VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 08/30/13 — Belvedere Resources Limited (TSX VENTURE: BEL) („The Company“) reports financial and operating results for the quarter ending June 30, 2013.
David Pym (CEO) comments „Operations were affected by the suspension of production in June due to low nickel prices. Management is closely monitoring the situation, and should nickel prices improve to sustainable levels, the Company intends to re-commence production. Meanwhile, management continues to focus on completing the Kopsa gold copper project Preliminary Economic Assessment (PEA) and environmental permitting allowing processing of the Kopsa ores through the Hitura mill.“
Key Q2 2013 Financial Points
Key Q2 2013 Operational Points
(i) 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 June 30, 2013 of EUR814,099 or EUR0.01 per share, which compares with net income of EUR821,786 or EUR0.01 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 second quarter:
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.
The Company is expecting the results of the SRK PEA shortly. All necessary studies are now completed and the PEA will inform the board of the economic feasibility of processing the Kopsa gold copper deposit at the nearby Hitura mill.
As described in the news release dated 23rd August, the Company has reached an agreement with Jinchuan to defer the redemption of preference shares until 2015. There will be no further redemptions or interest payments unless production resumes during this period. The new agreement will positively impact the Company-s working capital position in subsequent accounting periods as the preferred shares redemption payments will be reclassified from current to long term liabilities.
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 it-s 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.
Contacts: Humbercrest Capital Inc. Scott Findlay +1 647 274 2536
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