of an immaterial error in the costs
of sales for recycled ounces in the full year of 2008, fourth quarter of 2008 and fourth
quarter of 2009. Reconciliation of Non-GAAP measures to costs of revenues
   Total Costs of Revenues
 Total Production Costs (Non-GAAP)
 48




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##### Table of Contents



Total Production Cost per Ton
Milled (Non-GAAP)
 Total Production Cost per Ounce (Non-GAAP)
 Total Cash Costs (Non-GAAP)
 Total Cash Cost per Ton Milled
(Non-GAAP)
 Total Cash Cost per Ounce (Non-GAAP)
 Total Operating Costs (Non-GAAP)
 Total Operating Cost per Ton Milled (Non-GAAP)
 49




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##### Table of Contents



Total Operating Cost per Ounce (Non-GAAP)
 (in thousands, except per ounce and per ton data)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Consolidated:Total operating costs (Non-GAAP)
    
    $
    164,142
    
    
    $
    167,660
    
    
    $
    143,988
    
    
    $
    143,561
    
    
    $
    153,455Total cash costs (Non-GAAP)
    
    $
    190,757
    
    
    $
    201,915
    
    
    $
    177,384
    
    
    $
    176,462
    
    
    $
    178,624Total production costs (Non-GAAP)
    
    $
    262,364
    
    
    $
    284,130
    
    
    $
    261,778
    
    
    $
    259,036
    
    
    $
    260,373Divided by total ounces
    
    
    530
    
    
    
    499
    
    
    
    537
    
    
    
    601
    
    
    
    554Divided by total tons milled
    
    
    1,184
    
    
    
    1,206
    
    
    
    1,244
    
    
    
    1,351
    
    
    
    1,286Total operating cost per ounce (Non-GAAP)
    
    $
    310
    
    
    $
    336
    
    
    $
    268
    
    
    $
    239
    
    
    $
    277Total cash cost per ounce (Non-GAAP)
    
    $
    360
    
    
    $
    405
    
    
    $
    330
    
    
    $
    294
    
    
    $
    322Total production cost per ounce (Non-GAAP)
    
    $
    495
    
    
    $
    569
    
    
    $
    487
    
    
    $
    431
    
    
    $
    470Total operating cost per ton milled (Non-GAAP)
    
    $
    139
    
    
    $
    139
    
    
    $
    116
    
    
    $
    106
    
    
    $
    119Total cash cost per ton milled (Non-GAAP)
    
    $
    161
    
    
    $
    167
    
    
    $
    143
    
    
    $
    131
    
    
    $
    139Total production cost per ton milled (Non-GAAP)
    
    $
    222
    
    
    $
    236
    
    
    $
    210
    
    
    $
    192
    
    
    $
    202Reconciliation to consolidated costs of revenues:Total operating costs (Non-GAAP)
    
    $
    164,142
    
    
    $
    167,660
    
    
    $
    143,988
    
    
    $
    143,561
    
    
    $
    153,455Royalties, taxes and other
    
    
    26,615
    
    
    
    34,255
    
    
    
    33,396
    
    
    
    32,901
    
    
    
    25,169Total cash costs (Non-GAAP)
    
    $
    190,757
    
    
    $
    201,915
    
    
    $
    177,384
    
    
    $
    176,462
    
    
    $
    178,624Asset retirement costs
    
    
    606
    
    
    
    885
    
    
    
    734
    
    
    
    650
    
    
    
    535Depreciation and amortization
    
    
    70,239
    
    
    
    82,792
    
    
    
    82,396
    
    
    
    83,583
    
    
    
    79,032Depreciation and amortization (in inventory)
    
    
    762
    
    
    
    (1,462
    )
    
    
    1,264
    
    
    
    (1,659
    )
    
    
    2,182Total production costs (Non-GAAP)
    
    $
    262,364
    
    
    $
    284,130
    
    
    $
    261,778
    
    
    $
    259,036
    
    
    $
    260,373Change in product inventories
    
    
    (6,797
    )
    
    
    32,916
    
    
    
    11,848
    
    
    
    41,642
    
    
    
    141,512Cost of PGM recycling
    
    
    76,483
    
    
    
    449,497
    
    
    
    306,757
    
    
    
    249,861
    
    
    
    84,838PGM recycling  depreciation
    
    
    178
    
    
    
    192
    
    
    
    142
    
    
    
    100
    
    
    
    55Add: Profit from PGM recycling
    
    
    5,908
    
    
    
    32,671
    
    
    
    26,180
    
    
    
    25,972
    
    
    
    7,023Total consolidated costs of revenues (2)
    
    $
    338,136
    
    
    $
    799,406
    
    
    $
    606,705
    
    
    $
    576,611
    
    
    $
    493,801Stillwater Mine:Total operating costs (Non-GAAP)
    
    $
    116,913
    
    
    $
    110,931
    
    
    $
    83,758
    
    
    $
    92,827
    
    
    $
    102,470Total cash costs (Non-GAAP)
    
    $
    135,353
    
    
    $
    133,571
    
    
    $
    105,391
    
    
    $
    114,323
    
    
    $
    119,220Total production costs (Non-GAAP)
    
    $
    184,614
    
    
    $
    181,812
    
    
    $
    152,679
    
    
    $
    163,420
    
    
    $
    172,477Divided by total ounces
    
    
    394
    
    
    
    349
    
    
    
    359
    
    
    
    409
    
    
    
    381Divided by total tons milled
    
    
    777
    
    
    
    768
    
    
    
    715
    
    
    
    801
    
    
    
    790Total operating cost per ounce (Non-GAAP)
    
    $
    297
    
    
    $
    318
    
    
    $
    233
    
    
    $
    227
    
    
    $
    269Total cash cost per ounce (Non-GAAP)
    
    $
    344
    
    
    $
    383
    
    
    $
    294
    
    
    $
    280
    
    
    $
    313Total production cost per ounce (Non-GAAP)
    
    $
    469
    
    
    $
    521
    
    
    $
    425
    
    
    $
    400
    
    
    $
    453Total operating cost per ton milled (Non-GAAP)
    
    $
    150
    
    
    $
    144
    
    
    $
    117
    
    
    $
    116
    
    
    $
    130Total cash cost per ton milled (Non-GAAP)
    
    $
    174
    
    
    $
    174
    
    
    $
    147
    
    
    $
    143
    
    
    $
    151Total production cost per ton milled (Non-GAAP)
    
    $
    238
    
    
    $
    237
    
    
    $
    214
    
    
    $
    204
    
    
    $
    218
 50




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##### Table of Contents



(in thousands, per ounce and per ton data)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Stillwater Mine continued:Reconciliation to costs of revenues:Total operating costs (Non-GAAP)
    
    $
    116,913
    
    
    $
    110,931
    
    
    $
    83,758
    
    
    $
    92,827
    
    
    $
    102,470Royalties, taxes and other
    
    
    18,440
    
    
    
    22,640
    
    
    
    21,633
    
    
    
    21,496
    
    
    
    16,750Total cash costs (Non-GAAP)
    
    $
    135,353
    
    
    $
    133,571
    
    
    $
    105,391
    
    
    $
    114,323
    
    
    $
    119,220Asset retirement costs
    
    
    507
    
    
    
    645
    
    
    
    512
    
    
    
    470
    
    
    
    370Depreciation and amortization
    
    
    47,527
    
    
    
    47,748
    
    
    
    46,521
    
    
    
    49,620
    
    
    
    52,295Depreciation and amortization (in inventory)
    
    
    1,227
    
    
    
    (152
    )
    
    
    255
    
    
    
    (993
    )
    
    
    592Total production costs (Non-GAAP)
    
    $
    184,614
    
    
    $
    181,812
    
    
    $
    152,679
    
    
    $
    163,420
    
    
    $
    172,477Change in product inventories
    
    
    (7,393
    )
    
    
    7,524
    
    
    
    (2,872
    )
    
    
    1,882
    
    
    
    6,773Add: Profit from PGM recycling
    
    
    4,395
    
    
    
    21,889
    
    
    
    17,299
    
    
    
    18,015
    
    
    
    4,805Total costs of revenues (2)
    
    $
    181,616
    
    
    $
    211,225
    
    
    $
    167,106
    
    
    $
    183,317
    
    
    $
    184,055East Boulder Mine:Total operating costs (Non-GAAP)
    
    $
    47,229
    
    
    $
    56,729
    
    
    $
    60,230
    
    
    $
    50,734
    
    
    $
    50,985Total cash costs (Non-GAAP)
    
    $
    55,404
    
    
    $
    68,344
    
    
    $
    71,993
    
    
    $
    62,139
    
    
    $
    59,404Total production costs (Non-GAAP)
    
    $
    77,750
    
    
    $
    102,318
    
    
    $
    109,099
    
    
    $
    95,616
    
    
    $
    87,897Divided by total ounces
    
    
    136
    
    
    
    150
    
    
    
    178
    
    
    
    192
    
    
    
    173Divided by total tons milled
    
    
    407
    
    
    
    438
    
    
    
    529
    
    
    
    550
    
    
    
    496Total operating cost per ounce (Non-GAAP)
    
    $
    347
    
    
    $
    378
    
    
    $
    338
    
    
    $
    264
    
    
    $
    295Total cash cost per ounce (Non-GAAP)
    
    $
    407
    
    
    $
    456
    
    
    $
    404
    
    
    $
    324
    
    
    $
    343Total production cost per ounce (Non-GAAP)
    
    $
    572
    
    
    $
    682
    
    
    $
    613
    
    
    $
    498
    
    
    $
    508Total operating cost per ton milled (Non-GAAP)
    
    $
    116
    
    
    $
    130
    
    
    $
    114
    
    
    $
    92
    
    
    $
    103Total cash cost per ton milled (Non-GAAP)
    
    $
    136
    
    
    $
    156
    
    
    $
    136
    
    
    $
    113
    
    
    $
    120Total production cost per ton milled (Non-GAAP)
    
    $
    191
    
    
    $
    234
    
    
    $
    206
    
    
    $
    174
    
    
    $
    177Reconciliation to costs of revenues:Total operating costs (Non-GAAP)
    
    $
    47,229
    
    
    $
    56,729
    
    
    $
    60,230
    
    
    $
    50,734
    
    
    $
    50,985Royalties, taxes and other
    
    
    8,175
    
    
    
    11,615
    
    
    
    11,763
    
    
    
    11,405
    
    
    
    8,419Total cash costs (Non-GAAP)
    
    $
    55,404
    
    
    $
    68,344
    
    
    $
    71,993
    
    
    $
    62,139
    
    
    $
    59,404Asset retirement costs
    
    
    99
    
    
    
