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

Revett Minerals Inc.

April 07, 2006 11:28 ET

Revett Minerals Reports on 2005 Full Year Results

SPOKANE VALLEY, Wash.--(CCNMatthews - Apr 7, 2006) -

Revett Minerals Inc ("Revett" or the "Company"), (TSX:RVM) is pleased to report the operating and financial results for the fourth quarter and the year ending December 31, 2005. All currency in this release is in United States dollars unless otherwise indicated.

Overall Performance

In summarizing the performance of the Company during its first year of operations, Mr. William Orchow, President and CEO of Revett Minerals, stated "We are pleased with the successful first year of our history and achieved a number of notable accomplishments including:

-- a successful IPO raising (Cdn) $34.5 million;

-- the resumption of mining operations at Troy with revenue in excess of $21 million;

-- an increase in the Troy Mine ("Troy") reserves of approximately 40%; and

-- Troy received the National Mining Association Sentinels of Safety Award."

Consolidated Results

For the year ended December 31, 2005, the Company recorded revenues of $21.1 million. The direct operating costs to produce that revenue was $19.3 million and depreciation and depletion expense was $1.4 million implying a profit from mining operations (a non-GAAP measure) of $0.4 million. Other expenses included the non-cash accrual for reclamation and remediation liability of $0.6 million, general and administrative costs of $2.6 million, exploration and development expenditures at Troy and Rock Creek of $1.3 million and interest expense of $1.7 million, which was offset by interest and other income of $0.6 million. This resulted in a loss before income taxes and non-controlling interest of $5.2 million and for the year a loss after non-controlling interest of $2.3 million or $0.05 per share. Metal sales for the first twelve months of 2005 were 7.8 million pounds of copper and 953,982 ounces of silver. During the twelve month period ending December 31, 2005, the Company used a net of approximately $1.6 million in cash for its operating activities. Overall, the Company experienced difficulty in ramping up production to the levels originally forecast, although steady improvements are now being made. This issue is discussed in more detail further in this release.

Revenues for the fourth quarter of 2005 were $6.5 million. During the fourth quarter, the mine shipped and received provisional payment for 1.9 million pounds of copper and 244,627 ounces of silver. The direct costs of production for the fourth quarter were $5.6 million and depreciation and depletion expense was $0.6 million implying a profit from mining operations of $0.30 million, representing 71% of the total profit from mining operations for the year. Other expenses during the fourth quarter included exploration and development costs of $0.5 million, general and administrative costs of $1.0 million, interest expense of $0.9 million, which was offset by interest and other income of $0.2 million, and the reclamation and remediation liability of $0.2 million. The loss for the fourth quarter before income taxes and non-controlling interest was $2.1 million and the loss for the quarter after non-controlling interest was $0.01 million or $0.00 per share.

The following is a summary of the production, sales and shipment results from the Troy Mine (100% basis) for the fourth quarter and the twelve month period ending December 31, 2005.



Fourth Quarter 2005 Fiscal
2005 Year
----------------------------- -------------- --------------
Tons milled 222,888 782,972
----------------------------- -------------- --------------
Tons milled per day 2,423 2,145
----------------------------- -------------- --------------
Copper grade (pct) 0.58 0.69
----------------------------- -------------- --------------
Silver grade (opt) 1.42 1.65
----------------------------- -------------- --------------
Copper recovery (pct) 81.7 81.1
----------------------------- -------------- --------------
Silver recovery (pct) 85.2 84.6
----------------------------- -------------- --------------
Copper produced (pounds) 2,103,121 8,772,802
----------------------------- -------------- --------------
Silver produced (ounces) 270,614 1,094,725
----------------------------- -------------- --------------
Copper sold (pounds) 1,932,801 7,771,100
----------------------------- -------------- --------------
Silver sold (ounces) 244,627 953,982
----------------------------- -------------- --------------



During the quarter ending December 31, 2005, the mill processed ore at the rate of approximately 2,423 tons per day. This compares with an average of 1,852 tons milled per day during the third quarter. For the year mill throughput was at an average of 2,145 tons per day. While improvements are being made in increasing mill throughput, the Company is still operating at levels below it early 2005 forecast. This is due to poor availability of the jumbo drills and operator inexperience operating the jumbo drills. Both grades and recoveries as noted above are essentially in line with expectations.

