Revett Reports Q2 2012 Results
SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 08/09/12 -- Revett Minerals Inc. (TSX: RVM)(NYSE MKT: RVM)(NYSE Amex: RVM) announced its consolidated operating and financial results for the first half of 2012 and second quarter of 2012 . The financial results are based on US GAAP unless otherwise indicated and all currencies are in United States dollars unless otherwise indicated.
Highlights for the second quarter and first half of 2012 include:
-- Net income for the first half of 2012 was $1.5 million or $0.04 per
share (basic) on revenues of $32.7 million. For the second quarter ended
June 30, 2012 the Company recorded a net loss of $2.2 million or $0.07
per share (basic).
-- Net cash from operations(1) for the first half of 2012 was $11.0
million. Net cash from operations(1) for the second quarter ended June
30, 2012 was $3.5 million.
-- Cash and short term investments on hand increased to $30.0 million, a
19% year to date increase over cash on hand of $25.2 million as of
January 1, 2012.
-- Adjusted EBITDA(2) for the first half of 2012 was $5.6 million. For the
second quarter ended June 30, 2012 EBITDA(2)was $0.4 million.
-- Silver production for the first half of 2012 was 602,762 ounces, a 3%
increase over the first six months of 2011. Second quarter silver
production totaled 278,387 ounces averaging throughput grades of 1.02
oz/ton. Copper production for the first half of 2012 was 4,185,318
pounds, a 17% decrease compared to first six months of 2011. Copper
production for the second quarter was 1,936,207 pounds averaging
throughput grades of 0.37%.
Consolidated Financial Results
Total revenue for the first half of 2012 was $32.7 million compared to $31.5 million for the first half of 2011. Revenue for the second quarter ended June 30, 2012 was $13.5 million compared to $18.8 million in the second quarter of 2011. The decrease in revenues and production for the second quarter of 2012 was primarily due to lower metal prices and reduced access to the higher grade C Bed mining areas, because of extended spring rains and unseasonably high snow melt. The Company was able to mine in the A Bed and Lower Quartzite mining areas at lower daily outputs. Mining in the C Bed area resumed in late June and has now returned to planned levels.
The Company is pleased to reconfirm its adjusted production guidance levels for 2012 at 1.325 million ounces of silver and 10.0 million pounds of copper.
Cost of sales increased in the first half of 2012 compared to 2011. This increase was due to higher costs to final market (freight, treatment and refining charges) along with increased labor costs, fuel costs, and a non recurring charge for planned equipment conversions to B75 bio diesel to meet DPM (diesel particulate matter) emission standards during the first half of 2012. It is anticipated that cost of sales will remain at these levels for the remainder of 2012.
Our exploration and development costs also increased in the first half of 2012 compared to 2011 due to increased exploration work in and around the Troy Mine, along with higher costs associated with the Rock Creek Supplemental EIS. Similarly, higher general and administrative costs in the first half of 2012 were attributable to higher professional fees associated with technical related studies at Troy and Rock Creek.
The second quarter net loss of $2.2 million or $0.07 per share (basic) included a non cash charge of $2.0 million for the issuance of stock options to all employees of Revett Minerals and Troy Mine Inc.
At June 30, 2012 cash and short term investments were $30.0 million. Adjusted EBITDA(2) for the first half of 2012 was $5.6 million.
Selected Financial Highlights:
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Second Quarter First Six Months
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2012 2011 2012 2011
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Net Cash from Operations (1) $3.5m $7.4m $11.0m $10.8m
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Revenue $13.5m $18.8m $32.7m $31.5m
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Adjusted EBITDA(2) $0.4m $7.9m $5.6m $10.7m
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Net Income $(2.2m) $7.9m $1.5m $5.1m
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EPS (basic) $(0.07) $0.23 $0.04 $0.11
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EPS (fully diluted) $(0.07) $0.16 $0.03 $0.07
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Cash & short term investments $30.0m $14.7m $30.0m $14.7m
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Troy Operating Summary
Mill throughput for the first six months of 2012 was 649,009 tons processed, averaging 3,626 tpd, approximately level with the first six months of 2011 of 644,508 tons (3,621 tpd). Second quarter throughput was 317,486 tons processed, averaging 3,567 tpd for the period.
