BAA(.21)~ Profitable, Most Undervalued Gold Mine~ New

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mellon StockMasterTalk #41191
BAA(.21)~ Profitable, Most Undervalued Gold Mine~ New DD

1) BAA~ Banro is a Canadian gold company, its shares trade on TSX and NYSE/AMEX

Banro is a Canadian gold company with production from its first gold project, Twangiza, which is located in the Democratic Republic of the Congo. Banro is also focused on the development of its second open pit project Namoya and is undertaking exploration on two further fully permitted and licensed projects, Kamituga and Lugushwa. All Banro's current projects lie along the 210 km long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the DRC.

http://www.banro.com


2) BAA~ Banro has 4 open pit Gold mines..


A) Banro's Twangiza commenced production in 2011

Twangiza (Oxide) became Banro's first producing open pit gold mine when it entered production in October 2011, commencing commercial production in September 2012. With mill throughput at full capacity of 1.7 million tonnes per year, Twangiza (Oxide) is projected to produce upwards of 10,000 ounces of gold each month with an expected mine life of seven to eight years from currently-defined reserves.
Twangiza is the most advanced of Banro's four properties with a Mineral Reserve of 13.69 million tonnes grading 2.34g/t Au containing 1.03 million ounces of gold. The Twangiza deposit is comprised of two resource components -- an oxide portion and a transition rock/fresh rock portion -- with a focus on the oxide component which has a Measured & Indicated Resource of 15.56 million tonnes grading 2.21/t Au containing 1.10 million ounces of gold and an Inferred Resource of 1.27 million tonnes grading 1.35g/t Au containing 60,000 ounces of gold. The property is located 45 kilometres south-southwest of Bukavu in South Kivu Province and consists of six Exploitation Permits covering 1,164 square kilometres in the highly-prospective 210km long Twangiza-Namoya gold belt.

http://www.banro.com/s/Twangiza.asp?ReportID=307249

FOR PICTURES: http://www.banro.com/s/Photos.asp?ReportID=539736


B) Banro's Namoya commenced production at Q2 2014

Banro's Namoya (oxide) project began construction in the fourth quarter of 2012 and completed construction and began commissioning during Q2 of 2014. At full capacity, the Namoya mine is expected to produce roughly 9,000 to 10,000 ounces per month.
Namoya has a Proven & Probable resource of 23.00 million tonnes grading 2.34g/t Au containing 1.03 million ounces of gold. Measured and Indicated resources at Namoya are 29.78 million tonnes grading 1.91g/t Au containing 1.83 million ounces of gold plus an Inferred resource of 6.52 million tonnes grading 1.61g/t Au containing 340,000 ounces of gold. The updated resource calculation used a cut-off grade of 0.4g/t Au.
Field crew members check core at drill site.
The Namoya property lies at the southern end of the Twangiza-Namoya gold belt in Maniema province, approximately 225 kilometers southwest of Bukavu and consists of one PE covering an area of 174 square kilometres.


http://www.banro.com/s/Namoya.asp

FOR PICTURES http://www.banro.com/s/Photos.asp?ReportID=662856


C) Banro Lugushwa Project


Drilling has intercepted wide zones of gold mineralization at Lugushwa, the oxide portion of which has an Indicated Mineral Resource of 16.91 million tonnes grading 1.35g/t Au containing 730,000 ounces of gold and an Inferred Resource of 6.17 million tonnes grading 1.56g/t Au containing 310,000 ounces of gold. Lugushwa (transition and fresh rock) has an Inferred resource of 65.01 million tonnes grading 1.54g/t Au containing 3.22 million ounces of gold. Senior project geologist checks drill core
The three Lugushwa exploration permits, covering an area of 641 square kilometers, are located approximately 150 kilometres southwest of the town of Bukavu.



http://www.banro.com/s/Lugushwa.asp


D) Banro Kamituga Project

In February 2011, Banro established its first exploration camp at Kamituga and began exploration of this high potential project, which has a long history of significant gold production.
Kamituga is located 100 kilometres southwest of Bukavu and consists of three PEs covering an area of 649 square kilometres.
Of Banro's four major properties, Kamituga has the longest history of substantial previous alluvial and underground mining operations. Kamituga has an Inferred resource (surface) of 4.14 million tonnes grading 2.40g/t Au containing 32,000 ounces of gold and an Inferred (underground) resource of 3.12 million tonnes grading 6.00g/t Au containing 60,000 ounces of gold.

http://www.banro.com/s/Kamituga.asp?ReportID=307256


3) BAA~ Banro Gold Resources is 8.35 Million ounce on 11.8% of concession area explored to date


http://www.banro.com/i/pdf/Exploration-Potent...y-2014.pdf

http://www.banro.com/s/Resources.asp


4) BAA~~ Financials

BAA started to production in 2012

Revenue in 2012: 42.6 million dollars/ Net Profit: -$4.56 Million
Revenue in 2103: 111.8 million dollars/ Net Profit: $1.63 million
Revenue in 2014: 125.4 million dollars/ Net Profit: $320K


So the company posted Net profit in 2013 and 2014.

http://www.banro.com/i/pdf/2014AnnualReport.pdf



5) BAA~ Book value per share 1.95 dollars

Total Equity: 492.5 million dollars.

