The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Revett Reports Q1 2012 Operations

Monday, April 30, 2012

Revett Reports Q1 2012 Operations11:00 EDT Monday, April 30, 2012SPOKANE VALLEY, WASHINGTON--(Marketwire - April 30, 2012) - Revett Minerals Inc. (NYSE Amex:RVM) (TSX:RVM) is pleased to announce first quarter 2012 production results from its Troy Mine, located in northwest Montana. Currency is reported in United States dollars unless otherwise indicated.Troy Mine Q1 2012 Operating Highlights include:Net cash from operations(1) for the quarter ending March 31, 2012, before capital expenditures was $7.5 million. A 135% increase over Q1 2011 net cash from operations of $3.2 million.Mill throughput for the first quarter was 331,523 tons processed, averaging 3,684 tpd for the period as compared to 291,690 tons (3,277 tpd) in Q1 2011. This is an improvement of approximately 12.5% over the comparable period in 2011.Silver production of 324,375 ounces averaging throughput grades of 1.12 oz/ton for the period. A production improvement of 32% over Q1 2011.Copper production of 2,249,111 pounds averaging throughput grades of .40% for the period. A production improvement of 13% over Q1 2011.There were no lost time accidents reported during Q1 2012. Our MSHA calculated Incidence Rate for Q1 2012 is 2.05 as compared to a national underground average for 2011 (latest available statistic) of 2.21. As at end of March 2012, it has been 400 days, and 419,030 man hours worked since our last lost time accident.Development work continues in the north C Bed decline and production ore is expected to be accessed by August 2012. In addition, pending final state and federal agency approvals, we expect to commence I Bed development in September, 2012. Development of the I Bed mine area will take approximately two years to complete.Production for the first quarter 2012 was approximately 8% below our previously announced guidance of 4,000 tpd primarily due to availability and retrofitting of equipment as we move towards higher bio-fuel usage and meeting revised DPM (diesel particulate matter) emission standards. Lower than planned copper grades were encountered as we advanced top slicing in the C Bed area and as a result of increased lower grade production from the South Ore Body.Taking into consideration adjustments for seasonal factors, along with slight variations of our mine work plan, our 2012 production guidance of 1.4 million ounces of silver and 11.5 million pounds of copper remains unchanged.Troy Production SummaryJanuaryFebruaryMarch1st Quarter 20121stQuarter 2011Mill ProductionMill Feed (st)122,66197,506111,356331,523291,690Mill Feed Rate (stpd)4,0893,3623,5923,6843,277SilverFeed Grade - Oz/Ton Ag0.991.201.191.121.02Mill Recovery - Ag85.9%88.8%87.4%87.3%82.2%Recovered Ounces104,277103,876116,222324,375245,068CopperFeed Grade - % Cu0.38%0.44%0.38%0.40%0.44%Mill Recovery - Cu85.1%86.2%85.8%85.7%77.8%Recovered Pounds782,620734,892731,5992,249,1111,998,410Cash Cost(2)Direct Operating Cost (US$/st)$33.86$33.23By-Product Basis (payable)- Silver (US$/oz) or,$9.23$11.99- Copper (US$/lb)$0.47$2.05Co-Product Basis (payable)- Silver (US$/oz) and,$20.94$19.37- Copper (US$/lb)$2.35$2.76Concentrate Inventory- Dry Short Tons304512- Silver (oz)30,85740,956- Copper (lbs)222,131342,609Sales- Silver (oz)296,765200,708- Copper (lbs)2,199,8781,756,915Net Cash from Operations(1)$7.5m$3.2m1. Net cash from operations is before capital expenditures and exploration and is a non GAAP measure. The Company believes that net cash 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 along with smelting, refining and transportation charges. 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 US 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 US 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. Release of Quarterly Financial Results and Conference Call Revett plans to release financial results for the first quarter on Thursday, May 10, 2012 and hold its quarterly conference call on Friday, May 11, 2012 at 11:30am Eastern Time. To join the conference call dial 1-888-231-8191 or 647-427-7450 internationally. About Revett Revett, 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 our 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 & CEO Except for the statements of historical fact contained herein, the information presented in this press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of 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 "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", "occur" or "be achieved". Forward-looking statements contained in this press release include but are not limited to statements with respect to estimated production for 2012 and anticipated development work in the north C bed decline and I bed. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while conidered reasonable by management, are inherently subject to significant uncertainties, risks and contingencies. Actual production and development could be affected by development risks and production risks which may include a range of issues such as grades, equipment failure, accidents, and geologic formations and unanticipated cost increases as well as 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 does not undertake to update any forward-looking statements, except as required under applicable laws.FOR FURTHER INFORMATION PLEASE CONTACT: Monique HayesRevett Minerals Inc.Corporate Secretary/Director of Investor Relations(509) 921-2294www.revettminerals.com