SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 21,1998
Stillwater Mining Company
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Incorporated under the laws of Delaware 0-25090 81-0480654
- -------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employee
of incorporation) File Number) Identification No.)
717 Seventeenth Street, Suite 1480, Denver, CO 80202
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 978-2525
--------------
ITEM 5. OTHER EVENTS
Stillwater Mining Company (the "Company") has entered into marketing contracts
covering the sale of palladium and platinum over the five-year period from
January 1999 through December 2003. Pursuant to these contracts, the Company has
committed approximately 90 to 100% of its annual palladium production. Palladium
sales are priced at a slight discount to market, with a floor price averaging
approximately $225 per ounce. The Company has agreed to an average maximum
palladium price of approximately $400 per ounce on approximately 30% of its
production. The remaining 70% of the Company's palladium production is not
subject to any price cap. In addition, the Company has committed approximately
20% of its annual platinum production over the next five years. Platinum sales
are priced at a slight discount to market, subject to an average minimum price
of $350 per ounce with an average maximum price of $425 per ounce. The remaining
80% of the Company's annual platinum production is not committed under these
agreements. Such platinum production remains available for sale at prevailing
market prices or under future contracts. The marketing contracts contain typical
termination provisions that allow the purchasers to terminate in the event the
Company breaches and the breach is not cured within periods ranging from ten to
thirty days of notice by the purchaser. In addition, the contracts contain force
majeure provisions that allow for the suspension and, in one instance, the
termination of the contract upon the occurrence of an event of force majeure.
The marketing contracts are included as Exhibits 10.1, 10.2, 10.3 and 10.4
hereto and are incorporated in their entirety by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
10.1 Palladium Sales Agreement, made as of August 13, 1998, among
Stillwater Mining Company and Ford Motor Company (portions of the
agreement have been omitted pursuant to a confidential treatment
request).
10.2 Palladium Sales Agreement, made as of July 21, 1998, among Stillwater
Mining Company and KEMET Corp. (portions of the agreement have been
omitted pursuant to a confidential treatment request).
10.3 Palladium and Platinum Sales Agreement, made as of August 17, 1998,
among Stillwater Mining Company and General Motors Corporation
(portions of the agreement have been omitted pursuant to a
confidential treatment request).
10.4 Palladium and Platinum Sales Agreement, made as of August 27, 1998,
among Stillwater Mining Company and Mitsubishi Corporation (portions
of the agreement have been omitted pursuant to a confidential
treatment request).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
STILLWATER MINING COMPANY
(Registrant)
Date: September 28, 1998 By: /S/ JAMES SABALA
----------------------------------------------
Name: James Sabala
Title: Vice President and Chief Financial Officer
EXHIBIT INDEX
-------------
Exhibit
No. Description
- ------- -----------
10.1 Palladium Sales Agreement, made as of August 13, 1998, among
Stillwater Mining Company and Ford Motor Company (portions of the
agreement have been omitted pursuant to a confidential treatment
request).
10.2 Palladium Sales Agreement, made as of July 21, 1998, among Stillwater
Mining Company and KEMET Corp. (portions of the agreement have been
omitted pursuant to a confidential treatment request).
10.3 Palladium and Platinum Sales Agreement, made as of August 17, 1998,
among Stillwater Mining Company and General Motors Corporation
(portions of the agreement have been omitted pursuant to a
confidential treatment request).
10.4 Palladium and Platinum Sales Agreement, made as of August 27, 1998,
among Stillwater Mining Company and Mitsubishi Corporation (portions
of the agreement have been omitted pursuant to a confidential
treatment request).