VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 30, 2014) - Belvedere Resources Limited (TSX VENTURE:BEL) ("The Company") reports First Quarter financial and operating results for the period ending March 31, 2014.
Key Operational Points
- No nickel production,
- Hitura Nickel Mine placed on care and maintenance on June 5th 2013 due to low nickel prices
- Feasibility Study started on Kopsa gold copper deposit to provide feed for the Hitura mill
Key 2013 Financial Points
- No Revenues
- Operating Loss of EUR0.27 million (CDN$ 0.40 million)*
- Net loss of EUR0.54 million (CDN$ 0.79 million)
* Operating Income is calculated as sales less operating costs and excludes depletion, depreciation and amortization.
SELECTED FINANCIAL INFORMATION
The following selected annual 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 incurred a net loss for the quarter ended March 31, 2014 of EUR537,664 or EUR0.03 per share, which compares with a net loss of EUR346,465 or EUR0.02 per share for the same period in fiscal 2013. The principal causes of these quarterly and annual variations are explained after the 'Financial Highlights' table following.
Selected Financial Information
All amounts in EUR000's, except shares and per share figures |
Quarter
ended
31 March
2014 |
|
Quarter
ended
31 March
2013 |
|
| Revenue |
- |
|
6,002 |
|
| Operating Expenses |
296 |
|
7,087 |
|
| G&A Expenses * |
200 |
|
230 |
|
| Other (income) and expenses |
42 |
|
227 |
|
| Income tax expense (recovery) |
- |
|
(75 |
) |
| Net income (loss) |
(538 |
) |
(346 |
) |
| Earnings (loss) per share (basic and diluted) |
(0.03 |
) |
(0.02 |
) |
| Cash Flow from (used) operating activities |
(502 |
) |
111 |
|
| Cash Flow from (used) investing activities |
(184 |
) |
(373 |
) |
| Cash Flow from (used) financing activities |
592 |
|
- |
|
| Net increase (decrease) in cash |
(88 |
) |
(278 |
) |
| Cash at end of period |
151 |
|
1,932 |
|
| Total Assets |
10,434 |
|
24,028 |
|
| Total Liabilities |
9,284 |
|
13,192 |
|
| Shareholders' equity |
1,150 |
|
10,836 |
|
| Working Capital ** |
(587 |
) |
(2,350 |
) |
| Weighted average number of shares outstanding |
17,781,274 |
|
16,868,035 |
|
| Dividends per Share |
- |
|
- |
|
| *: Including stock based compensation |
| **: Current assets less current liabilities |
During the first quarter:
- The Company generated no revenues and incurred a net loss of EUR537,664 or EUR0.03 per share. This compared with a net loss of EUR4,630,273 or EUR0.27 per share in the fourth quarter of 2013 which included an impairment charge against the Hitura mineral property.
- Cash decreased to EUR150,975 from EUR239,193 as a result of negative cash flows generated from operations and exploration and development expenditure.
- General and administrative expenses decreased to EUR199,455 (2013: EUR230,513) substantially as a consequence of cost cutting measures implemented following the cessation of mining operations.
- Other expense was EUR41,775 (2013: EUR227,130) due mainly to foreign exchange and lower interest and bank charges.
OUTLOOK
During the suspension period referred to in the section above, the company continues to monitor nickel markets, but prices would need to show a sustained increase and the results of the open-pit flotation tests would need to be received before any restart of nickel operations (from the open pit) could be considered.
Any restart of underground operations would require substantial capital investment to put in place new underground development and would require at least 12 months lead time before production could recommence.
In the meantime, following the positive results of the PEA, work continues on permitting and completing the Final Feasibility study for the Kopsa gold copper project. The Company will require additional financing through debt or equity issuances, or other available means in order to initiate and complete the Feasibility Study on the Kopsa gold property and for general working capital purposes
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 Limited 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 which was put into care and maintenance in June 2013. The Company has a number of advanced gold projects in close proximity to the Hitura mine. The Company is focused on completing the feasibility study for its Kopsa gold copper project.
BELVEDERE RESOURCES LTD.
David Pym, CEO
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.