Revett Minerals Reports First Quarter 2009 Results



    SPOKANE VALLEY, WA, May 20 /CNW Telbec/ - Revett Minerals Inc.,
("TSX-RVM") ("Revett" or the "Company") announces its consolidated operating
and financial results for the Company's first quarter of 2009. Currency is
reported in United States dollars unless otherwise indicated.

    
    Major Highlights for three months ended March 31, 2009 include:

    - Improved mill throughput at Troy, averaging 3,811 tons per day,
      compared to 3,369 tons per day in the first quarter of 2008;
    - Increased production at Troy, totaling 321,149 ounces of silver and
      2.3 million pounds of copper, compared to 231,912 ounces of silver and
      2.1 million pounds of copper in the first quarter of 2008;
    - Improved productivity and reduced consumables at Troy resulted in a 29%
      reduction of direct operating costs per ton compared to the first
      quarter of 2008;
    - Closed private placement on February 12th, 2009 of 10,000,000 equity
      units (each unit consisting of one common share and a warrant to
      purchase one-half of a common share), as part of restructuring efforts;
    - Advanced efforts to streamline corporate structure with the issuance of
      20,553,500 common shares and 2,060,998 warrants in redemption of an
      equivalent number of Revett Silver Class B common shares and warrants,
      with the result that the Company now owns 94.2% of the issued and
      outstanding common shares of Revett Silver.

    Consolidated Results
    --------------------

    During the first quarter of 2009 the Company was able to reduce operating
costs by $1.4 million over the same period in 2008. Several factors
contributed to this reduction: (1) a successful employee training program that
focused on reducing the consumption of items such as fuel, explosives and
milling reagents; (2) lower acquisition costs of those consumables; and (3)
reduced labor costs due principally to a 10% payroll reduction at the Troy
Mine and a 20% payroll reduction at the corporate office.
    Concentrate deliveries and sales improved as well, resulting in 2.2
million pounds of payable copper and 289,034 ounces of payable silver for the
three months ended March 31, 2009, compared to 2.0 million pounds of copper
and 183,735 ounces of silver during the first quarter of 2008.
    Despite a reduction in operating costs and an improvement in production,
the Company reported a first quarter loss of $0.9 million or $0.01 per share
on revenue of $7.1 million, compared to net income of $1.4 million or $0.02
per share on revenue of $12.0 million for the first quarter of 2008. Net
income for the first quarter continued to be negatively affected by the
decrease in the price of copper and silver that began in 2008. Although metal
prices have begun a modest recovery this year, first quarter 2009 prices for
both copper and silver were substantially lower than for the same period last
year.
    John Shanahan, President and CEO, noted "We are extremely proud of what we
have been able to accomplish during the last three months. In addition to
improving production and reducing operating costs in Q1, we've been able to
streamline our corporate structure and have shown we are adaptable in this
challenging economy."
    Other expenses recorded during the first quarter included non-cash
depreciation and depletion of $0.62 million, general and administrative costs
of $0.7 million, and exploration and development expenditures of $0.07 at Troy
and Rock Creek. The recognition of other expenses was due to a $0.2 million
foreign exchange loss on cash and investments held in Canada and denominated
in Canadian dollars, and net interest expense of $0.07 million.
    The Company is currently investigating a number of alternative means of
raising additional capital with potential lenders and investors, however, no
assurance may be given these efforts will be successful. At current copper and
silver prices, the Company is generating a modest positive cash flow; however
it is not sufficient to pay off a $4.3 million note payable due June 30, 2009
or $1.1 million in royalty payments that are currently owing. The Company is
currently negotiating with the holders of the note and royalty for extended
terms. As of March 31, 2009 the Company had a negative working capital of $4.8
million.

    Troy Mine
    ---------

    The following is a summary of key operating statistics for Troy for the
three months ended March 31, 2009 and for the comparable period ended March
31, 2008.

