Revett Minerals (RVM.TO; NYSEMKT:RVM) has provided another corporate and operational update. As of at the end of September, Revett still had a working capital position of $13.5M, which means the company spent approximately $15M in 9 months on the re-development of the Troy Mine in Montana, USA. As the company slashed costs in late Q2, Revett spent ‘just’ $2.1M on rehabilitation and development.
The development of the new drift is going well and is actually a bit ahead of schedule. This is why Revett CEO John Shanahan now thinks commercial production might resume sooner than anticipated as the company is now aiming for a start-up date in Q3 2014. As this timeline seems to be quite aggressive, we’d like to be more conservative and are still targeting a restart by the end of next year.
Third, Revett announced it would like to change its jurisdiction of incorporation from Canada to Delaware, USA. This move will be beneficial for the company’s legal and administrative fees and will have a positive impact on future taxation. As a Canadian incorporated company with operating assets in the USA, Revett is accruing losses in both jurisdictions, but they can only put US NOL’s against future US income, so there’s no point in accumulating a NOL in Canada.
Disclosure: The author holds a long position in Revett Minerals. Revett is a sponsor of the website. Please see our disclaimer for current positions.