Why We Invested in Stillwater
Consumer Confidence in Palladium Stillwater is the largest primary producer of platinum group metals outside of South Africa and Russia. Stillwater's two mines, Stillwater Mine and East Boulder Mine, have probable reserves of 25 million ounces of palladium and platinum - a reserve life of about 40 years. Stillwater has a solid client base with long-term contracts primarily with U.S. auto manufacturers, but historically has lacked sufficient metal to satisfy demand. The in-kind portion of Norilsk Nickel's investment -- 877,000 ounces of palladium -- increases Stillwater's inventory of palladium available for sale. In contrast, Norilsk Nickel historically has had surplus palladium. Norilsk Nickel is a leader in the Russian economy, accounting for 4.3% of Russian exports. It is the largest mining company in Russia and one of the leading producers of base and precious metals in the world. Combining Norilsk Nickel's reserves with Stillwater's market reach is clearly a "win-win" proposition for both companies. The investment will benefit both Stillwater and Norilsk Nickel, as it promotes increased international reliability and a more secure and stable supply of palladium, as well as efforts to stimulate demand for palladium. A Solid Environmental Record |
