
Saturday, May 23, 2015 4:23:55 PM
BANRO CORP...SYMBOL BAA
100 shares BUYS 1oz LOM PRODUCTION
Calculations...
Twangiza produced 35,943 ounces of gold in Q1 = approximately 36,000 oz.
Annualized production from Twangiza = 144,000 oz
Guidance on Namoya Annualized production = 110,000 oz.
Total Annualized production = 254,000 oz.
Outstanding shares 252,000,000
Shares per oz of production = outstanding shares/production.
OUNCES PER SHARE PER YEAR = ANNUALIZED PRODUCTION / OUTSTANDING SHARES
254,000 / 252,000,000 = 0.001007937 ounces per share per year.
(0.001 oz /share)(1000shares) = 1oz
So 1,000 shares buys 1 ounce of annual production.
Note Annual.
NI43-101 imminent
When then updated mine life is released I expect both Namoya and Twangiza to average about 10 years.
If 1,000 shares= 1 ounce of annual production.
Then, 1,000 shares buys 10 oz of production for LOM.
Thus, 100 shares will purchase 1 oz projected Life of Mine Production
Also, @ 0.38
Annualized Margin Cost...
Given Gold margin is $681/0z in Q1 ------($380/oz) / ($681/oz) = 0.45521. ***when Namoya has same margin….you’ll be buying a dollar of margin for $0.55 per year.
***Current mine life in the NI43-101 is not inclusive of Transition and Fresh Rock.
As was stated on several occasions by management new NI43-101 is imminent.
As we all know with further exploration resources will be added and LOM is extended.
For precision current LOM listed in the NI43-101’s at Twangiza is 8.76 years and Namoya is 6.74 years.
Yet it is still conservative to assume a 10 year LOM given local grade and the inclusion of Transition and Fresh Rock resources.
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