    240
    
    
    
    222
    
    
    
    180
    
    
    
    165Depreciation and amortization
    
    
    22,712
    
    
    
    35,044
    
    
    
    35,877
    
    
    
    33,963
    
    
    
    26,737Depreciation and amortization (in inventory)
    
    
    (465
    )
    
    
    (1,310
    )
    
    
    1,007
    
    
    
    (666
    )
    
    
    1,591Total production costs (Non-GAAP)
    
    $
    77,750
    
    
    $
    102,318
    
    
    $
    109,099
    
    
    $
    95,616
    
    
    $
    87,897Change in product inventories
    
    
    (5,145
    )
    
    
    5,500
    
    
    
    432
    
    
    
    (439
    )
    
    
    (4,967
    )Add: Profit from PGM recycling
    
    
    1,513
    
    
    
    10,782
    
    
    
    8,881
    
    
    
    7,957
    
    
    
    2,218Total costs of revenues (2)
    
    $
    74,118
    
    
    $
    118,600
    
    
    $
    118,412
    
    
    $
    103,134
    
    
    $
    85,148PGM recycling and Other:(1)Reconciliation to costs of revenues:Cost of open market purchases and palladium received in Norilsk Nickel transaction
    
    $
    5,741
    
    
    $
    19,892
    
    
    $
    14,288
    
    
    $
    40,199
    
    
    $
    139,705PGM recycling  depreciation
    
    
    178
    
    
    
    192
    
    
    
    142
    
    
    
    100
    
    
    
    55Cost of PGM recycling
    
    
    76,483
    
    
    
    449,497
    
    
    
    306,757
    
    
    
    249,861
    
    
    
    84,838Total costs of revenues
    
    $
    82,402
    
    
    $
    469,581
    
    
    $
    321,187
    
    
    $
    290,160
    
    
    $
    224,598
 
 (1)
    
    PGM recycling and Other (2005 through 2006) include PGM recycling, sales of palladium
received in the Norilsk Nickel transaction and metal purchased on the open market for
re-sale.(2)
    
    Revenue from the sale of mined by-products are credited against gross production costs
for Non-GAAP presentation. Revenue from the sale of mined by-products
are reported on the Companys financial statements as mined revenue and are included in
consolidated costs of revenues. Total costs of revenues in the above table have been
reduced by approximately $23.6 million, $36.8 million, $53.8 million, $42.6 million and
$21.4 million in the years 2009, 2008, 2007, 2006 and 2005, respectively. 51




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##### Table of Contents



ITEM 7
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Selected Financial and Operating Data.
 OVERVIEW
 PRINCIPAL FACTORS AFFECTING STILLWATER MINING COMPANY
  Business, Risk
Factors and Properties  Risk Factors  The Company May Be Competitively Disadvantaged As A
Primary PGM Producer With A Preponderance Of Palladium
    52




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53




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##### Table of Contents



Business, Risk Factors and Properties  Risk
Factors  Reliance On Third Parties For Sourcing Of Recycling Materials And The Concentration Of
Recycling Sources Creates The Potential For Losses
  Convertible Debentures
 2009 RESULTS AND COMMENTARY
 Results of Operations  Year Ended December 31, 2009, Compared to Year Ended
December 31, 2008
  54




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55




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##### Table of Contents



56




---



##### Table of Contents



Good Neighbor
Agreement
 57




---



##### Table of Contents



2
   Outlook
   58




---



##### Table of Contents



RESULTS OF OPERATIONS
 YEAR ENDED DECEMBER 31, 2009 COMPARED TO YEAR ENDED DECEMBER 31, 2008
 Revenues
    Costs of Metals Sold 
  59




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##### Table of Contents



Depreciation and amortization
 Marketing
 General and administrative
 Other corporate costs
 Interest income and expense
 Other comprehensive income (loss), net of tax
 YEAR ENDED DECEMBER 31, 2008 COMPARED TO YEAR ENDED DECEMBER 31, 2007
 Revenues
  60




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##### Table of Contents



Costs of Metals Sold 
    Depreciation and amortization
 Exploration 
 Marketing
 61




---



##### Table of Contents



General and administrative
 Other corporate costs 
 Interest income and expense
  Total income tax provision de minimis
 Other comprehensive income (loss), net of tax
 LIQUIDITY AND CAPITAL RESOURCES
     62




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##### Table of Contents



Convertible Debentures
  63




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##### Table of Contents



CONTRACTUAL OBLIGATIONS
  (in thousands)
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Thereafter
    
    
    TotalConvertible debentures
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    166,500
    
    
    $
    
    
    
    $
    
    
    
    $
    166,500Exempt Facility Revenue Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,000
    
    
    
    30,000Operating leases
    
    
    303
    
    
    
    303
    
    
    
    297
    
    
    
    264
    
    
    
    233
    
    
    
    
    
    
    
    1,400Asset retirement obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    144,271
    
    
    
    144,271Payments of interest(1)
    
    
    5,522
    
    
    
    5,522
    
    
    
    5,522
    
    
    
    3,961
    
    
    
    2,400
    
    
    
    13,200
    
    
    
    36,127Other noncurrent liabilities
    
    
    
    
    
    
    8,592
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,592Total
    
    $
    5,825
    
    
    $
    14,417
    
    
    $
    5,819
    
    
    $
    170,725
    
    
    $
    2,633
    
    
    $
    187,471
    
    
    $
    386,890
 
 (1)
    
    Interest payments on the convertible debentures noted in the above table are calculated
up to March 15, 2013, the date the holders of the debentures can exercise their put
option.  FACTORS THAT MAY AFFECT FUTURE RESULTS AND FINANCIAL CONDITION
 Business, Risk Factors
and Properties  Risk Factors
  64




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##### Table of Contents



CRITICAL ACCOUNTING POLICIES
 Mine Development Expenditures  Capitalization and Amortization
       
    
    Unamortized costs of the shaft at the Stillwater Mine and the initial development at the
East Boulder Mine are treated as life-of-mine infrastructure costs, amortized over total
proven and probable reserves at each location, and
    
    All ongoing development costs of footwall laterals, ramps and associated facilities are
amortized over the ore reserves in the immediate and geologically relevant vicinity of the
development.
  65




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##### Table of Contents



Asset Impairment
  Income Taxes
   Post-closure Reclamation Costs
   Asset
Retirement Obligation
 Derivative Instruments
  66




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##### Table of Contents



Derivative Instruments
 
 ITEM 7A
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
  COMMODITY PRICE RISK
  Business, Risk Factors and Properties 
Current Operations  PGM Sales and Hedging Derivative Instruments
    67




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Derivative Instruments
 INTEREST RATE RISK
    68




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##### Table of Contents



ITEM 8
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 Report of Independent Registered Public Accounting Firm
 
    Internal Control  Integrated Framework
  
 69




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
 Internal Control  Integrated Framework
    Internal
Control  Integrated Framework
   
 70




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##### Table of Contents



STILLWATER MINING COMPANY
 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
 (in thousands, except per share data)
 Year ended December 31,
    
    2009
    
    
    2008
    
    
    2007REVENUESMine production
    
    $
    306,892
    
    
    $
    360,364
    
    
    $
    331,277PGM recycling
    
    
    81,788
    
    
    
    475,388
    
    
    
    326,394Other
    
    
    5,752
    
    
    
    19,980
    
    
    
    15,365Total revenues
    
    
    394,432
    
    
    
    855,732
    
    
    
    673,036COSTS AND EXPENSESCosts of metals sold:Mine production
    
    
    209,140
    
    
    
    283,793
    
    
    
    256,942PGM recycling
    
    
    76,483
    
    
    
    449,497
    
    
    
    306,757Other
    
    
    5,741
    
    
    
    19,892
    
    
    
    14,289Total costs of metals sold
    
    
    291,364
    
    
    
    753,182
    
    
    
    577,988Depreciation and amortization:Mine production
    
    
    70,239
    
    
    
    82,792
    
    
    
    82,396PGM recycling
    
    
    178
    
    
    
    192
    
    
    
    142Total depreciation and amortization
    
    
    70,417
    
    
    
    82,984
    
    
    
    82,538Total costs of revenues
    
    
    361,781
    
    
    
    836,166
    
    
    
    660,526Marketing
    
    
    1,987
    
    
    
    5,705
    
    
    
    5,586General and administrative
    
    
    25,080
    
    
    
    26,712
    
    
    
    22,879Restructuring
    
    
    
    
    
    
    5,420
    
    
    
    Impairment of long-term investments
    
    
    119
    
    
    
    3,374
    
    
    
    Loss on trade receivables
    
    
    595
    
    
    
    3,410
    
    
    
    Loss on advances on inventory purchases
    
    
    456
    
    
    
    25,999
    
    
    
    Impairment of property, plant and equipment
    
    
    
    
    
    
    67,254
    
    
    
    (Gain)/loss on disposal of property, plant
and equipment
    
    
    689
    
    
    
    196
    
    
    
    (180
    )Total costs and expenses
    
    
    390,707
    
    
    
    974,236
    
    
    
    688,811OPERATING INCOME (LOSS)
    
    
    3,725
    
    
    
    (118,504
    )
    
    
    (15,775
    )OTHER INCOME (EXPENSE)Other
    
    
    79
    
    
    
    144
    
    
    
    236Interest income
    
    
    1,846
    
    
    
    11,103
    
    
    
    11,705Interest expense
    
    
    (6,801
    )
    
    
    (9,718
    )
    
    
    (11,269
    )Induced conversion loss
    
    
    (8,097
    )
    
    
    
    
    
    
    LOSS BEFORE INCOME TAX BENEFIT (PROVISION)
    
    
    (9,248
    )
    
    
    (116,975
    )
    
    
    (15,103
    )Income tax benefit (provision)
    
    
    30
    
    
    
    32
    
    
    
    NET LOSS
    
    
    (9,218
    )
    
    
    (116,943
    )
    
    
    (15,103
    )Other comprehensive income, net of tax
    
    
    70
    
    
    
    5,865
    
    
    
    9,578COMPREHENSIVE LOSS
    
    $
    (9,148
    )
    
    $
    (111,078
    )
    
    $
    (5,525
    )
  71




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STILLWATER MINING COMPANY
 
 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
 (in thousands, except per share data)
 (Continued)
 Year ended December 31,
    
    2009
    
    
    2008
    
    
    2007BASIC AND DILUTED LOSS PER
SHARENet loss
    
    $
    (9,218
    )
    
    $
    (116,943
    )
    
    $
    (15,103
    )Weighted average common
shares outstandingBasic
    
    
    94,852
    
    
    
