Revett Minerals - currently WAY undervalued!

144 posts / 0 new
Last post
Thu, Jul 14, 2011 - 1:24pm
Boardwalk
Offline
-
Hell, MI
Joined: Jun 14, 2011
435
2613

Mouser

They have silver hedges in place too at about $19.00 if I remember right.

"Be right and sit tight"
Thu, Jul 14, 2011 - 3:29pm
bert3798
Offline
-
Voeren
Belgium
Joined: Jun 15, 2011
32
87

hedges

well that does it for me, no hedges, there are other ways of getting investment money.

Why don't they ask their investors?

Wouldn't it be fine to get a nice deal like the bankers/financiers get.

The P/E would be much better, the shareprice would be higher, the CE..'s would get a better pay, ....

everybody happier without those moneylaunderers.

oeps , did i say too much.

Well, hell to all of as if we don't speak our mind.

greetings, Bert

Fri, Jul 15, 2011 - 12:56am
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

Luckily

Out of the 300 million ozs + of silver RVM controls, and the 3 billion lbs of copper, the hedging amounts to a tiny portion of their resources , or even the proven reserves.

Revett has contracts outstanding to sell 5.2 million pounds of copper at an average price of $3.55 per pound and 360,000 ounces
of silver at an average price of $19.00. These contracts mature at various dates from March 2011 to February 2012

As i understood it , both those hedges are over 50% paid in metal by JULY already.

This wasnt really done by choice by Revett, it was kind of demanded by the banksters giving them a new lease on life in late 2008 when they nearly went under.

I am of the understanding there wont be more hedging once these are done with. Regardless, you can expect to see at least .10 a share in earnings this coming Q , even after the writedowns on the hedging.

Forget the huge insitu value ( that is all some explorers have) even just on a P/E basis, they will be one of the least expensive juniors. Watch out for news for the Rock Creek go ahead. That is the fuel for the rocketride.

Fri, Jul 15, 2011 - 5:46pm
DFrat
Offline
Joined: Jun 15, 2011
17
370

Hearing

Here is the audio of the hearing that took place:

https://www.ca9.uscourts.gov/media/view_subpage.php?pk_id=0000007810

Sat, Jul 16, 2011 - 8:50am
Boardwalk
Offline
-
Hell, MI
Joined: Jun 14, 2011
435
2613

@Mouser

I was in the middle of an edit to my earlier post when there was a server outage. I saw after posting, that your quote contained reference to the silver hedges. Sorry for the duplication.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

"This wasnt really done by choice by Revett, it was kind of demanded by the banksters giving them a new lease on life in late 2008 when they nearly went under."

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

This is the crux of the issue I have with this company. . . .Management! They have a huge deposit that ​should​ be profitable, yet the company almost goes under due to cash flow problems. This year they make a decision to go after higher grade material from the C bed and botch the transition and end up with lower production for the quarter. The decision to go for higher grade material in a high ore price / rising ore price environment is IMO not in the best interest of shareholders as it shortens mine life and at some point they will have to mine the lower grade material, resulting in lower numbers when that occurs.

My first red flag on management of this company was the decision to call Revett a "silver mining" company. Copper is the major component produced by dollar value and weight. They are a primary copper producer with significant silver by product production. It is deceitful for mgt to state otherwise. If you chart RVM:$copper and RVM:$silver you will see that RVM provides some leverage to the price changes in copper and the the share price has little correlation to the spot price of silver.

My take . . . good resource, bad managers, RVM not for me.

FWIW my silver exposure is in Cream, Endeavour, Great Panther, South American Silver.

"Be right and sit tight"
Sat, Jul 16, 2011 - 8:58am
Boardwalk
Offline
-
Hell, MI
Joined: Jun 14, 2011
435
2613

Recovery Rates

Look at the recovery rates YOY for the past 3 years. They've been declining. . . .a lot. In the most recent earnings report, management stated that lower recovery rates hurt performance. What about the drag on earnings from lower recovery in the previous 11 quarters? They go on to say they are "looking" at improving recovery rates. How? When? Details?

Look how hard the shares sold off after that earnings release. Speaks volumes about market perception of these managers and (lack of) confidence in these guys.

"Be right and sit tight"
Sun, Jul 17, 2011 - 4:35pm
daveyboy
Offline
-
UK
Joined: Jun 19, 2011
780
2432

Sorry to be ignorant, but how

Sorry to be ignorant, but how much is the minimum that can be invested into these shares? and where can i buy such shares from?

