Revett Minerals Inc.
TSX : RVM
OTC Bulletin Board : RVMIF

Revett Minerals Inc.

March 19, 2010 16:51 ET

Revett Minerals Reports on 2009 Financial and Operating Results

SPOKANE VALLEY, WASHINGTON--(Marketwire - March 19, 2010) - Revett Minerals Inc. (TSX:RVM) (OTCBB:RVMIF) ("Revett" or "the Company") announces its consolidated operating and financial results for the year ending December 31, 2009. All currency in this release is in United States dollars unless otherwise indicated.

Highlights for year ending December 31, 2009

Despite a difficult start to 2009, Revett is pleased to have accomplished many of its corporate and operating objectives for the year, including:

- Strengthened balance sheet;

-- Increased net working capital by $4.3 million from the end of first quarter 2009 while also reducing total liabilities by $5.8 million:

-- Restructured debt and payment obligations with Trafigura, Royal Gold and Small Mines Development;

- Streamlined corporate structure:

-- Converted remaining Revett Silver Class B common shares for Revett Minerals common shares. Revett Minerals now owns 100% of Revett Silver;

- Resolved pending legal actions, including a lawsuit related to a 2007 mine fatality and outstanding MSHA fines;

- Finalized U.S. (OTCBB) listing and significantly increased trading volume:

-- 425,000 average daily volume on Toronto Stock Exchange

-- 245,000 average daily volume on U.S. Over the Counter Bulletin Board

- Record mill throughput with 1,337,225 tons processed at Troy Mine

-- 3,735 tons per day average compared to 3,652 tons per day in 2008;

- Lowest annual direct operating cost per ton since Revett reopened the mine 2005:

-- $20.32/st direct operating cost compared to $26.18/st in 2008

John Shanahan, President and CEO stated "2009 has been a significant year in the Company's growth, setting the foundation for improved productivity and success as we move forward into 2010 and beyond. We are now well positioned to meet our 2010 goals for operating profitability and to further explore our resources at Troy. We remain focused and continue to advance our flagship project, Rock Creek."

Consolidated Financial Results

During 2009, the Troy Mine was able to realize a gross profit (revenue less cost of sales) of $1 million on sales of $29 million versus gross loss of $1.2 million in 2008. The increase in gross profit in 2009 resulted from a decrease in cost of sales, which was primarily the result of lower labor costs (chiefly due to a 10% pay reduction for all workers at the Troy Mine), lower cost for consumables through increased operating efficiencies and a continued focus on obtaining the lowest costs possible.

In addition, general and administrative costs were reduced to $2.8 million (compared to $5.6 million in 2008), a 50% reduction. The 2009 decrease in administration costs was largely due to a 20% decrease in management salaries, a $0.5 million decrease in directors' fees and a $2.0 million decrease in legal and consulting fees. Exploration and development spending was also reduced to about $0.3 million in 2009 compared to $2.1 million in 2008, as part of the Company's overall efforts to reduce spending.

Despite an overall reduction in operating costs, the Company reported a consolidated net loss of $5.0 million or $0.05 per share on revenue $29.4 million for the year ended December 31, 2009, compared to a consolidated net loss of $6.7 million or $0.09 per share on revenue of $35.9 million for the year ended December 31, 2008. Our revenues decreased in 2009 because of a significant decrease in the price of copper and silver over the first six months of the year. This pricing variance, coupled with a 10% decrease in payable copper production due to lower copper grades, resulted in lower revenues in 2009 as compared to 2008.

Troy Operating Summary

Troy achieved record mill throughput in 2009, and the lowest direct operating cost per ton, since the mine was reopened in 2005. However, lower head grades coupled with a period of lower metallurgical recovery, due to a higher level of non-sulfide ores encountered, yielded lower silver and copper production and higher unit cash cost of production. The lower grades were expected as scheduled in the life-of-mine plan. Mining has progressed through the higher non-sulfide area and recoveries have returned to normal.

The following is a summary of key operating statistics for the twelve months ended December 31, 2009 compared to the same periods in 2008 and 2007:



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Troy Production
Summary (100%) December 31, 2009 2008 Fiscal Year 2007 Fiscal Year
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Tons milled 1,337,225 1,307,447 1,108,503
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Tons milled per day 3,735 3,642 3,096
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Operating cost per
ton milled (USD) 20.32 26.18 26.03
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Silver grade (opt) 1.00 1.00 1.07
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Copper grade (pct) 0.39 0.43 0.50
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Silver recovery (pct) 85.0 89.8 88.9
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Copper recovery (pct) 83.0 87.5 86.9
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Silver produced
(ounces) 1,127,639 1,178,913 1,054,417
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Copper produced
(pounds) 8,567,765 9,791,145 9,681,827
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Silver sold (ounces) 1,022,888 1,047,731 964,916
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Copper sold (pounds) 8,335,153 9,342,126 8,962,776
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Milling throughput at Troy for 2009 was 1,337,225 tons of ore (3,735 tons per day), which was approximately 3% more mill throughput than was achieved in 2008. We did not meet our operating projections of 4,238 tons per day at Troy due to twelve days of lost production due to electrical issues and a safety review. Extensive training programs were implemented to improve the workforce knowledge which resulted in increased throughput of 3,840 tons per day in the fourth quarter.



