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12.05.2010
Revett Minerals Reports First Quarter 2010 Profit
Revett Minerals Reports First Quarter 2010 Profit
Spokane Valley, Washington, May 11, 2010; Revett Minerals Inc., (RVM:TSX / RVMIF:OTCBB) (“Revett” or the “Company”) announces its consolidated operating and financial results for the three months ended March 31, 2010. Currency is reported in United States dollars unless otherwise indicated.
Major Highlights for three months ended March 31, 2010 include:
• Generated $2.1 million in operating cash-flow from the Troy Mine, resulting in $0.01 per share overall profit;
• Achieved record mill throughput at Troy averaging 4,265 tons per day compared to 3,811 tons per day in the first quarter of 2009, a 12% improvement;
• Initiated development work for the higher grade “C Bed” reserves. Access should be completed by the end of the third quarter, 2010;
• Produced 287,259 ounces of silver and 2.5 million pounds of copper at the Troy Mine , generating $12.1 million in revenues;
• Silver Wheaton continued its support of the Company, subscribing additional shares in Revett to bring its shareholding to 16.6%.
Consolidated Results
Concentrate deliveries and sales during the first quarter of 2010 consisted of 2.4 million pounds of payable copper and 264,030 ounces of payable silver, compared to 2.2 million pounds of payable copper and 289,034 ounces of payable silver during the first quarter of 2009.
For the three month period ended March 31, 2010 the Company reported a net income after taxes of $0.9 million (which includes a $0.8 million non cash charge for the issuance of stock options); or, $0.01 per share profit on revenue of $12 million. This compares to a net loss of $0.9 million or $0.01 per share on revenue of $8.3 million for the same period last year. During the quarter ended March 31, 2010, copper prices averaged $3.28 per pound and silver averaged $16.92 per ounce compared to $1.56 per pound for copper and $12.62 per ounce for silver during the same period in 2009.
John Shanahan, President and CEO, noted “We are delighted to report first quarter profits of $0.01 per share buoyed by cash generation of $2.1million from our Troy operation. We will continue to focus on development and exploration at Troy which will cement our plans for future development. We are also very pleased with the recent judicial opinion on Rock Creek, as it provides us with the necessary information to proceed; and, we look forward to continuing our work with the U.S. Forest Service and other agencies as we move this project forward.”
Troy Mine
The following is a summary of key operating statistics for Troy for the three months ended March 31, 2010 and for the comparable period ended March 31, 2009.
----------------------------------------------------------------------------
Three Months Ended March 31, Three Months Ended March 31,
2010 2009
----------------------------------------------------------------------------
Tons milled 379,592 339,171
----------------------------------------------------------------------------
Tons milled per
day 4,265 3,811
----------------------------------------------------------------------------
Copper grade (%) 0.38 0.40
----------------------------------------------------------------------------
Silver grade
(opt) 0.86 1.09
----------------------------------------------------------------------------
Copper recovery
(%) 85.1 87.1
----------------------------------------------------------------------------
Silver recovery
(%) 87.5 86.3
----------------------------------------------------------------------------
Copper produced
(lbs) 2,456,190 2,316,702
----------------------------------------------------------------------------
Silver produced
(ozs) 287,259 321,149
----------------------------------------------------------------------------
The increase in production for the first quarter was slightly offset by lower grades, with silver production of 287,259 ounces and copper production of 2.5 million pounds compared to 321,149 ounces of silver and 2.3 million pounds of copper for the same period in 2009.
Ore grades remain lower than life-of-mine averages (as was planned in the mine schedule), due to mining additional ore from Lower Quartzite area. Once production from the “C Bed” area becomes available in the fourth quarter, metal grades are expected to improve. Mill recoveries remained slightly higher than plan at 87.5% for silver and 85.1% for copper. The table below shows a comparison of operating costs per ton milled by quarter.
----------------------------------------------------------------------------
Q1.10 Q4.09 Q3.09 Q2.09 Q1.09 Q4.08 Q3.08 Q2.08
----------------------------------------------------------------------------
Tons milled 379,592 345,586 302,543 349,925 339,171 354,190 321,696 331,698
----------------------------------------------------------------------------
Cost per ton
milled ($) 22.99 23.71 25.03 21.89 21.90 27.82 29.31 29.59
----------------------------------------------------------------------------
In 2010, the Company changed the presentation of transportation and refining costs. In the past, the transportation and refining cost were netted against revenues, whereas now the transportation and refining costs are included in cost of sales. The 2008 and 2009 cost of sales have been adjusted to reflect this presentation change.
The full First Quarter 2010 consolidated financial statements and Management’s Discussion and Analysis (MD & A) can be viewed on www.sedar.com and the Company’s web site at www.revettminerals.com
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 will form the basis of our plan to become a solid 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 & CEO
For more information, please contact:
Doug Ward, VP Corporate Development or Monique Hayes, Corporate/Investor Communications at (509) 921-2294 or visit our website at www.revettminerals.com.
Except for the statements of historical fact contained herein, the information presented in this press 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 press release include but are not limited to those with respect to the expectation of production and improved grades from the “C Bed” reserves in the fourth quarter of this year, advancement of development at Troy mine and future advancements of the Rock Creek Project. Forward looking statements are subject to known and unknown risks, uncertainties and other factors. Reference is also made to 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.
