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Revett Minerals

Published : May 11th, 2007

Reports Operating and Financial Results for the Three Months Ended March 31, 2007

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Keywords :   Canada | Copper | Fixed | Recovery | Silver |

Revett Minerals Reports Operating and Financial Results for the Three Months Ended March 31, 2007


May 11, 2007 Revett Minerals Inc., Spokane Valley, Washington (TSX-RVM) ("Revett" or the "Company")
is pleased to report on its improving operating and financial performance for the three months ended March 31, 2007. All currency in this report is in United States dollars unless otherwise indicated.

The major highlights for the quarter ending March 31, 2007, included:

�Troy (100% basis) achieved record mill throughput averaging 3,891 tons per day;
� Troy (100% basis) attained record production of 3.3 million pounds of copper and 359,134 ounces of silver;
� Initiation of the "Troy Complex" exploration program outside of the Troy ore body;
� Ore reserves based upon ore tons increased by 10% over the level of proven and probable reserves of the previous year (see the press release dated April 2, 2007);
� Agent compensation warrants exercisable at (Cdn) $1.20 per share for 1,293,615 common shares were exercised this quarter realizing (Cdn) $1,552,338; and.
� The Company reported net income of $301,000 or $0.00 per share.

Mr. Orchow, President and CEO, of the Company in commenting on the first quarter said "We are very pleased with the production improvements and cost control activities at Troy. The production enhancement programs implemented last year are achieving meaningful increases in mill throughput which has the added benefit of reducing our production costs on a metal produced basis. The management and staff at Troy are to be complemented for the efforts that they have made in improving the operations at the mine".

CONSOLIDATED RESULTS

For the first quarter of 2007, Revett Minerals Inc. reported a profit of $301,000 or $0.00 per share on revenue of $10.7 million. This compared to a profit of $26,000 or $0.00 per share during the first quarter of 2006 and a loss of $4.9 million or ($0.07) per share in the fourth quarter of 2006. Sales revenue for the first quarter of 2006 was $7.4 million and it was $4.0 million for the fourth quarter of 2006.

Concentrate deliveries and sales during the first quarter of 2007 were comprised of 2.5 million pounds of payable copper and 303,541 ounces of payable silver compared to 1.7 million pounds of copper and 230,303 ounces of silver and 1.4 million pounds of copper and 165,176 ounces of silver for the first and fourth quarter of 2006, respectively.

During the first quarter of 2007 cost of sales was $7.6 million compared to $5.9 million in the first quarter of 2006 and $7.2 million in the fourth quarter of 2006. Operating costs were higher reflecting increased mill throughput, higher labor costs, higher material and supply costs and higher property and mining costs. Depreciation and amortization in this current quarter was $0.4 million compared to $0.4 million in the first quarter of 2006 and $0.2 million in the fourth quarter of 2006. The Company uses the units-of-production method to depreciate the majority of Troy's plant and equipment and therefore changes in throughput and ore reserves will result in corresponding adjustments to these expense items. The reclamation and closure accretion expense was $0.2 million in the first quarter of 2007 and $0.04 million and $0.5 million in the first and fourth quarters of 2006 respectively.

Exploration and development costs totaled $0.5 million in 2007, the costs rising because of the initiation of the "Troy Complex" exploration program in this current quarter. General and administration costs were $1.0 million in the first quarter of 2007 compared to $0.6 million and $1.6 million in the first and fourth quarters of 2006 respectively. The main factor affecting the general and administration costs on a quarter over quarter basis are changes in employees' stock option compensation expense. Finally interest expense, net of interest income and other costs totaled $0.02 million in 2007 and $0.06 million in the first quarter of 2006 and $0.8 million in the fourth quarter of 2006.

As a result net income before non controlling interest and taxes was $1.2 million for the first quarter of 2007 and $0.1 million for the first quarter of 2006 and a loss of $6.7 million for the fourth quarter of 2006. During the first quarter of 2007 net income was $301,000and as previously discussed for the other comparable quarters.

At March 31, 2007, the Company's cash and cash equivalents and short term investments, which consists of cash invested in fixed income securities, totaled $22.4 million compared to $23.8 million as at December 31, 2006. This use of cash was a function of low metal prices in December, January and February which are used for invoicing purposes and below budget production in December and January.

THE TROY MINE

The table below illustrates certain key operating statistics for Troy (100% basis) for the three months ended March 31, 2007, with a comparison to the previous quarter and also for the three months ended March 31, 2006.

 

Three Months Ended

 March 31, 2007

Three Months Ended

 March 31, 2006

Three Months Ended

December 31, 2006

Tons milled

350,180

282,801

206,614

Tons milled per day

3,891

3,142

2,246

Operating cost per ton milled (USD)

21.77

20.16

31.88

Copper grade (pct)

0.54

0.44

0.42

Silver grade (opt)

1.15

1.12

1.01

Copper recovery (pct)

87.1

81.7

82.8

Silver recovery (pct)

88.9

84.8

83.6

Copper produced (lbs)

3,302,352

2,026,697

1,445,723

Silver produced (ozs)

359,134

265,321

175,343

The increase in mill throughput, along with the recovery in copper and silver prices are the two most significant factors affecting the Company's first quarter operating and financial results. During the last few months of 2006, the management of Troy initiated a number of productivity enhancement programs with the objective of increasing the efficiency of the underground mining operations. These productivity improvement programs included: (i) increased supervisory training, (ii) improvements in communications at shift change, (iii) improved training of the workforce on operating the jumbo drills, (iv) more emphasis on maintenance planning, and (v) short term mine planning aimed at improving cycling efficiencies. We believe the production improvements noted in the table above are indications of the benefits of the productivity programs implemented last year.

Also during the first quarter, Troy has initiated its "Troy Complex" exploration program previously announced (see the release dated February 1, 2007). The target of this program is to test the potential for deeper mineralization below the existing mine workings, known as the "I-beds" and to follow up on the known mineralization on the JF claims, about 1.5 kilometers  south of the Troy ore body.

ABOUT REVETT

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

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
Michael Shore: mshore@renmarkfinancial.com
Media: Eva Jura: ejura@renmarkfinancial.com
Tel.: (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com

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

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 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 pen ding 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 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 wi LL 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.

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...
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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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