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Revett Minerals

Published : March 28th, 2008

Reports on 2007 Financial and Operating Results

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Keywords :   Canada | Copper | Recovery | Silver | Water |

Revett Minerals Reports on 2007 Financial and Operating Results

March 28, 2007; Revett Minerals Inc., Spokane Valley, Washington ("TSX-RVM") ("Revett" or the "Company") is pleased to report the operating and financial results for the   fourth quarter of 2007 and for the year ending December 31, 2007. All currency in this release is in United States dollars unless otherwise indicated.

Overall Performance

In summarizing the performance of the Company during its third year of operations, Mr.  Bill Orchow, President and CEO of Revett Minerals, stated "We are pleased with the progress we have made in improving the operating performance at the Troy Mine ("Troy") but saddened by the tragic fatality that occurred at Troy at the end of July. We were also pleased to receive during the fourth quarter of this year affirmation of the favorable biological opinion and record of decision for our Rock Creek Project from the United States Forest Service.  Some other notable achievements in 2007 include:

  • the Company reported its first ever year of profitability;
  • the Troy Mine generated pre-tax net income of $8.0 million (100% basis);
  • revenue from Troy totaled approximately $39 million, an increase of 24% from 2006; 
  • the Troy Mine recorded its second consecutive year of positive cash flow; and
  • at Troy  we discovered the "C-bed" reserves and associated mineralization.

Consolidated Results

For the year ended December 31, 2007, the Company recorded revenues of $38.9 million. The direct operating costs to generate that revenue was $30.9 million and depreciation and depletion expense was $1.4 million implying a profit from mining operations (a non-GAAP measure) of $6.6 million. Profit from mining operations is a non-GAAP measure and may not be comparable to similar measures presented by other issuers. Management believes this is a useful supplementary measure of the performance of Troy. Other expenses included the non-cash accretion for reclamation and remediation liability of $0.6 million, general and administrative costs of $4.5 million, exploration and development expenditures at Troy and Rock Creek of $2.1 million, other income consisting of foreign exchange gains and net interest expense totaling $1.5 million. This resulted in income before income taxes and non-controlling interest of $0.9 million and for the year net income of $0.9 million o r $0.01 per share.  Metal sales for the 2007 calendar year were approximately 9.0 million pounds of payable copper and 1.0 million ounces of payable silver. During the year ending December 31, 2007, the Company used a net of approximately $0.4 million in cash from operating activities.  Most significantly though, the Company experienced production restrictions in its underground mining operations for almost the entire second half of the year because of the rock fall and related fatality that occurred on July 30, 2007. This issue is discussed in more detail further in this release.

Revenues for the fourth quarter of 2007 were $3.1 million. The revenues recorded for the fourth quarter were adjusted downward to reflect the effect of the year end decline in the price of copper on sales for which prices had not been finalized. The increase in the price of copper by the end of March has served to partially offset the fourth sales quarter results. During the fourth quarter, the mine shipped and received provisional payment for approximately 1.0 million pounds of payable copper and 0.1 million ounces of payable silver. The direct costs of production for the fourth quarter were $7.5 million and depreciation and depletion expense was $0.3 million implying a loss from mining operations of $4.7 million (a non-GAAP measure). Other expenses during the fourth quarter included exploration and development costs of $0.4 million, general and administrative costs of $1.4 million, interest income net of interest expense together with a gain of foreign exch ange balances held in Canadian dollars of $0.1 million, and the reclamation and remediation liability accretion  of $0.1 million. The loss for the fourth quarter before income taxes and non-controlling interest was $6.4 million and the loss for the quarter was $3.0 million or $0.04 per share. The most significant factors affecting the fourth quarter were below average metal production resulting from low mill throughput and below normal ore grades and the decline in the copper price.  For the three month period ending December 31, 2007, the Company used approximately $5.1 million in cash from operating activities.
 
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, 2007, with a comparison to 2006.

 

Fourth Quarter 2007

2007 Fiscal Year

2006 Fiscal Year

Tons milled

212,425

1,108,503

944,783

Tons milled per day

2,309

3,037

2,588

Copper grade (pct)

0.31

0.50

0.46

Silver grade (opt)

0.68

1.07

1.13

Copper recovery (pct)

85.0

86.5

83.5

Silver recovery (pct)

88.6

88.7

86.2

Copper produced (pounds)

1,135,338

9,681,827

7,304,383

Silver produced (ounces)

127,352

1,054,417

916,969

Copper sold (pounds)

1,030,105

8,962,776

6,455,713

Silver sold (ounces)

112,938

964,916

817,250

For the year ended December 31, 2007, 1,108,503 tons of ore (3,037 tpd) were processed through the mill, which is less than expected levels. Mill throughput for the fourth quarter was only 2,309 tons per day, which was well below the daily average for the first nine months of the year. The primary reason for the shortfall in mill throughput was the restrictions placed on underground mining activities resulting from the rock fall and related fatality that occurred on July 30, 2007. During the first six months of the year the mill processed 3,801 tpd but during the second half of the year only 2,286 tpd were produced.  Management of the Company continues to work aggressively to rectify the production shortfalls and to date in 2008 good progress has been made in increasing mill throughput, along with an improvement in the grade of ore mined and milled. During the fourth quarter of 2007, the grade of copper milled averaged 0.31% and the silver head grade was 0.68 ounces per ton. These ore grades were well below normal and were, again, caused by the restrictions placed on underground mining following the July rock fall. For the year, the copper grade was 0.50% and the silver grade was 1.07 ounces per ton.  The operation of the mill has been very good as recoveries for both copper and silver remain above budgeted levels.