Sun, Jul 17, 2011 - 6:01pm daveyboy
TheGoodDoctor
Offline
-
WI
Joined: Jun 14, 2011
1304
11941

1 share. Pretty much any

1 share. Pretty much any online broker or your own broker. Buying might cost you between $7 and $30 depending. But through like a Scottrade online broker it can be cheaper.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Mon, Jul 18, 2011 - 2:22pm
Ernie Pantusso
Offline
-
Boston
Joined: Jul 14, 2011
104
397

Revett Provides Q2 2011 Operations Update

This is for you Mrgneiss

John Shanahan, President and Chief Executive Officer, said "We have seen significant improvements in ore production in the second quarter as we're able to take advantage of our fully developed C Bed area, we are poised for continued production at planned levels in the third quarter of 2011. We also remain focused on our exploration and engineering efforts to add value, expand the mine life and realize the longer term potential of the Troy Mine."
Highlights:


-- Net cash(1) provided from operations before capital expenditures for the
second quarter of 2011 totaled US$7.5 million, a 900% increase from the
same period a year ago. Direct production cost per ton of ore increased
due primarily to the re-start of a production royalty, higher refining
costs and higher mining taxes due to higher revenues resulting from
higher metal prices. Labor and consumable costs were also slightly
higher.
-- Cash costs per ounce of silver and per pound of copper improved
significantly with the improved metal production. Cash costs (2) for the
second quarter of 2011, calculated on a net of by-product basis, were
$2.10 per ounce silver and $0.69 per pound copper.
-- Exploration efforts continued in and around the Troy Mine with
additional reserves and resources added in the C Bed area as previously
announced. We are waiting for results of ongoing drilling in the I Bed
area and a portion of the field work has been completed on a geophysical
survey south of the Troy Mine.

https://www.revettminerals.com/sites/default/files/rvm-07182011-en.pdf

Mon, Jul 18, 2011 - 2:24pm
Ernie Pantusso
Offline
-
Boston
Joined: Jul 14, 2011
104
397

Rock Creek Litigation Update

and this too

Oral arguments were held in the U.S. Court of Appeals for the Ninth Circuit in Portland, Oregon on July 14th in litigation regarding Rock Creek Alliance, et al versus the U. S. Fish & Wildlife Service (USFWS). The USFWS and Revett prevailed in the Federal District Court on the issues related to the Endangered Species Act (ESA) in May of 2010 and the environmental groups have subsequently appealed that part of the District Courts ruling to the Ninth Circuit.

A recording of the oral arguments is available at the Ninth Circuit ' s website https://www.ca9.uscourts.gov/media/view_subpage.php?pk_id=0000007810

Mon, Jul 18, 2011 - 9:27pm
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

I dont know, but sure looked

I dont know, but sure looked like terrific numbers to me. Exceeded my expectations.

So likely going to add more here. RVM still looks very inexpensive using any metric most of us use to value miners.

Mon, Jul 18, 2011 - 9:40pm Boardwalk
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

@ bwlk millionaire

"My first red flag on management of this company was the decision to call Revett a "silver mining" company. Copper is the major component produced by dollar value and weight"

Well copper for sure is the biggest component by weight ,

but if my calculator is working the last Q would have produced more $$ by silver at least using the last quarter,s average pricing.

They produced 3.03 million lbs of copper ( a whopping 51% increase over the last Q) and average price was approx 4.10.

That = $12, 143,000

They produced 342 ,822 ozs silver in that same Q ( only a 40% increase over the previous Q) and the average price realized would be around 37.45. THAT equals $12,907,000.<

So i am not sure what your agenda is here, seems you must be short, as you continue to provide misinformation here and pump your other holdings.

In my opinion Cream shouldnt even be mentioned in the same breath with RVM , but JMHO

Mon, Jul 18, 2011 - 9:47pm
mrgneiss
Offline
-
ON
Canada
Joined: Jun 14, 2011
245
3440

Beautiful quarter, thanks

Beautiful quarter, thanks Ernie for the update and Mouser for the analysis. Boardwalk millionaire reveals his ignorance once again - BM - I recommend you stick to subjects where you won't embarrass yourself.

