Revett Minerals - currently WAY undervalued!

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Wed, Aug 3, 2011 - 1:24pm
Super_Douche
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WTF???

Did Revett run out of copper and silver? It sure looks like it from the way the stock price has been moving. I understand the courts are not helping the Rock Creek progress, but that does not hurt the Troy mine. I'm willing to wait till earnings come out, but if this thing does not start heading north after that I am done investing in US companies. There are too many other good opportunities in the silver mining sector. Does anyone else have any thoughts?

"There is no inflation and unless we get some soon we will all be in trouble." -Paul Krugman
Wed, Aug 3, 2011 - 8:11pm
mouser
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I think it must be the latest

I think it must be the latest roadblock that has some exitting their RVM position. I had trimmed mine back after that BS storm water drainage issue in the courts . Not that that is even an issue that cant be resolved, and RVM is estimating 5 years to get it ( Rock Creek) online anyways.. Bought back a few thousand shares today tho, at around 4.26 average as i think it will bounce nice on earnings. I suspect .08 a share or better this Q.

Puts RVM at about 12 times earnings or so, and no value for ROCK Creek.

Not a bad gamble here imo.

Thu, Aug 4, 2011 - 7:27am
Boardwalk
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.

"Be right and sit tight"
Fri, Aug 5, 2011 - 12:21am Boardwalk
mouser
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Yes i read that commentary

I think Mr DeAngelo didnt do proper dd there. RVM has nearly 50-50 revenue from copper silver, and i do not believe the silver cash costs are 14.38$, maybe about 5$ if you take the copper credits into account. I do find the cash costs very deceiving tho , productions costs and and allin costs a lot better way to figure profits.

Wed, Aug 10, 2011 - 1:12pm
Boardwalk
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RVM Costs

From their latest press release. https://finance.yahoo.com/news/Revett-Provides-Q2-2011-iw-3791891109.html?x=0&.v=1

2nd 2nd Troy Production Quarter Quarter Summary(3) April May June 2011 2010

Direct Operating

Cost Per Ton (US$) $29.79 $ 30.21 $ 27.70 $ 29.25 $ 23.50 By-Product Basis (payable) - Silver (US$/oz) $ 10.94 $ 1.61 ($4.25) $ 2.10 $ 13.08 - Copper (US$/lb) $ 1.33 $ 0.63 $ 0.26 $ 0.69 $ 2.63 Co-Product Basis (payable) - Silver (US$/oz) $ 18.59 $ 14.97 $ 12.87 $ 15.14 $ 16.40 - Copper (US$/lb) $ 2.13 $ 1.90 $ 1.68 $ 1.89 $ 2.84
"Be right and sit tight"
Wed, Aug 10, 2011 - 8:03pm
mouser
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The Street downgrades RVM

https://www.thestreet.com/story/11216296/1/revett-minerals-inc-stock-downgraded-rvm.html

Same group that downgraded SVM bigtime after they reported that poor Q where the company only worked 2 of the 3 months in the quarter due to China New years holiday.

Appears they are practicing the same disinformation system as they use the RVM first Q 2011 as the measuring stick for the company going forward.

I expect RVM earns between .06 and .08 a share for the Q, earnings are out in the morning.

Either i will look foolish OR the street will once again look like they have an agenda in bashing these companies.

Wed, Aug 10, 2011 - 8:06pm Boardwalk
mouser
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This is from the last update

This is from the last update for production RVM gave in JULY

Revett boosts Troy silver, copper production in Q2 2011

2011-07-18 06:57 PT - News Release

Mr. John Shanahan reports

REVETT PROVIDES Q2 2011 OPERATIONS AND ROCK CREEK LITIGATION UPDATE

Revett Minerals Inc. has provided second quarter 2011 production from its Troy mine in northwestern Montana of 342,822 ounces of silver and over 3.03 million pounds of copper production, a 65-per-cent increase in silver and 60-per-cent increase in copper production over the same period last year, and a 40-per-cent increase in silver and 51-per-cent increase in copper from the first quarter of 2011. Silver and copper grades along with metal recoveries also improved, primarily from an increased production from the C Bed area.

