NEW YORK Revett Minerals Inc. saw revenues rise 16 percent year over year to $19.4 million in the third quarter as the company sold a higher percentage of material from inventory despite lower production.
Third-quarter copper production decreased nearly 28 percent in the three months ended Sept. 30 compared with the third quarter of 2011 to 2.36 million pounds.
Copper sales by volume also fell back in the quarter, but not to the same degree, as the company sold more material from its existing stockpiles, chief executive officer John Shanahan told AMM
. In the third quarter, copper sales totaled nearly 2.3 million payable pounds, down about 12 percent from 2.6 million pounds in the year-ago quarter.
Last year, the companys inventory sales were hindered due to rail car shortages in Mexico during hurricane season, resulting in comparatively higher revenues this quarter, Shanahan said.
The third quarter of 2011 was probably our best production quarter ever. (But) at the end of 2011, there was a shortage of rail cars and we werent able to ship a lot of product. We didnt quite have the revenues because we werent able to sell, he said of the year-ago quarter.
The Spokane Valley, Wash.-based miners net income increased to $4.4 million from $2.9 million in the same quarter last year.
Meanwhile, Revett is moving forward with permitting at its Rock Creek copper-silver project in Sanders County, Mont., the company said. The Montana Supreme Court ruled on Oct. 29 that the company must obtain an individual discharge permit to mine at Rock Creek, which the company said it expects will be issued and effective by mid-2013.
Shanahan said production at the Rock Creek Mine will likely begin in 2019.