    93,025
    
    
    
    92,016Diluted
    
    
    94,852
    
    
    
    93,025
    
    
    
    92,016Basic loss per shareNet loss
    
    $
    (0.10
    )
    
    $
    (1.26
    )
    
    $
    (0.16
    )Diluted loss per shareNet loss
    
    $
    (0.10
    )
    
    $
    (1.26
    )
    
    $
    (0.16
    )
  72




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STILLWATER MINING COMPANY
 
 BALANCE SHEETS
 (in thousands, except share and per share amounts)
 December 31,
    
    2009
    
    
    2008ASSETSCurrent assetsCash and cash equivalents
    
    $
    166,656
    
    
    $
    161,795Investments, at fair market value
    
    
    34,515
    
    
    
    18,994Inventories
    
    
    88,544
    
    
    
    72,178Trade receivables
    
    
    2,073
    
    
    
    2,369Deferred income taxes
    
    
    18,130
    
    
    
    17,443Other current assets
    
    
    8,680
    
    
    
    9,756Total current assets
    
    
    318,598
    
    
    
    282,535Property, plant and equipment, net
    
    
    358,866
    
    
    
    393,412Restricted cash
    
    
    38,045
    
    
    
    35,595Other noncurrent assets
    
    
    9,263
    
    
    
    11,487Total assets
    
    $
    724,772
    
    
    $
    723,029LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilitiesAccounts payable
    
    $
    8,901
    
    
    $
    14,662Accrued payroll and benefits
    
    
    26,481
    
    
    
    24,111Property, production and franchise taxes payable
    
    
    10,405
    
    
    
    10,749Current portion of long-term debt
    
    
    
    
    
    
    97Other current liabilities
    
    
    3,689
    
    
    
    5,489Total current liabilities
    
    
    49,476
    
    
    
    55,108Long-term debt
    
    
    195,977
    
    
    
    210,947Deferred income taxes
    
    
    18,130
    
    
    
    17,443Accrued workers compensation
    
    
    4,737
    
    
    
    6,761Asset retirement obligation
    
    
    6,209
    
    
    
    7,028Other noncurrent liabilities
    
    
    3,855
    
    
    
    4,448Total liabilities
    
    $
    278,384
    
    
    $
    301,735Stockholders equityPreferred stock, $0.01 par value, 1,000,000 shares authorized, none issued
    
    
    
    
    
    
    Common stock, $0.01 par value, 200,000,000 shares authorized, 96,732,185 and
93,665,855 shares issued and outstanding
    
    
    967
    
    
    
    937Paid-in capital
    
    
    674,869
    
    
    
    640,657Accumulated deficit
    
    
    (229,358
    )
    
    
    (220,140
    )Accumulated other comprehensive loss
    
    
    (90
    )
    
    
    (160
    )Total stockholders equity
    
    
    446,388
    
    
    
    421,294Total liabilities and stockholders equity
    
    $
    724,772
    
    
    $
    723,029
  73




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##### Table of Contents



STILLWATER MINING COMPANY
 
 STATEMENTS OF CASH FLOWS
 (in thousands)
 Year ended December 31,
    
    2009
    
    
    2008
    
    
    2007CASH FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (9,218
    )
    
    $
    (116,943
    )
    
    $
    (15,103
    )Adjustments to reconcile net loss to net cash provided
by operating activities:Depreciation and amortization
    
    
    70,417
    
    
    
    82,984
    
    
    
    82,538Lower of cost or market inventory adjustments
    
    
    10,892
    
    
    
    16,623
    
    
    
    6,013Induced conversion loss
    
    
    8,097
    
    
    
    
    
    
    
    Restructuring costs
    
    
    
    
    
    
    5,420
    
    
    
    Impairment of long-term investments
    
    
    119
    
    
    
    3,374
    
    
    
    Impairment of property, plant, and equipment
    
    
    
    
    
    
    67,254
    
    
    
    Loss on trade receivables
    
    
    595
    
    
    
    3,410
    
    
    
    Loss on advances on inventory purchases
    
    
    456
    
    
    
    25,999
    
    
    
    (Gain)/loss on disposal of property, plant and equipment
    
    
    689
    
    
    
    196
    
    
    
    (180
    )Accretion of asset retirement obligation
    
    
    606
    
    
    
    885
    
    
    
    734Stock issued under employee benefit plans
    
    
    4,767
    
    
    
    5,992
    
    
    
    5,470Amortization of debt issuance costs
    
    
    1,036
    
    
    
    3,214
    
    
    
    500Share based compensation
    
    
    6,674
    
    
    
    5,063
    
    
    
    3,805Changes in operating assets and liabilities:Inventories
    
    
    (26,496
    )
    
    
    29,323
    
    
    
    (15,672
    )Advances on inventory purchases
    
    
    (262
    )
    
    
    (901
    )
    
    
    (4,205
    )Trade receivables
    
    
    296
    
    
    
    6,365
    
    
    
    3,864Employee compensation and benefits
    
    
    2,379
    
    
    
    (1,968
    )
    
    
    596Accounts payable
    
    
    (5,761
    )
    
    
    (3,560
    )
    
    
    (6,896
    )Property, production and franchise taxes payable
    
    
    (937
    )
    
    
    566
    
    
    
    (780
    )Workers compensation
    
    
    (2,024
    )
    
    
    (3,221
    )
    
    
    (272
    )Restricted cash
    
    
    (2,450
    )
    
    
    (9,540
    )
    
    
    (2,100
    )Forward hedges
    
    
    
    
    
    
    (2,812
    )
    
    
    747Other
    
    
    (203
    )
    
    
    (3,480
    )
    
    
    (2,637
    )NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    59,672
    
    
    
    114,243
    
    
    
    56,422CASH FLOWS FROM INVESTING ACTIVITIESCapital expenditures
    
    
    (39,534
    )
    
    
    (82,277
    )
    
    
    (87,876
    )Purchases of long-term investments
    
    
    
    
    
    
    (948
    )
    
    
    (1,687
    )Proceeds from disposal of property, plant and equipment
    
    
    603
    
    
    
    329
    
    
    
    396Purchases of investments
    
    
    (47,551
    )
    
    
    (41,095
    )
    
    
    (64,925
    )Proceeds from maturities of investments
    
    
    31,759
    
    
    
    49,424
    
    
    
    73,125NET CASH USED IN INVESTING ACTIVITIES
    
    
    (54,723
    )
    
    
    (74,567
    )
    
    
    (80,967
    )CASH FLOWS FROM FINANCING ACTIVITIESPayments on long-term debt and capital lease obligations
    
    
    (97
    )
    
    
    (98,539
    )
    
    
    (2,631
    )Payments for debt issuance costs
    
    
    
    
    
    
    (5,098
    )
    
    
    Proceeds from issuance of convertible debentures
    
    
    
    
    
    
    181,500
    
    
    
    Issuance of common stock
    
    
    9
    
    
    
    2,990
    
    
    
    252Restricted cash
    
    
    
    
    
    
    (20,170
    )
    
    
    NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
    
    
    (88
    )
    
    
    60,683
    
    
    
    (2,379
    )CASH AND CASH EQUIVALENTSNet increase (decrease)
    
    
    4,861
    
    
    
    100,359
    
    
    
    (26,924
    )Balance at beginning of year
    
    
    161,795
    
    
    
    61,436
    
    
    
    88,360BALANCE AT END OF YEAR
    
    $
    166,656
    
    
    $
    161,795
    
    
    $
    61,436
  74




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##### Table of Contents



STILLWATER MINING COMPANY
 
 STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
 (in thousands)
 Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accumulated Other
    
    
    Total StockholdersOutstanding
    
    
    Common Stock
    
    
    Paid-in Capital
    
    
    Accumulated Deficit
    
    
    Comprehensive Loss
    
    
    EquityBALANCE AT DECEMBER 31, 2006
    
    
    91,515
    
    
    $
    915
    
    
    $
    617,107
    
    
    $
    (88,094
    )
    
    $
    (15,603
    )
    
    $
    514,325Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,103
    )
    
    
    
    
    
    
    (15,103
    )Change in net unrealized gains on derivativefinancial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,247
    
    
    
    9,247Change in fair market value of securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    331
    
    
    
    331Common stock issued under employee benefit
plans
    
    
    488
    
    
    
    5
    
    
    
    5,465
    
    
    
    
    
    
    
    
    
    
    
    5,470Stock option expense
    
    
    
    
    
    
    
    
    
    
    392
    
    
    
    
    
    
    
    
    
    
    
    392Common stock issued under stock plans
    
    
    29
    
    
    
    
    
    
    
    252
    
    
    
    
    
    
    
    
    
    
    
    252Common stock issued under Directors
deferral plan
    
    
    5
    
    
    
    4
    
    
    
    74
    
    
    
    
    
    
    
    
    
    
    
    78Nonvested shares of common stock granted to
officers and employees
    
    
    368
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of unearned nonvested stock
    
    
    
    
    
    
    
    
    
    
    4,374
    
    
    
    
    
    
    
    
    
    
    
    4,374Forfeiture of nonvested stock
    
    
    
    
    
    
    
    
    
    
    (1,039
    )
    
    
    
    
    
    
    
    
    
    
    (1,039
    )BALANCE AT DECEMBER 31, 2007
    
    
    92,405
    
    
    $
    924
    
    
    $
    626,625
    
    
    $
    (103,197
    )
    
    $
    (6,025
    )
    
    $
    518,327Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (116,943
    )
    
    
    
    
    
    
    (116,943
    )Change in net unrealized gains on derivativefinancial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,533
    
    
    
    6,533Change in fair market value of securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (668
    )
    
    
    (668
    )Common stock issued under employee benefit
plans
    
    
    815
    
    
    
    8
    
    
    
    5,984
    
    
    
    
    
    
    
    
    
    
    
    5,992Stock option expense
    
    
    
    
    
    
    
    
    
    
    380
    
    
    
    
    
    
    
    
    
    
    
    380Common stock issued under stock plans
    
    
    237
    
    
    
    3
    
    
    
    2,987
    
    
    
    
    
    
    
    
    
    
    
    2,990Common stock issued under Directors
deferral plan
    
    
    8
    
    
    
    2
    
    
    
    59
    
    
    
    
    
    
    
    
    
    
    
    61Nonvested shares of common stock granted to
officers and employees
    
    
    201
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of unearned nonvested stock
    
    
    
    
    
    
    
    
    
    
    4,654
    
    
    
    
    
    
    
    
    
    
    
    4,654Forfeiture of nonvested stock
    
    
    
    
    
    
    
    
    
