Revett Reports Q3 2012 Production
SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 10/15/12 -- Revett Minerals Inc. (TSX: RVM) (NYSE MKT: RVM) (NYSE Amex: 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."
Development Update
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.
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.
Production Summary
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Third Quarter First Nine Months
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2012 2011 2012 2011
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Mill Production
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Mill Feed (st) 340,893 393,341 989,902 1,037,849
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Mill Feed Rate (stpd) 3,788 4,370 3,680 3,873
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Silver
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Feed Grade - Oz/Ton Ag 1.18 1.18 1.11 1.12
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Mill Recovery - Ag 86.20% 86.96% 86.74% 84.96%
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Recovered Ounces 348,194 402,700 950,956 990,590
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Copper
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Feed Grade - % Cu 0.42% 0.49% 0.40% 0.49%
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Mill Recovery - Cu 81.70% 84.50% 83.60% 81.90%
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Recovered Pounds 2,361,915 3,272,526 6,547,233 8,299,188
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Cash Cost(2)
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Direct Operating Cost (US$/st) $33.41 $29.02 $32.86 $30.61
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By-Product Basis (payable)
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- Silver (US$/oz) or, $8.92 $4.34 $10.35 $6.16
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- Copper (US$/lb) $0.50 $0.71 $0.82 $1.09
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Co-Product Basis (payable)
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- Silver (US$/oz) and, $19.77 $15.19 $20.38 $16.61
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- Copper (US$/lb) $2.27 $1.87 $2.38 $2.14
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Concentrate Inventory
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- Dry Short Tons 192 1,662
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- Silver (oz) 16,621 162,177
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- Copper (lbs) 129,245 1,321,756
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Sales
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- Silver (oz) 316,242 295,325 873,460 780,716
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- Copper (lbs) 2,295,687 2,606,069 6,333,142 6,935,811
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Net Cash from Operations(1) $7.5m $8.3m $18.5m $19.0m
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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. 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 production through exploration in and around its current properties, as well as through targeted business combinations of advanced stage projects.
John Shanahan, President & CEO
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 toongoing planned development and exploration work and goals, as well as the Companyu'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.
Contacts:
Revett Minerals Inc.
Monique Hayes
Corporate Secretary / Director of Investor Relations
(509) 921-2294
www.revettminerals.com