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Spokane Valley, Washington, May 11, 2010; Revett Minerals Inc., (RVM:TSX / RVMIF:OTCBB) (“Revett” or the “Company”) announces its consolidated operating and financial results for the three months ended March 31, 2010. Currency is reported in United States dollars unless otherwise indicated.
Major Highlights for three months ended March 31, 2010 include:
• Generated $2.1 million in operating cash-flow from the Troy Mine, resulting in $0.01 per share overall profit;
• Achieved record mill throughput at Troy averaging 4,265 tons per day compared to 3,811 tons per day in the first quarter of 2009, a 12% improvement;
• Initiated development work for the higher grade “C Bed” reserves. Access should be completed by the end of the third quarter, 2010;
• Produced 287,259 ounces of silver and 2.5 million pounds of copper at the Troy Mine , generating $12.1 million in revenues;
• Silver Wheaton continued its support of the Company, subscribing additional shares in Revett to bring its shareholding to 16.6%.
Consolidated Results
Concentrate deliveries and sales during the first quarter of 2010 consisted of 2.4 million pounds of payable copper and 264,030 ounces of payable silver, compared to 2.2 million pounds of payable copper and 289,034 ounces of payable silver during the first quarter of 2009.
For the three month period ended March 31, 2010 the Company reported a net income after taxes of $0.9 million (which includes a $0.8 million non cash charge for the issuance of stock options); or, $0.01 per share profit on revenue of $12 million. This compares to a net loss of $0.9 million or $0.01 per share on revenue of $8.3 million for the same period last year. During the quarter ended March 31, 2010, copper prices averaged $3.28 per pound and silver averaged $16.92 per ounce compared to $1.56 per pound for copper and $12.62 per ounce for silver during the same period in 2009.
John Shanahan, President and CEO, noted “We are delighted to report first quarter profits of $0.01 per share buoyed by cash generation of $2.1million from our Troy operation. We will continue to focus on development and exploration at Troy which will cement our plans for future development. We are also very pleased with the recent judicial opinion on Rock Creek, as it provides us with the necessary information to proceed; and, we look forward to continuing our work with the U.S. Forest Service and other agencies as we move this project forward.”
Troy Mine
The following is a summary of key operating statistics for Troy for the three months ended March 31, 2010 and for the comparable period ended March 31, 2009.
----------------------------------------------------------------------------
Three Months Ended March 31, Three Months Ended March 31,
2010 2009
----------------------------------------------------------------------------
Tons milled 379,592 339,171
----------------------------------------------------------------------------
Tons milled per
day 4,265 3,811
----------------------------------------------------------------------------
Copper grade (%) 0.38 0.40
----------------------------------------------------------------------------
Silver grade
(opt) 0.86 1.09
----------------------------------------------------------------------------
Copper recovery
(%) 85.1 87.1
----------------------------------------------------------------------------
Silver recovery
(%) 87.5 86.3
----------------------------------------------------------------------------
Copper produced
(lbs) 2,456,190 2,316,702
----------------------------------------------------------------------------
Silver produced
(ozs) 287,259 321,149
----------------------------------------------------------------------------
The increase in production for the first quarter was slightly offset by lower grades, with silver production of 287,259 ounces and copper production of 2.5 million pounds compared to 321,149 ounces of silver and 2.3 million pounds of copper for the same period in 2009.
Ore grades remain lower than life-of-mine averages (as was planned in the mine schedule), due to mining additional ore from Lower Quartzite area. Once production from the “C Bed” area becomes available in the fourth quarter, metal grades are expected to improve. Mill recoveries remained slightly higher than plan at 87.5% for silver and 85.1% for copper. The table below shows a comparison of operating costs per ton milled by quarter.
----------------------------------------------------------------------------
Q1.10 Q4.09 Q3.09 Q2.09 Q1.09 Q4.08 Q3.08 Q2.08
----------------------------------------------------------------------------
Tons milled 379,592 345,586 302,543 349,925 339,171 354,190 321,696 331,698
----------------------------------------------------------------------------
Cost per ton
milled ($) 22.99 23.71 25.03 21.89 21.90 27.82 29.31 29.59
----------------------------------------------------------------------------
In 2010, the Company changed the presentation of transportation and refining costs. In the past, the transportation and refining cost were netted against revenues, whereas now the transportation and refining costs are included in cost of sales. The 2008 and 2009 cost of sales have been adjusted to reflect this presentation change.
The full First Quarter 2010 consolidated financial statements and Management’s Discussion and Analysis (MD & A) can be viewed on www.sedar.com and the Company’s web site at www.revettminerals.com
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 will form the basis of our plan to become a solid 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 & CEO
For more information, please contact:
Doug Ward, VP Corporate Development or Monique Hayes, Corporate/Investor Communications at (509) 921-2294 or visit our website at www.revettminerals.com.
Except for the statements of historical fact contained herein, the information presented in this press 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 press release include but are not limited to those with respect to the expectation of production and improved grades from the “C Bed” reserves in the fourth quarter of this year, advancement of development at Troy mine and future advancements of the Rock Creek Project. Forward looking statements are subject to known and unknown risks, uncertainties and other factors. Reference is also made to 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.
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA7615051066">http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA7615051066</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.