Greetings, and welcome to the Stillwater Mining Company First Quarter Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Mr. Mick McMullen, President and CEO. Thank you, sir. You may begin.

Thank you very much. I'd like to welcome everybody to our first quarter 2015 results presentation. I have here today with me Chris Bateman, our Chief Financial Officer; Mike Beckstead, our Head of Investor Relations; along with the most -- majority of our senior management team. We have a presentation that's available online, and I'll be referring to that today as we walk through the first quarter results. I'd like to draw people's attention to the second slide, the forward-looking statements, and if people could read that at your leisure and just take note of the information contained in that. Moving to Slide 3, our first quarter highlights. Our consolidated net income for the quarter was $23 million or $0.17 per diluted share. That was an increase of 17.5% from the same period in 2014. We grew our cash by $9.7 million, or cash and cash equivalents, from our previous quarter, and we ended the first quarter with $541 million of cash, cash equivalents and liquid investments. Our AISC, all-in sustaining costs, I'll refer to this many times during the presentation, was $763 per mined ounce, which was down from $788 in same period in '14 but up from a very good result in the prior quarter. I'd like to draw people's attention to the fact that when we refer to an ounce from the mines, that's a mix of palladium and platinum typically in the ratio of 3.4 palladium:1 platinum. It's important people understand that when we refer to ounces, it's just not an ounce of palladium. Our G&A costs were down. They were at $8.3 million for the quarter, down from $9.8 million in the same quarter of the prior year. Mine production was up slightly, again 133,300 ounces, up from 130,700 ounces in the prior year. We…

[Operator Instructions] Our first question comes from David Gagliano with BMO Capital Markets.

Okay, great. My -- I just had a couple questions related to -- actually to Slide 7. As we look at the cost breakdown here, I had 2 questions. First, at the Stillwater Mine, tons milled went down a decent amount, and I understand there's definitely been some changes here. How should we be thinking about tons milled at the Stillwater Mine as we progress through '14 and into -- I'm sorry, as we progress through '15 and into -- and then in '16? That's my first question.

Well, Dave, thanks for the question. And I think yes, the tons milled did go down from Q4 to Q1. But if you look at sort of Q3 and Q2 of last year, you can see that tons milled is still up relative to where we were in those quarters. We did say that Q4 of '14 really was an outstanding quarter. And whilst I would like to better each quarter quarter-on-quarter, it really was a very big jump from the prior quarters. So I think, again, we don't give specific guidance in terms of tons. It's just contained within our overall guidance. But I would like to say that we might get back closer to the sort of Q4 numbers over the next 12 months.

Okay. All right, that's helpful. And then on the East Boulder Mine, mining costs versus tons milled. I'm just wondering, again, sequentially, we had a $19 per ton increase in mining costs and yet tons milled went up a little bit. I'm wondering, what changed quarter-over-quarter for the increase in mining costs? And how should we be thinking about that number specifically moving forward?

Sure. Well, we had -- if you do recall, Dave, we had the last of the pay rises under the old union contract come into effect on the -- at the start of the year for East Boulder. So that was a 4% cost across the early workforce that we had to wear. And I think it's fair to say that there was a few one-off items in Q1 at East Boulder, maintenance items, some of which sort of had been scheduled for late last year and fell into -- yes, fell into Q1 of this year. And I think that we'd like to see those costs come back down, but again we had a couple of one-off costs there.

Okay, great. And then just on the recycling business, a quick question, obviously the switchover a little bit more to the tolling side. And if I remember correctly, the -- previously, the mines were effectively hedged, right, when they came in the door. I'm wondering, is there a way to frame any change in the terms typically from tolling versus just buying and processing?

No, not really. And just for clarity, the -- when you buy the material, it's actually hedged at the time we buy it, not when it comes in the door. But yes, you're right, there is a difference there. Not overly. I think that the margin on tolled material was we -- bearish on custom, and the custom was slightly lower on tolled than it is on purchased material. But again, that's offset by the fact that we have no working capital. So if you look at the working capital numbers, you would have seen a decrease in working capital gradually over the last 12 months as the market has moved more to a tolling. And I think our strategy has been that we're somewhat agnostic as to whether we make money from buying it as a principal or whether we toll it. We're more interested in making sure that we actually get the material through the door. One thing that you should note, obviously, is that when you look at our top line revenue as we move away from purchasing to tolling, you do see a reduction in our top line revenue because obviously, we're not buying the material. The net economic effect to us is pretty much the same whether we buy it or toll it.

Our next question comes from Andrew Quail with Goldman Sachs.

