Boston, MA 05\/20\/2014 (wallstreetpr) \u2013\u00a0Stillwater Mining Company (NYSE:SWC)<\/b> continued its rally on Monday as the stocks of the Montana based mining company soared by over 3% and closed at $16.89.<\/p>\n
Terms Of The Agreement<\/b><\/p>\n
On Friday, Stillwater Mining Company (NYSE:SWC) disclosed that it has reached a five-year term agreement with Johnson Matthey for a platinum group metal (PGM) refining and sales. Johnson Matthey is a front-running producer of auto-catalysts and is a refiner of precious metals. Under the agreement, Johnson Mattrey will buy Stillwater’s complete mined palladium based on a benchmark based annual pricing. Stillwater will retain the right to exit the metal sales agreement at any point during the term of agreement under specified circumstances and payment of a small fee. Further, the agreement specifies that Stillwater will use Johnson Matthey’s refining services for its recycling material and mined production at competitive terms. In addition to this, on account of timing of the new sales agreement, Stillwater will accomplish a single-time working capital release in between $17-$22 million. The two firms have agreed to extend cooperation, wherever necessary and to retain material for Stillwater’s business. While the two companies have agreed to integrate on technical specification so as to optimize the PGM refining and smelting process, Johnson Matthey will render its patented PGM market analysis to Stillwater.<\/p>\n
To Take Effect On July 1, 2014<\/b><\/p>\n
In context of the partnership, Stillwater Mining Company (NYSE:SWC)\u2019s President and CEO, Mick McMullen said that the partnership will by mutually beneficial to the both companies. He said that the deal comes at a time when supplies are limited in the PGM industry and demand continues to grow. The deal will be effective from July 1, 2014 and will continue to remain in effect till the expiry of five years from the date of the original contract. However, Stillwater is allowed to terminate the same by paying nominee fee to Johnson Matthey.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/20\/2014 (wallstreetpr) \u2013\u00a0Stillwater Mining Company (NYSE:SWC) continued its rally on Monday as the stocks of the Montana based mining company soared by over […]<\/p>\n","protected":false},"author":9,"featured_media":22882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[6755,6754],"stock_ticker":[],"class_list":["post-22872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nyseswc","tag-stillwater-mining-company-nyseswc","entry"],"acf":[],"yoast_head":"\n