Belvedere Reports Annual and Fourth Quarter Financial and Operating Results for 2013
02 May 2014 - 4:35AM
Marketwired
Belvedere Reports Annual and Fourth Quarter Financial and Operating
Results for 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2014) -
Belvedere Resources Limited (TSX-VENTURE:BEL) ("The Company")
reports Annual and Fourth Quarter financial and operating results
for the year ending December 31, 2013.
Key 2013 Operational Points
- Hitura Nickel Mine produced 934 t of nickel from 263,320t of
ore
- Hitura Nickel Mine placed on care and maintenance on June 5th
due to low nickel prices
- In July regular pumping was stopped at the nickel mine allowing
the deeper levels to flood
- Positive PEA completed on Kopsa gold copper deposit to provide
feed for the Hitura mill
Key 2013 Financial Points
- Revenues of EUR10.32 million (CDN$ 15.69 million)
- Operating Loss of EUR0.39 million (CDN$ 0.59 million)*
- Net loss of EUR10.09 million (CDN$ 15.34 million)**
* Operating Income is calculated as sales less operating
costs and excludes depletion, depreciation and
amortization.
** Primarily due to an impairment charge against the Hitura
mineral property
SELECTED FINANCIAL INFORMATION
The following selected annual financial information in the table
that follows 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
International Financial Reporting Standards.
The Company incurred a net loss for the year ended December 31,
2013 of EUR10,086,709 or EUR0.07 per share, which compares with net
income for the year ended December 31, 2012 of EUR1,297,886 or
EUR0.01 per share and net income of EUR2,585,914 or EUR0.02 per
share reported for fiscal 2011. The principal causes of these
quarterly and annual variations are explained after the 'Financial
Highlights' table following.
Selected Annual |
Year |
Year |
Year |
Financial Information |
ended |
ended |
ended |
All amounts in EUR000's, except |
31-Dec |
31-Dec |
31-Dec |
shares and per share figures |
2013 |
2012 |
2011 |
Revenue |
10,325 |
27,862 |
24,675 |
Operating Expenses |
11,350 |
24,974 |
21,991 |
G&A Expenses * |
899 |
1,152 |
1,233 |
Other (income) and expenses |
(73) |
272 |
833 |
Mineral property impairment |
9,058 |
34 |
41 |
Gain (loss) on fair valuation derivative liability |
- |
(234) |
(1,797) |
Income tax expense (recovery) |
(823) |
366 |
(212) |
Net income (loss) |
(10,087) |
1,298 |
2,586 |
Earnings (loss) per share (basic and diluted) |
(0.07) |
0.01 |
0.02 |
Cash Flow from (used) operating activities |
(971) |
3,833 |
3,875 |
Cash Flow from (used) investing activities |
(831) |
(2,279) |
(4,131) |
Cash Flow from (used) financing activities |
- |
(804) |
1,455 |
Net increase (decrease) in cash |
(1,971) |
702 |
1,122 |
Cash at end of period |
239 |
2,210 |
1,508 |
Total Assets |
10,356 |
24,078 |
24,774 |
Total Liabilities |
9,261 |
12,895 |
14,923 |
Shareholders' equity |
1,096 |
11,183 |
9,851 |
Working Capital ** |
(485) |
(1,899) |
(1,151) |
Weighted average number of shares outstanding*** |
151,812,291 |
151,812,291 |
148,656,234 |
Dividends per Share |
- |
- |
- |
*:
Including stock based compensation |
**:
Current assets less current liabilities |
***:
Following the share consolidation on 26th March, 2014 the weighted
average number of shares outstanding was 24,275,442 |
During the fourth quarter:
The Company generated a net loss of EUR4,630,273, EUR0.03 per
share in the fourth quarter primarily due to an impairment charge
against the Hitura mineral property. This compares with a net loss
of EUR4,295,872 or EUR0.03 per share for the previous quarter and a
net loss of EUR1,120,855 or EURnil per share reported for the
fourth quarter of fiscal 2012 and net income of EUR641,242 or
EUR0.01 per share for the fourth quarter of 2011.
Compared to the prior year:
- In fiscal 2013, the Company produced 934 tonnes of nickel and
EUR10,324,919 in revenues. In fiscal 2012, the Company produced
2,282 tonnes of nickel and EUR27,862,112 in revenues.
- Cash decreased to EUR239,193 (2012: EUR2,210,369) as a result
of the cessation of mining operations and investment and
exploration and development expenses of EUR830,822.
- General and administrative expenses decreased to EUR899,173
(2012: EUR1,151,747) substantially as a consequence of cost cutting
measures implemented following the cessation of mining operations.
Increases in legal and travel costs were offset by lower public
relations, consulting and stock compensation expenses.
- Other income was EUR72,973 (2012: expense EUR38,311) due mainly
to foreign exchange.
- Accounts receivable EUR692 (2012: EUR985,200), inventories
EUR156,480 (2012: EUR1,356,363) and prepaid expenses EUR43,535
(2012: EUR113,356), decreased significantly as a consequence of the
cessation of Hitura nickel production.
- Long lived assets decreased significantly to EUR9,658,035
(2012: EUR18,782,217) as a consequence of the EUR9,023,630
impairment charge taken against the Hitura Nickel Mine and the
transfer of underground mining equipment to assets held for sale.
The decrease was partially offset by the transfer of slow moving
inventory of spares and consumables from current to long-term
assets.
- Current and long term liabilities decreased to EUR9,260,514
(2012: EUR12,895,289). The decrease in liabilities is a consequence
of the cessation of Hitura mining operations and the elimination of
the deferred income tax liability resulting from the write down of
the Hitura mine.
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 before any restart of nickel
operations could be considered. Any restart of 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.
Belvedere Resources LimitedDavid PymCEO+1-604-844-2838Belvedere
Resources LimitedSteven
CuthillCFO+1-604-513-0007www.belvedere-resources.com
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