SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 03/22/11 -- Revett Minerals Inc. (TSX: RVM) (OTCBB: RVMID) ("Revett" or "the Company") is pleased to announce its consolidated operating and financial results for the year ending December 31, 2010. All currency in this release is in United States dollars unless otherwise indicated.
Highlights for year ending December 31, 2010 include;
-- Net cash (1) provided from operations before capital expenditures was
$12.2 million, resulting in net income for the year of $4.4 million, or
earnings of $0.16 per share.
-- Completed debt restructuring program, eliminating remaining debt through
the repayment of principal and conversion of debt to common stock.
-- Completed a consolidation of the Company's common shares in preparation
for a listing in the U.S. The Company now has 33.5 million shares issued
and outstanding and 36.6 million fully diluted.
-- Record mill throughput at the Troy Mine averaging 3,807 tons per day
compared to 3,735 tons per day average for 2009.
-- Troy Mine reserves increased by 15.4% and resources expanded by 7.5%,
with continuing exploration efforts focusing on expanding resources in
the I Beds and exploring other areas in and around the mine in 2011.
In a subsequent event on March 21, 2011, the company purchased the 2% net smelter royalty on future Rock Creek production that was previously owned by Kennecott. The company issued 275,000 common shares at a fair market value of $1.2 million to acquire this royalty interest.
John Shanahan, President and CEO stated, "2010 has proven to be a pivotal year in our reestablishment as an important US based producer of silver and copper. The dedication and ingenuity of the men and women of Revett have enabled us to achieve our key objectives and placed us in a position to meet our growth targets at Troy and continued development at Rock Creek. We remain focused on our commitment to the safety of our workforce, our responsibility to the environment, and meeting the expectations of all stakeholders."
Consolidated Financial Results
Total revenue for 2010 was $47.0 million compared to $33.0 million during 2009. Net income for the year was $4.4 million or $0.16 per share, a significant improvement compared to a net loss of $4.9 million or $0.23 per share for 2009. The increase in profit and revenues was primarily due to an increase in the price of silver and copper as compared to 2009. This favorable pricing coupled with a slight increase in production due to higher mill throughput at the Troy Mine, resulted in higher revenues in 2010 compared to 2009.
Cost of Sales increased in 2010 when compared to 2009 by 7%. This increase can be attributed to the cost of higher mill production, labor costs (10% pay reduction in 2009 was restored to all workers at the Troy Mine) and a reinstatement of a royalty in the third quarter of 2010.
At December 31, 2010, cash and cash equivalents were $8.8 million, compared with $2.6 million at December 31, 2009. Revett now has no long-term debt obligations.
(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.
Troy Operating Summary
Troy achieved record mill throughput in 2010 of 1,362,890 tons of ore (3,807 tons per day), which was approximately 2% higher than 2009. Metal grades for silver and copper during the year were slightly lower than our operation projections of 1.01 ounce per ton silver and 0.43% copper due to increased production in the South Ore Body lower quartzite area while access to the C-Bed area was being completed.
The following is a summary of key operating statistics for the twelve months ended December 31, 2010 compared to the same periods in 2009 and 2008:
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December 31, December 31, December 31,
Troy Production Summary (100%) 2010 2009 2008
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Tons milled 1,362,890 1,337,225 1,307,447
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Tons milled per day 3,807 3,735 3,642
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Copper Grade 0.40% 0.39% 0.43%
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Copper Recovery 81.16% 83.17% 87.54%
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Copper Production (pounds) 8,794,445 8,624,059 9,791,145
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Copper Sold (payable pounds) 8,499,831 8,335,153 9,463,142
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Silver Grade (ounces per ton) 0.87 1.00 1.00
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Silver Recovery 85.05% 84.70% 89.83%
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Silver Production (ounces) 1,008,089 1,135,281 1,178,913
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Silver Sold (payable ounces) 927,422 1,022,888 1,061,021
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Troy Mine Year End Reserves & Resources
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Troy Reserves (Dec. 31, 2010) Grades Contained Metals
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Classification(1) Tons Silver Copper Silver Copper
(Mst)(2,3) (opt) (%) (Moz) (Mlbs)
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Proven 3.0 1.41 0.73 4.3 43.8
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Probable 7.5 1.13 0.37 8.4 54.9
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Total 10.5 1.21 0.47 12.7 98.7
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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 National
Instrument 43-101 ("NI 43-101"). They are stated using a cut-off grade of
$ 25.57 net smelter return per ton calculated at $ 14.90/oz Ag and
$3.02/lb Cu. Mr. Erickson is an employee of Revett and is not considered
independent.
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Troy Resources (Dec. 31, 2010) Grades Contained Metals
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Classification(1) Tons Silver Copper Silver Copper
(Mst)(2,3) (opt) (%) (Moz) (Mlbs)
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Measured 48.2 1.36 0.67 65.5 643.3
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Indicated 14.8 1.13 0.37 16.7 110.5
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Total Measured &
Indicated(i) 63.0 1.30 0.60 82.2 753.8
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JF Property(4) 11.0 1.40 0.40 15.4 88.8
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Total Inferred 11.0 1.40 0.40 15.4 88.8
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(i)Pillars Incl. in Meas.
& Ind. 44.2 1.35 0.66 59.8 583.1
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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 $25.57 net smelter return per ton calculated at $14.90/oz Ag and
$3.02/lb Cu. Mr. Erickson is an employee of Revett and is not considered
independent.
(4) Resources listed for the JF Property are a historical estimate with the
meaning of NI 43-101 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. On May 4, 2010, the District Court issued a decision dismissing the environmental groups' challenges to the Endangered Species Act (ESA), Clean Air and Clean Water Act, but vacated the 2001 Final EIS and Record of Decision due to issues relating to the National Environmental Policy Act (NEPA). The Company is currently working with the Forest Service on a supplemental EIS to address the issues identified in the court's decision. The environmental groups have appealed the dismissal of their ESA challenges to the Ninth Circuit Court of Appeals. All briefings have been completed, but oral arguments have not yet been scheduled.
---------------------------------------------------------------------------- Rock Creek Resources (Dec. 31, 2010) Grades Contained Metals ---------------------------------------------------------------------------- Location/ Tons(Mst) Silver Copper Silver Copper Classification(1) (2,3) (opt) (%) (Moz) (Mlbs) ---------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------- (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 $10.00 net smelter return per ton at $5.50 oz. silver and $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 estimation of mineral reserves and resources, the realization of mineral reserve estimates and 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-K filed 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.
Contacts:
Revett Minerals Inc.
Ken Eickerman
CFO
(509) 921-2294
Revett Minerals Inc.
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
www.revettminerals.com
