Belvedere Reports Financial and Operating Results for 2010
Published : May 03, 2011
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2011) - Belvedere Resources Ltd. (News - Market indicators) ("Belvedere") is pleased to report financial and operating results for the year ending December 31, 2010. The audited financial statements, and management's discussion and analysis have been filed with the Canadian securities regulatory authorities. Complete results will also be available on SEDAR and on the Company's Website.

All currency amounts are expressed in euros (€) unless otherwise stated.

Financial Summary 2010
  • Full Year Revenues of 7,120,735 euros
  • Full Year Net income of 3,307,151 euros
  • Full Year Positive operating margin of 652,464 euros
  • Jun 2010 – Cdn$ 2.5 Million raised in Private Placement
  • Jul 2010 - Listed on Frankfurt Stock Exchange
  • Aug 2010 - €2 Million convertible loan facility secured
  • Sep 2010 - First revenues received from mining operations
Key Operational Points 2010
  • Feb 2010 – Hitura Nickel Mine purchased from administrators
  • May 2010 – High grade gold intersected in drilling at Kopsa, best intersection 92m averaging 3.2 g/t gold.
  • June 2010 – Indicated Resource estimate announced for K1 (Ängesneva) gold property
  • July 2010 – Production restarts ahead of schedule at Hitura on budget
  • Aug 2010 – Hitura's first full month of production reaches 95% of commercial production target and 50% above planned
  • Full Year 2010 – Hitura milled 234,629 t of ore achieving 127% of 2010 production targets. 858 t (1.9 million pounds) of nickel was produced in concentrate. 

David Pym (CEO) comments "Management are very pleased with the solid financial and operating results for 2010. To achieve positive net income and operating margins for the year during the ramp up phase of the Hitura mining operation is an exceptional result. 2010 has been a turnaround year for the company and we look forward to continuing to build on these results during 2011."

Selected Financial Information

The following table has been derived from the 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 Canadian generally accepted accounting principles. 

The Company generated net income for the year ended December 31, 2010 of €3,307,151 or €0.03 per share, which compares with a net loss of €7,365,034 or €0.09 per share reported for fiscal 2009. The principal causes of these quarterly and annual variations are explained after the 'Financial Highlights' table following.

Selected Annual Financial Information              
All amounts in €000's, except shares and per share figures   Year ended 31 December 2010   Year ended 31 December 2009   Year ended 31 December 2008  
Revenue   7,121   -   19,298  
Operating Expenses *   6,468   2,862   28,274  
G&A Expenses *   1,175   1,178   2,263  
Other (income) and expenses   540   13   188  
Mineral property impairment   -   125   22,973  
Loss on bankruptcy of subsidiary   -   3,384   -  
Gain on fair valuation of Hitura assets   (3,862 ) -   -  
Income tax recovery   (507 ) -   (6,063 )
Net income (loss)   3,307   (7,562 ) (28,337 )
Earnings (loss) per share (basic and diluted)   0.03   (0.09 ) (0.36 )
Cash Flow (used) from operating activities   (1,093 ) (2,677 ) (6,982 )
Cash Flow (used) from investing activities   (3,062 ) (400 ) (6,550 )
Cash Flow from financing activities   3,634   1,116   7,047  
Net increase (decrease) in cash   (533 ) (1,912 ) (7,167 )
Cash at end of period   386   2,443   4,355  
Total Assets   19,438   5,691   19,194  
Total Liabilities   13,769   5,699   13,281  
Working Capital **   (1,912 ) 628   (5,847 )
Weighted average number of shares outstanding   112,176,169   85,074,459   79,162,240  
Dividends per Share   -   -   -  
 
*: Including stock based compensation
**: Excluding cash restricted under standby letter of credit 

During the fourth quarter:

The Company generated net income for the quarter ended December 31, 2010 of €1,738,919, including a gain on fair valuation of the Hitura assets acquired of €3,861,870 or €0.02 per share, which compares with net income of €678,047 or €0.01 per share for the previous quarter and a loss of €3,704,731 or €0.04 per share reported for the same period of fiscal 2009. 

