Ladies and gentlemen, thank you for standing by and welcome to the Stillwater Mining Second Quarter 2013 Results Call. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the conference over to your host, interim Chief Executive Officer, Terry Ackerman. Please go ahead, sir.

Thank you, operator. Welcome, everyone, and thank you for joining us today for Stillwater Mining Company's Second Quarter 2013 Earnings Conference Call. As the operator indicated, my name is Terry Ackerman, the interim Chief Executive Officer of Stillwater Mining Company. With me today are several members of our management team, including Greg Wing, Vice President and Chief Financial Officer; Kevin Shiell, Vice President of Mining operations; Kris Koss, Vice President of Human Resources and Safety; Brent Wadman, Vice President of Legal and Corporate Secretary; Ralph Green, Vice President of Exploration; and Rhonda Ihde, our Corporate Controller. As always, I would like to remind everyone that some statements in this conference call will be forward-looking and therefore, involve uncertainties or risks that could cause actual results to differ from our projected results. We discuss these risks and uncertainties in more detail in the company's filings with the Securities and Exchange Commission, including those discussed in our second quarter Form 10-Q which will be filed later this afternoon. This year's second quarter was an eventful one for Stillwater Mining Company. Following our annual meeting in May, we welcomed 4 new directors to the board. These new directors have taken on their responsibilities energetically and the entire board is very active in providing valuable guidance and fresh perspectives on our business. I'm enjoying working with them and I'm looking forward to their continued leadership. Following Frank's retirement in June, I was asked by the Board of Directors to assume the role of interim CEO. I appreciate the board's confidence, and as importantly, the support I'm getting from an excellent team of experienced professionals at all levels in the company. I'm honored to be part of the Stillwater, in this capacity, at such an exciting time. For the past several years, our operating teams…

[Operator Instructions] And our first question will come from David Gagliano with Barclays.

I just have a few questions. First of all, on the outlook for the remainder of 2013. Obviously, it sounds like grade variability at the Stillwater mine is factored into it, but the full year guidance for cash cost implies about a 13% increase in the second half versus the first half. Is there a way to frame how much of that -- if things kind of continue the way they are at the Stillwater mine, how much lower could the cash cost be versus that $560 target?

Well, David, I think, as you indicated, the guidance is anticipating us working through the grade issues at Stillwater Mine. There is a little additional cost anticipated because of contractual increases that kick in the July period. But we're optimistic that we can work through that and experience a better cash cost.

Okay, okay. Just on another note, regarding the change of control provision, I just have a question. What do you actually change in terms of the control? I always thought change of control was based on shareholders not Board Members or am I missing something there? Like, what exactly did change in terms of the control?

I'm going to have Brent Wadman maybe speak to that.

David, it's a kind of dependent on the agreement that we're talking about. But each equity plan, each of our contracts have kind of a different definition of change of control, and most of them do have a provision for changes in the composition of the board.

Okay, okay. Okay, and then, I'm sorry, I'll just add a couple more. In terms of the lower run rate on the CapEx, was there anything that you've actually removed from spending this year or pushed out or is it just the cost associated with what you're trying to get down are actually lower?

I think all 3 things you mentioned. We're experiencing some better-than-planned costs on some projects going well. We've deferred a few activities, that will probably kick in more in 2014, and we've deferred a few items related to our permitting speed up in Canada.

What were sort of the major deferrals if there are any big buckets?

Some equipment purchases, we got a little bit later start on some development activity in Montana operations, and again, some of the planned project activities at Marathon are linked to the environmental assessment process which has stretched out a bit.

And then I just have one more, on Marathon, the feasibility engineering study. Is that taking a little bit longer than expected? And if so, why? Or am I missing something there?

No. We've been anxious, maybe we're a little optimistic, as we try to give the best guidance we can, and we've had the opportunity to look at some options that previously we may be passed over. So, I'd say it's all healthy and we're more focused on putting out a good product and a good understanding down the road here.

[Operator Instructions] We'll go next to Daniel McConvey with Rossport Investments.

In terms of people changes, I see, just like in the management, there's been very few in terms of other changes in management. If you go down the line, has there been many people left in the last 3 months?

I'm just looking at my HR help here. I don't think so.

Very stable.

Very stable, and I think that's one of the things that's I'm very pleased about. It sure helps my job be easier.

Okay, very good. In the employee numbers you just gave out, I think you had roughly 1,600 last year and 1,750 this year, broadbrush numbers. I know the mine is getting further away from kind of the entry points, et cetera. Is that a good representation, roughly, of the number people you're going to need going forward versus what you did need to sustain the current production rate?

