Revett Minerals Inc.
OTC Bulletin Board : RVMIF

Revett Minerals Inc.

November 15, 2010 16:03 ET

Revett Minerals Reports Third Quarter 2010 Financial and Operating Results

SPOKANE VALLEY, WASHINGTON--(Marketwire - Nov. 15, 2010) - Revett Minerals Inc., (TSX:RVM) (OTCBB:RVMIF) ("Revett" or the "Company") is pleased to announce its consolidated operating and financial results for the third quarter ended September 30, 2010. Currency is reported in United States dollars unless otherwise indicated.

Major Highlights for three months ended September 30, 2010 include:

  • Recorded total sales of $12.4 million (53% increase over 3Q09) based on average market prices of $18.96/oz silver and $3.29/lb copper;
  • Net Cash(1) provided from operations before capital expenditures for the third quarter of 2010 was $4.2 million ;
  • Total Company net income of $2.1 million, or $0.02 per share;
  • Troy continued to maintain higher throughput rates of 3,914 tons per day during the third quarter (16% increase over 3Q09) with metal production totaling 277,437 ounces of silver and 2,347,643 pound of copper (11% and 22% increases respectively over 3Q09).
  • Access to our higher grade "C Bed" deposit was completed and ore production initiated which will be increased during the fourth quarter.
  • Completed a $3.4 million non-brokered private placement in August primarily to facilitate acceleration of our exploration and development plans at Troy. Exploration efforts to define the "I-Bed" expansion project at Troy continue on schedule;
  • Subsequent to the end of the quarter, we completed our debt restructuring program with the conversion of the last $2.0 million outstanding to Trafigura AG into common shares of the Company. Revett is now free of corporate debt.

Consolidated Results

For the three months ended September 30, 2010, the Company reported a net income after taxes of $2.1 million or $0.02 per share ($0.01 per share diluted) compared to a net loss of $1.4 million or $0.01 per share for the three months ended September 30, 2009. A 16% improvement in mill throughput, including a 22% improvement in copper metal production and a 11% improvement in silver production resulted in higher copper and silver sales. Copper's LME average price was $3.29 per pound and silver's average price was $18.96 during the third quarter of 2010 compared to $2.66 per pound of copper and $14.70 per ounce for silver in the third quarter of 2009. Total revenues were $12.4 million for the three months ended September 30, 2010 compared to $8.1 million for the same period in 2009.

During the three months ended September 30, 2010, the Company successfully completed access to the C Bed mine area, which contains higher ore grades. Ore production from this area has begun and is expected to increase as additional mine development is completed. 

John Shanahan, President and CEO, noted "We are very pleased with our metal production and profitability during the third quarter. The most important milestone of the quarter, however, was the completion of the decline into the "C-Bed" ore zone. As this area ramps up to its planned production rate over the next couple of quarters, we should see a very nice improvement in our head grades. We are also very encouraged by the potential of the extensive "I-Bed" horizon at Troy, including the JF deposit, and have begun an aggressive exploration and engineering effort to analyze the feasibility of not only significantly extending the mine life, but also potentially better utilizing current mill capacity. The positive results of the third quarter, along with current strong market prices for silver and copper, and the repayment and conversion of our corporate debt, places us in a strong position for continued growth and development."

Troy Mine

The following is a summary of key operating statistics for Troy for the three months ended September 30, 2010 and for the comparable period ended September 30, 2009.

   Three Months Ended
September 30, 2010
Three Months Ended
September 30, 2009
Tons milled 352,296 302,543
Tons milled per day 3,914 3,362
Copper grade (%) 0.44 0.39
Silver grade (opt) 0.95 1.01
Copper recovery (%) 76.5 80.9
Silver recovery (%) 83.2 82.4
Copper produced (lbs) 2,347,643 1,928,405
Silver produced (ozs) 277,437 250,982

Production during the third quarter of 2010 was improved by 16% over the third quarter of 2009 and operating cost per ton milled was reduced by 9%. The increase in tons mined was complemented by improved copper grades by 11% compared to the same period in 2009. Silver grade was 6% lower in the third quarter of 2010 compared to the same period in 2009 due to lower silver grades in the Lower Quartzite areas. Mill recoveries remained good but slightly lower than plan due to higher percentage of non-sulfide ores milled at 83% for silver and 77% for copper compared to expected recoveries of 86.9% for silver and 84.7% for copper.

  Q3.10 Q2.10 Q1.10 Q4.09 Q3.09 Q2.09
Tons milled 352,296 354,359 379,592 345,586 302,543 349,925
Cost per ton milled ($) 22.69 23.49 22.99 23.71 25.03 21.89

(1) Net cash before capital expenditures is a non GAAP measure. The Company believes that net cash provided from operations is a benchmark for performance and is well understood and widely reported in the mining industry.

The full Third Quarter 2010 consolidated financial statements and Management's Discussion and Analysis (MD & A) can be viewed on and the Company's web site at

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 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. 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 contained in this press release include but are not limited to those with respect to the expectation of production and improved grades from the "C Bed" reserves in the fourth quarter of this year and accelerated exploration, engineering, and development of the "I-Beds" at Troy mine. Forward looking statements are subject to known and unknown risks, uncertainties and other factors. Reference is also made to those factors discussed in the section entitled "Risk Factors" in the Form 10-K filed on SEDAR at 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.

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