This information was accurate at the time of posting, but may be superseded by
subsequent news releases.
Revett Minerals Reports First Ever Quarterly Profit and Improving Operations at Troy
May 9, 2006May 9, 2006; Revett Minerals Inc (“Revett” or the “Company”, Spokane Valley, Washington (“TSX-RVM”) is pleased to report that the Company reported its first ever positive earnings driven by improving operations at the Troy Mine (“Troy”) and very strong commodity prices. All currency in this release is in United States dollars unless otherwise indicated.
Overall Performance
The most significant achievements included:
- Operating income from the Troy Mine (100% basis) of $1,368,100;
- Consolidated income from operations of $184,300;
- Consolidated net income before tax and non controlling interest of $120,400;
- Consolidated net income after tax and non controlling interest of $25,600; and
- Increased average tons milled per day to 3,142 tons for the current quarter compared to an average mill throughput of 2,145 tons per day for 2005.
In summarizing the performance of the Company, during the first three months of 2006, Mr. William Orchow, President and CEO of Revett Minerals, stated “We are delighted to see that both Revett Minerals and the Troy Mine have achieved their first ever quarter of positive net earnings. The improving financial performance is being driven by higher mill throughput and strong metal prices.”
The Troy Mine
During the first quarter of 2006, the Troy Mine set a record for mill throughput since mining operations were resumed by Revett processing on average 3,142 tons per day. This throughput level compares to an average mill throughput of 2,233 tons per day in the first quarter of 2005 and an average throughput of 2,145 tons per day for the entire 2005 calendar year.
For the quarter, the Troy Mine sold 1.8 million pounds of payable copper and 225,679 ounces of payable silver, and reported revenue of $7.4 million. The Troy Mine reported strong first quarter operating income (100% basis) of approximately $1.4 million. Only 67% of these earnings are attributable to the shareholders of Revett Minerals because of the non controlling shareholdings in Revett Silver. For the Revett Minerals shareholders the following costs must be deducted from the operating earnings of $1.4 million: (1) Revett Silver costs of $0.6 million, (2) Rock Creek spending of $0.3 million, and (3) Revett Minerals general and administrative costs of $0.4 million. This results in net income before non controlling interests and taxes of $0.1 million. The following is a summary of the production, sales and shipment results from the Troy Mine (100% basis) for the first quarter of 2006.
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First Quarter 2006
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Tons milled
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282,801
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Tons milled per day
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3,142
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Copper grade (pct)
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0.44
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Silver grade (opt)
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1.11
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Copper recovery (pct)
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81.1
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Silver recovery (pct)
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84.2
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Copper produced (pounds)
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2,026,697
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Silver produced (ounces)
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265,321
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Copper sold (pounds)
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1,755,219
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Silver sold (ounces)
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225,679
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During the quarter ending March 31, 2006, the mill processed ore at the rate of approximately 3,142 tons per day. This compares with an average of 2,145 tons milled per day during 2005. While improvements are being made in increasing mill throughput, the Company continues to focus on efforts to further increase mill throughput. For example, the Company is investigating the possibility of acquiring an additional production drill and efforts are continuing to increase training, maintenance planning and safety at the Troy Mine.
Consolidated Results
As discussed previously, Revett Minerals reported consolidated net income before tax and non controlling interest of $120,400 and net income after tax and non controlling interest of $25,600 for the quarter on sales revenue of $7.4 million. Income from operations totaled $184,300 and included the following deductions and expenses; cost of sales $5.9 million, depreciation and amortization $414,700, exploration and development $316,600 and general and administration costs of $551,100. In addition, interest expense, net of interest income was $63,900.
About Revett
Revett Minerals, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine located in northwest Montana. Based on the drilling to date, Rock Creek contains an estimated inferred resource of 136.6 million tons grading 1.67 ounces silver per ton and 0.72% copper, containing approximately 229 million ounces of silver and over 2 billion pounds of copper using a cut off grade of US $10.00 per ton. Further information on both the Troy Mine and the Rock Creek Project may be found in the National Instrument 43-101 reports at www.sedar.com. These reports were prepared on behalf of the Company by Mr. Jean-Francois Couture, P.Geo. and Mr. Ken Reipas, P.Eng. of SRK Consulting (Canada). Both Mr. Couture and Mr. Reipas are Qualified Persons in accordance with National Instrument 43-101. All of these issues are discussed in greater detail in the Company’s official filings at www.sedar.com.
William Orchow
President & CEO
For more information, please contact:
Scott Brunsdon, CFO or Doug Ward, VP Corporate Development 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 the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of silver and copper, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks relating to environmental laws and regulations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver and copper, as well as those factors discussed in the section entitled "Risk Factors" in the Final Long-Form Prospectus filed on sedar at www.sedar.com. 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 as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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Revett Minerals Inc.
