Belvedere Reports Financial and Operating Results for Third Quarter of 2013
30 November 2013 - 5:58AM
Marketwired
Belvedere Reports Financial and Operating Results for Third Quarter
of 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 29, 2013) -
Belvedere Resources Limited (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:
Selected Financial Information |
|
Quarter |
|
Quarter |
All amounts in 000's, except shares and per |
|
ended |
|
ended |
share figures |
|
30 September |
|
30 September |
|
|
2013 |
|
2012 |
Revenue |
|
- |
|
6,821 |
Operating Expenses |
|
287 |
|
6,312 |
G&A Expenses * |
|
168 |
|
251 |
Other (income) and expenses |
|
(43) |
|
217 |
(Gain) loss on fair valuation of warrants liability |
|
- |
|
(164) |
Mineral properties impairment loss |
|
4,576 |
|
- |
Income tax recovery |
|
(692) |
|
(78) |
Net income (loss) |
|
(4,296) |
|
283 |
Earnings (loss) per share (basic and diluted) |
|
(0.03) |
|
- |
Cash Flow (used) from operating activities |
|
(1,163) |
|
307 |
Cash Flow (used) from investing activities |
|
(237) |
|
(283) |
Cash Flow (used) from financing activities |
|
- |
|
(245) |
Effect of foreign exchange rate changes on cash |
|
75 |
|
(221) |
Net increase (decrease) in cash |
|
(1,325) |
|
(442) |
Cash at end of period |
|
349 |
|
3,050 |
Total Assets |
|
15,416 |
|
25,270 |
Total Liabilities |
|
10,382 |
|
12,671 |
Shareholders' equity |
|
5,034 |
|
12,967 |
Working Capital ** |
|
(207) |
|
21 |
Weighted average number of shares outstanding |
|
151,812,289 |
|
151,812,289 |
Dividends per Share |
|
- |
|
- |
* Including stock based compensation |
** Current assets less current liabilities |
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 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.
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.
Humbercrest Capital Inc.Scott Findlay+1 647 274
2536www.belvedere-resources.com
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