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It looks the analysts love the Q2 results and more analysts are covering BAA.
The analysts did not mention the -$0.19, but +$0.01 for net income, indicating the impairment is a non-material issue, but only an accounting issue.
The analysts changed their sentiment about BAA from negative into positive, signaling that the big boys will change their manipulation from depressing BAA price into hyping BAA price.
Wait for their $1.2 target and to be rich for the persons here who hold million BAA shares (I think we may have more than ten people here who has more than 1M shares)
gold backwardation is extended to next 6 months now, that means gold in heavy scarcity. We may see 1300 soon
bought 30K at 0.20, but still think too cheap
easily understood. gold only for safe haven, but silver for industrial and safe haven. When economy is going into depression industrial metals will be cheap. If we talk about safe haven people may mainly consider gold, then silver.
Tangaza increased reserve to 14 year for production, that means more waste will be created accordingly. So we need increase the capacity of TMF(tailing management facility) for deal with the increased waste.
No real question, just told him the all of negatives and concerns I read from this board
If you compare Q2 liquidity and balance sheet with Q1 and 2014 Q4, you will find it is great and no any concern for the future.
Balance sheet and liquidity For the near future:
1, We have more cash in hand
2, we have restricted cash for must needed cost
3, we will not pay 2M+ interest each Q for that high interest loan any more
4, Both Namoya and Tangaza will not have many capital needed, except the Tangaza TMF 1.5M each month
5, Gold price seems upward from now on (this is not a fact yet, but the first 4 are fact!)
email from Martin
"The Q2 results were excellent as was the press release. Management has a clear strategy – to raise Twangiza to steady state production at design capacity levels; bring Namoya into commercial production and reduce operating costs. Management has shown a proven ability to execute that stategy very well. It is a very positive harbinger for the future."
Boston: what means "Management has a clear strategy"?
They should put all of financed money in bank for future paying bond interest?
Longs. Check if your BAA shares are still in your account, many people want to steal your undervalued BAA shares.
These people think BAA should keep money in BAA bank account and continue pay high interest for that 40M loan which generated almost 3M interest just the Q2 alone. That interest is a major decrease of Q2 net income.
These people think BAA should save and use all of financing money to pay bond interest for future, not invest in mine for production.
You sell your shares because you think they are right?
I will not invest BAA if BAA management finances money just for paying bond interest, not for production; I will not invest BAA if BAA management keeps money in bank, not payback the high interest loan (that loan interest is very high, and increasing monthly)
I will not invest BAA if BAA must use financing money to pay bond interest, not generate cash flow to pay it.
These people think they know more than the management about how to use the money and how to operate the company.
I expect BAA price will reverse soon and these people will reverse their view when they get your shares.
I sent your comment to Martin and asked him to forward to BAA CEO and CFO.
I wish all of us to send our concerns to BAA management.
If anybody like me likes BAA and plans staying long (don't want to sell), please do some constructive things by sending management your concerns.
I read your inventory cost calculation. It is not correct because you did not use inventory adjustment at all. We surely should do some inventory adjustment because we used some inventory for Q2 revenue due to sold more than produced.
But BAA inventory adjustmenbt is too much for Q2, so making Q2 production cost 12.6% higher than Q1
Stallion,
I figured out why Q2 AISC is higher than Q2.
it said "During the three and six month periods ended June 30, 2015, the Company recognized $20,943 and $38,838, respectively,
(three and six month periods ended June 30, 2014 - $15,697 and $35,704, respectively) of inventory as an expense within
production costs in the interim condensed consolidated statement of comprehensive loss".
I calculated revenue and inventory cost charge, it alone increased Q2 AISC 12.64% compared with Q1.
So, this 12.64% AISC increase is only an accounting issue. It looks like BAA wants to make it as ugly as possible at the current pressed gold price. I think BAA will make it as beautiful as possible when Namoya is online.
everybody should, if he/she can read earnings report.
When you read BAA prepaid to supplier for Namoya, 2014 Q4 was 1.9M, 2015 Q1 was 3.1M and 2015 Q2 was 4.0M. So, the money prepayment for Namoya has been increasing for future supply needed.
BAA balance sheet is actually very strong now, any concern about Namoya burn more money than company has before commercial production is not true.
Check the cash:
They not only have Restricted cash relates to funds restricted for the purchase of mobile equipment, but also have deposits made with respect to future reclamation activities in the Congo (this kind of reservation is seen first time for BAA).
That means BAA not only has enough money for its current operation, but also has money even for reclamation after mine finished decade later.
It looks Namoya investment cost is done and all of future possible cost is also reserved
We also know cash flow from operation before working capital adjustments is 11.5M for Q1 which is much more than bond interest repayment.
So, concern for future cash tightness is no reason.
Hope everyone is happy with your BAA investment!
impairment is not an issue, it is just an accounting style, not money issue.
The impairment charge is good for long term BAA holder when BAA price starts real upside.
Think this way:
If BAA has no impairment charge this time, can BAA price increase much and continue to run up under the current gold price? The answer certainly is No.
If BAA has an addition back of the impairment charge when gold price is much higher later, can BAA price increase much and continue to run up? The answer certainly is Yes
please also write them email. The more investors remind them the more the management care investors. I think
I sent email to Martin mjones@banro.com about your Q2 AISC concern. I wish everyone do similar things to help management improvement.
Anyone here knows the management team and board members email address for each individual person?
If someone does, please post them here for us to send them one by one for our concerns, especially Q2 AISC increase compared with Q1, although diesel cost decreased a lot.