The Company has completed the initial phase of the 2005 diamond drill exploration program. This phase included three surface holes totaling 4,505 feet and two underground holes totaling 447 feet. No results are available for the underground holes as of the date of this release. Partial results from the three surface holes together with assays from the underground mine development program indicate an increase in the resource for the East Ore Body middle quartzite. The mineralized zone has been extended 250 feet to the east by mine development and its continuity has been confirmed between the northern and southern blocks of the East Ore Body by surface drilling. As at December 31, 2005, the total proven and probable reserves at the Troy Mine were estimated at 12.06 million tons grading 1.41 ounces per ton silver and 0.60% copper compared to proven and probable reserves as at December 31, 2004 of 8.66 million tons grading 1.57 ounces per ton silver and 0.65% copper. The reserves in 2005 were calculated by using a cut-off grade of $12.00 net smelter return per ton. These reserves were calculated by Mr. Larry Erickson, P. Eng, a Qualified Person in accordance with National Instrument 43-101

Rock Creek

At Rock Creek, the Company continues its efforts to advance the project. The work initiated since March 2005 includes the commissioning of numerous engineering project scoping studies, some base line water quality and hydrology studies, and an application to the Montana Department of Environmental Quality to commence with the Rock Creek evaluation adit. Revett completed the acquisition of the mitigation lands required during the evaluation stage of the Rock Creek Project. The acquisition of these lands will assist the USFWS in strengthening its Biological Opinion. In addition to the above, the Company has initiated an extensive public relations campaign to educate the local stakeholders and state regulators about the significant benefits which would accrue to Montana and Idaho with the development of the Rock Creek Project.

About Revett

Revett Minerals, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine located in northwest Montana. Based on the drilling to date, Rock Creek contains an estimated inferred resource of 136.6 million tons grading 1.67 ounces silver per ton and 0.72% copper, containing approximately 229 million ounces of silver and over 2 billion pounds of copper using a cut off grade of US $10.00 per ton. Further information on both the Troy Mine and the Rock Creek Project may be found in the National Instrument 43-101 reports at www.sedar.com. These reports were prepared on behalf of the Company by Jean-Francois Couture, P.Geo. and Ken Reipas, P.Eng. of SRK Consulting (Canada). Both Mr. Couture and Reipas are Qualified Persons in accordance with National Instrument 43-101. All of these issues are discussed in greater detail in the Company's official filings at www.sedar.com.

William Orchow

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 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 timing and amount of estimated future production, costs of production, involve known and unknown risks, uncertainties and other factors which may cause the 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. Such factors include, among others, risks relating to environmental laws and regulations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver and copper, as well as those factors discussed in the section entitled "Risk Factors" in the Final Long-Form Prospectus filed on sedar at www.sedar.com. 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 as actual 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 Inc.
Consolidated Balance Sheets
at December 31, 2005
(expressed in thousands of United States dollars)

December December
31, 2005 31, 2004

Assets
Current Assets
Cash and cash equivalents $ 4,608.5 $ -
Short term investments 7,396.4 -
Receivables 3,089.5 -
Inventory 1,738.4 -
Prepaid expenses and deposits 703.2 $ 510.3
--------- -------
Total current assets 17,536.0 510.3

Property, plant, equipment & mine development
(net) 57,191.3 -
Restricted cash 6,718.6 -
Other long term assets 1,680.4 -
--------- -------

Total assets $83,126.3 $ 510.3
========= =======

Liabilities and stockholders equity
(deficiency)
Current liabilities
Accounts payable and accrued liabilities $ 2,858.8 $ 532.0
Current portion of lease and note obligations 4,077.2 -
--------- -------
Total current liabilities 6,936.0 532.0

Long-term portion of debt 11,108.0 -
Reclamation and remediation 8,951.4 -
Future income tax 7,297.8 -
--------- -------
Total liabilities 34,293.2 532.0
--------- -------

Non controlling interest 8,210.8 -

Stockholders' equity (deficiency)
Preferred stock, no par value, unlimited
authorized, nil issued and outstanding
Common stock, no par value unlimited authorized,
59,005,395 shares issued and outstanding 42,701.4 -
Contributed surplus 243.2 -
Deficit (2,322.3) (21.7)
--------- -------
40,622.3 (21.7)
--------- -------