    
    (32
    )
    
    
    
    
    
    
    
    
    
    
    (32
    )BALANCE AT DECEMBER 31, 2008
    
    
    93,666
    
    
    $
    937
    
    
    $
    640,657
    
    
    $
    (220,140
    )
    
    $
    (160
    )
    
    $
    421,294Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,218
    )
    
    
    
    
    
    
    (9,218
    )Change in fair market value of securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    70
    
    
    
    70Common stock issued under employee benefit
plans
    
    
    887
    
    
    
    9
    
    
    
    4,758
    
    
    
    
    
    
    
    
    
    
    
    4,767Stock option expense
    
    
    
    
    
    
    
    
    
    
    238
    
    
    
    
    
    
    
    
    
    
    
    238Common stock issued under stock plans
    
    
    2
    
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    9Common stock issued under Directors
deferral plan
    
    
    7
    
    
    
    
    
    
    
    32
    
    
    
    
    
    
    
    
    
    
    
    32Nonvested shares of common stock granted to
officers and employees
    
    
    327
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3Common stock issued for conversion of
long-term
debt
    
    
    1,843
    
    
    
    18
    
    
    
    22,774
    
    
    
    
    
    
    
    
    
    
    
    22,792Amortization of unearned nonvested stock
    
    
    
    
    
    
    
    
    
    
    6,463
    
    
    
    
    
    
    
    
    
    
    
    6,463Forfeiture of nonvested stock
    
    
    
    
    
    
    
    
    
    
    (62
    )
    
    
    
    
    
    
    
    
    
    
    (62
    )BALANCE AT DECEMBER 31, 2009
    
    
    96,732
    
    
    $
    967
    
    
    $
    674,869
    
    
    $
    (229,358
    )
    
    $
    (90
    )
    
    $
    446,388
  75




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##### Table of Contents



STILLWATER MINING COMPANY
 
 NOTES TO THE FINANCIAL STATEMENTS
 NOTE 1
NATURE OF OPERATIONS
      NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 CASH AND CASH EQUIVALENTS
  RESTRICTED CASH
  INVESTMENTS
   76




---



##### Table of Contents



INVENTORIES
  RECEIVABLES
  PROPERTY, PLANT AND EQUIPMENT
      77




---



##### Table of Contents



LEASES
  ASSET IMPAIRMENT
   FAIR VALUE OF FINANCIAL INSTRUMENTS
   REVENUE RECOGNITION
   78




---



##### Table of Contents



HEDGING PROGRAM
   RECLAMATION AND ENVIRONMENTAL COSTS
   INCOME TAXES
   79




---



##### Table of Contents



STOCK-BASED COMPENSATION
  EARNINGS (LOSS) PER COMMON SHARE
  COMPREHENSIVE INCOME (LOSS)
  DEBT ISSUANCE COSTS
  USE OF ESTIMATES
  RECLASSIFICATION
  NOTE 3
CORRECTION OF IMMATERIAL ERROR
   80




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##### Table of Contents



For the Quarter Ended
    
    
    For the Quarter Ended
    
    
    For the Quarter EndedSeptember 30, 2009
    
    
    June 30, 2009
    
    
    March 31, 2009As
    
    
    As
    
    
    As
    
    
    As
    
    
    As
    
    
    As(in thousands)
    
    Reported
    
    
    Revised
    
    
    Reported
    
    
    Revised
    
    
    Reported
    
    
    RevisedPGM recycling costs of goods sold
    
    $
    24,482
    
    
    $
    24,593
    
    
    $
    10,874
    
    
    $
    10,863
    
    
    $
    20,305
    
    
    $
    20,299Net income (loss)
    
    
    4,430
    
    
    
    4,319
    
    
    
    4,229
    
    
    
    4,240
    
    
    
    (11,616
    )
    
    
    (11,610
    )Comprehensive income (loss)
    
    
    4,522
    
    
    
    4,411
    
    
    
    4,310
    
    
    
    4,321
    
    
    
    (11,650
    )
    
    
    (11,644
    )Inventory
    
    
    76,458
    
    
    
    75,128
    
    
    
    81,011
    
    
    
    79,792
    
    
    
    67,645
    
    
    
    66,416Accumulated deficit
    
    
    (221,862
    )
    
    
    (223,192
    )
    
    
    (226,292
    )
    
    
    (227,511
    )
    
    
    (230,521
    )
    
    
    (231,750
    )Total shareholders equity
    
    
    428,193
    
    
    
    426,863
    
    
    
    420,507
    
    
    
    419,288
    
    
    
    413,586
    
    
    
    412,357
 For the Year Ended
    
    
    For the Year EndedDecember 31, 2008
    
    
    December 31, 2007As
    
    
    As
    
    
    As
    
    
    As(in thousands)
    
    Reported
    
    
    Revised
    
    
    Reported
    
    
    RevisedPGM recycling costs of
goods sold
    
    $
    445,299
    
    
    $
    449,497
    
    
    $
    307,137
    
    
    $
    306,757Operating income (loss)
    
    
    (114,306
    )
    
    
    (118,504
    )
    
    
    (16,155
    )
    
    
    (15,775
    )Net income (loss)
    
    
    (112,745
    )
    
    
    (116,943
    )
    
    
    (15,483
    )
    
    
    (15,103
    )Comprehensive income (loss)
    
    
    (106,880
    )
    
    
    (111,078
    )
    
    
    (5,905
    )
    
    
    (5,525
    )Inventory
    
    
    73,413
    
    
    
    72,178
    
    
    
    116,623
    
    
    
    119,586Accumulated deficit
    
    
    (218,905
    )
    
    
    (220,140
    )
    
    
    (106,160
    )
    
    
    (103,197
    )Total shareholders equity
    
    
    422,529
    
    
    
    421,294
    
    
    
    515,364
    
    
    
    518,327
 NOTE 4
ASSET IMPAIRMENT
   NOTE 5
SALES
 Mine Production
  81




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##### Table of Contents



PGM Recycling
   Other
  NOTE 6
DERIVATIVE INSTRUMENTS
  Commodity Derivatives
  82




---



##### Table of Contents



Mine Production
  PGM Recycling
    PGM Recycling:Fixed ForwardsPlatinum

    
    
    Palladium

    
    
    RhodiumSettlement Period
    
    Ounces
    
    
    Avg. Price
    
    
    Ounces
    
    
    Avg. Price
    
    
    Ounces
    
    
    Avg. PriceFirst Quarter 2010
    
    
    12,962
    
    
    $
    1,371
    
    
    
    15,537
    
    
    $
    351
    
    
    
    2,911
    
    
    $
    1,849Second Quarter 2010
    
    
    1,438
    
    
    $
    1,469
    
    
    
    1,428
    
    
    $
    382
    
    
    
    859
    
    
    $
    2,452
 The Following is the Effect of Derivative Instruments on the Statements of Operations and Comprehensive Income (Loss) for the periods ended December 31,
 Derivatives Designated as Cash Flow Hedges
 Effective Portion
  Location ofGain/(Loss) When
    
    
    Amount of Gain or (Loss) ReclassifiedDesignated Derivative
    
    Amount of Gain or (Loss) Recognized in AOCI



    
    
    Reclassified
    
    

    from AOCI into Income2009
    
    
    2008
    
    
    2007
    
    
    
    
    
    
    2009
    
    
    2008
    
    
    2007Financially settled forward contracts
    
    $
    
    
    
    $
    (6,261
    )
    
    $
    (22,422
    )
    
    Mine production revenue


    
    $
    
    
    
    $
    (12,794
    )
    
    $
    (31,669
    )
  83




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##### Table of Contents



The Following is the Effect of Derivative Instruments on the Statements of Operations and Comprehensive Income (Loss) for the periods ended December 31,
  Location of Gain/(Loss)Derivatives Not Designated as Cash Flow Hedges
    
    Recognized in Income
    
    
    Amount of Gain or (Loss) Recognized in Income2009
    
    
    2008
    
    
    2007Fixed
forward contracts
    
    Other revenue
    
    $
    5
    
    
    $
    
    
    
    $
    Fixed
forward contracts
    
    Other revenue
    
    $
    (2
    )
    
    $
    
    
    
    $
    Financially settled forward contracts
    
    PGM recycling revenue
    
    $
    
    
    
    $
    150
    
    
    $
    (174
    )Fixed forward contracts
    
    PGM recycling revenue
    
    $
    243
    
    
    $
    
    
    
    $
    Fixed forward contracts
    
    PGM recycling revenue
    
    $
    (47
    )
    
    $
    
    
    
    $
    
 Fair Value of Derivative Instruments
   Derivatives
    
    
    
    
    Asset Derivatives

    
    
    
    
    Liability DerivativesDesignated as Cash
    
    Balance Sheet

    
    
    Fair Value

    
    Balance Sheet

    
    
    Fair ValueFlow Hedges
    
    Location

    
    
    2009
    
    
    2008
    
    
    2007
    
    
    Location

    
    
    2009
    
    
    2008
    
    
    2007Financially settled
forward commodity contracts
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    Other current liabilities
    
    $
    
    
    
    $
    
    
    
    $
    6,424
 NOTE 7
SHARE-BASED PAYMENTS
 STOCK PLANS
    84




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##### Table of Contents



Nonvested Shares:
  Nonvested
    
    
    Market
    
    
    
    
    
    CompensationShares
    
    
    Value on
    
    
    
    
    
    ExpenseGrant Date
    
    Vesting Date
    
    Granted
    
    
    Grant Date
    
    
    2009
    
    
    2008
    
    
    2007May 7, 2004
    
    May 7, 2007
    
    
    348,170
    
    
    $
    4,460,058
    
    
    $
    
    
    
    $
    
    
    
    $
    495,562May 3, 2005
    
    May 3, 2008
    
    
    225,346
    
    
    $
    1,654,040
    
    
    
    
    
    
    
    147,446
    
    
    
    260,656
    (1)April 27, 2006
    
    April 27, 2009
    
    
    288,331
    
    
    $
    4,731,512
    
    
    
    421,524
    
    
    
    1,264,571
    
    
    
    1,056,171
    (1)February 22, 2007
    
    February 22, 2010
    
    
    426,514
    
    
    $
    5,433,788
    
    
    
    1,407,082
    (3)
    
    
    1,420,002
    (2)
    
    
    1,242,863
    (1)May 3, 2007
    
    November 3, 2007
    
    
    17,654
    
    
    $
    280,000
    
    
    
    
    
    
    
    
    
    
    
    280,000February 4, 2008
    
    February 4, 2011
    
    
    16,741
    
    
    $
    225,000
    
    
    
    75,313
    
    
    
