Revett Minerals Reports Second Quarter 2009 Results

    SPOKANE VALLEY, WA, Aug. 18 /CNW Telbec/ - Revett Minerals Inc., Spokane
Valley, Washington ("TSX-RVM") ("Revett" or the "Company") announces its
consolidated operating and financial results for the Company's second quarter
of 2009. Currency is reported in United States dollars unless otherwise
    Major Highlights for three & six months ended June 30, 2009 include:

    - Improved mill throughput at Troy, averaging 3,932 tons per day,
      compared to 3,645 tons per day in the second quarter of 2008;
    - Increased production at Troy, totaling 301,770 ounces of silver and
      2.4 million pounds of copper, compared to 259,847 ounces of silver and
      2.4 million pounds of copper in the second quarter of 2008;
    - Improved productivity and reduced consumables at Troy resulted in a
      29% reduction of direct operating costs per ton milled compared to the
      second quarter of 2008;
    - Advanced efforts to streamline corporate structure with the issuance of
      22,698150 common shares in redemption of an equivalent number of Revett
      Silver Class B common shares during the first half of 2009, with the
      result that the Company now owns 96.7% of the issued and outstanding
      common shares of Revett Silver.
    - Produced 622,919 ounces of silver and 4.7 million pounds of copper at
      the Troy Mine during the first half of 2009 compared to 491,759 ounces
      of silver and 4.5 million pounds of copper during the same period in

    Consolidated Results

    During the first half of 2009 the Company was able to reduce direct
operating costs by $3.9 million over the same period in 2008. Several factors
contributed to this reduction: (1) successful employee efforts 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 during the second quarter of 2009
consisted 2.3 million pounds of payable copper and 283,009 ounces of payable
silver for the three months ended June 30, 2009, compared to 2.5 million
pounds of copper and 253,523 ounces of silver during the second quarter of
    Despite a reduction in operating costs and an improvement in production,
the Company reported loss in the first half of 2009 of $1.9 million or $0.02
per share on revenue of $14.8 million, compared to net income of $1.5 million
or $0.02 per share on revenue of $25.4 million for the first half of 2008. Net
income for the first half 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 "The first half of this year has
been a critical period for our company and we are pleased to report the
improved efficiencies in our operations. The focus and dedication of our
employees has created a cornerstone for our future growth and I thank them
sincerely for their wonderful efforts"
    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. The Company is
currently negotiating with Trafigura to restructure the US$4.3 million
interest bearing note. As of June 30, 2009 the Company had a negative working
capital of $3.7 million.

    Troy Mine

    The following is a summary of key operating statistics for Troy for the
three months ended June 30, 2009 and for the comparable period ended June 30,

                                                        Three          Three
                                                 Months Ended   Months Ended
                                                June 30, 2009  June 30, 2008
    Tons milled                                       349,925        331,698
    Tons milled per day                                 3,932          3,727
    Copper grade (%)                                     0.39           0.41
    Silver grade (opt)                                   1.01           0.87
    Copper recovery (%)                                  84.0           87.9
    Silver recovery (%)                                  86.0          90.05
    Copper produced (lbs)                           2,284,770      2,388,947
    Silver produced (ozs)                             301,770        259,847

    Production during the second quarter of 2009 was significantly improved
at 3,932 tons per day, an 8% improvement over the second quarter of 2008 at
3,645 tons per day. 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 lower than plan due to higher non
sulfide ore at 86.0% silver and 84.0% for copper, compared to expected
recoveries of 88.5% and 87.0% copper in the second quarter of 2009.
    As shown in the table, direct operating costs also improved significantly
in the second quarter of 2009, declining by 29% compared to second quarter of

                          Q2.09    Q1.09    Q4.08    Q3.08    Q2.08    Q1.08
    Tons milled         349,925  339,171  354,190  321,696  331,698  299,863
    Cost per ton
     milled ($)           19.09    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.
    The full Second Quarter 2009 consolidated financial statements and
Management's Discussion and Analysis (MD & A) can be viewed on
and the Company's web site at

    About Revett

    Revett Minerals, through its subsidiaries, owns and operates the
currently producing Troy Mine and development-stage Rock Creek Project, both
located in northwestern Montana, USA. The proven reserves at the Troy Mine and
significant resources at the Rock creek project 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 ruling on environmental challenges to the permit for the Rock
Creek Project. There are no assurances that a final ruling will in fact be
issued with respect to the environmental challenges on a timely basis or at
all as there may be further challenges. 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 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;

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890