Selected Operating Highlights:
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Second Quarter First Six Months
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2012 2011 2012 2011
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Tons milled 317,486 352,818 649,009 644,508
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Tons milled per day 3,567 3,964 3,626 3,621
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Silver Grade (ounces per
ton) 1.02 1.14 1.07 1.09
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Silver Recovery (%) 86.30% 85.04% 86.76% 83.70%
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Silver Production (ounces) 278,387 342,822 602,762 587,890
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Silver Sold (payable ounces) 260,458 272,931 560,022 469,153
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Average realized silver
price ($/oz) $25.00 $32.15 $29.96 $30.96
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Copper Grade (%) 0.37% 0.52% 0.38% 0.48%
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Copper Recovery (%) 83.10% 82.36% 84.40% 80.20%
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Copper Production (pounds) 1,936,207 3,028,252 4,185,318 5,026,662
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Copper Sold (payable pounds) 1,837,577 2,572,827 4,143,306 4,329,742
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Average realized copper
price ($/lb) $3.49 $3.67 $3.70 $3.82
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Troy Mine Operating Costs and Inventory
The table below summarizes final cash costs and concentrate inventory for the first half and second quarter ended June 30, 2012.
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Second Quarter First Six Months
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2012 2011 2012 2011
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Cash Cost(3)
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Direct Operating Cost (US$/st) $31.25 $29.25 $32.58 $31.05
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By-Product Basis (payable)
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-Silver (US$oz) or, $13.45 $2.10 $11.18 $6.58
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-Copper $1.61 $0.69 $1.00 $1.31
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Co-Product Basis (payable)
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-Silver (US$/oz) and, $20.32 $15.14 $20.72 $17.05
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-Copper (US/lb) $2.58 $1.89 $2.42 $2.28
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Concentrate Inventory
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Dry Short Tons 212 1,042
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-Silver (oz) 16,725 80,480
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-Copper 145,872 745,830
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(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) Adjusted EBITDA is a non GAAP measure in which standard EBITDA (earnings before interest, taxes, depreciation and amortization) is adjusted for stock based compensation, foreign exchange gains or losses, and non-recurring items.
(3) All cash costs include direct mine site costs along with smelting, refining and transportation charges. Average commodity prices used to off-set (by-product credit basis) or allocate (co-product basis) cash costs are the monthly weighted average realized prices based on invoiced shipments. 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.
John Shanahan, President and CEO stated, "We remain focused on operating the Troy mine safely and responsibly to the highest possible standards, while still generating positive cash flow and strengthening our balance sheet. Despite reduced second quarter production, Troy's solid operations continue to provide an important source of cash flow and is the basis of building an experienced and growing work force in the region. Our objective remains unchanged, to extend Troy Mine life while completing the final steps of the permitting process for the Rock Creek project."
Quarterly Financial Results Conference Call
Revett has scheduled a conference call to discuss its second quarter 2012 financial results on Friday, August 10, 2012, at 11:30 am (EDT).
To participate in the call, North American callers can call 1-888-231-8191 and International callers can call (647) 427-7450. Please dial in to the call approximately five to ten minutes prior to the scheduled start time of the call.
The conference call and all questions and answers will be recorded and made available until August 16, 2012. To listen to the recording, call toll free (855) 859-2056 or (416) 849-0833 and enter the access code 13344089#.
About Revett
Revett Minerals, 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 Revett's plan to become a premier mid-tier base and precious metals producer. Revett plans on expanding production through exploration in and around its current properties, as well as through targeted business combinations of advanced stage projects.
John Shanahan, President and Chief Executive Officer
Except for the statements of historical fact contained herein, the information presented in this news release may contain "forward-looking statements" within the meaning of applicable Canadian securities legislation and 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 "plans", "expects", or "does not expect", "is expected", "is not expected", "budget", "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 contained in this news release include but are not limited to those relating to anticipated production in 2012 and cost of sales levels for the remainder of 2012. Forward looking statements, including future-oriented financial information, are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business and economic uncertainties, risks and contingencies, that actual production may differ from assumed production, that costs may fluctuate due to unforeseen events or circumstances and 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. Future oriented financial information is by its nature only an estimate and there are no guarantees that they will be achieved. 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 as required by with applicable securities laws.
Contacts:
Revett Minerals Inc.
Ken Eickerman
Chief Financial Officer
(509) 921-2294
Revett Minerals Inc.
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
www.revettminerals.com