    68,098
    
    
    
    March 6, 2008
    
    March 6, 2011
    
    
    287,592
    
    
    $
    5,283,065
    
    
    
    1,701,370
    (3)
    
    
    1,435,344
    (2)
    
    
    May 8, 2008
    
    November 8, 2008
    
    
    19,719
    
    
    $
    280,010
    
    
    
    
    
    
    
    280,010
    
    
    
    December 9,2008
    
    June 9, 2009
    
    
    12,987
    
    
    $
    40,000
    
    
    
    33,333
    
    
    
    6,667
    
    
    
    January 26, 2009
    
    July 26, 2009
    
    
    9,852
    
    
    $
    40,000
    
    
    
    40,000
    
    
    
    
    
    
    
    March 14, 2009
    
    March 14, 2012
    
    
    642,000
    
    
    $
    1,964,520
    
    
    
    523,138
    
    
    
    
    
    
    
    April 16, 2009
    
    March 14, 2012
    
    
    328,819
    
    
    $
    1,624,366
    
    
    
    393,973
    (3)
    
    
    
    
    
    
    April 16, 2009
    
    March 14, 2010
    
    
    375,404
    
    
    $
    1,854,496
    
    
    
    1,430,977
    (3)
    
    
    
    
    
    
    May 7, 2009
    
    November 7, 2009
    
    
    55,656
    
    
    $
    320,022
    
    
    
    320,022
    
    
    
    
    
    
    
    August 5, 2009
    
    February 5, 2010
    
    
    5,857
    
    
    $
    40,000
    
    
    
    32,173
    
    
    
    
    
    
    
    September 21, 2009
    
    March 21, 2010
    
    
    5,070
    
    
    $
    40,000
    
    
    
    22,320
    
    
    
    
    
    
    
    Total compensation expense of nonvested shares
    
    
    
    
    
    
    
    
    
    $
    6,401,225
    
    
    $
    4,622,138
    
    
    $
    3,335,252
 
 (1)
    
    78,493, 57,148, and 44,554 nonvested shares granted in 2007, 2006, and 2005, respectively,
were forfeited in 2007 due to the resignation of one member of the Companys senior
management. Compensation expense in 2007 has been reduced to reflect compensation expense of
$255,318,
$494,949, and $281,606 recognized in 2007, 2006, and 2005, respectively, due to this
resignation. Compensation expense in 2007 was also reduced by approximately $7,000 for
forfeiture of approximately 3,200 nonvested shares granted to certain members of management and
other employees who terminated employment in 2007.(2)
    
    Compensation expense in 2008 was reduced by approximately $32,400 for forfeiture of
approximately 7,600 nonvested shares granted in 2008 and 2007 to certain members of management
and other employees who terminated employment in 2008.(3)
    
    Compensation expense in 2009 was reduced by approximately $62,500 for forfeiture of
approximately 14,100 nonvested shares granted in 2009, 2008 and 2007 to certain members of
management and other employees who terminated employment in 2009. Deferral Plans:
   85




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##### Table of Contents



Stock Options:
   Year ended December 31,
    
    2009
    
    2008
    
    2007Weighted average expected lives (years)
    
    
    3.6
    
    
    
    3.8
    
    
    
    3.9Interest rate
    
    
    1.9
    %
    
    
    2.6
    %
    
    
    4.5
    %Volatility
    
    
    67
    %
    
    
    58
    %
    
    
    56
    %Dividend yield
    
    
    0
    
    
    
    0
    
    
    
    0
  Weighted-AverageWeighted Average
    
    
    Grant-Date FairShares
    
    
    Exercise Price
    
    
    ValueOptions outstanding at December 31, 2006
    
    
    1,350,911
    
    
    $
    20.02Options exercisable at December 31, 2006
    
    
    1,209,6442007 ActivityOptions granted
    
    
    73,450
    
    
    
    11.59
    
    
    $
    5.44Options exercised
    
    
    (29,375
    )
    
    
    9.14Options canceled/forfeited
    
    
    (118,961
    )
    
    
    16.01Options outstanding at December 31, 2007
    
    
    1,276,025
    
    
    $
    20.16Options exercisable at December 31, 2007
    
    
    1,149,830
    
    
    
    21.112008 ActivityOptions granted
    
    
    87,100
    
    
    
    11.72
    
    
    $
    5.35Options exercised
    
    
    (236,690
    )
    
    
    12.75Options canceled/forfeited
    
    
    (96,775
    )
    
    
    16.22Options outstanding at December 31, 2008
    
    
    1,029,660
    
    
    $
    21.52Options exercisable at December 31, 2008
    
    
    905,266
    
    
    
    22.902009 ActivityOptions granted
    
    
    6,984
    
    
    
    7.26
    
    
    $
    3.58Options exercised
    
    
    (1,699
    )
    
    
    5.41Options canceled/forfeited
    
    
    (241,887
    )
    
    
    23.36Options outstanding at December 31, 2009
    
    
    793,058
    
    
    $
    20.87Options exercisable at December 31, 2009
    
    
    742,123
    
    
    
    21.56
  86




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##### Table of Contents



Options Outstanding
    
    
    Options ExercisableAverage
    
    
    Weighted
    
    
    
    
    
    
    WeightedRange of
    
    Number
    
    
    Remaining
    
    
    Average
    
    
    Number
    
    
    AverageExercise Price
    
    Outstanding
    
    
    Contract Life
    
    
    Exercise Price
    
    
    Exercisable
    
    
    Exercise Price$   2.53    $4.66
    
    
    11,592
    
    
    
    6.7
    
    
    $
    3.72
    
    
    
    6,539
    
    
    $
    3.18$   4.67    $9.33
    
    
    93,056
    
    
    
    4.9
    
    
    $
    7.04
    
    
    
    75,550
    
    
    $
    6.97$   9.34    $13.99
    
    
    89,426
    
    
    
    6.1
    
    
    $
    11.73
    
    
    
    72,828
    
    
    $
    11.74$14.00    $18.65
    
    
    89,350
    
    
    
    4.2
    
    
    $
    15.56
    
    
    
    81,122
    
    
    $
    15.55$18.66    $23.31
    
    
    256,834
    
    
    
    2.1
    
    
    $
    19.34
    
    
    
    253,284
    
    
    $
    19.32$23.32    $27.98
    
    
    17,825
    
    
    
    1.0
    
    
    $
    26.48
    
    
    
    17,825
    
    
    $
    26.48$27.99    $32.64
    
    
    84,275
    
    
    
    0.1
    
    
    $
    30.40
    
    
    
    84,275
    
    
    $
    30.40$32.65    $37.30
    
    
    101,200
    
    
    
    1.1
    
    
    $
    34.71
    
    
    
    101,200
    
    
    $
    34.71$37.31    $38.76
    
    
    49,500
    
    
    
    0.9
    
    
    $
    38.34
    
    
    
    49,500
    
    
    $
    38.34793,058
    
    
    
    2.7
    
    
    $
    20.87
    
    
    
    742,123
    
    
    $
    21.56
  Weighted-AverageNonvested Options
    
    Options
    
    
    Grant-Date Fair ValueNonvested options at January 1, 2009
    
    
    124,394
    
    
    $
    5.29Options granted
    
    
    6,984
    
    
    
    3.58Options vested
    
    
    (43,471
    )
    
    
    5.40Options forfeited
    
    
    (36,972
    )
    
    
    5.30Nonvested options at December 31, 2009
    
    
    50,935
    
    
    $
    4.96
  Employee Benefit Plans:
  87




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##### Table of Contents



NOTE 8
INCOME TAXES
  December 31, (in thousands)
    
    2009
    
    
    2008Mine development costs
    
    $
    80,369
    
    
    $
    76,138Inventory
    
    
    16
    
    
    
    1,550Total deferred tax liabilities
    
    
    80,385
    
    
    
    77,688Noncurrent liabilities
    
    
    (9,262
    )
    
    
    (8,829
    )Property and equipment
    
    
    (29,349
    )
    
    
    (27,373
    )Current liabilities
    
    
    (18,145
    )
    
    
    (18,994
    )Long-term investments
    
    
    (1,376
    )
    
    
    (1,329
    )Net operating loss and other carryforwards
    
    
    (135,271
    )
    
    
    (136,112
    )Total deferred tax assets
    
    
    (193,403
    )
    
    
    (192,637
    )Valuation allowance
    
    
    113,018
    
    
    
    114,949Net deferred tax assets
    
    
    (80,385
    )
    
    
    (77,688
    )Net deferred tax liabilities
    
    $
    
    
    
    $
    
   Year ended December 31, (in thousands)
    
    2009
    
    
    2008
    
    
    2007Income (loss) before income taxes
    
    $
    (9,248
    )
    
    $
    (116,975
    )
    
    $
    (15,103
    )Income tax (benefit) or expense at statutory rate of 35%
    
    $
    (3,237
    )
    
    $
    (40,941
    )
    
    $
    (5,286
    )State income tax benefit, net of federal benefit
    
    
    (406
    )
    
    
    (5,132
    )
    
    
    (663
    )Change in valuation allowance
    
    
    (1,931
    )
    
    
    46,347
    
    
    
    5,959Other
    
    
    5,544
    
    
    
    (306
    )
    
    
    (10
    )Net income tax benefit
    
    $
    (30
    )
    
    $
    (32
    )
    
    $
    
    88




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##### Table of Contents



NOTE 9
COMPREHENSIVE INCOME (LOSS)
   AccumulatedAvailable for
    
    
    
    
    
    
    OtherSale
    
    
    Commodity
    
    
    Comprehensive(in thousands)
    
    Securities
    
    
    Instruments
    
    
    LossBalance at December 31, 2006
    
    $
    177
    
    
    $
    (15,780
    )
    
    $
    (15,603
    )Reclassification to earnings
    
    
    
    
    
    
    31,669
    
    
    
    31,669Change in value
    
    
    331
    
    
    
    (22,422
    )
    
    
    (22,091
    )Comprehensive income
    
    $
    331
    
    
    $
    9,247
    
    
    $
    9,578Balance at December 31, 2007
    
    $
    508
    
    
    $
    (6,533
    )
    
    $
    (6,025
    )Reclassification to earnings
    
    
    6
    
    
    
    12,794
    
    
    
    12,800Change in value
    
    
    (674
    )
    
    
    (6,261
    )
    
    
    (6,935
    )Comprehensive income (loss)
    
    $
    (668
    )
    
    $
    6,533
    
    
    $
    5,865Balance at December 31, 2008
    
    $
    (160
    )
    
    $
    
    
    
    $
    (160
    )Reclassification to earnings
    
    
    