    -------------------------------------------------------------------------
                  Three Months Ended March 31,   Three Months Ended March 31,
                               2009                           2008
    -------------------------------------------------------------------------
    Tons milled               339,171                        299,863
    -------------------------------------------------------------------------
    Tons milled per day        3,811                          3,369
    -------------------------------------------------------------------------
    Copper grade (%)            0.40                           0.41
    -------------------------------------------------------------------------
    Silver grade (opt)          1.09                           0.87
    -------------------------------------------------------------------------
    Copper recovery (%)         86.3                           86.5
    -------------------------------------------------------------------------
    Silver recovery (%)         87.1                           89.0
    -------------------------------------------------------------------------
    Copper produced (lbs)    2,316,702                      2,129,522
    -------------------------------------------------------------------------
    Silver produced (ozs)     321,149                        231,912
    -------------------------------------------------------------------------

    Production during the first quarter of 2009 improved by 13% over the first
quarter of 2008. Ore grades remain slightly lower than life-of-mine averages
(as was planned in the mine schedule), due to the fact that more ore from the
lower grade area known as the Lower Quartzite was mined during the quarter.
Mill recoveries remained good, but slightly lower than plan at 87.1% silver
and 86.3% for copper, compared to expected recoveries of 88.5% and 87.0%
copper in the first quarter of 2008.
    As shown in the table, operating costs also improved significantly in the
first quarter of 2009, declining by 29% compared to 2008.

    -------------------------------------------------------------------------
                              Q1.09     Q4.08     Q3.08     Q2.08     Q1.08
    -------------------------------------------------------------------------
    Tons milled              339,171   354,190   321,696   331,698   299,863
    -------------------------------------------------------------------------
    Cost per ton milled ($)   18.69     26.40     26.83     26.86     28.39
    -------------------------------------------------------------------------
    

    Rock Creek
    ----------

    Permitting for Rock Creek Project is now complete and all pleadings have
been submitted to the United States District Court for the District of Montana
in conjunction with pending environmental challenges. A ruling from the court
is expected by the end the year, if not sooner.

    Subsequent to the end of the quarter
    ------------------------------------

    The Company was recently notified by its insurance carrier, Federal
Insurance Company, that it will defend the Company in the pending civil
lawsuit in Montana state court that arose from a July 30, 2007 fatality at the
Troy Mine. The insurer has reserved its rights with respect to coverage,
however, and will not pay damages with respect to certain types of alleged
conduct, including alleged intentional or malicious conduct; or for punitive
damages; or for damages, including amounts paid in settlement, that exceed the
$5.0 million in policy limits.
    As outlined in our Information Circular filed May 19, 2009, management
has proposed that only four directors be nominated to stand for election at
our upcoming AGM, to be held on June 16, 2009. Directors John Hick, William
Orchow, and Daniel Tellechea elected not to stand for re-election.
    The Company is continuing its efforts to further streamline its corporate
structure and is hopeful that the 5,029,987 outstanding Revett Silver Class B
common shares that are not already owned by the Company will be redeemed for a
like number of Revett Minerals common shares by June 30, 2009.
    The WARN Act notice posted December 12, 2008 and extended through May 14,
2009 has expired and has not be reissued.
    The full First Quarter 2009 consolidated financial statements and
Management's Discussion and Analysis (MD & A) can be viewed on www.sedar.com
and the Company's web site at www.revettminerals.com

    About Revett

    Revett Minerals, through its subsidiaries, owns and operates the Troy
Mine and development-stage Rock Creek Project, both located in northwestern
Montana, USA. These projects host significant copper and silver mineral
reserves and resources and will form the basis of our plan to become a solid
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
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", "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 be
taken", "occur" or "be achieved". Forward-looking statements contained in this
press release include but are not limited to those with respect to the
expectation of a final ruling on permitting for Rock Creek and continued
ability to defend against the civil lawsuit relating to the fatality on July
30, 2007. There are no assurances that a final ruling will in fact be issued
with respect to permitting for Rock Creek on a timely basis or at all as there
may be further challenges or that the insurance company will continue to
provide for defense costs. Moreover, There is no guarantee that our efforts to
streamline the corporate structure of the Company will be successful in that
neither Revett Minerals nor Revett Silver has the right to cause the exchange
of the Class B Shares of Revett Silver for common shares of Revett Minerals or
to cause the exchange of warrants in Revett Silver for warrants of Revett
Minerals. Actual results and developments could be affected by the holders of
Class B Common Shares and/or warrants not exercising their rights due to tax
or other reasons. Forward looking statements are subject to known and unknown
risks, uncertainties and other factors. Reference is also made to 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 Minerals does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in accordance
with applicable securities laws.
    %SEDAR: 00021518E




For further information:

For further information: Doug Ward, VP Corporate Development; Monique
Hayes, Corporate/Investor Communications Manager, (509) 921-2294,
www.revettminerals.com

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REVETT MINERALS INC.

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