This information was accurate at the time of posting, but may be superseded by
subsequent news releases.
Revett Minerals Reports Second Quarter 2009 Results
August 18, 2009Revett Minerals Inc., Spokane Valley, Washington (“TSX-RVM”) (“Revett” or the “Company”) announces its consolidated operating and financial results for the Company’s second quarter of 2009. Currency is reported in United States dollars unless otherwise indicated.
Major Highlights for three & six months ended June 30, 2009 include:
- Improved mill throughput at Troy, averaging 3,932 tons per day, compared to 3,645 tons per day in the second quarter of 2008;
- Increased production at Troy, totaling 301,770 ounces of silver and 2.4 million pounds of copper, compared to 259,847 ounces of silver and 2.4 million pounds of copper in the second quarter of 2008;
- Improved productivity and reduced consumables at Troy resulted in a 29% reduction of direct operating costs per ton milled compared to the second quarter of 2008;
- Advanced efforts to streamline corporate structure with the issuance of 22,698150 common shares in redemption of an equivalent number of Revett Silver Class B common shares during the first half of 2009, with the result that the Company now owns 96.7% of the issued and outstanding common shares of Revett Silver;
- Produced 622,919 ounces of silver and 4.7 million pounds of copper at the Troy Mine during the first half of 2009 compared to 491,759 ounces of silver and 4.5 million pounds of copper during the same period in 2008.
Consolidated Results
During the first half of 2009 the Company was able to reduce direct operating costs by $3.9 million over the same period in 2008. Several factors contributed to this reduction: (1) successful employee efforts that focused on reducing the consumption of items such as fuel, explosives and milling reagents; (2) lower acquisition costs of those consumables; and (3) reduced labor costs due principally to a 10% payroll reduction at the Troy Mine and a 20% payroll reduction at the corporate office.
Concentrate deliveries and sales during the second quarter of 2009 consisted 2.3 million pounds of payable copper and 283,009 ounces of payable silver for the three months ended June 30, 2009, compared to 2.5 million pounds of copper and 253,523 ounces of silver during the second quarter of 2008.
Despite a reduction in operating costs and an improvement in production, the Company reported loss in the first half of 2009 of $1.9 million or $0.02 per share on revenue of $14.8 million, compared to net income of $1.5 million or $0.02 per share on revenue of $25.4 million for the first half of 2008. Net income for the first half continued to be negatively affected by the decrease in the price of copper and silver that began in 2008. Although metal prices have begun a modest recovery this year, first quarter 2009 prices for both copper and silver were substantially lower than for the same period last year.
John Shanahan, President and CEO, noted “The first half of this year has been a critical period for our company and we are pleased to report the improved efficiencies in our operations. The focus and dedication of our employees has created a cornerstone for our future growth and I thank them sincerely for their wonderful efforts”
The Company is currently investigating a number of alternative means of raising additional capital with potential lenders and investors, however, no assurance may be given these efforts will be successful. The Company is currently negotiating with Trafigura to restructure the US$4.3 million interest bearing note. As of June 30, 2009 the Company had a negative working capital of $3.7 million.
Troy Mine
The following is a summary of key operating statistics for Troy for the three months ended June 30, 2009 and for the comparable period ended June 30, 2008.
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Three Months Ended June 30 2009
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Three Months Ended June 30, 2008
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Tons milled
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349,925
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331,698
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Tons milled per day
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3,932
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3,727
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Copper grade (%)
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0.39
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0.41
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Silver grade (opt)
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1.01
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0.87
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Copper recovery (%)
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84.0
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87.9
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Silver recovery (%)
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86.0
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90.05
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Copper produced (lbs)
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2,284,770
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2,388,947
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Silver produced (ozs)
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301,770
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259,847
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Production during the second quarter of 2009 was significantly improved at 3,932 tons per day, an 8% improvement over the second quarter of 2008 at 3,645 tons per day. Ore grades remain slightly lower than life-of-mine averages (as was planned in the mine schedule), due to the fact that more ore from the lower grade area known as the Lower Quartzite was mined during the quarter. Mill recoveries remained good, but lower than plan due to higher non sulfide ore at 86.0% silver and 84.0% for copper, compared to expected recoveries of 88.5% and 87.0% copper in the second quarter of 2009.
As shown in the table, direct operating costs also improved significantly in the second quarter of 2009, declining by 29% compared to second quarter of 2008.
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Q2.09
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Q1.09
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Q4.08
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Q3.08
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Q2.08
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Q1.08
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Tons milled
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349,925
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339,171
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354,190
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321,696
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331,698
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299,863
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Cost per ton milled ($)
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19.09
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18.69
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26.40
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26.83
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26.86
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28.39
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Rock Creek
Permitting for Rock Creek Project is now complete and all pleadings have been submitted to the United States District Court for the District of Montana in conjunction with pending environmental challenges. A ruling from the court is expected by the end the year, if not sooner.
The full Second Quarter 2009 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 and development-stage Rock Creek Project, both located in northwestern 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 Manager 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 a ruling on environmental challenges to the permit for the Rock Creek Project. There are no assurances that a final ruling will in fact be issued with respect to the environmental challenges on a timely basis or at all as there may be further challenges. 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.
© Copyright 2010, Revett Minerals, Inc.
