Revett Minerals Reports First Ever Quarterly Profit and Improving Operations at Troy.SPOKANE Spokane, city, United States Spokane (spōkăn`), city (1990 pop. 177,196), seat of Spokane co., E Wash., at the spectacular falls of the Spokane River; inc. 1881. VALLEY, Wash. -- Revett Minerals Inc ("Revett" or the "Company")(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :RVM RVM Recoverable Virtual Memory RVM Reverse Vending Machine RVM Rearview Mirror (Pearl Jam song) RVM Royal Victorian Medal (Canadian decoration) RVM Routing Vector Method ) is pleased to report that the Company reported its first ever positive earnings driven by improving operations at the Troy Troy, ancient city, Asian Turkey Troy, ancient city made famous by Homer's account of the Trojan War. It is also called Ilion or, in Latin, Ilium. Its site is almost universally accepted as the mound now named Hissarlik, in Asian Turkey, c.4 mi (6. Mine ("Troy") and very strong commodity prices. All currency in this release is in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars unless otherwise indicated. Overall Performance The most significant achievements included: --Operating income from the Troy Mine (100% basis) of $1,368,100; --Consolidated income from operations of $184,300; --Consolidated net income before tax and non controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail of $120,400; --Consolidated net income after tax and non controlling interest of $25,600; and --Increased average tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. milled per day to 3,142 tons for the current quarter compared to an average mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. of 2,145 tons per day for 2005. In summarizing the performance of the Company, during the first three months of 2006, Mr. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Orchow, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Revett Minerals, stated, "We are delighted to see that both Revett Minerals and the Troy Mine have achieved their first ever quarter of positive net earnings. The improving financial performance is being driven by higher mill throughput and strong metal prices." The Troy Mine During the first quarter of 2006, the Troy Mine set a record for mill throughput since mining operations were resumed by Revett processing on average 3,142 tons per day. This throughput level compares to an average mill throughput of 2,233 tons per day in the first quarter of 2005 and an average throughput of 2,145 tons per day for the entire 2005 calendar year. For the quarter, the Troy Mine sold 1.8 million pounds of payable copper and 225,679 ounces of payable silver, and reported revenue of $7.4 million. The Troy Mine reported strong first quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (100% basis) of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.4 million. Only 67% of these earnings are attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the shareholders of Revett Minerals because of the non controlling shareholdings in Revett Silver. For the Revett Minerals shareholders the following costs must be deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from the operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $1.4 million: (1) Revett Silver costs of $0.6 million, (2) Rock Creek Rock Creek may refer to:
n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. of $0.4 million. This results in net income before non controlling interests and taxes of $0.1 million. The following is a summary of the production, sales and shipment results from the Troy Mine (100% basis) for the first quarter of 2006. First Quarter 2006 ---------------------------------------------------------------------- Tons milled 282,801 ---------------------------------------------------------------------- Tons milled per day 3,142 ---------------------------------------------------------------------- Copper grade (pct) 0.44 ---------------------------------------------------------------------- Silver grade (opt) 1.11 ---------------------------------------------------------------------- Copper recovery (pct) 81.1 ---------------------------------------------------------------------- Silver recovery (pct) 84.2 ---------------------------------------------------------------------- Copper produced (pounds) 2,026,697 ---------------------------------------------------------------------- Silver produced (ounces) 265,321 ---------------------------------------------------------------------- Copper sold (pounds) 1,755,219 ---------------------------------------------------------------------- Silver sold (ounces) 225,679 ---------------------------------------------------------------------- During the quarter ending March 31, 2006, the mill processed ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. at the rate of approximately 3,142 tons per day. This compares with an average of 2,145 tons milled per day during 2005. While improvements are being made in increasing mill throughput, the Company continues to focus on efforts to further increase mill throughput. For example, the Company is investigating the possibility of acquiring an additional production drill and efforts are continuing to increase training, maintenance planning and safety at the Troy Mine. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Results As discussed previously, Revett Minerals reported consolidated net income before tax and non controlling interest of $120,400 and net income after tax and non controlling interest of $25,600 for the quarter on sales revenue of $7.4 million. Income from operations totaled $184,300 and included the following deductions and expenses; cost of sales $5.9 million, depreciation and amortization $414,700, exploration and development $316,600 and general and administration costs of $551,100. In addition, interest expense, net of interest income was $63,900. About Revett Revett Minerals, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine located in northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). . Based on the drilling to date, Rock Creek contains an estimated inferred resource of 136.6 million tons grading 1.67 ounces silver per ton and 0.72% copper, containing approximately 229 million ounces of silver and over 2 billion pounds of copper using a cut off grade of US $10.00 per ton. Further information on both the Troy Mine and the Rock Creek Project may be found in the National Instrument 43-101 reports at www.sedar.com. These reports were prepared on behalf of the Company by Mr. Jean-Francois Couture, P.Geo. and Mr. Ken Reipas, P.Eng P.Eng Professional Engineer . of SRK SRK Shah Rukh Khan (Indian actor) SRK Shoryuken (fighting games) SRK Soave-Redlich-Kwong (thermodynamic model) SRK Syk-Related Tyrosine Kinase Consulting (Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of ). Both Mr. Couture and Mr. Reipas are Qualified Persons in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with National Instrument 43-101. All of these issues are discussed in greater detail in the Company's official filings at www.sedar.com. William Orchow President & CEO For more information, please contact: Scott Brunsdon, CFO See Chief Financial Officer. or Doug DOUG Dumb Old Utility Guy Ward, VP Corporate Development at 509-921-2294 or 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 statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements, including but not limited to those with respect to the price of silver and copper, the estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. of mineral reserves and resources, the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of mineral reserve estimates, the timing and amount of estimated future production, costs of production, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc environmental laws and regulations, the actual results of current exploration activities, actual results of current reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver and copper, as well as those factors discussed in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" in the Final Long-Form Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. filed on sedar at www.sedar.com. 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 as actual 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 Inc.
Consolidated Balance Sheets
at March 31, 2006
(expressed in thousands of United States dollars)
March 31, 2006 December 31, 2005
(unaudited) (audited)
Assets
Current Assets
Cash and cash equivalents $ 3,573.4 $ 4,608.5
Short term investments 5,890.4 7,396.4
Receivables 4,512.3 3,089.5
Inventory 2,600.2 1,738.4
Prepaid expenses and deposits 794.4 703.2
------------- --------------
Total current assets 17,370.7 17,536.0
Property, plant, equipment & mine
development (net) 56,807.8 57,191.3
Restricted cash 6,797.6 6,718.6
Other long term assets 1,642.0 1,680.4
------------- --------------
Total assets $ 82,618.1 $ 83,126.3
============= ==============
Liabilities and stockholders equity (deficiency)
Current liabilities
Accounts payable and accrued
liabilities $ 2,768.3 $ 2,858.8
Current portion of lease and note
obligations 3,266.6 4,077.2
------------- --------------
Total current liabilities 6,034.9 6,936.0
Long-term portion of debt 11,343.2 11,108.0
Reclamation and remediation 8,988.6 8,951.4
Future income tax 7,297.8 7,297.8
------------- --------------
Total liabilities 33,664.5 34,293.2
Non controlling interest 8,305.7 8,210.8
Stockholders' equity (deficiency)
Preferred stock, no par value,
unlimited authorized, nil issued
and outstanding
Common stock, no par value unlimited
authorized, 59,005,395 shares issued
and outstanding 42,701.4 42,701.4
Contributed surplus 243.2 243.2
Deficit (2,296.7) (2,322.3)
------------- --------------
40,647.9 40,622.3
------------- --------------
Total liabilities and
stockholders equity $ 82,618.1 $ 83,126.3
============= ==============
Revett Minerals Inc.
