Belvedere Resources Ltd.

Belvedere Resources Ltd.

July 08, 2011 20:02 ET

Belvedere Reports Financial and Operating Results for Q1 2011 -Correction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2011) - It has come to our attention that there was a formatting error in the 'Financial Highlights' table contained in our news release dated July 5, 2011. While the information was correct in all material respects, the presentation could be construed as misleading.

The following is the corrected version.

Vancouver, British Columbia, July 5th, 2011. Belvedere Resources Ltd. (TSX VENTURE:BEL) ("Belvedere") is pleased to report financial and operating results for the Quarter ending March 31, 2011. The un-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 (EUR) unless otherwise stated.

Financial Summary Q1 2011

--  Revenues of 6.965 million euros ($9.687 million CDN) 
--  Net income of 1.205 million euros ($1.675 million CDN) 
--  Positive operating margin of 1.134 million euros ($1.578 million CDN) 
--  Jan 2011 - Cdn$ 2.834 Million Net raised in Private Placement 
--  Feb 2011 - EUR2 Million loan converted into shares 

Key Operational Points Q1 2011

--  Jan 2011 - 5000m drill programme commences on Hitura Pit expansion 
--  Feb 2011 - 5000m drill programme commences on Rantasalmi Gold Project 
--  Mar 2011 - High grade gold intersected in drilling at Rantasalmi best
    intersection 6m averaging 11.1 g/t gold. 
--  Q1 2011 - Hitura milled 142,912 t of ore achieving 102% of 2010
    production targets. 547 t (1.2 million pounds) of nickel was produced in

David Pym (CEO) comments "The first quarter of 2011 sees the mine performing according to plan, with nickel production and costs meeting targets. Management is focussing on growing the business through internal investment in gold and nickel projects. Large drilling projects are ongoing to complete new resource estimates for the open-pit expansion at the Hitura Nickel mine and on the Rantasalmi Gold Property to meet our vision of expanding nickel production in 2012 and becoming a gold producer"


The following selected annual financial information in the table that follows has been derived from the condensed consolidated interim 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. Note 2010 figures have been restated in accordance with IFRS and have not been previously disclosed. See Note 18 to the Financial Statements for a comparison with Canadian GAAP. 2009 figures are reported in accordance with Canadian GAAP, and have not been restated in accordance with IFRS, as the Company's date of transition from Canadian GAAP to IFRS was January 1, 2010.

The Company generated net income for the quarter ended March 31, 2011 of EUR1,204,684 or EUR0.01 per share, which compares with net income of EUR3,170,398 including a gain on fair valuation of the Hitura assets acquired of EUR3,861,870 or EUR0.02 per share reported for the same period of fiscal 2010 and compares with a net loss of EUR7,365,034 or EUR0.09 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 EUR000's, except           Quarter      Quarter      Quarter 
 shares and per share figures               ended        ended        ended 
                                         31 March     31 March     31 March 
                                             2011         2010         2009 
Revenue                                     6,965            -            - 
Operating Expenses (i)                      5,929            -          926 
G&A Expenses (i)                              307          189          282 
Other (income) and expenses                   (78)         334          181 
Gain on fair valuation derivative                                           
 liability                                   (459)           -            - 
Gain on fair valuation of Hitura                                            
 assets                                         -       (3,862)           - 
Income tax recovery                          (178)           -            - 
Net income (loss)                           1,444        3,339       (1,389)
Earnings (loss) per share (basic and                                        
 diluted)                                    0.01         0.04        (0.02)
Cash Flow (used) from operating                                             
 activities                                   981         (512)      (1,206)
Cash Flow (used) from investing                                             
 activities                                  (740)         (23)        (258)
Cash Flow from financing activities         2,075            -           (3)
Net increase (decrease) in cash             2,305         (537)      (1,444)
Cash at end of period                       2,691          381        2,912 
Total Assets                               22,527       12,912       17,860 
Total Liabilities                          13,481        9,821       13,238 
Working Capital (ii)                        2,070          702       (7,363)
Weighted average number of shares                                           
 outstanding                          121,596,431   90,777,514   79,175,569 
Dividends per Share                             -            -            - 

(i): Including stock based compensation

(ii): Excluding cash restricted under standby letter of credit During the first quarter:

--  The Hitura Mine produced 547t of nickel in concentrate in the first
    quarter, compared to the planned production of 569t, 4% below forecast. 
--  The Company generated net income for the quarter ended March 31 of
    EUR1,204,684 or EUR0.01 per share, which compares with net income of
    EUR1,738,919 for the previous quarter and, EUR3,170,398 including a gain
    on fair valuation of the Hitura assets acquired of EUR3,861,870 or
    EUR0.02 per share reported for the same period (Q1) of fiscal 2010. 
--  General and administrative expenses increased to EUR306,506 (2010:
    EUR188,058) substantially as a consequence of the restarting of
    operations at Hitura. 
--  Other Income and Expenses were EUR(77,999) (Q1 2010: EUR334,450) as a
    consequence of foreign exchange gains which were partially offset by
    loan interest. 
--  Cash increased to EUR2,690,855 as a result of positive mine cash flows
    and net proceeds from a private placement. 
--  Accounts receivable and prepaid expense balances increased as a result
    of the start up of operations at the Hitura nickel mine. 
--  Current and long term liabilities decreased to EUR12,965,914 (2010:
    EUR14,622,516) as a consequence of the conversion into common shares of
    the Investec loan. 

Nickel Operations

During the first quarter, the mine production proceeded largely in-line with the mine plan for 2011. Total milled tonnes for the quarter were 2% greater than planned (140,000 tonnes), although the average nickel grade at 0.56% Ni was lower than the projected 0.62% Ni. The lower grade of ore was partially offset by higher average recoveries, resulting in the production of 547 tonnes of nickel contained in concentrate for the quarter. This compares to the target of 569 tonnes of nickel in the mine plan, a deficit of 4%. In addition to the nickel, the Hitura mine produced 22 tonnes of cobalt in concentrate (compared to a target of 24 tonnes). In March, one of the ball mills (the mine has two ball mills and one rod mill) developed an unexpected problem, and was taken out of commission for three weeks for repair and lining replacement. Notwithstanding this problem, milled tonnes for the month of March exceeded the target of 47,000 tonnes by 9%.

Month        Milled (t)      Con (t)         Ni t in Con.    Co t in Con.   
January      49,049          2,399           211             8.2            
February     42,419          1,791           155             6.2            
March        51,444          2,161           181             7.5            

Q1 Total     142,912         6,380           547             22             

Total operating costs for Q1 averaged EUR38.0/tonne of ore milled. Total operating costs per pound of nickel in concentrate for Q1 averaged EUR4.51 (approx.US$ 6.08 based on USD:EUR of 1.35).

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.


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.

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