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Revett Minerals – RVM – Consolidated operating and financial results

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Revett Minerals Inc. (NYSE : RVM) is pleased to announce its consolidated operating and financial results for the year ended December 31, 2011. 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 year ended December 31, 2011 include:

Net cash from operations was $28.2 million, an increase of 131% over 2010 net cash from operations of $12.2 million. Record net income for the year was $13.5 million, or $0.36 per share.


Record silver production of 1.29 million ounces and copper production of 10.65 million pounds were 28% and 21% higher than in 2010. Also achieved record mill throughput at the Troy Mine, averaging 3,957 tons per day.

Replaced reserves equivalent to 100% of Troy Mine annual production, resulting in a seven year mine life at current production rates.

Strong safety performance. The 2011 MSHA calculated incidence rate for the Troy Mine was 0.53 compared to the national underground hardrock mine average rate of 2.22.

Established a $20 million revolving credit facility with Societe Generale. The facility, if needed, will potentially be used for I Bed development at the Troy Mine and/or Phase I development at Rock Creek.

Received an affirmative decision from the United States Court of Appeals for the Ninth Circuit relating to the Rock Creek project. The Court affirmed the US Fish and Wildlife Service’s determination that the mine would not adversely modify bull trout and grizzly bear critical habitat and did not violate the Endangered Species Act (ESA).         

Expanded our land position adjacent to and northwest of the Rock Creek project’s claims group through both the acquisition and staking of unpatented claims. In total, approximately 4,100 acres were added to the Company’s property position at Rock Creek.        

Completed a listing of the Company’s shares on the NYSE Amex in May 2011; the combined average U.S. (Amex) and Canadian (TSX) daily trading volume since the listing has been over 150,000 shares per day.

Consolidated Financial Results

RVM Total revenue for 2011 increased by 49% to $70.1 million compared to $47.0 million during 2010. Net income for the year was $13.5 million or $0.36 per share, compared to a net loss of $0.6 million or $(0.02) per share for 2010. The increase in 2011 revenues was due to higher overall production along with significantly higher prices of silver and copper as compared to 2010.

Cost of sales increased in 2011 by 23% compared to 2010. This increase was primarily due to higher mill throughput along with increased labor costs, a 4% increase in treatment and refining costs, increased health and general insurance costs, and higher royalty and mining taxes due to significantly increased revenues.

About RVM

RVM, 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.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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