SPOKANE VALLEY, WA, May 15 /PRNewswire-FirstCall/ - Revett Minerals
Inc. (TSX-RVM) ("Revett" or the "Company") is pleased to report on its
improving operating and financial performance for the three months ended
March 31, 2008. All currency in this report is in United States dollars
unless otherwise indicated
The major highlights for the quarter ended March 31, 2008, included:
- Troy (100% basis) achieved improved mill throughput averaging
3,332 tons per day compared to 2,309 tons per day during the
three months ended December 31, 2007;
- Troy (100% basis) produced 2.1 million pounds of copper and
231,912 ounces of silver compared to 1.1 million pounds of copper and
127,352 ounces of silver for the three months ended December 31, 2007;
- Revett Minerals acquired the Kennecott term note leaving the
consolidated company with only minimal non-royalty related fixed term
debt, all of which relates to capital leases;
- For the three months ended March 31, 2008, the Company reported income
from operations of $1.9 million compared to a loss from operations of
$6.5 million for the three months ended December 31, 2007; and
- The Company reported net income of $1.4 million or $0.02 per share for
the three months ended March 31, 2008 compared to a loss of
$3.0 million or $0.04 per share for the three months ended December 31,
2007.
Bill Orchow, President and CEO of the Company, in commenting on the
first quarter said "We are very pleased with the employees dedication in
attaining continued production improvements which have had 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 financial performance of the mine."
CONSOLIDATED RESULTS
--------------------
For the three months ended March 31, 2008, Revett reported a profit of
$1.4 million or $0.02 per share on revenue of $12.0 million. This compared
to a profit of $0.3 million or $0.00 per share during the three months
ended March 31, 2007 on revenues of $10.7 million and a loss of $3.0
million or ($0.04) per share for the three months ended March 31, 2007 on
revenues of $3.1 million.
Concentrate deliveries and sales during the three months ended March
31, 2008 consisted of 2.0 million pounds of payable copper and 183,735
ounces of payable silver compared to 2.7 million pounds of copper and
289,847 ounces of silver during the three months ended March 31, 2007.
During the first quarter of 2008, cost of sales was $8.3 million
compared to $7.6 million in the first 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 $0.4 million compared to $0.4 million in the first quarter of 2007. 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 remediation liability accretion expense was $0.2
million in the first quarter of 2008 and also $0.2 million in the first
quarter of 2007.
Exploration and development costs totaled $0.4 million in the first
quarter of 2008, compared to $0.5 million in the first quarter of 2007. The
difference in exploration and development was largely a function of the
timing of initiating Troy's 2008 exploration program. General and
administration costs were $1.0 million in the first quarter of 2008
compared to $1.0 million during the first quarter of 2007. Other income was
an expense of $0.2 million during the first quarter of 2008 comprised
almost entirely of a loss on foreign exchange. In the first quarter of
2007, other income was a loss of $0.02 million, reflecting a smaller change
in the relative value of the Canadian dollar to the US dollar.
As a result net income before non controlling interest and taxes was
$1.6 million for the first quarter of 2008 and $1.2 million for the first
quarter of 2007. For the three months ended March 31, 2008, net income,
after taxes and non controlling interests, was $1.4 million or $0.02 per
share compared to net income of $0.3 million or $0.00 per share for the
three month ended March 31, 2007.
On February 21, 2008, Revett Minerals acquired for face value Revett
Silver's loan obligation to Kennecott Montana Company, thereby, eliminating
on a consolidated basis the majority of the Company's debt obligations. The
only remaining third part debt obligations are the capped Royal Gold
production driven royalty expected to be retired within the next 12 to 18
months, depending production levels and metal prices, and $1.5 million in
principal payments relating to certain capital lease obligations. At March
31, 2008, the Company's cash and cash equivalents and short term
investments, which consists of cash invested in fixed income securities,
totaled $9.5 million compared to $18.0 million as at December 31, 2007.
This use of cash was a mostly a function of acquiring the third party
Kennecott note. At March 31, 2008 working capital had increased to $11.6
million from $10.2 million at December 31, 2007.
THE TROY MINE
-------------
The table below illustrates certain key operating statistics for Troy
(100% basis) for the three months ended March 31, 2008, with a comparison
to the three months ended March 31, 2007 and also to the fourth quarter of
2007.
