Associated Press
BILLINGS, Mont. - Montana's largest mining company racked up a $270 million net loss last year after writing down the value of two foreign properties and putting more focus on its precious metal mines in the Beartooth mountains, according to filings with federal regulators.
Despite the write-offs, Stillwater Mining Co. said it ended the year with almost $500 million in cash and liquid investments. It expects to ramp up capital spending for 2014 by as much as $26 million.
Much of that money would go into new areas under development within its mines near Nye and East Boulder, the company said in its recently released annual report.
The Billings-based platinum and palladium company added 109 jobs last year and has about 1,770 employees.
In recent years, it had sought to expand into Canada and Argentina until disgruntled investors joined by former Gov. Brian Schweitzer staged a corporate board takeover last year.
Longtime chairman and CEO Frank McAllister was ousted, replaced by Schweitzer as chairman and industry veteran Michael McMullen as CEO. The company's new leadership has since sought to reassure investors by putting more emphasis on expansion work underway in Montana.
The company's shares on the New York Stock Exchange have risen by 3 percent since a Monday earnings announcement.
In the fourth quarter of 2013, Stillwater reduced its Marathon, Ontario, property value by $171 million to $57 million - a drop of 75 percent. That came after the company determined prior studies on the grade of palladium at the site had been overstated.
In the third quarter, Stillwater wrote down its Altar copper and gold reserve in the Andes of Argentina by $290 million, another drop of almost 75 percent. The company cited uncertain development costs and the potential for political unrest in the country.
Stillwater said in its 2013 report that early results of an updated review of the Marathon project as designed showed it would not return enough money to make development
feasible.
Environmental reviews of the project are now on hold, the company said.
Without the write-downs, the company would have posted a net profit before taxes of $66 million last year.