Link to our updated penny stock list: https://www.kitcomm.com/showthread.php?t=68585 "The conscious and intelligent manipulation of the organized habits and opinions of the [public] is an important element in democratic society." Those who control this have the real power.
Fri, Jul 22, 2011 - 11:38pm
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

From MINING WEEKLY

TORONTO (miningweekly.com) – TSX- and Amex-listed Revett Minerals is targeting 2018 to start commercial production at its big Rock Creek silver/copper mine in Montana, as it finally sees light at the end of a long litigation process that delayed development.

The company, which already produces both metals from the smaller Troy mine 15 km away, is not looking for buyers for itself or the project though, CEO John Shanahan told Mining Weekly Online after a presentation to analysts and investors in Toronto.

“The difference for us is that if Rock Creek was all we had, and we had six guys sitting doing permitting, of course when it came time to develop we'd be saying 'who wants to talk to us?',” he said.

“But we have experienced people already working at Troy. And we can finance this thing ourselves.”

The Rock Creek mine could produce an average of six million ounces of silver and 52-million pounds of copper a year for as long as 30 years.

Revett received initial approval through a record of decision in 2003 for the project, which, at 229-million ounces of silver and 2-billion pounds of copper, is touted as the largest undeveloped deposit of its kind in North America.

The company has also acquired claims with historical resources surrounding the core project.

However, the former Asarco/Kennecott asset's proximity to a wilderness area has meant that it spent the better part of a decade tied up in legal challenges brought by nongovernmental organisations.

Shanahan believes the lengthy delay is finally nearing a resolution.

In May 2010, a federal judge dismissed the challenges against the project that were based on the Endangered Species Act, Clean Air and Clean Water Acts, but ordered revisions to the record of decision issued for the firm's environmental-impact study because of some procedural issues.

Revett has been working on a supplemental EIS, and expects to have the document ready and receive a new record of decision approving development by mid-2012, Shanahan said.

The groups opposing the project have also appealed the dismissal of their other challenges, and oral arguments for the case were held on July 14.

Decisions can usually be expected between three and 12 months after oral arguments, but Revett's attorneys have indicated they expect a decision from the appeals court before the end of this year.

"My belief is that the timing is going to be we will be breaking ground in the spring of 2013 and we are looking to be in commercial production in 2018," Shanahan said.

The company plans to develop the project in two phases – starting with work on an evaluation adit and completion of a feasibility study, while initial infrastructure and mitigation measures are put in place.

Phase one will take about two years and cost some $15- to $20-million, Shanahan said.

After that, full construction of the 10 000 t/d mine and conventional flotation operation is expected to take three years and will require as much as $300-million in capital.

Silver Wheaton is Revett's biggest shareholder, at around 16%.

Mon, Jul 25, 2011 - 7:05pm
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

Another roadblock

Seems a bit nitpicky tome, but that is the way the environmental groups have delayed the project for several years already. REALLY , they had a storm water plan in place, but apparently now has to be reworked and reviewed again. Still on pace for 2018 startup , minor blip. Most silver plays sold off today, in a strange selloff with precious metals heading higher. ( gold hit another new record).

2011-07-25 08:31 ET - News Release

Mr. John Shanahan reports

REVETT PROVIDES ROCK CREEK PERMITTING UPDATE

Revett Minerals Inc. has provided clarification from a recent ruling in the Montana District Court regarding a storm water permit issued by the Montana DEQ for phase 1 construction of the Rock Creek mine.

The Montana DEQ used its normal process of review for issuance of a general storm water permit which covers construction activities for any new project. This permit covers only specific activities of the construction phase and is not intended to cover the full project. Revett, through the implementation of sediment catch basins, rolling dips in the road, silt fences and other best management practices, has an extensive sediment mitigation plan that covers both the construction and operation phases of the project. Revett believes it will offset any new impacts and improve current sediment conditions.

In a ruling issued on July 21, the court determined that the company will be required to obtain an individual MPDES discharge permit rather than a general permit as originally granted by the Montana DEQ. This permit relates specifically to storm water management during road reconstruction in phase 1 of the mine project and not the Endangered Species Act (ESA) challenges that are currently being defended in the Ninth Circuit Court of Appeals. The company received notice of the ruling on late Friday afternoon, July 22, 2011, and will take steps to address the court's concerns with the state agencies that are responsible for administration of the Montana Water Quality Act. A decision whether to appeal the district court's decision or not will be made in consultation with the agencies in the coming weeks. Revett does not anticipate that this ruling will effect the overall timeline of project development stemming from a decision from the Ninth Circuit Court of Appeals and completion of a supplemental EIS.