Mick, Chris and Mike, everyone there, congratulations on a very strong quarter, I thought. And I think the market likes it, too. Got a couple of questions, I think, as the last speaker was saying, just on costs. Is the increase of Q-on-Q anything to do with weather? Obviously, we saw a pretty brutal winter. And if so, is that going to be something that going forward, maybe Q1 might be a touch higher than the other quarters?

Well, actually, as it turns out, the winter in Montana this year has been quite mild unlike for everybody back East. So now it's more -- we do see some seasonality. It's probably more to do with the timing of spend and things just sort of falling into Q1 that maybe were budgeted in Q4 but just couldn't be spent -- physically couldn't be spent fast enough and then the costs end up turning up in Q1. I think that's probably more to do with the seasonality rather than the winter -- this winter. Last winter, definitely we had a much more severe winter. And we do also have some things like some annual refresher, annual training, things that do fall into Q1, which will be a few dollars an ounce that would push that up. I can say just on our all-in sustaining costs, and again it's sort of a number that we've been going through our spares inventory, which is not a small number. And as we find obsolete material, we are writing that off. That does get charged to our all-in sustaining costs. Off the top of my head, it's not an exact number, but that was probably in the order of $3 to $4 an ounce of obsolete inventory that we've paid for, meaning, in some cases, 5 years ago, which we wrote off in this quarter, which did come into our all-in sustaining costs.

Okay. And then just this one on G&A. I mean, obviously, it's trending down. But how much more is there to squeeze out of that? And can you sort of see -- you're heading towards the bottom into your range in terms of Q1. But for -- is that something you guys are trying to do even more?

Andrew, I think you should know me well enough to -- by now that there is no area of this business that is not getting cost attention. But clearly, if you've already halved your G&A, well, in the last 2 years since I came on as a director, you get to the point of diminishing returns. But yes, for sure, there's no area. For example, our insurance cover, we managed to reduce that by $1.5 million last year. We've reduced it by around about another $0.5 million this year. We've not reduced the cover -- the level of cover at all. In fact, we've increased substantially the insured values. We've taken out some extra cover that we previously didn't have. But we've worked very, very hard. There is no area of this business that is not getting the cost attention: every single supplier, every area of the business. But so far, the cuts have been, by far and away, the heaviest in corporate and SG&A. So again, we're sort of -- we're getting to the bottom of where we might potentially get more out of it. We won't give up.

No, good. And the last one is on cash. I mean, obviously, you guys are generating free cash flow. And even at these prices, I think we see higher prices. It's going to accelerate a fair bit. Looking, I suppose, a longer-term view in strategy even -- maybe even to the second half, have -- what -- how do you look at sort of paying back some of that debt that I know that is on your mind given the interest rate. And how adverse is sort of even paying a dividend?

Well, I think, Andrew, it's probably a little bit premature at this stage to sort of indicate how we might use our cash. I think -- you're right, I do not like debt. And if we could get rid of that debt at a reasonable cost, I think that would be fairly high on our list of things to do. We just need to sit back. Whenever we deploy capital -- and again, I'm very firm with my team here, is that -- and the board is very firm with me. Whenever we deploy capital, we must look at how we get a reasonable risk-adjusted return to shareholders on that capital. And so again, if paying off debt, the $30 million of Montana State bonds we paid of last year was costing us 8%, we can redeem that at face value, that was a risk-adjusted return that was very good for us. We just have to look at that. I think at some point, we would like to do something for shareholders. The view back from shareholders at this point seems to be we obviously -- we want to make sure we're in a position where we're just generating free cash flow quarter in, quarter out on a sustainable basis. Interestingly, some shareholders have sort of indicated that they -- if we can see other things to do with that cash that gives a better return, then we should look at that. I don't think we've formed a firm view one way or the other at this point. We obviously have a few things ahead of us over the next 3 months here, but we need to -- that we need to make sure is our operations are running really strongly. And at that point, we can sit back and decide what we do. But I think the other thing we need to look at whenever you look at what to do with your cash is what's happening in your price basket. And we just want to make sure that we're bulletproof under all circumstances.

[Operator Instructions] Our next question comes from John Bridges with JPMorgan. John D. Bridges - JP Morgan Chase & Co, Research Division: I was just wondering with the drilling at Blitz, when are you likely to start reporting that? Would it be before the end of the year?

