Revett Minerals Inc.
Revett Reports Q3 2012 Production SPOKANE VALLEY, WA - October 15, 2012 -- Revett Minerals Inc. (NYSE MKT:RVM, TSX:RVM) is pleased to announce third quarter 2012 production results from the Troy Mine, located in northwest Montana. Currency is reported in United States dollars unless otherwise indicated.Mill throughput and silver production improved significantly from the second quarter 2012, and grades and recoveries have returned to plan levels.
Troy Mine Third Quarter, 2012 Operating Summary:
• For the first nine months of 2012, net cash from
operations(1) was $18.5 million compared to
$19.0 million for the first nine months of 2011. Net cash
from operations(1) for the third quarter ended
September 30, 2012 was $7.5 million.
• Mill throughput for the first nine months of 2012 averaged
3,680 tpd compared to 3,873 tpd for the first nine months of
2011. Third quarter 2012 throughput was 340,893 tons
processed, averaging 3,788 tpd for the period.
• Silver production for the first nine months of 2012 was
950,956 ounces, approximately 4% below production for the
first nine months of 2011 of 990,590 ounces. Third quarter
2012 silver production totaled 348,194 ounces averaging
throughput grades of 1.18 oz/ton.
• Copper production for the first nine months of 2012 was
6,547,233 pounds, approximately 20% below production for the
first nine months of 2011 of 8,299,188 pounds. Third quarter
2012 copper production totaled 2,361,915 pounds averaging
throughput grades of 0.42%.
• There were a total of four lost time incidents reported
during the third quarter which resulted in relatively minor
injuries. The MSHA calculated Incidence Rate for the first
nine months of 2012 is 4.64 as compared to a national
underground average for the first half of 2012 of 2.42.
John Shanahan, President and CEO stated, "Our third quarter
operating results were very positive, with notable increases
in silver production of 25% and copper production of 22% over
the second quarter. Net cash from operations continues to
strengthen our balance sheet and provide a solid basis for
the Company as we continue development and explorations
activities at the Troy Mine to open more working areas and
extend mine life."
During the third quarter, development efforts at the Troy
Mine remained focused on the North C Bed
Decline and access to the East Ore Body (Middle
Quartzite).
Approximately 350 feet of development (of 1,650 feet in
total) remains to be completed in the North C Bed drift. Once
completed, a decline will be developed to access the I Bed
zone which lies approximately
750 feet below the current C Bed workings. The revised I Bed
development plan calls for a spiral decline from the North C
Bed and is expected to be completed by the end of 2014 at a
total cost of approximately
$10 million dollars.
11115 East Montgomery, Suite G, Spokane Valley, WA 99206
509-921-2294 fax 509-891-8901
Development work by mining contractors to access the East Ore Body (Middle Quartzite) continues and is expected to be completed in the fourth quarter. Renewed production from the East Ore Body is expected to commence in first quarter 2013 after extensive ground support measures and a secondary escapeway have been completed.
Exploration Update
Drilling immediately south of the current Troy Mine
production areas continues to intersect copper/silver
mineralization on trend with the Troy I Beds and JF Property
targets. Drilling in the third quarter totaled
2,782 feet of core and results are pending detailed core
logging and interpretation.
Directional drilling at the JF Property continued with 5,173
feet drilled in the third quarter and a total of
9,024 feet of core drilled year to date. Results of the
drilling are also pending detailed core logging and
interpretation.
A five year exploration plan for targets north and east of
the Troy Mine has been submitted to the U.S. Forest Service
and Montana DEQ. The plan is currently under review by the
agencies.
The Corporate Reserve and Resource summary will be updated at
year end with the expectation of extending the I Bed reserves
at the Troy Mine.