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 totalled $7.5-million (U.S.), a 900-per-cent increase from the same period a year ago. Direct production cost per ton of ore increased due primarily to the restart of a production royalty, higher refining costs and higher mining taxes due to higher revenues resulting from higher metal prices. Labour 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 byproduct basis, were $2.10 per ounce silver and 69 cents 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. The company is waiting for results of continuing drilling in the I Bed area, and a portion of the fieldwork has been completed on a geophysical survey south of the Troy mine.
Wed, Aug 10, 2011 - 10:12pm mouser
Super_Douche
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Uh oh!

I got to laugh! If I listened to analysts I would have missed out on a lot of money. I think the timing is very questionable? They release a downgrade one day before earnings come out? I think they are expecting good earnings, and want to knock it down before the big move higher. We are mining investors/traders, you better try harder than that to scare us. We are use to constantly hearing negative news about how mining stock are going to underperform. I made over 300% last year! Suck on that analysts!

"There is no inflation and unless we get some soon we will all be in trouble." -Paul Krugman
Wed, Aug 10, 2011 - 10:14pm
Kegfreak
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Cramer is at it again

Cramer really can't fuck my life up enough! The street obviously has not reviewed Revett very good! I'm gonna lose my mind here. At the current price, Revett is a Buy!!!,Buy!!!, Buy!!!!!!!!!!

Earnings tomorrow will be good and Cramer will further cement his place as a Contraian Indicator.

F this, I going to go kill people on Battlefield Badcompany 2 to get some stress out!

Thu, Aug 11, 2011 - 8:37am Super_Douche
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Revett Reports Record Earnings for Q2 2011

https://www.marketwire.com/press-release/revett-reports-record-earnings-...

SPOKANE VALLEY, WASHINGTON--(Marketwire - Aug. 11, 2011) - Revett Minerals Inc. (TSX:RVM)(NYSE Amex:RVM) today announced record quarterly revenues of $18.8 million, a 102% increase compared to the same period last year. The Company also increased its cash and cash equivalents on hand at the end of the second quarter to $14.7 million from $8.8 million at the beginning of the year. All currency in this release is in United States dollars unless otherwise indicated.

For the three months ended June 30, 2011 the Company had net income of $7.9 million or $0.23 per share. These record results are due to higher metal prices, significantly improved metal grades, and higher metallurgical and operating efficiencies.

Highlights:

  • Silver production totaled 342,822 ounces and copper production totaled 3,028,252 pounds, representing increases of 65% for silver and 60% for copper over the same period last year.
  • Net cash(1) provided from operations before capital expenditures for the second quarter of 2011 was US$7.7 million, for a total of $11.1 million for the first half of 2011.
  • Cash cost for the second quarter of 2011 improved significantly on a net of by-product basis at $3.38 per ounce of silver and $0.73 per pound of copper, compared with $13.08 per ounce of silver and $2.63 per pound of copper for the same period last year.
  • The Company's working capital increased to $19.8 million as of June 30, 2011, an 86% increase since December 31, 2010.
Thu, Aug 11, 2011 - 8:45am DFrat
Super_Douche
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I don't know what this means?

Can someone decode this statement? I think RVM is going bankrupt. Good call on the downgrade assclowns, I better sell my shares.

"There is no inflation and unless we get some soon we will all be in trouble." -Paul Krugman
Thu, Aug 11, 2011 - 9:02am
mrgneiss
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Wow, what a quarter for

Wow, what a quarter for Revett, I guess it's the best quarter in the company's history. It's great they're able to get their costs per ounce down in a somewhat inflationary environment, I assuming it's due to mining higher grades of silver and/or copper.

Looks good on "The Street"! So either The Street knew what was up and was trying to create a little buying opportunity - or they are just idiots. Probably the latter. It's been my experience the majority of analysts will wait to upgrade a stock until it's nearing it's peak, and wait to downgrade a stock until its nearing a bottom. Rarely any original thinking, mostly a CYA mentality - so do your own research.

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.
Thu, Aug 11, 2011 - 9:37am
mouser
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wow .23 a share in earnings

Holy crap, did i miss this Q on the numbers, i had them at .08 .

