SPOKANE VALLEY, WASHINGTON--(Marketwire -07/24/12)- Revett Minerals Inc. (RVM.TO)(RVM)(RVM) announced second quarter 2012 production results from its Troy Mine, located in northwest Montana. Currency is reported in United States dollars unless otherwise indicated.
Troy Mine Second Quarter, 2012 Operating Highlights include:
-- For the first six months of 2012, net cash from operations(1) was $11.0 million, a 3% increase over the first six months of 2011 net cash from operations of $10.7 million. Net cash from operations(1) for the quarter ended June 30, 2012 was $3.5 million. -- Mill throughput for the first six months of 2012 averaged 3,626 tpd, approximately level with the first six months of 2011 of 3,621 tpd. Second quarter throughput was 317,486 tons processed, averaging 3,567 tpd for the period. -- Silver production for the first half of 2012 was 602,762 ounces, a 3% increase over the first six months of 2011 of 587,890 ounces. Second quarter silver production totaled 278,387 ounces averaging throughput grades of 1.02 oz/ton. -- Copper production for the first six months of 2012 was 4,185,318 pounds compared to 5,026,662 pounds of copper, a 17% decrease over the first six months of 2011. Copper production for the second quarter was 1,936,207 pounds averaging throughput grades of .37%. -- There were two lost time incidents reported during the second quarter. Our MSHA calculated Incidence Rate for the first six months of 2012 is 3.04 as compared to a national underground average for the first quarter of 2012 (latest available statistic) of 2.12. As at the end of June 2012, it has been 65 days, and 59,980 man hours worked since our last lost time accident.
Ongoing development of the North C-Bed access decline continued in the second quarter of 2012, advancing a total of 899 feet year to date, with 721 feet remaining. Following the completion of access to the North C-Bed ore body in September, I-Bed development will begin in October and is expected to take approximately two years with an estimated budget of $10 million dollars. In addition, work is being done to access reserves in the East Ore body and is progressing on schedule with grouting and steel set installation scheduled to be finished by early August.
Mill throughput for the first half of 2012 was approximately 9% below our previously announced guidance of 4,000 tpd due mainly to availability and retrofitting of underground equipment in the first quarter and extended spring rains and snow melt into late second quarter. Taking into consideration these adjustments and seasonal factors, along with slight variations of our mine work plan of 4,000 tpd for the remainder of 2012, production guidance for 2012 of 1.4 million ounces of silver and 11.5 million pounds of copper has been reduced to 1.325 million ounces of silver and 10.0 million pounds of copper.
Troy Production Summary Second Quarter First Six Months 2012 2011 2012 2011 Mill Production Mill Feed (st) 317,486 352,818 649,009 644,508 Mill Feed Rate (stpd) 3,567 3,964 3,626 3,621 Silver Feed Grade - Oz/Ton Ag 1.02 1.14 1.07 1.09 Mill Recovery - Ag 86.30% 85.04% 86.76% 83.70% Recovered Ounces 278,387 342,822 602,762 587,890 Copper Feed Grade - % Cu 0.37% 0.52% 38.20% 48.00% Mill Recovery - Cu 83.10% 82.36% 84.40% 80.20% Recovered Pounds 1,936,207 3,028,252 4,185,318 5,026,662 Cash Cost(2) Direct Operating Cost (US$/st) $ 31.25 $ 29.25 $ 32.58 $ 31.05 By-Product Basis (payable) - Silver (US$/oz) or, $ 13.45 $ 2.10 $ 11.18 $ 6.58 - Copper (US$/lb) $ 1.61 $ 0.69 $ 1.00 $ 1.31 Co-Product Basis (payable) - Silver (US$/oz) and, $ 20.32 $ 15.14 $ 20.72 $ 17.05 - Copper (US$/lb) $ 2.58 $ 1.89 $ 2.45 $ 2.28 Concentrate Inventory - Dry Short Tons 212 1,042 - Silver (oz) 16,725 80,480 - Copper (lbs) 145,872 745,830 Sales - Silver (oz) 260,458 272,931 560,022 469,153 - Copper (lbs) 1,837,577 2,572,827 4,143,306 4,329,742 Net Cash from Operations(1) $ 3.5m $ 7.5m $ 11.0m $ 10.7m 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. 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.
Release of Quarterly Financial Results and Conference Call
Revett plans to release financial results for the second quarter on Thursday, August 9, 2012 and hold its quarterly conference call on Friday, August 10, 2012 at 11:30am Eastern Time. To join the conference call dial 1-888-231-8191 or 647- 427-7450 internationally.
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
For more information, please 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 estimated production for 2012 and anticipated development work in the north C bed decline and I bed. 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 production and development 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.