Year End Reserves-Troy Mine

At December 31, 2007 the proven and probable reserves at the Troy Mine are estimated to be 13.2 million tons grading 1.18 ounces of silver per ton and 0.54% copper per ton. These reserves were calculated by using a cut-off NSR of $18.86 per ton. At projected production rates, the operating life of the Troy Mine is projected to exceed seven more years. The reserve estimates are based upon the Troy Mine N.I. 43-101 reported and updated by Mr. Larry Erickson, a qualified person in accordance with N.I. 43-101. Mr. Erickson is an employee of the Company and is not considered independent.

Rock Creek

At Rock Creek, the Company continues with its efforts to advance the project. In December, the United States Forest Service re-affirmed both the Rock Creek biological opinion and its record of decision. During the year, the Company continued design work on the water treatment plant and work with the regulators to finalize the memorandum of understanding for the grizzly bear mitigation program Also in 2007 the Company acquired addition mitigation lands required by the Rock Creek record of decision at a cost of $2.6 million. Other work on Rock Creek included work on the Rock Creek scoping study, base line water quality and hydrology studies for the water treatment plant, and an application to the Montana Department of Environmental Quality to commence with the Rock Creek evaluation adit.
 
About Revett

Revett  through its subsidiaries, owns the Rock Creek Project and the Troy Mine  both 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

THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS.  CLICK HERE TO VIEW ORIGINAL PDF VERSION.

William Orchow
President  & CEO

For more information, please contact:
Scott Brunsdon, CFO or Doug Ward, VP Corporate Development at (509) 921-2294 or visit our website at www.revettminerals.com.

Renmark Financial Communications Inc.
Jason Roy : jroy@renmarkfinancial.com
Maurice Dagenais : mdagenais@renmarkfinancial.com
Tel. : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com

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, ac TUAL 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 ANNUAL INFORMATION FORM 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.

Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All

Revett Minerals

PRODUCER
CODE : RVM.TO
ISIN : CA7615051066
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Revett is a silver and copper producing company based in United states of america.

Its main asset in production is TROY in USA and its main asset in development is ROCK CREEK in USA.

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Corporate Presentations of Revett Minerals
9/17/2009Comprehensive Coverage of Financial Markets
Annual reports of Revett Minerals
Annual report 2006
Financials of Revett Minerals
5/12/2011Provides Q1 2011 Financial Results
3/23/2011Reports on 2010 Financial and Operating Results
8/13/2008Reports Operating and Financial Results for the Three and Si...
3/28/2008Reports on 2007 Financial and Operating Results
8/13/2007 Reports Strong Operating and Financial Results for the Thre...
5/11/2007Reports Operating and Financial Results for the Three Months...
Project news of Revett Minerals
1/24/2008(Troy)Updates Reserve Estimates at the Troy Mine.
12/14/2007(Rock Creek)Reports on Significant Rock Creek Permit Progress
7/10/2007Announces Discovery of New Mineralization at Troy
4/11/2007Reports on Troy's Operational Improvements
Corporate news of Revett Minerals
5/8/201510-Q for Revett Mining Co., Inc.
4/30/201510-K for Revett Mining Co., Inc.
3/30/2015Revett Mining Company Provides 2014 Financial Results
3/27/2015Revett Minerals Inc.: HECLA TO ACQUIRE REVETT IN $20 MILLION...
3/2/2015Revett Mining Provides Update on Rock Creek Permitting and T...
3/2/2015Revett Minerals Inc. : Revett Mining Provides Update on Rock...
3/2/2015Revett Mining Provides Update on Rock Creek Permitting and T...
1/20/2015IIROC Trade Resumption - RVM
1/20/2015Revett Places Troy Mine on Care & Maintenance
1/19/2015IIROC Trading Halt - RVM
11/10/2014Revett Reports Q3 2014 Financial Results and Provides Troy M...
10/1/2014Revett Resumes Underground Crushing Operations at Troy Mine
8/26/2014Revett Announces US $5 Million Loan Agreement
8/11/2014Revett Reports Q2 2014 Financial Results and provides Troy M...
7/1/2014Revett Provides Update on Troy Mine Development and Rock Cre...
6/20/2014Revett Mining Announces Results of Its 2014 Annual Meeting
5/12/2014Revett Reports Q1 2014 Financial Results and Provides Troy M...
3/27/2014Revett Mining Company Provides 2013 Financial Results
3/27/2014Revett Mining Company Provides 2013 Financial Results
3/26/2014Revett Completes Private Placement
5/26/2011Begins Trading on NYSE Amex Options
5/4/2011Approved for NYSE Amex Listing
2/25/2011Announces Analyst Coverage Initiated by Stonecap Securities
9/10/2008Announces New President & CEO
6/2/2008Commences Work at Rock Creek.
11/26/2007Acquires Rock Creek Mitigation Lands
11/20/2007Mr. Louis Gignac Appointed Director
8/15/2007Reports Resumption of Mining at Troy.
7/31/2007Minerals Reports on Mine Fatality
7/13/2007Reports on Troy's Continuing Production Improvements
6/1/2007Funds First Phase of Grizzly Recovery Program
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TORONTO (RVM.TO)AMEX (RVM)
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