RVM has to be the lowest P/E in the silver producers, as that puts them around 4 P/E ratio.

Thu, Aug 11, 2011 - 10:58am mouser
mrgneiss
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mouser wrote: Holy crap, did

mouser wrote:

Holy crap, did i miss this Q on the numbers, i had them at .08 .

RVM has to be the lowest P/E in the silver producers, as that puts them around 4 P/E ratio.

Always nice to have a surprise to the upside!

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.
Thu, Aug 11, 2011 - 6:34pm
mouser
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makes ya wonder tho

What exactly is the agenda behind The Street and that DeAngelo chap , as they spout their misinformation over the newswires?

RVM perhaps one of the most under the radar , and undervalued producers on the planet.

ANNOUNCE RECORD blowout earnings and they have 62,ooo shares trade in Canada and 128,000 in the US on the AMex.

I am thinking perhaps RVM should hire up some of those highly regarded newsletter writers like Dines etal, to jump on the bandwagon and get the party going.

I guess RVM did not head down today, at least that is some good news.

Reality is the next Q reported will be likley even better, and by JAN 2012 the silver hedge on 25% of the production will be finished. AND the copper hedge at 3.55 also done in 2012.

I would not be too unhappy if they hedged some copper again, albeit at about a buck a lb higher ceiling, say around $4.50

BUT no way should they even dream about hedging silver again.

Thu, Aug 11, 2011 - 7:03pm mouser
Kegfreak
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Thanks Mouser

Thanks for all the analysis on these miners Mouser. I get pretty worked up at times (like yesterday for instance) and want to go all physical but you and some others calm me down and allow me to think unemotionally about the situation.

At this point, I am holding RVM because of Troy mine production, not potential gains from Rock creek. My question is, if Rock creek would not happen for some reason, do you think that would allow RVM to show even larger gains considering they are going to finance Rock creek with Troy mine earnings? Are they setting aside profits now in preparation to finance Rock creek?

Thanks in advance

Thu, Aug 11, 2011 - 8:08pm Kegfreak
mouser
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WELL basically right now

RVM gets 0 value for Rock Creek, so if it does all fall apart and the treehuggers are successful in making a few bull trout more important than the unemployed hordes in the US, i dont see any change in valuation for RVM. Altho the market does hate uncertainty, and so sees RVM spending money on litigation and permitting for a project that may never go.

My talks with management made me very confident that RVM will have Rock Creek started within a year. This latest roadblock, is really a minor detail. Pullleeeaase, hold up development of a mine because of storm water runoff plans?

What happens in the case when storm water runoff comes off the hills where nobody has ever mined, and causes silt buildup? Who will the environmentalists blame then?

That was their last gasp effort to delay the development, imo eventually the jobs and tax revenue for the State of Montana, ( and the us govt) will win out over the naysayers. If Revett did not have a squeakuy clean record of mining at the nearby Troy, i could see problems down the road. BUT that is not the case. It is the most benign mine plan there is as far as the environment is concerned.

RVM earned .23 a share in this Q , the average P/E ratio for silver producers is over 20X, and as far as insitu metal, there are none that have as much metal per $ of market cap value as RVM. TROY alone should have Revett valued in excess of 300 million imho.

Fri, Aug 12, 2011 - 12:02am mouser
Super_Douche
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Mouser Rules!

I am not only a Turdite, but also a Mouserite from this day forward. I must thank you for all of your analysis on the mines. It's nice to have someone with a lot more investing experience helping us rookies. I'm sure there are a lot of people here that share my opinion. Please keep it up!

"There is no inflation and unless we get some soon we will all be in trouble." -Paul Krugman
Fri, Aug 12, 2011 - 12:02am mouser
Super_Douche
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Mouser Rules!

I am not only a Turdite, but also a Mouserite from this day forward. I must thank you for all of your analysis on the mines. It's nice to have someone with a lot more investing experience helping us rookies. I'm sure there are a lot of people here that share my opinion. Please keep it up!

"There is no inflation and unless we get some soon we will all be in trouble." -Paul Krugman
Fri, Aug 12, 2011 - 11:34am
AugmentedFourth
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I concur

Thanks for all the insight on this one guys!