Book Value: Total Equity/ Outstanding shares

Book value: $492.5 million/ 252 million shares= 1.95 dollars

http://www.banro.com/i/pdf/2014AnnualReport.pdf


6) BAA~ Production increased 19% in 2014, Cash Cost per ounce decreased 18% to $683 dollars per ounce .

For 2014:OPERATIONAL HIGHLIGHTS

Production increase by 19% to 98,184 ounces of gold in 2014 (82,591 ounces in 2013); 29,445 ounces in Q4 2014 (22,858 ounces in Q4 2013)
In 2014, 101,225 ounces of gold were sold at an average price of $1,239 (80,497 ounces of gold were sold at an average price of $1,389 per ounce in 2013)
2014 cash costs per ounce at Twangiza decreased 18% to $683 per ounce from $836 per ounce in 2013 . AISC of $781 per ounce for full year 2014
Cash costs for Q4 were $592 per ounce as the Twangiza plant delivered 91% of steady state ounce production over a stabilized cost structure. The second half of 2014 cash cost of $605 per ounce showed strong evidence of consistent financial performance.

http://news.banro.com/press-releases/banro-an...1000581001

For 2015:
Twangiza - 110,000 to 120,000 ounces
Namoya 1H 2015 - monthly production of up to 5,000 ounces
Namoya 2H 2015 - monthly production of up to 8,000 ounces


2015 TOTAL - 200,000 to 220,000 ounces

http://news.banro.com/press-releases/banro-an...0963388001


7) BAA~ at Q1, 2015 record production: 45,197 ounce Gold a 78% increase over Q1 2014 .

COMPANY Q1, 2015 OPERATIONAL HIGHLIGHTS

Twangiza produced 35,943 ounces of gold in the first quarter of 2015, a 78% increase over Q1 2014 (20,137 ounces in Q1 2014), successfully managing the adverse impact of the rainy season.
Process plant throughput achieved 101% of the 1.7 million tonnes per annum ("Mtpa" annualized design capacity and more importantly, 3 quarters of consistent incremental improvement.
Twangiza processed up to 28% of transition material to assist with the feed blend during the last two quarters, even though this material is not included in the Company's mineral reserves.
Together, Twangiza and Namoya produced 45,197 ounces of gold during Q1 2015.

VERY IMPORTANT FINANCIAL UPDATE

The Company received US$20 million of the US$40 million from the Twangiza gold forward sale agreements and expects to close on the remaining funds, as well as the Namoya
Quote:
stream financing, in mid-April
.

http://news.banro.com/press-releases/banro-an...1000458001



8) BAA~ has 252 million Outstanding shares.

Banro's top 12 institutional holders.


BlackRock Global Funds - 5.88% 14,819,276
Investors Canadian Natural Res- 5.09% 12,825,500
Gramercy Funds Management LLC- 4.31% 10,873,150
BlackRock Gold & General Fund- 4.03% 10,158,900
Geologic Resource Partners LLC- 3.57% 9,000,000
Mackenzie Financial Corp.- 2.95% 7,425,000
I. G.Investment Management Ltd.- 2.95% 7,425,000
Advisors InnerCircle II- 1.82% 4,576,000
Investors Global Natural Res.- 1.79% 4,500,000
Canadian Small Cap Fund- 1.50% 3,778,450
Wellington Management Co. LLP- 1.15% 2,897,513
Canada Pension Plan- 0.98% 2,467,000

http://money.cnn.com/quote/shareholders/share...titutional

% Held by Insiders1: 8.25%
% Held by Institutions1: 32.30%

http://finance.yahoo.com/q/ks?s=BAA+Key+Statistics


9) BAA~ Holistic financing done: Total $156 million


- Banro closes a US$35.5 million liquidity backstop facility

- Banro signs a non-binding Memorandum of Understanding for gold sale/streaming transactions for aggregate proceeds of US$121 million

http://news.banro.com/press-releases/banro-an...0963388001


10) BAA got $100 million NON-DILUTIVE financing


BAA Management: "Companies liquidity needs have been met for 2 years"