    
    
    
    
    
    
    
    Change in value
    
    
    70
    
    
    
    
    
    
    
    70Comprehensive income (loss)
    
    $
    70
    
    
    $
    
    
    
    $
    70Balance at December 31, 2009
    
    $
    (90
    )
    
    $
    
    
    
    $
    (90
    )
 NOTE 10
SEGMENT INFORMATION
     89




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##### Table of Contents



(in thousands)
    
    Mine
    
    
    PGM
    
    
    AllYear ended December 31, 2009
    
    Production
    
    
    Recycling
    
    
    Other
    
    
    TotalRevenues
    
    $
    306,892
    
    
    $
    81,788
    
    
    $
    5,752
    
    
    $
    394,432Depreciation and amortization
    
    $
    70,239
    
    
    $
    178
    
    
    $
    
    
    
    $
    70,417Interest income
    
    $
    
    
    
    $
    786
    
    
    $
    1,060
    
    
    $
    1,846Interest expense
    
    $
    
    
    
    $
    
    
    
    $
    6,801
    
    
    $
    6,801Income (loss) before induced conversion loss
    
    $
    26,873
    
    
    $
    5,910
    
    
    $
    (33,934
    )
    
    $
    (1,151
    )Induced conversion loss
    
    $
    
    
    
    $
    
    
    
    $
    8,097
    
    
    $
    8,097Income (loss) before income tax benefit (provision)
    
    $
    26,873
    
    
    $
    5,910
    
    
    $
    (42,031
    )
    
    $
    (9,248
    )Capital expenditures
    
    $
    38,520
    
    
    $
    911
    
    
    $
    103
    
    
    $
    39,534Total assets
    
    $
    408,146
    
    
    $
    30,860
    
    
    $
    285,766
    
    
    $
    724,772
 (in thousands)
    
    Mine
    
    
    PGM
    
    
    AllYear ended December 31, 2008
    
    Production
    
    
    Recycling
    
    
    Other
    
    
    TotalRevenues
    
    $
    360,364
    
    
    $
    475,388
    
    
    $
    19,980
    
    
    $
    855,732Depreciation and amortization
    
    $
    82,792
    
    
    $
    192
    
    
    $
    
    
    
    $
    82,984Interest income
    
    $
    
    
    
    $
    6,979
    
    
    $
    4,124
    
    
    $
    11,103Interest expense
    
    $
    
    
    
    $
    1
    
    
    $
    9,717
    
    
    $
    9,718Income (loss) before impairment charge
    
    $
    (6,413
    )
    
    $
    32,671
    
    
    $
    (43,196
    )
    
    $
    (16,938
    )Impairment charge
    
    $
    67,254
    
    
    $
    25,999
    
    
    $
    6,784
    
    
    $
    100,037Income (loss) before income tax benefit (provision)
    
    $
    (73,667
    )
    
    $
    6,672
    
    
    $
    (49,980
    )
    
    $
    (116,975
    )Capital expenditures
    
    $
    81,657
    
    
    $
    306
    
    
    $
    314
    
    
    $
    82,277Total assets
    
    $
    448,312
    
    
    $
    23,324
    
    
    $
    251,393
    
    
    $
    723,029
 (in thousands)
    
    Mine
    
    
    PGM
    
    
    AllYear ended December 31, 2007
    
    Production
    
    
    Recycling
    
    
    Other
    
    
    TotalRevenues
    
    $
    331,277
    
    
    $
    326,394
    
    
    $
    15,365
    
    
    $
    673,036Depreciation and amortization
    
    $
    82,396
    
    
    $
    142
    
    
    $
    
    
    
    $
    82,538Interest income
    
    $
    
    
    
    $
    6,684
    
    
    $
    5,021
    
    
    $
    11,705Interest expense
    
    $
    
    
    
    $
    
    
    
    $
    11,269
    
    
    $
    11,269Income (loss) before income tax benefit (provision)
    
    $
    (7,843
    )
    
    $
    26,179
    
    
    $
    (33,439
    )
    
    $
    (15,103
    )Capital expenditures
    
    $
    87,257
    
    
    $
    382
    
    
    $
    237
    
    
    $
    87,876Total assets
    
    $
    516,308
    
    
    $
    89,511
    
    
    $
    137,511
    
    
    $
    743,330
 90




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##### Table of Contents



NOTE 11
 INVESTMENTS
  Gross
    
    
    Grossunrealized
    
    
    unrealized
    
    
    Fair(in thousands)
    
    Cost
    
    
    gains
    
    
    losses
    
    
    market value2009Federal agency notes
    
    $
    28,102
    
    
    $
    
    
    
    $
    (54
    )
    
    $
    28,048Commercial paper
    
    
    6,500
    
    
    
    
    
    
    
    (33
    )
    
    
    6,467Mutual funds
    
    
    752
    
    
    
    
    
    
    
    (3
    )
    
    
    749Total
    
    $
    35,354
    
    
    $
    
    
    
    $
    (90
    )
    
    $
    35,2642008Federal agency notes
    
    $
    17,926
    
    
    $
    69
    
    
    $
    
    
    
    $
    17,995Commercial paper
    
    
    998
    
    
    
    1
    
    
    
    
    
    
    
    999Mutual funds
    
    
    579
    
    
    
    
    
    
    
    (230
    )
    
    
    349Total
    
    $
    19,503
    
    
    $
    70
    
    
    $
    (230
    )
    
    $
    19,343
  NOTE 12
INVENTORIES
    (in thousands)
    
    2009
    
    
    2008Metals inventoryRaw ore
    
    $
    1,163
    
    
    $
    1,050Concentrate and in-process
    
    
    23,985
    
    
    
    14,892Finished goods
    
    
    45,114
    
    
    
    35,25170,262
    
    
    
    51,193Materials and supplies
    
    
    18,282
    
    
    
    20,985Total inventory
    
    $
    88,544
    
    
    $
    72,178
  91




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##### Table of Contents



NOTE 13
EARNINGS (LOSS) PER COMMON SHARE
     NOTE 14
DEBT OBLIGATIONS
 Convertible Debentures
    EXEMPT FACILITY REVENUE BONDS
  92




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##### Table of Contents



CASH PAID FOR INTEREST
  NOTE 15
PROPERTY, PLANT AND EQUIPMENT
  (in thousands)
    
    2009
    
    
    2008Machinery and equipment
    
    $
    52,724
    
    
    $
    52,503Buildings and structural components
    
    
    132,007
    
    
    
    113,990Mine development
    
    
    429,416
    
    
    
    387,206Land
    
    
    7,069
    
    
    
    6,403Construction-in-progress:Stillwater Mine
    
    
    40,332
    
    
    
    47,516East Boulder Mine
    
    
    6,776
    
    
    
    14,085Other
    
    
    1,991
    
    
    
    16,765670,315
    
    
    
    638,468Less accumulated depreciation and amortization
    
    
    (311,449
    )
    
    
    (245,056
    )Total property, plant, and equipment
    
    $
    358,866
    
    
    $
    393,412
  (in thousands)
    
    2009
    
    
    2008
    
    
    2007Stillwater Mine
    
    $
    26,682
    
    
    $
    46,513
    
    
    $
    47,864East Boulder Mine
    
    
    4,447
    
    
    
    19,097
    
    
    
    33,991Other
    
    
    8,405
    
    
    
    16,667
    
    
    
    6,021Total capital expenditures
    
    $
    39,534
    
    
    $
    82,277
    
    
    $
    87,876
 93




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NOTE 16
ASSET RETIREMENT OBLIGATION
  Stillwater
    
    
    East Boulder(in thousands)
    
    Mine
    
    
    Mine
    
    
    TotalBalance at December 31,
2006
    
    $
    5,816
    
    
    $
    2,734
    
    
    $
    8,550Liabilities incurred
    
    
    1,222
    
    
    
    
    
    
    
    1,222Accretion expense
    
    
    512
    
    
    
    222
    
    
    
    734Revision of estimated cash flows
    
    
    
    
    
    
    
    
    
    
    Balance at December 31, 2007
    
    $
    7,550
    
    
    $
    2,956
    
    
    $
    10,506Liabilities incurred
    
    
    
    
    
    
    
    
    
    
    Accretion expense
    
    
    644
    
    
    
    241
    
    
    
    885Revision of estimated cash flows
    
    
    (2,301
    )
    
    
    (2,062
    )
    
    
    (4,363
    )Balance at December 31, 2008
    
    $
    5,893
    
    
    $
    1,135
    
    
    $
    7,028Liabilities incurred
    
    
    
    
    
    
    
    
    
    
    Accretion expense
    
    
    507
    
    
    
    99
    
    
    
    606Revision of estimated cash flows
    
    
    (645
    )
    
    
    (780
    )
    
    
    (1,425
    )Balance at December 31, 2009
    
    $
    5,755
    
    
    $
    454
    
    
    $
    6,209
  $
 NOTE 17
FAIR VALUE MEASUREMENTS
  (in thousands)
    
    Fair Value MeasurementsTotal
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Mutual funds
    
    $
    749
    
    
    $
    749
    
    
    $
    
    
    
    $
    Investments
    
    $
    34,515
    
    
    $
    34,515
    
    
    $
    
    
    
    $
    
  94




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NOTE 18
RELATED PARTIES
   NOTE 19
COMMITMENTS AND CONTINGENCIES
  REFINING AGREEMENTS
  OPERATING LEASES
  95




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Year ended (in thousands)
    
    Minimum Lease Payment2010
    
    $
    3032011
    
    
    3032012
    
    
    2972013
    
    
    2642014
    
    
    233Total
    
    $
    1,400
 SIGNIFICANT CUSTOMERS
  2009
    
    
    2008
    
    
    2007Customer A
    
    
    53
    %
    
    
    30
    %
    
    
    33
    %Customer B
    
    
    21
    %
    
    
    25
    %
    
    
    27
    %Customer C
    
    
    *
    
    
    
    13
    %
    
    
    *Customer D
    
    
    *
    
    
    
    11
    %
    
    
    *74
    %
    
    
    79
    %
    
    
    60
    %
 
 *
    
    Represents less than 10% of total revenues LABOR UNION CONTRACTS
  LEGAL PROCEEDINGS
  REGULATIONS AND COMPLIANCE
   96




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##### Table of Contents



NOTE 20
QUARTERLY DATA (UNAUDITED)
  (in thousands, except per share data)
    
    2009 Quarter EndedMarch 31
    
    
    June 30
    
    
    September 30
    
    
    December 31Revenue
    
    $
    85,818
    
    
    $
    94,787
    
    
    $
    112,004
    
    
    $
    101,823Depreciation and amortization
    
    $
    17,165
    
    
    $
    17,087
    
    
    $
    18,549
    
    
    $
    17,616Operating income (loss)
    