Third Quarter | First Nine Months | |||
2012 | 2011 | 2012 | 2011 | |
Mill Production | ||||
Mill Feed (st) | 340,893 | 393,341 | 989,902 | 1,037,849 |
Mill Feed Rate (stpd) | 3,788 | 4,370 | 3,680 | 3,873 |
Silver | ||||
Feed Grade - Oz/Ton Ag | 1.18 | 1.18 | 1.11 | 1.12 |
Mill Recovery - Ag | 86.20% | 86.96% | 86.74% | 84.96% |
Recovered Ounces | 348,194 | 402,700 | 950,956 | 990,590 |
Copper | ||||
Feed Grade - % Cu | 0.42% | 0.49% | 0.40% | 0.49% |
Mill Recovery - Cu | 81.70% | 84.50% | 83.60% | 81.90% |
Recovered Pounds | 2,361,915 | 3,272,526 | 6,547,233 | 8,299,188 |
Cash Cost(2) | ||||
Direct Operating Cost (US$/st) | $33.41 | $29.02 | $32.86 | $30.61 |
11115 East Montgomery, Suite G, Spokane Valley, WA 99206
509-921-2294 fax 509-891-8901
Cash Cost(2) | Third Quarter | First Nine Months | ||
2012 | 2011 | 2012 | 2011 | |
By-Product Basis (payable) | ||||
- Silver (US$/oz) or, | $8.92 | $4.34 | $10.35 | $6.16 |
- Copper (US$/lb) | $0.50 | $0.71 | $0.82 | $1.09 |
Co-Product Basis (payable) | ||||
- Silver (US$/oz) and, | $19.77 | $15.19 | $20.38 | $16.61 |
- Copper (US$/lb) | $2.27 | $1.87 | $2.38 | $2.14 |
Concentrate Inventory | ||||
- Dry Short Tons | 192 | 1,662 | ||
- Silver (oz) | 16,621 | 162,177 | ||
- Copper (lbs) | 129,245 | 1,321,756 |
Sales | ||||
- Silver (oz) | 316,242 | 295,325 | 873,460 | 780,716 |
- Copper (lbs) | 2,295,687 | 2,606,069 | 6,333,142 | 6,935,811 |
Net Cash from Operations(1) | $7.5m | $8.3m | $18.5m | $19.0m |
1. Net cash from operations is before capital expenditures and exploration and is a non GAAP measure. The Company believes that net cash from operations is a benchmark for performance and is well understood and widely reported in the mining industry.
2. All cash costs include direct mine site costs along with smelting, refining and transportation charges. Values used to off-set (by-product credit basis) or
allocate (co-product basis) cash costs are realized prices based on all invoices issued during the month. Cash costs per payable ounce of silver or payable pound of copper is a non GAAP measure. The Company believes that, in addition to cost of sales, cash costs per ounce and per pound are a useful and complementary benchmark for performance and is well understood and widely reported in the mining industry. However, cash costs per ounce does not have a standardized meaning prescribed by US GAAP. Investors are cautioned that cash costs per ounce or per pound should not be construed as an alternative to cost of sales determined in accordance with US GAAP as an indicator of performance. The Company's method of calculating cash costs per ounce or per pound may differ from the methods used by other entities and, accordingly, the Company's cash costs per ounce or per pound may not be comparable to similarly titled measures used by other entities.
Release of Quarterly Financial Results and Conference Call
Revett plans to release financial results for the third quarter on Thursday, November 8, 2012 and hold its quarterly conference call on Friday, November 9, 2012 at 11:30am Eastern Time. To join the conference call dial 888-231-8191 or 1-647- 427-7450 internationally.
About Revett
Revett, 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 premier mid-tier base and precious metals producer. Revett plans on expanding
11115 East Montgomery, Suite G, Spokane Valley, WA 99206
509-921-2294 fax 509-891-8901
production through exploration in and around its current
properties, as well as through targeted business combinations
of advanced stage projects.
John Shanahan
President & CEO
For more information, please contact: Monique Hayes,
Corporate Secretary / Director of Investor
Relations (509) 921-2294 or visit our website at
www.revettminerals.com
Except for the statements of historical fact contained
herein, the information presented in this press release may
contain "forward-looking information" within the
meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of
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
"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",
"occur" or "be achieved". Forward-looking
statements contained in this press release include but are
not limited to statements with respect to ongoing planned
development and exploration work and goals, as well as the
Company's expectation of extending its reserves at the Troy
Mine. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to
significant uncertainties, risks and contingencies. Actual
development and exploration could be affected by development
risks and production risks which may include a range of
issues such as grades, equipment failure, accidents, and
geologic formations and unanticipated cost increases as well
as 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 does not
undertake to update any forward-looking statements, except as
required under applicable laws.
11115 East Montgomery, Suite G, Spokane Valley, WA 99206
509-921-2294 fax 509-891-8901
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