"Management believes that the US$100 million of capital is more than sufficient to meet the Company's liquidity needs over the next two years as it completes the Namoya ramp-up, with a sufficient cash cushion to absorb normal course volatility in gold prices and production."


http://www.marketwired.com/press-release/banr...995936.htm


11) BAA~ Banro has experienced Management Team

Chairman Richard Brissenden


Richard Brissenden is a mining executive and corporate director with over thirty years of experience in the resource sector. A Chartered Professional Accountant (CPA, CA) and Certified Director (ICD.D), he serves on the board and audit committee for several mining companies, including McEwen Mining, Ryan Gold Corp., and Corona Gold Corporation. As chairman and president of Excellon Resources Inc. from 1991 to 2008, he led the company through the discovery, development and production stages of a high-grade silver/lead/zinc mine in Northeastern Mexico. He has also been a director of HudBay Minerals Inc., as well as president of a gold producer in Alaska, and president of a mine finance house with interests in over fifty junior mining companies. He is a member of the Institute of Chartered Accountants of Ontario and the Institute of Corporate Directors.

CEO John Clarke


Dr. Clarke is a non-executive director of Great Quest Metals Ltd. Most recently, served as the CEO of Nevsun Resources Limited, which successfully brought the Bisha Mine into production in Eritrea. Prior to joining Nevsun in 1997, Dr. Clarke was an Executive Director of Ashanti Goldfields Company Limited of Ghana, where he helped establish Ashanti's gold exploration program throughout sub-Saharan Africa. Dr. Clarke holds a Ph.D. in metallurgy from Cambridge University and M.B.A. from the University of Middlesex.

http://www.banro.com/s/Directors.asp

New CFO from Barrick Gold:


Kevin Jennings will be joining Banro as Senior Vice President and Chief Financial Officer effective September 1, 2014. Kevin has over 20 years' experience in corporate finance, corporate development, strategy and senior management positions with global mining companies. Most recently, Kevin served as CFO of SUN Gold. Prior to that, he led the successful IPO of African Barrick Gold where he held the role of CFO, and over his career has managed mining international acquisitions, divestitures and project investments worth more than US$10 billion. Kevin has also served in senior corporate roles with Barrick Gold, (Vice President, Corporate Development), Xstrata Nickel, (Director, Business Optimization), Falconbridge (Director, Business Development), and American Racing Equipment (CFO). Kevin is a Chartered Accountant with a BA in Administrative studies (Honours Accounting) from York University and a BA in Economics from the University of Western Ontario.

http://news.banro.com/press-releases/banro-an...0963388001


12) The financial analysts covering Banro Corporation are listed below.


Firm Analyst Phone

GMP Securities Brock Salier +44 207 106 1904
CIBC World Markets Cosmos Chiu +1 (416) 594-7106
BMO Capital Markets Andrew Breichmanas +1 (416) 359-8387
Goldman Sachs (UK) Owen Scarrott +44 207 552 9935

http://www.banro.com/s/AnalystCoverage.asp


13) Banro Corporate offices and contact numbers


Corporate Office:
Address: 1 First Canadian Place
100 King St. West, Suite 7070, P.O. Box 419
Toronto, ON
Canada M5X 1E3
Telephone: +1 416-366-2221
Fax: +1 416-366-7722

Kinshasa Office:
Address: 14, avenue Sergent Moke
Concession Safricas
C/Ngaliema, Kinshasa
Democratic Republic of the Congo
Telephone: +243 812 686 096
Fax: +243 812 616 096

Bukavu Office: Banro Congo Mining SARL
Address: 15 Avenue Mwanga
Muhumba, Ibanda
Bukavu, South Kivu
Democratic Republic of the Congo
Telephone: +243 810 393 534

Twangiza Mine: Twangiza Mining SARL[/b
Telephone: +1 647 258 6373

Namoya Project: Namoya Mining SARL
Telephone: +1 647 931 3888

Bankers: TD Canada Trust
Address: 141 Adelaide St. West
Toronto, ON
Canada M5H 3M7

Main Transfer Agent: Equity Financial & Trust Company
Address: 200 University Avenue, Suite 400
Toronto, ON
Canada M5H 4H1
Phone: +1 866 393 4891 (ext 205)
Email: investor@equityfinancialtrust.com

Auditors: Deloitte & Touche LLP
Address: 181 Bay Street
Brookfield Place, Suite 1400
Toronto, ON
Canada M5J 2V1

Legal Counsel: Norton Rose Fulbright Canada LLP
Address: TD Centre, CP Tower
100 Wellington St. West, Suite 500
Toronto, ON
Canada M5K 1H1

http://www.banro.com/s/CorporateDirectory.asp

BAA(.21) can be the next FNMA

remember FNMA alerted at .22 and hit 6.40 dollars last year.

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