Compared to the prior year:

  • In fiscal 2010, the Company reacquired the Hitura mine which produced 858 tonnes of nickel and €7,120,735 in revenues. In fiscal 2009, no revenues were generated while the mine was in care and maintenance. The increase in operating expenses is a consequence of restarting mining operations. 
  • General and administrative expenses decreased slightly to €1,175,149 (2009: €1,177,627) substantially as a consequence of a lower stock compensation charge.
  • Other Income and Expenses were €539,190 (2009: €12,919) as a consequence of interest on the convertible loan, accrual of preferred shares dividends and foreign exchange losses.
  • The reacquisition of the Hitura assets resulted in a gain on fair valuation adjustment to the income statement of €3,861,870.
  • Cash decreased to €385,505 (2009: €918,115) primarily as a result of funding the restart of Hitura operations and exploration in gold projects. 
  • Accounts receivable €1,455,001 (2009: €Nil), inventories €1,410,738 (2009: €Nil) and prepaid expenses €222,705 (2009: €832), increased significantly as a consequence of the restart of mining operations.
  • Capital assets increased materially to €13,314,088 (2009: €3,193,936) as a consequence of the reacquisition of the Hitura mine.
  • Current and long term liabilities increased to €14,370,643 (2009: €5,679,525) as a consequence of trade payables reflecting the restart of operating activities, leasing of a capital asset for use in mining operations and a convertible loan secured to fund the start up costs at Hitura.
Nickel Operations
 
For 2010, 234,629 t were milled for a total of 858 tonnes (1.90 million pounds) of nickel in concentrate, 21% more than the mine plan.
 
Month Milled (t ) Con (t ) Ni t in Con.  
October 49,581   2,225   193  
November 37,742   1,637   131  
December 46,093   1,963   171  
Year To Date 234,629   10,268   858  

Total operating costs for Q4 averaged €38.0/tonne of ore milled. Overall costs for the quarter were €37.1/tonne compared to €40.1/tonne for the first two full operating months in Q3 and €39.2/tonne in the plan. Total operating costs per pound of nickel in concentrate for Q4 averaged €4.7 / lb. Management expects operating costs to continue to drop as full commercial production is reached in 2011.

A total of 6,220 dry metric tons (DMT) of concentrate was shipped during Q4 from Kokkola port in Finland to Jinchuan Group in China. The total for the whole of 2010 was 8,946 DMT.

Outlook

The Hitura nickel mine has made an exemplary restart during 2010. Management's focus is to continue the performance through 2011 and cement the longer term future of the Mine through expanding resources and continuing to convert existing resources into reserves. Extending the open pit is one of the options available to the company to meet it stated goals of increasing mill utilization by 25% to its maximum capacity of 750,000 tpa, lower the overall cost base of the mine and increase annual production to 3,000 tpa of nickel in concentrate. In addition Belvedere is completing studies on the Kopsa gold deposit in preparation for scoping studies on the feasibility of commencing gold production in parallel to nickel production on the Hitura site.

With operations at the Hitura Mine at full production capacity, the conversion of the Investec loan into equity and the completion of the private placement, the company has sufficient financing for at least the next 12 months of normal operations. As at May 2, 2011 the Company had cash resources of €3.5 million.

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 currently produces 2500t of nickel in concentrate/year from the Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine. 

Forward Looking Statement:

Some of the statements contained herein may be forward-looking statement, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of the Company (including statements relating to future drill results) 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.

Qualified Person

This news release was reviewed by Dr. Toby Strauss, who is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release.

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 policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Belvedere Resources Ltd.
David Pym
CEO
+1-604-844-2838
or
Belvedere Resources Ltd.
Toby Strauss
COO
+1-604-844-2838
www.belvedere-resources.com
Data and Statistics for these countries : Canada | China | Finland | All
Gold and Silver Prices for these countries : Canada | China | Finland | All

Belvedere Resources Ltd.

