Revett Reports Record Earnings for Q2 2011
SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 08/11/11 -- Revett Minerals Inc. (TSX: RVM)(NYSE Amex: RVM) today announced record quarterly revenues of $18.8 million, a 102% increase compared to the same period last year. The Company also increased its cash and cash equivalents on hand at the end of the second quarter to $14.7 million from $8.8 million at the beginning of the year. All currency in this release is in United States dollars unless otherwise indicated.
For the three months ended June 30, 2011 the Company had net income of $7.9 million or $0.23 per share. These record results are due to higher metal prices, significantly improved metal grades, and higher metallurgical and operating efficiencies.
Revett President and Chief Executive Officer John Shanahan said, 'We are delighted to announce record earnings of $0.23 cents per share for this quarter which is a wonderful reflection of the hard work, dedication, and resourcefulness of our operating team at the Troy mine. We remain committed to meeting our near term production targets as well as longer term expansion plans at Troy. Troy continues to play a vital role and increase our cash position as we work towards advancing development of our nearby significant silver/copper deposit at Rock Creek.'
Highlights:
-- Silver production totaled 342,822 ounces and copper production totaled
3,028,252 pounds, representing increases of 65% for silver and 60% for
copper over the same period last year.
-- Net cash(1) provided from operations before capital expenditures for the
second quarter of 2011 was US$7.7 million, for a total of $11.1 million
for the first half of 2011.
-- Cash cost for the second quarter of 2011 improved significantly on a net
of by-product basis at $3.38 per ounce of silver and $0.73 per pound of
copper, compared with $13.08 per ounce of silver and $2.63 per pound of
copper for the same period last year.
-- The Company's working capital increased to $19.8 million as of June 30,
2011, an 86% increase since December 31, 2010.
The following table is a summary of key operating statistics for the Troy silver and copper mine located in northwestern Montana for the three months ended June 30, 2011 and for the comparable period ended June 30, 2010. As expected, production increased during the second quarter due to significantly higher metal grades from mining more production from the C Bed area.
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Three Months Ended Three Months Ended
June 30, 2011 June 30, 2010
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Tons milled 352,818 354,359
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Tons milled per day 3,964 3,982
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Copper grade (%) 0.52 0.33
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Silver grade (opt) 1.14 0.70
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Copper recovery (%) 82.36 80.74
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Silver recovery (%) 85.04 83.92
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Copper produced (lbs) 3,028,252 1,888,935
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Silver produced (ozs) 342,822 207,948
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The Company previously announced cash costs on July 18, 2011 in the Q2 Operations Update news release that did not incorporate final adjustments. The following table incorporates these adjustments and reflects the final cash costs as reported in the Company's 10Q being filed today.
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2nd 2nd
Quarter Quarter
Cash Cost(2) April May June 2011 2010
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Direct Operating Cost Per
Ton (US$) $29.79 $30.21 $30.66 $30.23 $23.50
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By-Product Basis (payable)
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- Silver (US$/oz) $10.94 $1.61 ($0.71) $3.38 $13.08
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- Copper (US$/lb) $1.33 $0.63 $0.39 $0.73 $2.63
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Co-Product Basis (payable)
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- Silver (US$/oz) $18.59 $14.97 $14.93 $15.91 $16.40
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- Copper (US$/lb) $2.13 $1.90 $1.79 $1.93 $2.84
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(1) Net cash before capital expenditures is a non GAAP measure. The Company
believes that net cash provided from operations is a benchmark for
performance and is well understood and widely reported in the mining
industry.
(2) All cash costs include direct mine site costs and smelting, refining
and transport costs. Average commodity prices used to off-set (by-
product credit basis) or allocate (co-product basis) cash costs are the
monthly weighted average realized prices based on invoiced shipments.
Cash costs per payable ounce of silver or payable pound of copper is a
non GAAP measure. The Company believes that, in addition to cost of
sales, cash costs per ounce and per pound are a useful and
complementary benchmark for performance and is well understood and
widely reported in the mining industry. However, cash costs per ounce
does not have a standardized meaning prescribed by U.S. GAAP. Investors
are cautioned that cash costs per ounce or per pound should not be
construed as an alternative to cost of sales determined in accordance
with U.S. GAAP as an indicator of performance. The Company's method of
calculating cash costs per ounce or per pound may differ from the
methods used by other entities and, accordingly, the Company's cash
costs per ounce or per pound may not be comparable to similarly titled
measures used by other entities.
Quarterly Financial Results Conference Call
Revett has scheduled a conference call to discuss its 2nd quarter 2011 financial results on Monday, August 15, 2011, at 12:00 pm (EST).
To participate in the call, North American callers can dial in at 1-800-731-5319 and International callers can join the call at (416) 644-3426. Please dial in to the call approximately five to 10 minutes prior to the scheduled start time of the call.
The conference call and all questions and answers will be recorded and made available until August 22, 2011. To listen to the recording, call toll free (877) 289-8525 or (416) 640-1917 and enter the access code 4464147#.
About Revett
Revett Minerals, through its subsidiaries, owns and operates the currently producing Troy Mine in Lincoln County, Montana and development-stage Rock Creek Project located in Sanders County, Montana, USA. The proven reserves at the Troy Mine and significant resources at the Rock Creek project form the basis of Revett's plan to become a premier mid-tier base and precious metals producer. Revett plans on expanding production through exploration in and around its current properties, as well as through targeted business combinations of advanced stage projects.
John Shanahan, President and Chief Executive Officer
Except for the statements of historical fact contained herein, the information presented in this news release may contain 'forward-looking statements' within the meaning of applicable Canadian securities legislation and The Private Securities Litigation Reform Act of 1995. Generally, these forward looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects', or 'does not expect', 'is expected', 'is not expected', 'budget', 'plans', 'schedule', 'estimates', 'forecasts', 'intends', 'anticipates', 'or does not anticipate' or 'believes' or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking statements contained in this news release include but are not limited to those with respect to the our commitment to meet near term production targets as well as long term exploration plans at the Troy Mine and our ability to advance the Rock Creek project. Forward looking statements are subject to known and unknown risks, uncertainties and other factors. Actual results and developments at Troy could be affected by unexpected production problems and our ability to continue to expand reserves and resources through further exploration and at Rock Creek, the decision of the U.S. Court of Appeals following the hearing heard on July 14, 2011, any further court challenges and our ability to obtain all necessary permits, approvals and financing to develop the Rock Creek project, which is not assured, and those factors discussed in the section entitled 'Risk Factors' in the Form 10-K filed on SEDAR at www.sedar.com and with the SEC on EDGAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Revett Minerals does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
Contacts:
Revett Minerals Inc.
Ken Eickerman
Chief Financial Officer
(509) 921-2294
Revett Minerals Inc.
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
www.revettminerals.com