Revett Minerals Inc. : Revett Reports Q1 2012 Earnings
SPOKANE VALLEY, WA -- (Marketwire) -- 05/10/12 -- 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 cashfrom 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 costsnet of
by-products(3) were $9.23 per ounce of silver or, $0.47 per pound of
copper.
Consolidated Financial Results
Total 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 2012 | Q1 2011 | Change |
+--------------------------------+---------+---------+--------+
| Net Cash from Operations(1) | $7.5m | $3.2m | 135% |
+--------------------------------+---------+---------+--------+
| Revenue | $19.2m | $12.8m | 50% |
+--------------------------------+---------+---------+--------+
| Working Capital | $31.4m | $12.4m | 154% |
+--------------------------------+---------+---------+--------+
| Adjusted EBITDA(2) | $5.3m | $2.9m | 84% |
+--------------------------------+---------+---------+--------+
| 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 | $10.2m | 181% |
+--------------------------------+---------+---------+--------+
Troy Operating Summary
Mill throughput for the first quarter of 2012 was 331,523 tons, averaging
3,684
tpd compared to 291,690 tons (3,277 tpd) for the first quarter of 2011.
This is
an improvement of 12.4% over the same period last year. Silver production
of
324,375 ounces and copper production of 2,249,111 pounds were 32% and 13%
respectively higher than in 2011.
Selected Operating Highlights:
+--------------------------------------+-----------+-----------+--------+
| | Q1 2012 | Q1 2011 | Change |
+--------------------------------------+-----------+-----------+--------+
| Tons milled | 331,523 | 291,690 | 12.4% |
+--------------------------------------+-----------+-----------+--------+
| Tons milled per day | 3,684 | 3,277 | 12.4% |
+--------------------------------------+-----------+-----------+--------+
| Silver Grade (ounces per ton) | 1.12 | 1.02 | 9.7% |
+--------------------------------------+-----------+-----------+--------+
| Silver Recovery (%) | 87.3 | 82.2 | 6.2% |
+--------------------------------------+-----------+-----------+--------+
| Silver Production (ounces) | 324,375 | 245,068 | 32.4% |
+--------------------------------------+-----------+-----------+--------+
| Silver Sold (payable ounces) | 296,765 | 196,222 | 47.9% |
+--------------------------------------+-----------+-----------+--------+
| Average realized silver price ($/oz) | $34.38 | $29.30 | $14.8 |
+--------------------------------------+-----------+-----------+--------+
| Copper Grade (%) | 0.40 | 0.44 | (9.1%) |
+--------------------------------------+-----------+-----------+--------+
| Copper Recovery (%) | 86.0 | 78.0 | 10.3% |
+--------------------------------------+-----------+-----------+--------+
| Copper Production (pounds) | 2,249,111 | 1,998,410 | 12.6% |
+--------------------------------------+-----------+-----------+--------+
| Copper Sold (payable pounds) | 2,199,878 | 1,756,915 | 25.2% |
+--------------------------------------+-----------+-----------+--------+
| Average realized copper price ($/lb) | $3.88 | $4.03 | ($9.6) |
+--------------------------------------+-----------+-----------+--------+
Troy Mine Operating Costs and Inventory
The table below summarizes final cash costs and concentrate inventory for
the
first quarter ended March 31, 2012.
+----------------------------------------+---------+---------+--------+
| | Q1 2012 | Q1 2011 | Change |
+----------------------------------------+---------+---------+--------+
| Cash Cost(3) | | | |
+----------------------------------------+---------+---------+--------+
| Direct Operating Cost (US$/st) | $33.86 | $33.23 | 2% |
+----------------------------------------+---------+---------+--------+
| By-Product Basis (payable) | | | |
+----------------------------------------+---------+---------+--------+
| - Silver (US$/oz) or, | $9.23 | $11.99 | 23% |
+----------------------------------------+---------+---------+--------+
| - Copper (US$/lb) | $0.47 | $2.05 | 77% |
+----------------------------------------+---------+---------+--------+
| Co-Product Basis (payable) | | | |
+----------------------------------------+---------+---------+--------+
| - Silver (US$/oz) and, | $20.94 | $19.37 | 9% |
+----------------------------------------+---------+---------+--------+
| - Copper (US$/lb) | $2.35 | $2.76 | 15% |
+----------------------------------------+---------+---------+--------+
| Concentrate Inventory | | | |
+----------------------------------------+---------+---------+--------+
| Dry Short Tons | 304 | 512 | 41% |
+----------------------------------------+---------+---------+--------+
| - Silver (oz) | 30,857 | 40,956 | 25% |
+----------------------------------------+---------+---------+--------+
| - Copper (lbs) | 222,131 | 342,609 | 36% |
+----------------------------------------+---------+---------+--------+
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 Creek
We 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 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
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.
11115 East Montgomery, Suite G, Spokane Valley, WA 99206
509-921-2294 fax 509-891-8901
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Revett Minerals Inc. via Thomson Reuters ONE
[HUG#1610763]
For more information, please contact:
Ken Eickerman
Chief Financial Officer
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
www.revettminerals.com