Troy Mine Year End Reserves & Resources

Estimated Mineral Reserves and Resources as of December 31, 2009 are as
shown in the following tables:
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Troy Reserves (Dec. 31, 2009) Grades Contained Metals
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Silver Copper
Classification(1) Tons(Mst)(2)(3) Silver(opt) Copper(%) (Moz) (Mlbs)
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Proven 3.1 1.41 0.72 4.3 44.6
Probable 6.0 1.13 0.49 6.8 59.3
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Total 9.1 1.23 0.57 11.1 103.9
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(1) Mineral Reserves have been categorized in accordance with the
classifications defined by the Canadian Institute of Mining,
Metallurgy, and Petroleum ("CIMM").
(2) Does not include resources contained in planned pillars. Only material
scheduled to be extracted and milled included.
(3) The estimated mineral reserves were calculated by Mr. Larry Erickson,
P Eng., a Qualified Person ("QP") in accordance with Canadian.
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Troy Reserves (Dec. 31, 2009) Grades Contained Metals
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Silver Copper
Classification(1) Tons(Mst)(2)(3) Silver(opt) Copper(%) (Moz) (Mlbs)
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Measured 47.9 1.34 0.67 64.2 642.3
Indicated 10.7 1.12 0.43 12.0 91.9
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Total Measured &
Indicated 58.6 1.30 0.63 76.2 734.2
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JF Property(4) 11.0 1.4 0.40 15.4 88.8
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Total Inferred 11.0 1.4 0.40 15.4 88.8
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(1) Mineral Resources have been categorized in accordance with the
classifications defined by the CIMM.
(2) Includes Proven & Probable Reserves and resources contained in existing
pillars.
(3) The estimated mineral resources were calculated by Mr. Larry Erickson,
P Eng., a QP in accordance with NI 43-101. They are stated using a
cut-off grade of US$ 21.02 net smelter return per ton calculated at US$
12.33/oz Ag and US$2.67/lb Cu. Mr. Erickson is an employee of Revett
and is not considered independent.
(4) Resources listed for the JF Property are Historic Resources as defined
by the CIMM and have not been audited by a Qualified Person. In 1992,
ASARCO reported in an internal report a "Mineral Reserve" for the JF
deposit of "11 million tons grading 0.4% Cu and 1.4 opt Ag." This
historical mineral resource estimate, which was prepared before the
adoption of NI 43-101 and uses categories other than the ones set out
in section 1.2 of NI 43-101, is considered relevant. A QP has not,
however, done sufficient work to classify the historical estimate as
current mineral resources and accordingly, Revett does not treat
ASARCO's historical estimate as current mineral resources. The reader
is cautioned that the ASARCO historical estimate should not be relied
upon. Revett has not yet taken the steps to validate this drilling
information with new drilling data, however, Mr. Larry Erickson,
P Eng., a QP in accordance with NI 43-101, has reviewed ASARCO's
drilling data (ie; core logs, assay results, sections) and believes
it to be reliable. Mr. Erickson is an employee of Revett.
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Rock Creek

The Company continues its efforts to advance the Rock Creek project. During a status conference held on March 17, 2009, to clarify the status of legal challenges to the Rock Creek Record of Decision and Biological Opinion; Judge Molloy in the Federal District Court of Montana indicated that a decision is under active deliberation and that a ruling may occur within the next several weeks. Minimal activity on the Rock Creek project occurred during 2009 pending legal clarity on these challenges; and as a result expenses related to the project were reduced.



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Rock Creek Resources (Dec. 31, 2009) Grades Contained Metals
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Location/ Silver Copper
Classification(1) Tons(Mst)(2)(3) Silver(opt) Copper(%) (Moz) (Mlbs)
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Chicago 78 1.45 0.65% 113 1,025
St. Paul 48 2.10 0.92% 101 883
Moran 10 1.50 0.57% 15 114
Total Inferred 137 1.67 0.72% 229 2,022
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(1) Mineral Resources have been categorized in accordance with the
classifications defined by the CIMM.
(2) The estimated mineral resources are based upon a technical report (the
" Rock Creek Report") dated May 7, 2004, amended as of January 27,
2005, prepared by SRK Consulting, Toronto in accordance with NI 43-101.
They are stated using a cut-off grade of US$ 10.00 net smelter return
per ton at US$5.50 oz. silver and US$1.00 pound copper/


About Revett

Revett Minerals, through its subsidiaries, owns and operates the Troy Mine and development-stage Rock Creek Project, both located in northwestern Montana, USA. These projects host significant copper and silver mineral reserves and resources and will form the basis of our plan to become a solid 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 statements" within the meaning of applicable Canadian securities legislation and 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 effect on the Company's operations of pending or planned legal challenges, the timing and amount of estimated future production, industrial accidents, and costs of production, all involve known and unknown risks, uncertainties and other factors which may cause 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. 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", "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 be taken", "occur" or "be achieved". Forward looking statements are subject to known and known risks, uncertainties and other factors. Such other factors may include, among others, ground control problems and flooding, metallurgical recovery problems, ore grade or tonnage shortfalls, labor disruptions or shortages of skilled labor, risks relating to environmental laws and regulations, the actual results of exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future metal prices, changes in the quantity and costs of producing copper concentrate as well as those factors discussed in the section entitled "Risk Factors" in the annual Form 10-Kfiled 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 Minerals does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Contact Information

  • Revett Minerals Inc.
    Ken Eickerman
    CFO
    (509) 921-2294
    or
    Revett Minerals Inc.
    Doug Ward
    VP Corporate Development
    (509) 921-2294
    www.revettminerals.com