Total liabilities and stockholders equity $83,126.3 $ 510.3
========= =======


Revett Minerals Inc.
Consolidated Statement of Operations
Three months and twelve months ended December 31, 2005
(expressed in thousands of United States dollars)

Three month period Twelve month period
ended December 31, ended December 31,
2005 2005
------------------- -------------------

Revenues $ 6,492.4 $ 21,135.8

Costs:
Cost of sales 5,617.0 19,318.1
Depreciation and amortization 613.1 1,440.9
Exploration and Development 456.8 1,258.7
General & administrative 1,047.1 2,617.5
Accretion of reclamation and
remediation liability 175.1 584.3

------------------ ------------------
7,909.1 25,219.5
------------------ ------------------
(1,416.7) (4,083.7)
Other (income) expense:
Interest expense 889.0 1,745.3
Interest income (172.5) (604.7)

------------------ ------------------
Net income (loss) before non
controlling interest and
taxes (2,133.2) (5,224.3)
------------------ ------------------

Income taxes (recovery) (1,646.7) (1,717.7)

Net income after taxes before
non controlling interest (486.5) (3,506.6)
------------------ ------------------

Non controlling interest (478.4) (1,206.0)

Net income (loss) for the
period (8.1) (2,300.6)
------------------ ------------------

Basic and diluted loss per
share $ (0.00) $ (0.05)
================== ==================

Weighed average number of
shares outstanding 59,209,286 48,835,179
================== ==================


Revett Minerals Inc.
Consolidated Statement of Cash Flow
Three months and twelve ended December 31, 2005
(expressed in thousands of United States dollars)

Three month period Twelve month period
ended December 31, ended December 31,
2005 2005
------------------- -------------------

Cash flows from operating
activities:
Net loss for the period $ (8.1) $ (2,300.6)
Adjustment to reconcile loss
to net cash used by
operating activities
Depreciation and
amortization 613.1 1,440.9
Accretion of reclamation
and remediation liability 175.2 584.3
Stock based compensation 16.9 243.2
Director's fee paid in
common stock - 7.5
Income tax (1646.7) (1,717.7)
Non controlling interest (478.4) (1,206.0)
Changes in:
Accounts receivable (2,091.8) 344.4
Inventory 27.9 1,795.0
Prepaid expenses and
deposits 1,229.9 34.3
Accounts payable 1,175.1 1,045.3
Deferred revenue acquired - (1,850.5)
------------------ ------------------
Net cash used by operating
activities (986.9) (1,579.9)
------------------ ------------------

Investments:
Business acquisitions, net
of cash acquired - 528.2
Other long term assets 49.1 (1,600.0)
Restricted cash (60.0) (6,718.6)
Purchase of mineral
property, plant and
equipment (1,045.2) (4,345.6)
Purchase of short term
investments 975.3 (7,396.4)
------------------ ------------------
Cash provided (used) by
investing activities (80.8) (19,532.4)
------------------ ------------------

Financing:
Proceeds from the issuance
of common stock, net - 24,972.1
Proceeds from long term debt - 1,500.0
Reduction in long term debt (93.5) (502.3)
Repayment of capital leases (80.2) (249.0)
------------------ ------------------
Cash from (used) financing
activities (173.7) 25,720.8
------------------ ------------------

------------------- -------------------
Net increase in cash and cash
equivalents (1,241.4) 4,608.5
Cash and cash equivalents,
beginning of period 5,849.9 -
------------------ ------------------
Cash and cash equivalents, end
of period $ 4,608.5 $ 4,608.5
================== ==================

Supplementary cash flow
information:
Common stock issued in
business acquisition - $ 17,221.8
Cash paid for interest
expense $ 275.9 $ 1,419.3
Common stock issued in
connection with debt
settlement $ 500.0 $ 500.0
Acquisition of plant and
equipment under capital
lease - $ 889.0


Revett Minerals Inc.
Consolidated Statement of Deficit
Three months and twelve months ended December 31, 2005
(expressed in thousands of United States dollars)

Three month period Twelve month period
ended December ended December 31,
31, 2005 2005
------------------ --------------------

Deficit, beginning of period $ 2,314.2 $ 21.7
Loss for the period 8.1 2,300.6
----------------- -------------------

Deficit, end of period $ 2,322.3 $ 2,322.3
================= ===================



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