DEVELOPMENT STAGE
CODE : BEL.V
ISIN : CA0809031077
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Belvedere Res. is a nickel and copper exploration company based in Canada.

Belvedere Res. develops nickel, copper and cobalt in Finland, and holds various exploration projects in Finland.

Its main assets in development are HAUTALAMPI and HITURA in Finland and its main exploration properties are LUIKONLAHTI MILL, HIRSIKANGAS, HAARAKUMPU, KIIMALA, VALKEISENRANTA, SAHAKOSKI, OSIKONMÄKI, SARKINIEMI, RANTASALMI and MÄNTYMÄKI in Finland.

Belvedere Res. is listed in Canada. Its market capitalisation is CA$ 60.6 millions as of today (US$ 46.7 millions, € 39.7 millions).

Its stock quote reached its highest recent level on June 13, 1997 at CA$ 9.99, and its lowest recent point on January 01, 2016 at CA$ 0.01.

Belvedere Res. has 73 904 013 shares outstanding.

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Financings of Belvedere Resources Ltd.
12/24/2013=3A Proposed Private Placement and Share Consolidation
2/15/2011Belvedere Issues 19,094,286 Shares Under Convertible Loan
2/1/2011Belvedere Completes 3,000,000 Private Placement
1/12/2011Private Placement to raise up to CAD $2.5 million
Financials of Belvedere Resources Ltd.
8/30/2013Reports Financial and Operating Results for Second Quarter o...
5/30/2013Reports Financial and Operating Results for First Quarter of...
7/9/2011Reports Financial and Operating Results for Q1 2011 -Correct...
Project news of Belvedere Resources Ltd.
8/14/2013(Hitura)Hitura Tailings Expansion Selected as Test Bed for EU Life T...
7/20/2013(Hitura)Provides Status Update on Hitura Nickel Mine and Kopsa Gold ...
5/23/2013(Hitura)to Suspend Nickel Mining Operations at Hitura Nickel Mine
1/28/2013(Hitura): Hitura Mine Operational Update
1/9/2013Belvedere Commences Follow-Up Drilling on Their Antikanper
4/24/2012High Grade Gold Discovery at Osikonmaki Prospect Confirmed a...
2/29/2012Osikonmaki Yields Intersection of 9.6 Metres Averaging 10.0 ...
1/18/2012Reports Further High Grade Gold Drill Results at Kopsa
12/5/2011Ltd: Gold Results From Drilling at Kopsa
10/11/2011Belvedere Significantly Increases Gold Resources on Their Os...
6/30/2011(Rantasalmi)Drilling Continues to Grow Belvedere's Osikonmaki Gold Prosp...
5/18/2011Osikonm=E4ki Prospect delivers further high-grade gold inter...
3/30/2011(Osikonmäki)drills high-grade gold at their Osikonm=E4ki Prospect in Fin...
3/24/2011(Rantasalmi)Signs LOI With REBgold on the Kiimala and Rantasalmi Gold Pr...
3/24/2011(Kiimala)Signs LOI With REBgold on the Kiimala and Rantasalmi Gold Pr...
2/23/2011(Hitura)Commences Open-Pit Expansion Studies at the Hitura Nickel Mi...
2/1/2011(Osikonmäki)commences drilling on their Rantasalmi Gold Property
7/29/2010(Hitura)Restarts production ahead of schedule
6/17/2010(Hitura)On track for the restart
6/2/2010(Kiimala)Indicated Resource Estimate for the K1(Ängesneva) occurrence
5/7/2010Intersects 92 metres averaging 3.2 g/t gold at Kopsa
4/8/2010(Hitura)Plans to Restart the Mine and the Signing of an Offtake Agre...
3/23/2010(Hitura)Evaluates Potential For The Restart & Commences Drilling on ...
2/15/2010(Hitura)Belvedere Re-Acquires Hitura Nickel Mine from Administrators
12/2/2009(Hirsikangas)Maiden Resource Estimate For Hirsikangas
10/7/2009(Kiimala)commences drilling on their Kiimala Gold Property
