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Press release from Marketwire

Revett Reports Q1 2012 Earnings

Thursday, May 10, 2012

Revett Reports Q1 2012 Earnings08:16 EDT Thursday, May 10, 2012SPOKANE VALLEY, WASHINGTON--(Marketwire - May 10, 2012) - Revett Minerals Inc. (NYSE Amex:RVM) (TSX:RVM) is pleased to announce its consolidated operating and financial results for the first quarter ended March 31, 2012. The financial results are based on US GAAP unless otherwise indicated and all currencies are in United States dollars unless otherwise indicated.For the three months ended March 31, 2012, the Company recorded net income of $3.7 million or $0.11 per share on revenues of $19.2 million.Highlights for the quarter ended March 31, 2012 include:Net cash from operations(1) for the quarter ended March 31, 2012, before capital expenditures was $7.5 million, a 135% increase over first quarter 2011 net cash from operations of $3.2 million.Cash and short term investments on hand increased to $28.7 million, a 181% increase compared to $10.2 million at March 31, 2011.Working capital increased to $31.4 million, a 154% increase compared to $12.4 million at March 31, 2012. Adjusted EBITDA(2) was $5.3 million for the first quarter of 2012, a 84% increase compared to $2.9 million at March 31, 2011.Silver production for the first quarter of 2012 totaled 324,375 ounces and copper production totaled 2,249,111 pounds. Cash costs net of by-products(3) were $9.23 per ounce of silver or, $0.47 per pound of copper. Consolidated Financial ResultsTotal revenue for the first quarter of 2012 increased by 50% to $19.2 million compared to $12.8 million during the first quarter of 2011. Net income for the first quarter was $3.7 million or $0.11 per share, compared to a net loss of $2.8 million or $(0.12) per share for 2011. The increase in first quarter 2012 revenues and net income was due primarily to higher metal production as compared to first quarter 2011.Cost of sales increased in the first quarter of 2012 by 35% compared to 2011. This increase was due to higher mill throughput, higher freight, treatment and refining charges, and increased labor and fuel costs.At March 31, 2012, cash and short term investments were $28.7 million, compared to $10.2 million at March 31, 2011. The Company's working capital also increased to $31.4 million compared to $12.4 million at March 31, 2011.Selected Financial Highlights:Q1 2012Q1 2011ChangeNet Cash from Operations (1)$7.5m$3.2m135%Revenue$19.2m$12.8m50%Working Capital$31.4m$12.4m154%Adjusted EBITDA(2)$5.3m$2.9m84%Net Income$3.7m$(2.8m)EPS (basic)$0.11$(0.12)EPS (fully diluted)$0.10$(0.12)Cash & short term investments$28.7m$10.2m181%Troy Operating SummaryMill throughput for the first quarter of 2012 was 331,523 tons, averaging 3,684 tpd compared to 291,690 tons (3,277 tpd) for the first quarter of 2011. This is an improvement of 12.4% over the same period last year. Silver production of 324,375 ounces and copper production of 2,249,111 pounds were 32% and 13% respectively higher than in 2011.Selected Operating Highlights:Q1 2012Q1 2011ChangeTons milled331,523291,69012.4%Tons milled per day3,6843,27712.4%Silver Grade (ounces per ton)1.121.029.7%Silver Recovery (%)87.382.26.2%Silver Production (ounces)324,375245,06832.4%Silver Sold (payable ounces)296,765196,22247.9%Average realized silver price ($/oz)$34.38$29.30$14.8Copper Grade (%)0.400.44(9.1%)Copper Recovery (%)86.078.010.3%Copper Production (pounds)2,249,1111,998,41012.6%Copper Sold (payable pounds)2,199,8781,756,91525.2%Average realized copper price ($/lb)$3.88$4.03$(9.6)Troy Mine Operating Costs and InventoryThe table below summarizes final cash costs and concentrate inventory for the first quarter ended March 31, 2012.Q1 2012Q1 2011ChangeCash Cost(3)Direct Operating Cost (US$/st)$33.86$33.232%By-Product Basis (payable)- Silver (US$/oz) or,$9.23$11.9923%- Copper (US$/lb)$0.47$2.0577%Co-Product Basis (payable)- Silver (US$/oz) and,$20.94$19.379%- Copper (US$/lb)$2.35$2.7615%Concentrate InventoryDry Short Tons30451241%- Silver (oz)30,85740,95625%- Copper (lbs)222,131342,60936%1. 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. Adjusted EBITDA is a non GAAP measure in which standard EBITA (earnings before interest, taxes, depreciation and amortization) is adjusted for share-based payments, foreign exchange gains or losses, and other non cash and non-recurring items.3. 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.Rock CreekWe continue to work with the US Forest Service (USFS) as the lead agency to complete a Supplemental EIS on the Rock Creek Project to address administrative and NEPA related issued as directed by the Federal District Court in May 2010. The Biological Opinion, which was affirmed by the U.S. Court of Appeals 9th Circuit in November 2011, along with the Supplemental EIS provides the basis for the determination of a revised Record of Decision. We are currently reviewing the project schedule with the agency and hope to provide an update on an expected release of the Supplemental EIS in the near future.John Shanahan, President and CEO stated, "The first quarter of 2012 was another solid and profitable quarter for Revett. Our operations team at the Troy Mine continue to provide consistent results and remain focused on meeting our production guidelines of 1.4m ounces of silver and 11.5m pounds of copper in 2012. The Troy Mine remains our bridge to the development of Rock Creek, providing ever increasing technical expertise, a growing financial base, and an important environmental showcase for responsible development in the northwest Montana." Quarterly Financial Results Conference Call Revett has scheduled a conference call to discuss its first quarter 2012 financial results on Friday, May 11, 2012, at 11:30 am (EST). To participate in the call, North American callers can dial in at 1-888-231-8191 and International callers can join the call at (647) 427-7450. 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 May 18, 2012. To listen to the recording, call toll free (855) 859-2056 or (416) 849-0833 and enter the access code 76917584#.About RevettRevett 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", "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 anticipated production in 2012. Forward looking statements, including future-oriented financial information, are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business and economic uncertainties, risks and contingencies, that actual production may differ from assumed production 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. Future oriented financial information is by its nature only an estimate and there are no guarantees that they will be achieved. 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 as required by with applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Ken EickermanRevett Minerals Inc.Chief Financial Officer(509) 921-2294ORMonique HayesRevett Minerals Inc.Corporate Secretary/Director Investor Relations(509) 921-2294www.revettminerals.com