Belvedere Resources Limited is a Canadian incorporated mining company with a primary focus on gold, cobalt, copper and nickel in Finland.
Belvedere Resources offers “good exposure” to Nordic region, says Ocean Equities
Finland-focused Belvedere Resources (TSX:BEL) offers “good exposure” to renewed exploration in the Nordic region thanks to more than one million ounces of gold held within the company’s historic resource category, as well as a number of highly-prospective licences in the country. So says Ocean Equities, which commented this week on the firm’s third quarter results.
Belvedere reported a third-quarter operating profit of €0.5 million compared to an operating loss of €0.4 million in the previous quarter. Ocean noted that news that nickel and cobalt production targets were missed was partially offset by the positive exploration results received during the quarter, particularly at Belvedere’s Osikonmaki gold project – where the contained gold resource was increased to 312,000 ounces during the period.
The broker also noted that Belvedere’s expectations for the fourth quarter indicate that an increase in head grades at its Hitura nickel-cobalt plant is expected to increase operating profit and production rates. The mine missed production targets during the third quarter due to the short-term effects of mine planning issues and a mill shutdown stoppage; the mine produced 464 tonnes of nickel-in-concentrate and 18.3 tonnes of cobalt in Q3 2011, 18 per cent and 22 per cent below expectations respectively.
Belvedere is evaluating whether to reopen the open pit at Hitura. Ocean’s opinion is that bringing the pit back on-line would have “a dramatic effect on the operation through increasing production capacity as well as enabling re-optimisation of the underground mining”. A new resource for the open pit is expected shortly and should lead directly to a feasibility study on the expansion project, according to the broker.
Meanwhile, work continues at the nearby Kopsa gold-copper project, where resource expansion drilling has “gone as expected” this year.
A key point made by Ocean was that a lot of excitement has been generated in the Nordic exploration recently byAnglo American’s announcement regarding its potentially world-class base and precious metals deposit in Finland. “There seems to be a renaissance of Scandinavian exploration, perhaps triggered by escalating political risk and tax/royalty uncertainty in other jurisdictions,” said the broker.
Shares in Belevedere current trading for 13.5 Canadian cents each, valuing the business at C$21.25 million.