Corporate news of Belvedere Resources Ltd.
12/23/2015Belvedere Mining Oy Initiates Voluntary Bankruptcy Proceedin...
3/4/2015Belvedere-Corporate Update
1/27/2015Belvedere Closes Private Placement
12/26/2014Belvedere Resources Ltd.: Correction to December 24, 2014 Ne...
12/24/2014Belvedere Resources Limited: First Tranche of Private Placem...
11/28/2014Belvedere Reports Third Quarter 2014 Financial and Operating...
11/27/2014Belvedere Resources Ltd.: Private Placement
11/20/2014Belvedere Resources Ltd.: Private Placement
10/15/2014Belvedere Resources Ltd: Private Placement and Loan
8/29/2014Belvedere Reports Second Quarter 2014 Financial and Operatin...
7/29/2014Belvedere Closes Non-Brokered Private Placement (Revised)
7/4/2014Belvedere Resources Limited: Proposed Private Placement
5/30/2014Belvedere Reports First Quarter 2014 Financial and Operating...
5/14/2014Belvedere Starts Further Tests on Open-Pit Nickel Ore for Pr...
5/1/2014Belvedere Reports Annual and Fourth Quarter Financial and Op...
4/30/2014CORRECTION FROM SOURCE: Belvedere Closes Non-Brokered Privat...
4/30/2014Belvedere Closes Non-Brokered Private Placement
4/16/2014Belvedere Resources Ltd.: Proposed Non-Brokered Private Plac...
11/29/2013Financial and Operating Results Q3 2013
10/2/2013News Release
10/2/2013Announces Positive PEA on Their Kopsa Gold Copper Project
8/24/2013Announces Agreement With Jinchuan to Defer Preference Shares...
5/1/2013Reports Financial and Operating Results for 2012
3/19/2013Belvedere Confirms Gold Mineralisation Along 2.5 KM Strike a...
3/19/2013Confirms Gold Mineralisation Along 2.5 KM Strike at Antikanp...
2/8/2013: Disclosure Clarification
1/18/2013Booth 1043 Vancouver Resource Investment Conference
1/9/2013Commences Follow-Up Drilling on Their Antikanperä Gold Disco...
10/29/2012Belvedere Announces Mineral Resource Estimate for Kopsa Gold...
10/29/2012Announces Mineral Resource Estimate for Kopsa Gold-Copper Pr...
10/17/2012Belvedere Resources: Osikonm=C3=A4ki East Hanging Wall gold ...
10/17/2012Osikonmaki East Hanging Wall Gold Zone Extended to 200m Down...
9/19/2012: Significant New Gold Discovery on Antikanperä Property
8/30/2012Reports Financial and Operating Results for Second Quarter o...
8/13/2012Belvedere Resources Ltd. Recent Drilling Confirms Potential ...
6/15/2012Belvedere Welcomes New Director
5/31/2012Reports Financial and Operating Results for First Quarter of...
4/30/2012Financial and Operating Results for 2011
4/19/2012Belvedere converts Open Pit Resources to Reserves at Hitura ...
3/1/2012Belvedere Substantially Increases Resources at Hitura Nickel...
1/9/2012(Hitura)Renews Offtake Agreement for Hitura Mine Concentrate
11/29/2011Reports Financial and Operating Results for Q3 2011
8/29/2011Reports Financial and Operating Results for Q2 2011
8/16/2011Engages Investor Relations Firm
7/21/2011REBgold and Belvedere move forward with Finnish JV
7/6/2011Reports Financial and Operating Results for Q1 2011
6/16/2011Kopsa Project Generates +90% Gold and Copper Recoveries Into...
5/3/2011Reports Financial and Operating Results for 2010
4/20/2011Announces Amendment to Agreement With Jinchuan
3/25/2011REBgold Signs LOI with Belvedere on the Kiimala and Rantasal...
8/19/2010Closes Convertible Loan Facility
11/17/2009Announces Material Change
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