Three Months Three Months Three Months
Ended Ended Ended
------------ ------------ ------------
March 31, March 31, December 31,
2008 2007 2007
-------- -------- -----------
Tons milled 299,863 350,180 212,425
Tons milled per day 3,332 3,891 2,309
Operating cost per ton milled
(USD) 26.33 21.77 32.81
Copper grade (pct) 0.41 0.54 0.31
Silver grade (opt) 0.87 1.15 0.68
Copper recovery (pct) 86.5 87.1 85.0
Silver recovery (pct) 89.0 88.9 88.7
Copper produced (lbs) 2,129,522 3,302,352 1,135,338
Silver produced (ozs) 231,912 359,134 127,352
The continuing improvement in mill throughput, along with the continued
high prices for silver and copper are the two most significant factors
affecting the Company's first quarter operating and financial results. If
production can continue at levels experienced in March and prices remain at
or near current levels, Troy could generate positive cash flow for the rest
of 2008. Also, the mine continues to work aggressively in implementing its
safety and environmental programs and this performance has been excellent
for the past eight months.
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 http://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 http://www.sedar.com.
William Orchow
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 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
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 http://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 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.
Revett Minerals Inc.
Consolidated Balance Sheets
at March 31, 2008 and December 31, 2007
(expressed in thousands of United States dollars
except share and per share amounts)
March 31, December 31,
2008 2007
(unaudited)
Assets
Current Assets
Cash and cash equivalents $ 8,538 $ 14,055
Short term investments 1,002 3,955
Accounts receivable 3,968 970
Income tax receivable - 1,250
Concentrate settlement receivable 1,507 -
Inventories (note 3) 4,701 4,519
Prepaid expenses and deposits 563 498
-----------------------------
Total current assets 20,279 25,247
Mineral property, plant, equipment and
mine development (net) (note 4) 60,531 60,714
Restricted cash (note 5) 7,477 7,386
Other long term assets 1,232 1,264
-----------------------------
Total assets $ 89,519 $ 94,611
-----------------------------
-----------------------------
Liabilities and shareholders equity
Current liabilities
Trade accounts payable $ 1,801 $ 1,985
Payroll liabilities 880 806
Income, property and mining taxes 1,497 1,161
Concentrate settlement payable - 526
Other accrued liabilities 1,030 852
Current portion of long term debt 3,572 9,719
-----------------------------
Total current liabilities 8,780 15,049
Long-term portion of debt (note 6) 1,011 1,784
Reclamation and remediation liability
(note 9 (b)) 7,036 7,141
Future income tax 7,974 8,391
-----------------------------
Total liabilities 24,801 32,365
-----------------------------
Non controlling interest 8,604 8,175
Shareholders' equity
Preferred stock, no par value, unlimited
authorized, nil issued and outstanding
Common stock, no par value unlimited
authorized, 75,002,702 (2007- 74,295,702)
shares issued and outstanding (note 7 (b)) 56,871 56,315
Contributed surplus 1,636 1,556
Deficit (2,393) (3,800)
-----------------------------
56,114 54,071
Total liabilities and shareholders
equity $ 89,519 $ 94,611
-----------------------------
-----------------------------
See accompanying notes to interim consolidated financial statements.
Revett Minerals Inc.
Consolidated Statements of Operations
Three months ended March 31, 2008 and 2007
(expressed in thousands of United States dollars
except share and per share amounts)
(unaudited)
Three month Three month
period ended period ended
March 31, March 31,
2008 2007
Revenues $ 12,034 $ 10,716
Expenses:
Cost of sales 8,278 7,550
Depreciation and amortization 392 386
Exploration and development 355 475
General & administrative 986 975
Accretion of reclamation and remediation
liability 146 161
-----------------------------
10,157 9,547
-----------------------------
Income from operations 1,877 1,169
Other income (expenses):
Interest expense (274) (371)
Interest and other income 255 387
Foreign exchange (loss) (216) (33)
-----------------------------
Total other income (expenses) (235) (17)
Net income before non controlling
interest and taxes 1,642 1,152
Income tax recovery (expense) 426 (376)
Net income before non controlling
interest 2,068 776
Non controlling interest (661) (475)
Net income for the period $ 1,407 $ 301
-----------------------------
-----------------------------
Basic earnings per share $ 0.02 $ 0.00
-----------------------------
-----------------------------
Diluted earnings per share $ 0.02 $ 0.00
-----------------------------
-----------------------------
Weighed average number of shares
outstanding 74,761,856 72,934,097
-----------------------------
-----------------------------
Weighted average number of diluted
shares outstanding 75,071,221 73,509,069
-----------------------------
-----------------------------
Revett Minerals Inc.