I think it's so, you have a plan going in there. Adding people for receiving pay usually comes in tranches, it's not like a linear function. But I think, more importantly, a lot of the activity that's bringing people in the doors in preparation for, and gearing up on these development activities at both the East Boulder and Stillwater mines takes a 3- to 5-year period to develop a good miner. And so that, if we're going to sustain our accelerated development activities towards growing some production, we just have to get started.

Okay. But, remind me, does that include, for those projects -- it was pretty much sustained, this 500 to 550 rate, correct?

Well, we've given some guidance, looking forward, at adding some production over the next 3 years at both mines.

Yes. I will add to that we're planning to add 30,000 ounces at East Boulder in 2015, and about 60 of those people are targeting just that. And we've got to get them on board before we actually need to produce the tons and ounces. So it's a fair lead to what's going to come.

Our next question is from Sam Crittenden with RBC Capital Markets.

Just to clarify what you said on Marathon earlier. The permitting process has been slow, is that something you guys have actively done or is that something from the regulator's side of things?

My foot's still on the pedal. It's a back-and-forth. We're in a joint panel review process with the federal and provincial groups. It's the first time in Ontario that anyone's going through this, so there's a lot of nuances that are being laid out and decisions being made. So it's been maybe a little more trying and there's been more back and forth as we understand and interpret their needs, of the government. But, no, I think we're getting great cooperation and I think it's just one of those things. When you go through these processes, you get comments, you have to respond to them and sometimes we have to come off the clock as we address the concerns or issues that are raised.

And then, so do you have a rough timeline in mind of when you could get permits for that project?

Obviously, subject to change, but our current thinking is that we're going to get a nod to move forward with the public sessions, and hopefully, that'll take place in October of this year. Then some different phases that the different ministers go through, of the review. So, if all the stars align, it could be as early as late second quarter but more likely middle of next year. And I would encourage anybody interested to get on to the CEAA website, in Canada, and there's a pretty good timeline established and a process that we're in the middle of going through. It would help you out.

And then just one last one. You mentioned you're looking at different options and I know you're still doing the engineering, but do you think the project would support a smaller, higher grade development? Could you scale the project down if you chose to do so or do you need a certain scale to make it worthwhile?

I think the latter. I think there's a certain minimum when you look at open pit mining and capital investment. So that's part of the analysis, looking at a range of options.

[Operator Instructions] We have Sam Dubinsky with Wells Fargo.

Obviously, PGM pricing has pulled back a little bit, albeit more so for platinum and palladium. Would you still describe the market as tight or have fund flows out of the commodity change supply at all in recent months? Then I have a follow-up.

Let me try to tackle that, if I may. I think our view is that, although neither of the markets are terribly tight at this point, the palladium market probably is a little bit firmer than the platinum market. What has helped the platinum market a little bit is the introduction of the, in effect, ETF in South Africa which has soaked up some production. But with the European auto situation still remaining fairly dire, in terms of production there, there's been surplus platinum in the market. I think, to a lesser extent, we've seen that in palladium.

Okay, great. And then, for a strategic review to be complete, do you need to first appoint a permanent CEO or can we have an update before then?

I think that'll from further guidance from our board, as to the timing of that, as we put together the information they've requested and we go down the road.

Okay, and just my last question. How should we think about mining cost in 2014? What leverage do you have to pare back on costs if pricing sort of stays at current levels? Basically, sort of what's in your control and what's out of your control.

Wages, obviously, are fairly predictable. The cost of benefits is less controllable in turn, although we work on that. We have wellness programs, and so forth, that target that. Materials costs are fairly steady, if you will. We, obviously, are looking at efficiencies, but we also are looking at the best way to get things done in a combination of factors there.

I think one thing to point out is that, while we clearly have seen a pretty steep increase in our cash cost per ounce, if you take a look at our cash cost per ton, it kind of drives our mining operations, you'll note that year-on-year we're pretty flat on the total cost per ton. So I would suggest that the efficiency, the people, productivity gains are helping greatly to offset the cost on our mine sites.

We have a follow-up from David Gagliano with Barclays.

Just a quick one, on the realized price, and maybe our math is a little off, it still seems like even though prices came down -- just the simple math on the averages, unless our math is wrong, suggest prices should have been a little bit higher. Is there anything else going on there or is it just timing?

I think it's just timing. Most of our contracts, as I think you might know, are delayed. They're based on last month's pricing, if you will, on average. So we do see a little bit of trailing. I don’t know if that's built into the model. I suspect it might be. But, other than that, I think you should be pretty much reflecting market.

Thank you, and we have no further questions. Please go ahead with any closing remarks.

Well, I'd like to thank everybody. I believe I'll turn it back to the operator will give you some instructions about how this call can be heard again. Thank you.