John Shanahan, president and chief executive officer, said: "We were disappointed with the state court's ruling, but we must remember that the main body of work regarding critical habitat during the construction and operation of the Rock Creek mine remains the biological opinion issued by the U.S. Fish & Wildlife Service in October, 2006. We believe that the Rock Creek mine, just like our operating Troy mine, can operate at the highest possible level of environmental compliance and will be a source of pride for the state and communities of northwest Montana. We remain extremely grateful to the state agencies, and local businesses and organizations that strongly support the development of this project."

We seek Safe Harbor.

Mon, Jul 25, 2011 - 9:44pm mouser
JoeyJoeJoe
Offline
-
Seattle, WA
Joined: Jun 14, 2011
84
682

A blip indeed (with miners in

A blip indeed (with miners in general) despite the pop in the PMs today. I wonder if we'll get a decent sized raid tomorrow with July 27th expiry on gold futures contract. Personally, I am hoping for it since I still need to load up on the likes of RVM.

Tue, Jul 26, 2011 - 11:35pm
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

I did reduce my RVM after the

I did reduce my RVM after the news release, figuring there would be some selling, i suspect tho , wont be a huge volume selloff, and likelyhood of a bounce in the next week or so is good.

RVM still is the best buy in the junior silvers in many respects, and that value will eventually creep into the stocks price. I suspect next big bounce will come on the financials here in August.

Sat, Jul 30, 2011 - 7:41am mouser
Ernie Pantusso
Offline
-
Boston
Joined: Jul 14, 2011
104
397

Rock creek time plan

mouser wrote:

Decisions can usually be expected between three and 12 months after oral arguments, but Revett's attorneys have indicated they expect a decision from the appeals court before the end of this year.

"My belief is that the timing is going to be we will be breaking ground in the spring of 2013 and we are looking to be in commercial production in 2018," Shanahan said.

The company plans to develop the project in two phases – starting with work on an evaluation adit and completion of a feasibility study, while initial infrastructure and mitigation measures are put in place.

Phase one will take about two years and cost some $15- to $20-million, Shanahan said.

After that, full construction of the 10 000 t/d mine and conventional flotation operation is expected to take three years and will require as much as $300-million in capital.

If revett's attorneys say decision this year (but even if it happens spring 2012) why waiting until spring 2013 for "breaking ground"?

2. question: 2 years for a feasibility study. And then 3 years for construction before something get produced.

Is that normal? I don't know. Just asking.

I'm trying to figure out whether Shanahan with this schedule is being conservative or not.

Which means if there is a chance production will start before 2018

Sat, Jul 30, 2011 - 11:51am Ernie Pantusso
mouser
Offline
-
BC
Canada
Joined: Jun 18, 2011
451
5116

Because RVM plans to fund

Because RVM plans to fund this from TROY mine profits for the first while and use their engineering and geology resources who are currently working for the company, this puts a much longer timeline to mine commissioning.

In most cases doing it right takes time. The only scene i can see where Rock Creek mine opening is accelerated is if a buyout happens. If a company like Teck Resources or Pan Am Silver were to advance the project they have the capital (or access to it), to speed up the process.

Sun, Jul 31, 2011 - 12:52am
SushiSioux
Offline
-
New York, NY
Joined: Jun 14, 2011
141
2064

Judge: State took permit 'shortcut' for Rock Creek Mine

https://missoulian.com/news/local/article_c8ef1560-b4d6-11e0-8111-001cc4...

The lawsuit, one of several involving the proposed mine, was also brought by the Rock Creek Alliance, Earthworks and Trout Unlimited.

"The court validated our contention all along that Rock Creek is too important to dismiss," said Jim Costello, outreach director for the Rock Creek Alliance. "Too often, agency decisions that are clearly wrong are left standing because the assumption is made incorrectly that agencies know what's best and will do the right thing to protect public resources."

Seeley's ruling focused on predictions that the mine would put about 400 tons of sediment into Rock Creek every year.

Permitting studies indicate that would be a 38 percent increase in sediment pollution, and the Clark Fork Coalition says existing sediment levels are already so high that any increase would impair bull trout spawning.

Given that, the judge said, the state must instead prepare an ordinary water quality permit based on the specific conditions at the mine site, and give the public an opportunity to review and comment on it.


Read more: https://missoulian.com/news/local/article_c8ef1560-b4d6-11e0-8111-001cc4c03286.html#ixzz1TehHMzNo