Consolidated Statement of Cash Flow
Three months ended March 31, 2008 and 2007
(expressed in thousands of United States dollars
except share and per share amounts)
(unaudited)
Three month Three month
period ended period ended
March 31, March 31,
2008 2007
(unaudited) (unaudited)
Cash flows from operating activities:
Net income for the period $ 1,407 $ 301
Adjustment to reconcile net income to net
cash used by operating activities
Depreciation and amortization 392 386
Accretion of reclamation and remediation
liability 146 161
Foreign exchange loss 216 33
Stock based compensation 80 343
Loss on disposal of fixed assets 74 -
Future income tax expense (recovery) (623) 376
Non controlling interest 661 475
Accrued interest from reclamation trust
fund (86) (82)
Amortization of prepaid insurance premium 32 41
Change in fair value of derivative
contracts (2,033) (3,974)
Changes in:
Accounts receivable (2,998) 3,399
Income tax receivable 1,250 -
Inventory (182) (857)
Prepaid expenses and other (65) (370)
Accounts payable and accrued liabilities 404 (1,745)
-----------------------------
Net cash used by operating activities (1,325) (1,513)
-----------------------------
Cash flows from investing activities:
Proceeds (purchase) of short term
investments 2,953 (479)
Other long term assets (3) 42
Purchase of plant and equipment (6) (258)
-----------------------------
Net cash provided (used) by investing
activities 2,944 (695)
-----------------------------
Cash flows from financing activities:
Proceeds form the issuance of common
stock, net - 1,327
Repayment of debt (6,625) (740)
Repayment of capital leases (295) (181)
-----------------------------
Net cash from (used by) financing
activities (6,920) 406
-----------------------------
Effects of foreign exchange on cash held
In foreign currencies (216) (33)
Net (decrease) increase in cash and cash
equivalents (5,517) (1,835)
Cash and cash equivalents, beginning
of period 14,055 19,862
-----------------------------
Cash and cash equivalents, end of
period $ 8,538 $ 18,027
-----------------------------
-----------------------------
Supplementary cash flow information:
Cash paid for interest expense $ 404 $ 545
Cash received for interest income $ 374 $ 247
Common stock issued to acquire non
controlling interest $ 556 $ -
Reduction of reclamation and
remediation liability $ 251 $ 1,021
Revett Minerals Inc.
Consolidated Statement of Shareholders' Equity
Three months ended March 31, 2008 and year ended
December 31, 2007
(expressed in thousands of United States dollars
except share and per share amounts)
(unaudited)
Common Shares Contri-
------------- buted
Shares Amount Surplus Deficit Total
------ ------ ------- ------- -----
Balance,
December 31,
2006 71,904,088 $ 53,989 $ 816 $ (4,671) $ 50,134
Issued to
acquire non
controlling
interest 1,097,999 999 - - 999
Issued for
cash on the
exercise of
share
purchase
warrants 1,293,615 1,327 - - 1,327
Stock-based
compensation
on options
granted - - 740 - 740
Net income
for the year - - - 871 871
----------------------------------------------------------
Balance,
December 31,
2007 74,295,702 $ 56,315 $ 1,556 $ (3,800) $ 54,071
----------------------------------------------------------
----------------------------------------------------------
Issued to
acquire non
controlling
interest 707,000 556 - - 556
Stock-based
compensation
on options
granted - - 80 - 80
Net income for
the period - - - 1,407 1,407
----------------------------------------------------------
Balance, March
31, 2008 75,002,702 $ 56,871 $ 1,636 $ (2,393) $ 56,114
----------------------------------------------------------
----------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
SOURCE REVETT MINERALS INC
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CONTACT:
Scott Brunsdon, CFO; Doug Ward, VP Corporate
Development, (509) 921-2294; http://www.revettminerals.com; Renmark
Financial Communications Inc.: Jason Roy,
jroy@renmarkfinancial.com; Maurice Dagenais,
mdagenais@renmarkfinancial.com, (514) 939-3989, Fax: (514)
939-3717; http://www.renmarkfinancial.com
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