Well, I think we won't be reporting drill hole by drill hole. But I think our goal at this stage -- and again, it's all subject to the drilling out, how it progresses. So far, it's going well but obviously subject to results. Our goal is to try and get that drilling incorporated into our 2015 reserve update, which we would be publishing towards the end of February of '16. I think that's the earliest we would really have anything that we could put out there. And again, it's completely subject to results. We can't say what those results would be at this stage. But assuming that we come up with something reasonable, our goal is to incorporate it into that '15 reserve update. John D. Bridges - JP Morgan Chase & Co, Research Division: Okay, that should be an interesting number. Graham Creek, you -- well, sorry, East Boulder held by Graham Creek, your tonnage is picking up. But what sort of profile are you expecting in terms of tonnage at East Boulder for the rest of the year?

I think relatively flat from where we are at the moment. There may be some up and down. But again, we don't see any step changes coming on. The key there is that we needed to drill out that next ramp system, which is about another 2,200 feet of the Graham Creek project. We're drilling that out now. We drilled probably 2/3 of the drilling, I think. Results are coming in. We need to get all that incorporated. We then need to go and physically put the development in. And we do have a little bit of a constraint there on ventilation, so we need to work something out on vent. So again, we -- for the next 12 months, I don't expect to see a step change at that operation for tonnage. We have got a big focus on grade. I will note that during the first quarter, we did have a little bit of a drop in grade at one point, and the grade has come back up quite nicely. So that's really the focus there for getting ounces there, is just to make sure we keep the grade as high as we can. It's been running above reserve grade, and that has driven that and the extra tonnage out of the first ramp system at Graham Creek and really driven the outperformance at East Boulder. And again, I know our cost per ton did go up a little bit at that mine. I will say that our cost per ounce is still very good at that operation. And from a productivity standpoint, it is running actually very well. John D. Bridges - JP Morgan Chase & Co, Research Division: Okay. And when the other ramps come on, will that lead to a step up in tonnage?

Well, again, we'd have to put that into a formal guidance. But yes, subject to the drilling, subject to us sorting out vent, we certainly have excess capacity in the milling circuit. That's currently running 5 days a week still at the moment. Then that would certainly lead to an increase in production. But that -- we wouldn't see that for 18 months as a minimum. John D. Bridges - JP Morgan Chase & Co, Research Division: Okay. And then finally, the labor contract, any dates that we can look out for, for that? Or is that just in the next...

Well, it's in progress. It is publicly known that, that contract obviously expires at the end of May, and I can't really comment on anything else regarding the negotiation.

Our next question comes from Garrett Nelson with BB&T Capital Markets. Garrett S. Nelson - BB&T Capital Markets, Research Division: It looks like you recycling volumes were down a bit in Q1. Is there anything we should read into that? Why was that?

We did have a bit of a change of material, the mix of materials. So on a ton per day basis, we were down. But on an ounce basis, we were up. It was a bit higher-grade material. And that's just reflective of the type of material we had. As I said, we've had a near-on 50% increase from the run rate in the March quarter to April deliveries. So again, we had a couple of big contracts we've been working on for quite a while. They sort of got signed and deliveries started literally in the first couple of days of April. So we have seen a significant jump in just tons per day and ounces going through that facility now. Garrett S. Nelson - BB&T Capital Markets, Research Division: Okay. And then just a question on costs. You've achieved a lot in the past year or so in bringing the company's costs down. What are some of the other levers that you can pull on the cost side to bringing costs down to low $700 per ounce on a quarter in, quarter out basis?

Well, I touched briefly on the productivity at East Boulder. And clearly, productivity gains are the big thing for us here. We need to get our infrastructure in place at the Stillwater Mine such that we can be as productive as we can be. We are spending capital there to try and get it set up more like the East Boulder Mine where we can use gravity and we can use rail. But that really is the key thing for us, is given that labor is such a large component of our cost base, getting productivity gains is clearly the key for us. On top of that, we're doing everything. As I said earlier, every single supplier, we are having that conversation with them about cost reductions and both in absolute basis in terms of their rates and also how do we -- just how do we do things better. So our explosives supplier, we're working with them to see if we can use less material. Our electricity contract at the Stillwater Mine and Columbus, we've renegotiated that. And from June onwards, we've negotiated about a $1.7 million a year saving. So there are many things that we need to do through the business, and there is no stone being left unturned. The single biggest thing we can do is productivity gains. That will outweigh all of the other wins or losses that we have throughout the business, is productivity gains.

There are no further questions in queue at this time. I would like to turn the call back over to Mr. McMullen for closing comments.

Thank you, everyone, for dialing in. I appreciate the questions, and we look forward to talking to you after the next earnings release. Thank you very much.