    $
    (10,539
    )
    
    $
    5,493
    
    
    $
    5,630
    
    
    $
    3,141Net income (loss)
    
    $
    (11,610
    )
    
    $
    4,240
    
    
    $
    4,319
    
    
    $
    (6,167
    )Comprehensive income (loss)
    
    $
    (11,644
    )
    
    $
    4,321
    
    
    $
    4,411
    
    
    $
    (6,236
    )Basic earnings (loss) per share
    
    $
    (0.12
    )
    
    $
    0.04
    
    
    $
    0.05
    
    
    $
    (0.07
    )Diluted earnings (loss) per share
    
    $
    (0.12
    )
    
    $
    0.04
    
    
    $
    0.05
    
    
    $
    (0.07
    )
 2008 Quarter EndedMarch 31
    
    
    June 30
    
    
    September 30
    
    
    December 31Revenue
    
    $
    186,364
    
    
    $
    233,150
    
    
    $
    254,182
    
    
    $
    182,036Depreciation and amortization
    
    $
    20,695
    
    
    $
    21,795
    
    
    $
    19,000
    
    
    $
    21,494Operating income (loss)
    
    $
    4,580
    
    
    $
    16,141
    
    
    $
    (4,916
    )
    
    $
    (134,309
    )Net income (loss)
    
    $
    3,137
    
    
    $
    17,107
    
    
    $
    (3,382
    )
    
    $
    (133,805
    )Comprehensive income (loss)
    
    $
    3,225
    
    
    $
    23,011
    
    
    $
    (3,454
    )
    
    $
    (133,860
    )Basic earnings (loss) per share
    
    $
    0.03
    
    
    $
    0.18
    
    
    $
    (0.04
    )
    
    $
    (1.43
    )Diluted earnings (loss) per share
    
    $
    0.03
    
    
    $
    0.18
    
    
    $
    (0.04
    )
    
    $
    (1.43
    )
 
 ITEM 9
CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
 Not Applicable
 
 ITEM 9A
CONTROLS AND PROCEDURES
 (a)
    
    Disclosure Controls and Procedures.The Companys management, with the participation of the Companys Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness of the Companys disclosure
controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended (the Exchange Act)), as of the end of the period
covered by this report. Based on such evaluation, the Companys Chief Executive Officer and
Chief Financial Officer have concluded that, as of the end of such period, the Companys
disclosure controls and procedures are effective in recording, processing, summarizing and
reporting, on a timely basis, information required to be disclosed by the Company in the reports
that it files or submits under the Exchange Act.(b)
    
    Changes in Internal Control Over Financial Reporting.In evaluating the registrants internal control over financial reporting, as required by
Rules 13a-15(d) and 15d-15(d) of the Exchange Act, for the quarter ended December 31, 2009,
management determined that during the fourth quarter of 2009 there were no changes to the
registrants internal control over financial reporting (as such term is defined in Rules
13a-15(f) and 15d-15(f) of the Exchange Act) that have materially affected, or are reasonably
likely to materially affect, the registrants internal control over financial reporting.(c)
    
    Internal Control Over Financial Reporting.The Company, under the supervision and with the participation of the Companys Chief
Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness
of its internal control over financial
 97




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##### Table of Contents



reporting as of December 31, 2009, and has concluded
that, as December 31, 2009, the Companys internal control over financial reporting was
effective.
  Managements Report on Internal Control over Financial Reporting.
 Our management is responsible for establishing and maintaining adequate internal control
over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Under the
supervision and with the participation of our management, including our Chief Executive Officer and
Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control
over financial reporting based upon the framework in Internal Control Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that
evaluation, our management concluded that our internal control over financial reporting is
effective, as of December 31, 2009.
 
 ITEM 9B
OTHER INFORMATION
 Not Applicable
 
 PART III
 
 ITEM 10
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
   Name
    
    Age
    
    PositionFrancis R. McAllister
    
    
    67
    
    
    Chairman of the Board and Chief Executive OfficerGreg R. Struble
    
    
    52
    
    
    Executive Vice President and Chief Operating OfficerJohn R. Stark
    
    
    57
    
    
    Vice President, Human Resources, Secretary and Corporate CounselGregory A Wing
    
    
    60
    
    
    Vice President and Chief Financial OfficerTerrell I. Ackerman
    
    
    56
    
    
    Vice President, General Manager East Boulder Operations
  EXECUTIVE OFFICERS
 Francis R. McAllister (age 67)
 Greg R. Struble (age 52)
 98




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##### Table of Contents



John R. Stark (age 57)
 Gregory A. Wing (age 60)
 Terrell I. Ackerman (age 56)
  Audit Committee Financial Expert
  New Directors of the Company
  99




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Code of Ethics
  Corporate Governance
 http://www.stillwatermining.com
 NYSE CEO Certification
  
 ITEM 11
EXECUTIVE COMPENSATION
  
 ITEM 12
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS
  
 ITEM 13
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
  
 ITEM 14
PRINCIPAL ACCOUNTING FEES AND SERVICES
  100




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PART IV
 
 ITEM 15
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
 (a)
    
    Documents filed as part of this Form 10-K
 1.
    
    Financial Statements and Supplementary Data
 PageReport of Independent Registered Public Accounting Firm
    
    
    69Statements of Operations and Comprehensive Loss
    
    
    71Balance Sheets
    
    
    73Statements of Cash Flow
    
    
    74Statements of Changes in Stockholders Equity
    
    
    75Notes to Financial Statements
    
    
    76
 2.
    
    Financial Statement Schedules (not applicable)
 (b)
    
    See Exhibit Index below(c)
    
    Not applicable
 101




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##### Table of Contents



EXHIBITS
 Number
    
    Description2.1
    
    Exchange Agreement for 10,000 shares of common stock, dated October
1, 1993 (incorporated by reference to Exhibit 2.1 to the
Registrants Registration Statement on Form S-1 (File No. 33-85904)
as declared effective by the Commission on December 15, 1994 (the
1994 S-1)).3.1
    
    Restated Certificate of Incorporation of Stillwater Mining Company,
dated October 23, 2003 (incorporated by reference to Exhibit 3.1 to
the Form 10-Q for the quarterly period ended September 30, 2003,
filed on October 27, 2003).3.2
    
    Amended and Restated By-Laws of Stillwater Mining Company,
(incorporated by reference to Exhibit 3.2 to the Form 8-K filed on
December 29, 2004).4.1
    
    Form of Indenture, dated April 29, 1996, between Stillwater Mining Company and Colorado National Bank
with respect to the Companys 7% Convertible Subordinated Notes Due 2003 (incorporated by reference
to Exhibit 4.1 of the Registrants Form 8-K, dated April 29, 1996).4.2
    
    Rights Agreement, dated October 26, 1995 (incorporated by reference to Form 8-A, filed on October 30,
1995).4.3
    
    Amendment No. 1, dated as of November 20, 2002, to the Rights Agreement between Stillwater Mining
Company and Computershare Trust Company, Inc. (incorporated by reference to Exhibit 4.1 of the
Registrants Form 8-K, dated November 21, 2002).10.2
    
    Mining and Processing Agreement, dated March 16, 1984 regarding the Mouat family; and Compromise of
Issues Relating to the Mining and Processing Agreement (incorporated by reference to Exhibit 10.8 to
the 1994 S-1).10.3
    
    Conveyance of Royalty Interest and Agreement between Stillwater Mining Company and Manville Mining
Company, dated October 1, 1993 (incorporated by reference to Exhibit 10.9 to the 1994 S-1).10.4
    
    Palladium Sales Agreement, made as of August 13, 1998, between Stillwater Mining Company and Ford
Motor Company (portions of the agreement have been omitted pursuant to a confidential treatment
request) (incorporated by reference to Exhibit 10.1 to the Registrants Form 8-K, dated July 21,
1998).10.5
    
    Palladium and Platinum Sales Agreement, made as of August 17, 1998, between Stillwater Mining Company
and General Motors Corporation (portions of the agreement have been omitted pursuant to a
confidential treatment request) (incorporated by reference to Exhibit 10.3 to the Registrants Form
8-K, dated July 21, 1998).10.7
    
    Employment Agreement between Francis R. McAllister and Stillwater Mining Company, dated July 23, 2001
(incorporated by reference to Exhibit 10.1 to the Form 10-Q for the quarterly period ended September
30, 2001).10.8
    
    Employment agreement between John R. Stark and Stillwater Mining Company dated July 23, 2001
(incorporated by reference to Exhibit 10.18 to the Form 10-K for the year ended December 31, 2001).10.9
    
    First Amendment Agreement to Palladium Sales Agreement between Stillwater Mining Company and Ford
Motor Company, dated October 27, 2000 (incorporated by reference to Exhibit 10.20 of the Registrants
2000 10-K) (portions of the agreement have been omitted pursuant to a confidential treatment
request).10.10
    
    Second Amendment Agreement to Palladium and Platinum Sales Agreement between Stillwater Mining
Company and Ford Motor Company, dated March 27, 2001 (incorporated by reference to Exhibit 10.1 to
the Form 10-Q for the quarterly period ended March 31, 2001) (portions of the agreement have been
omitted pursuant to a confidential treatment request).10.11
    
    First Amendment Agreement to Palladium and Platinum Sales Agreement between Stillwater Mining Company
and General Motors Corporation, dated November 20, 2000 (incorporated by reference to Exhibit 10.21
of the Registrants 2000 10-K) (portions of the agreement have been omitted pursuant to a
confidential treatment request).10.12
    
    Refining Agreement between Stillwater Mining Company and Catalyst and Chemicals Division of Johnson
Matthey Inc. dated July 27, 2000 (incorporated by reference to Exhibit 10.22 of the Registrants 2000
10-K) (portions of the agreement have been omitted pursuant to a confidential treatment request).10.13
    
    Second Amendment Agreement to Palladium and Platinum Sales Agreement between Stillwater Mining
Company and General Motors Corporation, dated February 14, 2001 (incorporated by reference to Exhibit
10.24 of the Registrants 2001 10-K).
 102




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##### Table of Contents



Number
    
    Description10.14
    
    Employment Agreement between Greg R. Struble and Stillwater Mining Company, dated February 4, 2008
(incorporated by reference to Exhibit 10.1 to the Form 8-K filed February 11, 2008).10.15
    
    2008 Restricted Stock Unit Agreement between Greg R. Struble and Stillwater Mining Company, dated
February 4, 2008 (incorporated by reference to Exhibit 10.2 to the Form 8-K filed February 11, 2008).10.16
    