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Consolidated Balance Sheets
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at March 31, 2006
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(expressed in thousands of United States dollars)
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March 31, 2006
(unaudited)
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December 31, 2005
(audited)
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Assets
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Current Assets
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Cash and cash equivalents
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$ 3,573.4
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$ 4,608.5
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Short term investments
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5,890.4
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7,396.4
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Receivables
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4,512.3
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3,089.5
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Inventory
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2,600.2
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1,738.4
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Prepaid expenses and deposits
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794.4
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703.2
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Total current assets
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17,370.7
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17,536.0
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Property, plant, equipment & mine development (net)
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56,807.8
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57,191.3
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Restricted cash
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6,797.6
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6,718.6
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Other long term assets
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1,642.0
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1,680.4
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Total assets
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$ 82,618.1
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$ 83,126.3
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Liabilities and stockholders equity (deficiency)
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Current liabilities
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Accounts payable and accrued liabilities
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$ 2,768.3
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$ 2,858.8
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Current portion of lease and note obligations
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3,266.6
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4,077.2
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Total current liabilities
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6,034.9
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6,936.0
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Long-term portion of debt
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11,343.2
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11,108.0
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Reclamation and remediation
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8,988.6
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8,951.4
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Future income tax
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7,297.8
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7,297.8
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Total liabilities
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33,664.5
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34,293.2
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Non controlling interest
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8,305.7
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8,210.8
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Stockholders' equity (deficiency)
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Preferred stock, no par value, unlimited authorized,
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nil issued and outstanding
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Common stock, no par value unlimited authorized,
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59,005,395 shares issued and outstanding
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42,701.4
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42,701.4
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Contributed surplus
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243.2
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243.2
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Deficit
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(2,296.7)
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(2,322.3)
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40,647.9
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40,622.3
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Total liabilities and stockholders equity
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$ 82,618.1
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$ 83,126.3
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Revett Minerals Inc.
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Consolidated Statement of Operations
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Three months ended March 21, 2006 and March 31, 2005
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(expressed in thousands of United States dollars)
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Three month period
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Three month period
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ended March 31, 2006
(unaudited)
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Ended March 31, 2005
(unaudited)
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Revenues
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$ 7,437.7
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$ -
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Costs:
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Cost of sales
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5,933.8
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(85.4)
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Depreciation and amortization
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414.7
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89.4
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Exploration and Development
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316.6
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58.4
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General & administrative
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551.1
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200.4
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Accretion of reclamation and remediation liability
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37.2
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16.2
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7,253.4
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279.1
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184.3
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(279.1)
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Other (income) expense:
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Interest expense
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241.7
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181.2
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Interest income
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(177.7)
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(45.1)
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Total other expenses
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63.9
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136.2
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Net income (loss) before non controlling interest and taxes
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120.4
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(415.3)
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Income taxes (recovery)
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-
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-
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Net income after taxes before non controlling interest
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120.4
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(415.3)
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Non controlling interest
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94.8
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(126.7)
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Net income (loss) for the period
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25.6
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(288.6)
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Basic and diluted loss per share
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$ 0.00
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$ (0.01)
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Fully diluted earnings (loss) per share
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$ 0.00
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$ (0.01)
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Weighed average number of shares outstanding
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60,047,503
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19,702,283
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Revett Minerals Inc.
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Consolidated Statement of Cash Flow
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Three months ended March 31, 2006 and March 31, 2005
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(expressed in thousands of United States dollars)
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Three month period
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Three month period
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March 31, 2006
(unaudited)
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March 31, 2005
(unaudited)
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Cash flows from operating activities:
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Net loss for the period
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$ 25.6
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$ (288.6)
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Adjustment to reconcile loss to net cash
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used by operating activities
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Depreciation and amortization
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414.7
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89.4
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Accretion of reclamation and remediation liability
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37.2
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58.4
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Stock based compensation
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-
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10.3
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Expenses piad with common shares
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-
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-
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Future income tax expense (recovery)
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-
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-
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Non controlling interest
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94.8
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(126.7)
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Changes in:
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Accounts receivable
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(1,422.8)
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552.8
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Inventory
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(861.7)
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(1,643.6)
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Prepaid expenses and deposits
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(91.1)
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(608.4)
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Accounts payable
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(90.6)
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1,368.7
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Deferred revenue acquired
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-
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2,061.0
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Net cash used by operating activities
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(1,894.0)
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1,473.4
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Cash flows from investing activities
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Business acquisitions, net of cash required
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-
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1,123.3
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Other long term assets
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39.3
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(1,360.0)
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Restricted cash
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(78.9)
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(6,418.6)
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Purchase of mineral property, plant and equipment
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(32.0)
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(584.6)
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Sale of short term investments
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1,506.0
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-
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Net cash provided (used) by investing activities
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1,434.4
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(7,239.9)
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Cash flows from financing activities:
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Proceeds from the issuance of common stock, net
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-
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24,972.1
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Proceeds from long term debt
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-
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210.4
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Repayment of debt
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(463.3)
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-
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Repayment of capital leases
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(112.3)
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-
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Net Cash from (used by) financing activities
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(575.5)
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25,182.6
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Net increase in cash and cash equivalents
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(1,035.1)
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19.416.0
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Cash and cash equivalents, beginning of period
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4,608.5
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-
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Cash and cash equivalents, end of period
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$ 3,573.4
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$ 19,416.0
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Supplementary cash flow information:
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Cash paid for interest expense
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$ 299.6
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$ -
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Cash paid for income taxes
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-
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-
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Common stock issued in business acquisition
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-
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16,439.5
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Common stock issued in connection with debt settlement
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-
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-
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Acquisition of plant and equipment under capital lease
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-
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-
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© Copyright 2010, Revett Minerals, Inc.
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