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Revett Minerals

Published : August 13th, 2008

Reports Operating and Financial Results for the Three and Six Months Ended June 30, 2008

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Revett Minerals Reports Operating and Financial Results for the Three and Six Months Ended June 30, 2008

August 13, 2008 Revett Minerals Inc., Spokane Valley, Washington (TSX-RVM) (�Revett� or the �Company�) is pleased to report on its operating and financial performance for the three and six months ended June 30, 2008. All currency in this report is in United States dollars unless otherwise indicated

The major highlights for the three and six months ended June 30, 2008 include the following:

  • Troy has now operated for 12 consecutive months without a lost time incident;
  • Troy (100% basis) attained mill throughput averaging 3,645 tons per day  for the three months ended June 30, 2008 ( and 3,489 tons per day for the first six month period in 2008) compared to 3,711 tons per day during the three months ended June 30, 2007 ( and 3,801 tons per day for the six month period ended June 30, 2007);
  • Troy (100% basis) generated over $5.2 million in cash for the three months ended June 30, 2008 bringing its year to date cash flow to over $3.6 million;
  • Troy (100% basis) generated net earnings before taxes of $3.4 million for the second quarter of 2008 and $6.6 million for the six month period ended June 30, 2008;
  • Troy (100% basis) produced 2.4 million pounds of copper and 259,847 ounces of silver in concentrate during the second quarter of 2008 compared to 3.5 million pounds of copper and 372,332 ounces of silver for the three months ended June 30, 2007;
  • For the six month period ended June 30, 2008, Troy produced 4.5 million pounds of copper and 491,759 ounces of silver in concentrate compared to production of 6.8 million pounds of copper and 731,466 ounces of silver in concentrate for the comparable six month period in 2007;
  • The Troy Mine has entered into a contractual agreement with Small Mine Development LLC (�SMD�) whereby SMD will provide contract mining services to assist in development of the �C-Beds� and also assist in the on-going mining and development in the East Ore Body; 
  • For the three months ended June 30, 2008, the Company reported net income of $0.1 million ($0.00 per share) compared to $3.7 million ($0.05 per share for the second quarter of 2007;
  • In-spite of improving production of copper and silver, second quarter earnings were negatively impacted by the Company being required to fair value concentrate sales for which final settlement had not yet occurred, a large tax expense for the quarter and significant legal expenses relating to the Rock Creek permit challenges; and 
  • The Company reported net income of $1.5 million or $0.02 per share for the six months ended June 30, 2008 compared to net income of $4.0 million ($0.06 per share) for the six months ended June 30, 2007.

Bill Orchow, President and CEO of the Company, in commenting on the results for the second quarter of 2008 said �We continue to be pleased with the strong earnings and cash generation that was achieved by Troy over the past three months coupled with a continuing excellent environmental record and an excellent safety record by all employees. Troy has not had a lost time incident for over a year�.

CONSOLIDATED RESULTS

For the three months ended June 30, 2008, Revett reported net income of $0.1 million or $0.00 per share on revenue of $13.4 million. This compared to net income of $3.7 million or $0.05 per share during the three months ended June 30, 2007 on revenues of $15.9 million. Net income for the second quarter of 2008 was negatively effected by three significant factors; (i) in the second quarter, revenues were reduced by $2.0 million due to the  accounting requirement whereby the Company is required to mark to market accounts receivable and forward contracts for which final settlement has not yet occurred; (ii) approximately $0.5 million of legal expenses relating to Rock Creek; and (iii) a large tax adjustment because management changed its estimate of the amount of exploration spending at Rock Creek which significantly increased the income tax expense for the three and six months ended June 30, 2008.

Concentrate deliveries and sales during the three months ended June 30, 2008 consisted of 2.4 million pounds of payable copper and 244,630 ounces of payable silver compared to 3.5 million pounds of copper and 378,226 ounces of silver during the three months ended June 30, 2007.

During the second quarter of 2008, cost of sales was $9.5 million compared to $8.8 million in the second quarter of 2007. Operating costs were higher reflecting higher labor costs, higher materials and supplies (principally in the drill and blast activities), and higher property and state mining taxes. Depreciation and amortization in this current quarter was $0.5 million compared to $0.4 million in the second quarter of 2007. The reclamation and remediation liability accretion expense was $0.1 million in the second quarter of 2008 and $0.2 million in the second quarter of 2007.