    Third Amendment to Palladium and Platinum Sales Agreement between Stillwater Mining Company and Ford
Motor Company, dated March 13, 2002 (incorporated by reference to Exhibit 10.33 of the Registrants
2002 10-K) (portions of the agreement have been omitted pursuant to a confidential treatment
request).10.17
    
    Employment Agreement between Terrell I. Ackerman and Stillwater Mining Company dated May 8, 2002
(incorporated by reference to Exhibit 10.34 of the Registrants 2002 10-K).10.18
    
    Amended and Restated General Employee Stock Plan, dated October 23, 2003 (incorporated by reference
to Exhibit 10.1 to the Form 10-Q for the quarterly period ended September 30, 2003).10.19
    
    Employment Agreement between Stephen A. Lang and Stillwater Mining Company dated September 1, 2003
(incorporated by reference to Exhibit 10.2 to the Form 10-Q for the quarterly period ended September
30, 2003).10.20
    
    Stock Purchase Agreement between Stillwater Mining Company and MMC Norilsk Nickel and Norimet Ltd.
dated June 23, 2003 (incorporated by reference to Exhibit 10.1 to the Form 8-K, dated June 23, 2003).10.21
    
    Registration Rights Agreement, Stillwater Mining Company and Norimet Ltd. dated June 23, 2003.
(incorporated by reference to Exhibit 10.2 to the Form 8-K dated June 23, 2003).10.23
    
    Palladium Sales Agreement, made as of March 3, 2004, among Stillwater Mining Company and Engelhard
Corporation (incorporated by reference to Exhibit 10.39 to the Form 10-K filed on March 15,
2004(portions of this agreement have been omitted pursuant to a confidential treatment request).10.24
    
    Employment Agreement between Gregory A. Wing and Stillwater Mining Company dated as of March 22, 2004
(incorporated by reference to Exhibit 10.40 to the Form 10-K filed on March 15, 2004).10.25
    
    Articles of Agreement between Stillwater Mining Company (East Boulder) Paper, Allied Industrial,
Chemical and Energy Workers International Union, ratified July 2002 (incorporated by reference to
Exhibit 10.41 to the Form 10-K filed on March 15, 2004).10.26
    
    Amendment No. 1 to Stockholders Agreement, dated as of March 19, 2004, made by and among Stillwater
Mining Company and MMC Norilsk Nickel (incorporated by reference to Exhibit 2.1 to the Form 10-Q
filed on May 7, 2004).10.28
    
    Articles of Agreement between Stillwater Mining Company (Stillwater Mine & Mill, and the Processing
and Warehouse facilities) Paper, Allied Industrial, Chemical and Energy Workers International Union,
ratified July 19, 2004 (incorporated by reference to Exhibit 10.1 to the Form 10-Q filed on August 5,
2004).10.29
    
    Credit Agreement, dated August 3, 2004, between Stillwater Mining Company and TD Securities (USA),
Ltd. (incorporated by reference to Exhibit 10.2 to the Form 10-Q filed on August 5, 2004).10.30
    
    Fourth Amendment to Palladium and Platinum Sales Agreement between Stillwater Mining Company and Ford
Motor Company, dated February 20, 2003 (incorporated by reference to Exhibit 10.1 to the Form 10-Q
filed on November 2, 2004).10.31
    
    Fifth Amendment to Palladium and Platinum Sales Agreement between Stillwater Mining Company and Ford
Motor Company, dated May 4, 2004 (incorporated by reference to Exhibit 10.1 to the Form 10-Q filed on
November 2, 2004).10.33
    
    Contract between Stillwater Mining Company and USW International Union, Local 1, East Boulder Unit,
effective July 10, 2005 (incorporated by reference to Exhibit 10.1 to the Form 10-Q filed on August
8, 2005).10.34
    
    409A Nonqualified Deferred Compensation Plan, (incorporated by reference to exhibit 10.34 to the Form
10-K filed on March 16, 2006).10.35
    
    2004 Equity Incentive Plan (incorporated by reference to Appendix A to the Proxy statement, dated
April 29, 2004).10.36
    
    409A Non-Employee Directors Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 to
the Form-8K dated May 9, 2005).10.37
    
    Amendment No. 1 to Credit Agreement, dated August 3, 2004, between Stillwater Mining Company and TD
Securities (USA), Ltd., dated January 31, 2006 (incorporated by reference to Exhibit 10.1 to the Form
8-K dated February 3, 2006).
 103




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Number
    
    Description10.38
    
    Amendment No. 2 and Waiver to Credit Agreement, dated August 3, 2004, between Stillwater Mining
Company and TD Securities (USA), Ltd., dated November 5, 2007 (incorporated by reference to Exhibit
10.1 to the Form 8-K dated November 8, 2007).10.39
    
    Articles of Agreement between Stillwater Mining Company (Stillwater Mine & Mill, and the Processing
and Warehouse facilities) and United Steel Workers (USW) Local 11-0001, ratified July 16, 2007
(incorporated by reference to Exhibit 10.1 to the Form 10-Q filed on August 7, 2007).10.40
    
    Supplemental Memorandum of Understanding between Stillwater Mining Company (Stillwater Mine & Mill,
and the Processing and Warehouse facilities) and United Steel Workers (USW) Local 11-0001, ratified
September 4, 2007 (incorporated by reference to Exhibit 10.2 to the Form 10-Q filed on November 6,
2007).10.41
    
    Third Amendment Agreement to Palladium and Platinum Sales Agreement between Stillwater Mining Company
and General Motors Corporation, dated August 8, 2007 (portions of the agreement have been omitted
pursuant to a confidential treatment request), (incorporated by reference to Exhibit 10.3 to the Form
10-Q filed on November 6, 2007).10.42
    
    Palladium and Rhodium Sales Agreement, made as of August 8, 2007, between Stillwater Mining Company
and General Motors Corporation (portions of the agreement have been omitted pursuant to a
confidential treatment request), (incorporated by reference to Exhibit 10.4 to the Form 10-Q filed on
November 6, 2007).10.43
    
    First Amendment Agreement to Palladium and Rhodium Sales Agreement between Stillwater Mining Company
and General Motors Corporation, dated December 9, 2008 (portions of the agreement have been omitted
pursuant to a confidential treatment request) (incorporated by reference to Exhibit 10.43 to the Form 10-K filed on March 16, 2009).10.44
    
    Memorandum of Understanding between Stillwater Mining Company East Boulder Operation and United Steel
Workers International Union, Local 11-001, East Boulder Unit, dated December 1, 2008 (incorporated by reference to Exhibit 10.44 to the Form 10-K filed on March 16, 2009).10.45
    
    Form of 1.875% Convertible Senior Note due 2028 (incorporated by reference to Exhibit 4.2 to the
Registrants form 8-K, dated March 14, 2008).10.46
    
    Amendment No. 1 to Stockholders Agreement, dated March 10, among Stillwater Mining Company, MMC
Norilsk Nickel, and Norimet Limited (incorporated by reference to Exhibit 10.1 to the Registrants
form 8-K, dated March 14, 2008).10.47
    
    Indenture, dated as of March 12, 2008, among Stillwater Mining Company, Law Debenture Trust Company
of New York, and Deutsche Bank Trust Company Americas. (incorporated by reference to Exhibit 4.1 to
the Registrants form 8-K, dated March 14, 2008).10.48
    
    Registration Rights Agreement, dated as of March 12, 2008, between Stillwater Mining Company and
Deutsche Bank. (incorporated by reference to Exhibit 4.3 to the Registrants form 8-K, dated March
14, 2008).10.49
    
    Amended and Restated Secondary Materials Processing Agreement, dated as of June 7, 2005, among
Stillwater Mining Company and Power Mount Incorporated (incorporated by reference to Exhibit 10.1 to
the Registrants form 8-K, dated December 9, 2008) (portions of the agreement have been omitted
pursuant to a confidential treatment request).10.50
    
    Purchase Agreement, Stillwater Mining Company and Deutsche Bank, dated March 6, 2008. (incorporated
by reference to Exhibit 99.1 to the Registrants form 8-K, dated March 7, 2008).10.51
    
    Second Amendment Agreement to Palladium and Rhodium Sales Agreement between Stillwater Mining Company
and General Motors Corporation, dated March 5, 2009 (portions of the agreement have been omitted
pursuant to a confidential treatment request), (incorporated by reference to Exhibit 10.1 to the form
10-Q filed on August 7, 2009).18.1
    
    Preferability letter from KPMG LLP dated March 30, 2005. (incorporated by reference to Exhibit 18.1
to the Form 10-K filed on March 31, 2005).23.1
    
    Consent of KPMG LLP, Independent Registered Public Accounting Firm (filed herewith).23.2
    
    Consent of Behre Dolbear & Company, Inc. (filed herewith).31.1
    
    Rule 13a-14(a)/15d-14(a) Certification  Chief Executive Officer, (filed herewith).31.2
    
    Rule 13a-14(a)/15d-14(a) Certification  Vice President and Chief Financial Officer, (filed herewith).32.1
    
    Section 1350 Certification, (filed herewith).32.2
    
    Section 1350 Certification, (filed herewith).
 104




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##### Table of Contents



SIGNATURES
  STILLWATER MINING COMPANY
(Registrant)Dated: February 26, 2010
    By:
    /s/ Francis R. McAllisterFrancis R. McAllisterChairman and Chief Executive Officer  Signature and Title
    
    
    
    Date/s/ Francis R. McAllister
    
    
    
    February 26, 2010Francis R. McAllisterChairman, Chief Executive Officer and Director(Principal Executive Officer)/s/ Gregory A. Wing
    
    
    
    February 26, 2010Gregory A. WingVice President and Chief Financial Officer(Principal Accounting Officer)/s/ Craig L. Fuller
    
    
    
    February 26, 2010Craig L. Fuller, Director/s/ Patrick M. James
    
    
    
    February 26, 2010Patrick M. James, Director/s/ Steven S. Lucas
    
    
    
    February 26, 2010Steven S. Lucas, Director/s/ Mark V. Sander
    
    
    
    February 26, 2010Mark V. Sander, Director/s/ Sheryl K. Pressler
    
    
    
    February 26, 2010Sheryl K. Pressler, Director/s/ Ajay Paliwal
    
    
    
    February 26, 2010Ajay Paliwal, Director/s/ Michael S. Parrett
    
    
    
    February 26, 2010Michael S. Parrett, Director/s/ Michael Schiavone
    
    
    
    February 26, 2010Michael Schiavone, Director
 105