Revett Reports Q3 Earnings and Provides Guidance for Full Year 2011
SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 11/14/11 -- Revett Minerals Inc. (TSX: RVM) (NYSE Amex: RVM) today announced net income for the three months ended September 30, 2011 of $2.6 million or $0.08 per share. Quarterly revenues were $16.7 million, a 35% increase compared to the same period last year. The Company has also increased its cash and cash equivalents on hand at the end of the third quarter to $19.9 million from $8.8 million at the beginning of the year. All currency in this release is in United States dollars unless otherwise indicated.
Sales and net income are lower than anticipated due to timing of concentrate deliveries at the end of September. On the basis of completing 2011 at planned production levels at current metal prices, along with shipping current concentrate inventory, the company believes that it will generate approximately $29.5 million net cash(1) from operations before capital expenditures for 2011 and provides full year 2011 net income guidance of $0.50 per share.
Revett President and Chief Executive Officer John Shanahan said, 'We are well on our way to meeting our objectives for 2011 and we look forward to commencing 2012 as an established and growing producer of silver and copper. Our goals in the upcoming twelve months are very clear;
continue to extend the mine life at Troy while operating to the highest degree of safety, along with taking the necessary steps to advance the development of Rock Creek.'
Highlights:
-- Record mill throughput of 4,370 tons per day. This is the highest
quarterly average daily mill throughput since operations recommenced in
late 2004.
-- Silver production totaled 402,700 ounces and copper production totaled
3,272,526 pounds, representing increases of 45% for silver and 39% for
copper over the same period last year.
-- Net cash(1) from operations before capital expenditures for the third
quarter of 2011 was $8.4 million, for a total of $19.1 million for the
first three quarters of 2011.
-- Cash costs for the third quarter of 2011 on a net of by-product basis
were $4.34 per ounce of silver and $0.71 per pound of copper.
-- The Company's working capital increased to $23.5 million as of September
30, 2011, compared to $8.8 million at January 1, 2011.
The following tables provide a summary of key operating statistics for the
Troy silver and copper mine located in northwestern Montana for the three
months ended September 30, 2011 and for the comparable period ended
September 30, 2010.
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Three Months Ended Three Months Ended
September 30, 2011 September 30, 2010
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Production:
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Tons milled 393,341 352,296
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Tons milled per day 4,370 3,914
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Silver grade (opt) 1.18 0.95
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Copper grade (%) 0.49 0.44
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Silver recovery (%) 86.96 83.24
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Copper recovery (%) 84.50 76.56
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Silver produced (ozs) 402,700 277,437
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Copper produced (lbs) 3,272,526 2,347,643
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Concentrate Inventory:(3)
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Dry Metric Tons 1,508 178
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- Silver (ozs) 162,177 14,880
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- Copper (lbs) 1,321,756 126,485
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Cash Costs:(2)
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Direct Operating Cost Per Ton (US$) $29.00 $23.39
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By-Product Basis (payable)
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- Silver (US$/oz) $4.34 $3.18
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- Copper (US$/lb) $0.71 $1.44
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Co-Product Basis (payable)
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- Silver (US$/oz) $15.19 $12.42
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- Copper (US$/lb) $1.87 $2.13
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Realized Sales & Prices:(4)
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- Silver (ozs) 295,325
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(US$/oz) $31.04 $18.22
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- Copper (lbs) 2,606,069
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(US$/lb) $3.78 $3.11
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(1) Net cash from before capital expenditures is a non GAAP measure. The
Company believes that net cash provided from operations before capital
expenditures 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 and smelting, refining and
transport costs. 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 U.S. 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 U.S. 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.
(3) Significant monthly variation in revenues and operating costs are a
result of timing of concentrate shipments
(4) Due to the fixed pricing in place, the net price received for the metals
was slightly lower than the average price during the period.
Quarterly Financial Results Conference Call
Revett has scheduled a conference call to discuss its 3rd quarter 2011 financial results on Tuesday, November 15, 2011, at 12:00 pm (EST).
To participate in the call, North American callers can dial in at 1-800-732-1073 and International callers can join the call at (416) 644-3424. 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 November 22, 2011. To listen to the recording, call toll free (877) 289-8525 or (416) 640-1917 and enter the access code 4488263#.
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 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 respect to anticipated net cash from operations before capital expenditures for the year, net income for the year and our goals for the upcoming year. 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 and metal prices may differ from assumed production levels and metal prices 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 guarantee 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 that are incorporated by reference herein, except in accordance with applicable securities laws.
Contacts:
Revett Minerals Inc.
Ken Eickerman
Chief Financial Officer
(509) 921-2294
Revett Minerals Inc.
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
www.revettminerals.com