Exploration and development costs totaled $1.0 million in the second quarter of 2008, compared to $0.6 million in the second quarter of 2007. The large increase in exploration and development was largely a function of increased legal costs relating to the Rock Creek permit challenges. With all court filings now complete these expenses should be less in future periods. General and administration costs were $1.4 million in the second quarter of 2008 compared to $1.1 million during the second quarter of 2007. Other income during the second quarter was $0.1 million compared to $0.9 million recorded during the second quarter of 2007, reflecting lower foreign exchange gains on cash and short term investment held in Canadian dollars.

As a result of the foregoing factors, net income before non controlling interest and taxes was $1.0 million for the second quarter of 2008 and $5.8 million for the second quarter of 2007. For the three months ended June 30, 2008, net income, after taxes and non controlling interests, was $0.1 million or $0.00 per share compared to net income of $3.7 million or $0.05 per share for the three month period ended June 30, 2007.

The only remaining third party debt obligations of the Company are the capped Royal Gold production driven royalty expected to be retired within the next nine months depending on production levels and metal prices and $1.6 million in principal payments relating to certain capital lease obligations. At June 30, 2008, the Company�s cash and cash equivalents and short term investments, which consists of cash invested in fixed income securities, totaled $13.1 million compared to $9.5 million as at March 31, 2008. At June 30, 2008 working capital had increased to $12.5 million from $11.6 million at March 31, 2008.

THE TROY MINE

The table below illustrates certain key operating statistics for Troy (100% basis) for the three and six months ended June 30, 2008, with a comparison to the three and six months ended June 30, 2007.

 

Three Months Ended June 30,  2008

Three Months Ended June 30, 2007

Six Months Ended

June 30, 2008

Six Months Ended June 30, 2007

Tons milled

331,698

337,712

631,561

687,892

Tons milled per day

3,645

3,711

3,489

3,801

Operating cost per ton milled (USD)

26.96

22.04

26.67

21.90

Copper grade (pct)

0.41

0.59

0.41

0.56

Silver grade (opt)

0.87

1.24

0.87

1.19

Copper recovery (pct)

87.9

87.1

87.2

87.1

Silver recovery (pct)

90.1

88.5

89.6

88.7

Copper produced (lbs)

2,388,947

3,490,930

4,518,469

6,793,282

Silver produced (ozs)

259,847

372,332

491,759

731,466

Copper sold  (payable pounds)

2,391,086

3,544,216

4,409,060

6,276,480

Silver sold (payable ozs)

244,630

378,226

447,393

668,073

The continuing improvement in mill throughput, combined with the continued high prices for silver and copper are the two most significant factors affecting the Company�s second quarter operating and financial results. Production levels in the second quarter of 2008 improved by 10.6% over the first quarter of 2008, but lower than planned ore grades continue to affect the amount of payable metal produced. Since January 2008, the mine has operated for significant periods of time in the fringes of the ore body because metal prices have allowed for economic production from lower grade material and, additionally the mine remains behind in its development as it continues to recovery from restrictions placed on it by MSHA (relating to the July 30, 2007 rock fall) during the second half of 2007.  Ore grades, however, remained below average life of mine grades but a modest improvement in grades is anticipated throughout the rest of the year.  If production ca n continue at levels experienced in the second quarter and prices remain at or near current levels, Troy could generate positive cash flow during the rest of this year. Also, the mine continues to work aggressively in implementing its safety and environmental programs and this performance has been excellent for the past twelve months.

ROCK CREEK UPDATE

All required legal briefs have been filed with the court respecting the challenges brought by certain environmental groups concerning the Rock Creek permit. Meanwhile, in accordance with our permits, the Company has completed construction of the office and core shed at the Rock Creek property.

ABOUT REVETT

Revett, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine both of which are located in northwest Montana. Based on the drilling to date, Rock Creek contains an estimated inferred resource of 137 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 Mr. Jean-Francois Couture, P.Geo.  and   Mr. Ken Reipas, P.Eng. of SRK Consulting (Canada). Both Mr. Couture and Mr. 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 and with the SEC on EDGAR. 

CLICK HERE TO VIEW FINANCIAL STATEMENTS.

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 applicable Canadian securities legislation and The Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to th ose with respect to the price of silver and copper, the estimation of  mineral reserves and resources, the realization of mineral reserve estimates, 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 tha t 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-Kfiled on SEDAR at www.sedar.com and with the SEC on EDGAR. Althoug h 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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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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