Belvedere Reports Financial and Operating Results for Third Quarter of 2013

29.11.2013  |  Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 29, 2013) - Belvedere Resources Ltd. (TSX VENTURE:BEL) ("The Company") reports financial and operating results for the quarter ending September 30, 2013.

David Pym (CEO) comments "Due to the continued low nickel prices the Company has decided to allow flooding to continue beyond the 420m level, with the intention of preserving the shallower underground ores as well as the open pittable ores. The Company will continue to focus on progressing the Kopsa gold copper deposit and to commence the Feasibility Study for development and production through the Hitura Mill."

As announced in a news release on July 19, 2013, the Company made the decision to let the lower levels of the mine flood as a cost saving measure. Currently, the water has risen to around the 420m level. The intention is to allow flooding to continue to around the 250m level which will still allow access to the shallower west and south ores. The Company has recorded a 50% impairment charge (EUR4.58 m) against the carrying value of the nickel reserves and resources. The majority of the remaining nickel reserves are open pittable, and are thus unaffected by the flooding.

Key Q3 2013 Operational Points

• Hitura Nickel mine remained on care and maintenance throughout Q3
• PEA completed on Kopsa gold copper deposit for milling at Hitura mill

Key Q3 2013 Financial Points

• Operating Loss of EUR0.27 million (CDN$ 0.37 million)*
• Revenues of EURNil (CDN$ Nil)
• Net loss of EUR4.30 million (CDN$ 5.92 million)

* Operating Income is calculated as sales less operating costs and excludes depletion, depreciation and amortization.

SELECTED FINANCIAL INFORMATION

The following selected financial information in the table that follows has been derived from the interim condensed consolidated financial statements of the Company for the periods indicated and should be read in conjunction with such statements and notes thereto. Those financial statements have been prepared in accordance with International Financial Reporting Standards.

The Company generated a net loss for the quarter ended September 30, 2013 of EUR4,295,872 or EUR0.03 per share, which compares with net income of EUR283,220 or EURnil per share reported for the same period of fiscal 2012. The principal causes of these quarterly and annual variations are explained after the 'Financial Highlights' table following:

During the third quarter:

• Cash decreased by EUR1,324,983 to EUR349,350 over the previous quarter as a result of no cash flows being generated by Hitura operations.
• General and administrative expenses were lower at EUR168,370 compared to the corresponding quarter in 2012 of EUR208,410 as a consequence of an overall reduction in overheads during the mine closure period.
• Other Income for the quarter was EUR43,394 which compares to Other Expense in 2012 of EUR91,567. The variance is due to lower foreign exchange losses in the current quarter and the recognition of a loss on the fair valuation of warrants outstanding in the same period in 2012. The warrants expired in 2012.
• The Company recorded an impairment charge in the quarter of EUR4,576,309, which approximates to 50% of the carrying value of the Hitura mineral property.
• As a consequence of the suspension of nickel production, accounts receivable are negligible. Inventory decreased from EUR556,467 to EUR455,095. Prepaid expenses decreased from EUR44,884 to EUR27,556.
• Capital assets decreased significantly to EUR12,526,080 from EUR15,882,651 as a consequence of the impairment charge taken against the Hitura Nickel Mine.
• Current and long term liabilities decreased in the quarter to EUR10,381,697 from EUR11,531,239 due mainly to a reduction in trade payables since the suspension of operations at Hitura.

OUTLOOK

During the suspension period referred to in the section above, management will continue to monitor the nickel price, manage costs and provide further updates on the status of the mine in due course. Should the nickel price improve to sustainable levels during the lay off period, the company will recall the employees and re-commence production, although this would require funding and a period of time to dewater the workings.

As stated in the Business Overview, the company plans to initiate a full Feasibility Study on the Kopsa gold copper project. This will require additional financing.

Forward Looking Statement: Some of the statements contained herein may be forward-looking statements, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of the Company (including statements relating to possible re-commencement of production at Hitura, and the timelines and results of expected studies for the Kopsa gold project) are forward-looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.

About Belvedere: Belvedere Resources Ltd. is a mining company incorporated in British Columbia with a primary focus on nickel, gold, cobalt and copper in Finland. The Company produced 2,200t of nickel in concentrate in 2012 from its Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine.

BELVEDERE RESOURCES LTD.

David Pym, CEO; Suite #404, Vancouver World Trade Centre, 999 Canada Place, Vancouver. BC. V6C 3E2, Canada

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this release.