Consolidated Statement of Operations
Three months ended March 21, 2006 and March 31, 2005
(expressed in thousands of United States dollars)
Three month period Three month period
ended March 31, 2006 Ended March 31, 2005
(unaudited) (unaudited)
Revenues $ 7,437.7 $ -
Costs:
Cost of sales 5,933.8 (85.4)
Depreciation and
amortization 414.7 89.4
Exploration and Development 316.6 58.4
General & administrative 551.1 200.4
Accretion of reclamation
and remediation liability 37.2 16.2
------------------- -------------------
7,253.4 279.1
------------------- -------------------
184.3 (279.1)
Other (income) expense:
Interest expense 241.7 181.2
Interest income (177.7) (45.1)
------------------- -------------------
Total other expenses 63.9 136.2
Net income (loss) before non
controlling interest and
taxes 120.4 (415.3)
------------------- -------------------
Income taxes (recovery) - -
Net income after taxes
before non controlling
interest 120.4 (415.3)
Non controlling interest 94.8 (126.7)
------------------- -------------------
Net income (loss) for the
period 25.6 (288.6)
=================== ===================
Basic and diluted loss per
share $ 0.00 $ (0.01)
=================== ===================
Fully diluted earnings
(loss) per share $ 0.00 $ (0.01)
=================== ===================
Weighed average number of
shares outstanding 60,047,503 19,702,283
=================== ===================
Revett Minerals Inc.
Consolidated Statement of Cash Flow
Three months ended March 31, 2006 and March 31, 2005
(expressed in thousands of United States dollars)
Three month period Three month period
March 31, 2006 March 31, 2005
(unaudited) (unaudited)
Cash flows from operating
activities:
Net loss for the period $ 25.6 $ (288.6)
Adjustment to reconcile loss
to net cash used by
operating activities
Depreciation and
amortization 414.7 89.4
Accretion of reclamation
and remediation liability 37.2 58.4
Stock based compensation - 10.3
Expenses paid with common
shares - -
Future income tax expense
(recovery) - -
Non controlling interest 94.8 (126.7)
Changes in:
Accounts receivable (1,422.8) 552.8
Inventory (861.7) (1,643.6)
Prepaid expenses and
deposits (91.1) (608.4)
Accounts payable (90.6) 1,368.7
Deferred revenue acquired - 2,061.0
------------------- ------------------
Net cash used by operating
activities (1,894.0) 1,473.4
------------------- ------------------
Cash flows from investing
activities
Business acquisitions, net
of cash required - 1,123.3
Other long term assets 39.3 (1,360.0)
Restricted cash (78.9) (6,418.6)
Purchase of mineral
property, plant and
equipment (32.0) (584.6)
Sale of short term
investments 1,506.0 -
------------------- ------------------
Net cash provided (used) by
investing activities 1,434.4 (7,239.9)
------------------- ------------------
Cash flows from financing
activities:
Proceeds from the issuance
of common stock, net - 24,972.1
Proceeds from long term debt - 210.4
Repayment of debt (463.3) -
Repayment of capital leases (112.3) -
------------------- ------------------
Net Cash from (used by)
financing activities (575.5) 25,182.6
------------------- ------------------
Net increase in cash and cash
equivalents (1,035.1) 19.416.0
Cash and cash equivalents,
beginning of period 4,608.5 -
------------------- ------------------
Cash and cash equivalents,
end of period $ 3,573.4 $ 19,416.0
=================== ==================
Supplementary cash flow
information:
Cash paid for interest
expense $ 299.6 $ -
Cash paid for income taxes - -
Common stock issued in
business acquisition - 16,439.5
Common stock issued in
connection with debt
settlement - -
Acquisition of plant and
equipment under capital lease - -
Revett Minerals Inc.
Consolidated Statement of Deficit
Three months ended March 31, 2006 and March 31, 2005
(expressed in thousands of United States dollars)
Three month period Three month period
March 31, 2006 March 31, 2005
Deficit, beginning of period $ 2,322.2 $ 21.7
Loss for the period (25.6) 288.6
--------------- -------------------
Deficit, end of period $ 2,296.7 $ 310.3
=============== ===================
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