Thanks
Bull
I just sent an email to Martin and wish you all do the same things constructively to Martin or management team for your concerns.
My email titled:
Please ask the management to read messages on investorshub
Dear Martin,
I like BAA and also like BAA management team. All of BAA investors liked BAA and its management before the Q2 earnings report. they have been talking on BAA actively on investorshub BAA board. However, now they all hate BAA management and they think BAA management is stealing BAA value. They think BAA Q2 All-in sustaining costs per ounce should be decrease a lot compared with Q1 because the diesel cost decreased a lot. However, the Q2 Aisc Q2 = 701$ and Aisc Q1 = 581$ . An 120$ increase, or 20% increase, not a decrease[color=red][/color].
You can find these investors' comments from:
http://investorshub.advfn.com/Banro-Corp-BAA-15784
I hope the management read them and explain why the Q2 AISC increased, not a decrease compared with Q1. Other wise BAA and its management will lose its investors' reputation.
Thanks
Gold Bullion Demand In ‘Chindia’ Heading Over 2,000 Metric Tonnes Again
http://etfdailynews.com/2015/08/07/gold-bullion-demand-in-chindia-heading-over-2000-metric-tonnes-again/
Gold's Artificial Lows From Extreme Shorting Attack Won't Last
http://seekingalpha.com/article/3419116-golds-artificial-lows-from-extreme-shorting-attack-wont-last?auth_param=t9h3p:1asdsj1:88bb69a52098df5c2b682cc5e64d6b63&uprof=45&dr=1
Your Google translation is funny, it translated remove as raise
If you can read Chinese you will know what the media is saying about gold.
http://gold.cnfol.com/jinshizhibo/20150806/21226963.shtml
Short sellers will squeeze themselves when they cover. Now there are no reasons for them to cover
We are stupid because things went against us, but not too much. However, if things went for us a lot we would not think we are smart because we should think it is reasonable. The real stupid persons are those who are panic to chase at peak and panic to sell at bottom.
Short sellers!
at June 30, we had less than 1M shares shorted; at July 15 we had more than 2M shares shorted. After July 15, we got more than half shares shorted daily from total daily traded volume. (we can only get the NASDAQ trade number reported, for example, today NASDAQ traded 987706 BAA shares and 546055 BAA shares from short selling).
http://regsho.finra.org/FNSQshvol20150805.txt
It is panic! no volume because no many panic BAA holders here.
Due to too many short today, 540K shares was shorted today. But the short sellers never think where the shares will come from when it is time for them to cover.
Demand For COMEX Physical Gold Deliveries Doubles In August
http://seekingalpha.com/article/3396845-demand-for-comex-physical-gold-deliveries-doubles-in-august
Some people here seem misunderstand all-in-cost (AIC) as all-in-sustaining-cost (AISC)
Please read the link to know AIC which includes all of cost for the mining life cycle (from exploration to closure) should be much higher than AISC.
BAA has a AIC $888/OZ. I am sure you cannot find any other company has this low AIC.
http://www.ey.com/Publication/vwLUAssets/EY_-_All-in_sustaining_costs_and_all-in_costs/$FILE/ey.com_gl_cost%20per%20ounce.pdf
Up to July 15, we have had more than 2M shares shorted. after July 15, I saw a lot of daily shorted shares. Now we may have more than 5M shares shorted. The past two days, shorters look desperate for covering, but no sellers
BAA said "Recoveries during these periods have indicated the potential for overall recoveries of blended material (oxide and non-oxide material) to be greater than that of the stand-alone processing results as indicated by historic laboratory-based metallurgical recovery analyses. The current NI 43-101 study used the results of the historic laboratory-based metallurgical recovery analyses".
BAA said "The simultaneous application of the two discounts may have resulted in a particularly conservative estimate".
NPV means debt subtracted already. So the $285M NPV is the left for our investors after repay of debt
I also saw this article. For BAA, the sellers also did the same thing, they sold large blocks in short time frame, so they were not for good price, but for drove price down. However, their intentions failed and BAA recovered very well. That means real BAA investors are much stronger than the BAA manipulators.
You always say "trade well", but I think you always lose money and cannot see the obvious trading pattern.
From today's trading pattern, it is obviously a sudden spike down, not a trend.
You need to analyze what makes the price down and what makes the price recovery for today's trade, then you can predict the future price.
I tell you the story:
Many traders have been thinking the $0.26 gap to be filled. So, some traders sell for filling the gap and drive the price down; some sellers sell for buying back at a lower price and drive the price down; some sellers short BAA for filling the gap and drive BAA down; some sellers are panic sellers and drive BAA down. After the gap filled, no more worry for chart traders, no excuse for short sellers, so the selling pressure is converted to buying pressure.
Today, sellers used 1.5M shares to take BAA down from $0.28 to $0.25 in half hour attack(people cannot respond well in short time frame), but no more shares available to take it down further. However, buyers used only 1M shares to take BAA up from $0.25 to $0.288 in 1.5 hours (people think well in longer time frame).
If BAA not strong, BAA will not be recovered in such a bad market. Sure, if you watch other gold stocks they are almost closed at the day low while BAA closed almost at the day high.
However, you can continue to dream your $0.19 BAA or BK like your favor MD*
you sold today at $0.2515, but I hope you can buy back at $0.3515. You may have no chance to buy your big blocks back because doing so will push the price up big and fast
Short sellers hurt hard by institution buyers yesterday
Yesterday, NASDAQ total BAA trade was 838695 shares, but 557454 shares from short sellers. However, the price increased because net buy was too powerful