SPOKANE VALLEY, WASHINGTON--(Marketwire - May 12, 2011) - Revett Minerals Inc. (News - Market indicators) (NYSE Amex:RVM) today reported first quarter 2011 revenue of $12.8 million, a 5% increase compared to the same period last year. The Company increased its cash and cash equivalents on hand to $10.1 million at the end of the first quarter compared to $3.7 million a year ago.
Due to non-cash charges of $4.4 million taken in the first quarter under U.S. GAAP, Revett reported a net loss of $2.8 million, or $0.09 per share, compared to net income after taxes of $0.8 million, or $0.03 per share, in the first quarter of 2010. Prior to the non-cash charges, net income would have been approximately $1.6 million, or $0.05 per share, for the first quarter of 2011. The non-cash items included a $3.4 million non-cash charge for issuance of stock options to corporate staff and to all of the 192 employees at the Troy Mine. The remaining non-cash expense of $1.0 million was required to adjust the fair value of the warrant derivative in order to comply with U.S. GAAP requirements relating to some of the Company's outstanding warrants.
Revett President and Chief Executive Officer John Shanahan said, "Because of our non-cash charges, our results this quarter are not indicative of what we expect to see going forward. I'm looking for improvement in that area as we move beyond this quarter and take advantage of full production in the newly developed, higher-grade C Bed area. Our goal is also to improve our metallurgical recoveries in order to realize the most return possible from this higher-grade area."
Highlights:
- A 173% increase in cash and cash equivalents on hand to $10.1 million compared to $3.7 million at March 31, 2010.
- Acquired the 2% net smelter royalty interest right on Rock Creek previously owned by Kennecott for 275,000 shares of common stock with a fair market value of $1.2 million.
- Commenced trading on NYSE Amex under the symbol 'RVM' on Monday, May 9th, 2011.
- Silver production of 245,068 ounces and 2.0 million pounds of copper. Cash costs (1) of $11.99 per ounce silver and $2.05 per pound copper, net of by-products.
- Silver ore grades improved by 18% and copper ore grades improved by 16% as production increased from C bed area.
Troy Mine
The following table is a summary of key operating statistics for the Troy silver and copper mine located in northwestern Montana for the three months ended March 31, 2011 and for the comparable period ended March 31, 2010. As expected, production was lower and costs were higher in the first quarter than in the same period a year ago, primarily due to transitioning much of the mining to the C Bed area. (Please see additional detailed information on Troy Mine operational results in the news release dated May 6, 2011.)
| |
Three Months Ended
March 31, 2011 |
Three Months Ended
March 31, 2010 |
| Tons milled |
291,690 |
379,592 |
| Tons milled per day |
3,277 |
4,265 |
| Copper grade (%) |
0.44 |
0.38 |
| Silver grade (opt) |
1.02 |
0.86 |
| Copper recovery (%) |
78.0 |
85.1 |
| Silver recovery (%) |
82.2 |
87.5 |
| Copper produced (lbs) |
1,998,410 |
2,456,190 |
| Silver produced (ozs) |
245,068 |
287,259 |
Quarterly Financial Results Conference Call
Revett will hold its quarterly conference call on Tuesday, May 17, 2011 at 11:00 a.m. Eastern Time. To join the conference call dial 1-877-974-0445 or (416) 644-3425 internationally.
The full First Quarter 2011 consolidated financial statements and Management's Discussion and Analysis (MD&A) can be viewed on www.sedar.com or the Company's web site at www.revettminerals.com.
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 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 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", "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 news release include but are not limited to those with respect to the expectation of production and improved grades from the "C Bed" reserves and improved results going forward. 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 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.
