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would you please paste all of the transcript, not just the link, because I can not open it.
Thanks!
BAA has 250M shares outstanding, today's financing will give out warrant to buy 13.3 million BAA common shares, that means 5% dilution. If you buy 5% more of your current BAA holding tomorrow or anytime later your holding percentage of BAA will keep unchanged although with the warrant to buy 13.3 million BAA common shares.
No matter what price will be tomorrow I will buy 5% more of my holding to anti-dilute the 5% warrant dilution. Everybody can easily do this too, so then the dilution is zero for you. You even can easily buy 20% more of your holding, that means you will dilute other people, or you get 15% anti-dilution.
the gold sale/streaming transactions are beautiful. Not only help the liquidity, but also a good gold price. For the 41M for 40K oz gold, if you think 10% interest for the 41M our gold will be sold at about $1250/oz; For the 80M, it is even better. for example, 10% interest will equal 8M per year. If BAA produce 60K oz per year, 6Koz will be sold for 1.8M, plus 8M, will equal 9.8M for 6Koz. that means 1600 per oz; if production from Namoya is 120K oz per year, 12K oz will be sold for 3.6M, plus 8M will equal 11.6M for 12K oz, about 1000 per oz. That means the more gold produced the cheaper will be sold. However, the more gold BAA produced, the more gold BAA will keep for other price. We worry about not too many gold produced, but worry about too little gold produced. So both parties want to produce more gold. Why I say this deal even better? because the other party enjoys our benefit if we produce more gold and also takes some burden from us if we produce less gold. The latter is most important because it will help us when we are in bad situation. It is totally different from debt which will force us to bankruptcy when we are in bad situation.
First I thought you were here just to post your view about BAA, but now I know you have strong purpose. From your this post, you look very desperate. Is that picture from your photo? Oh, Don't need to be so desperate, it is just money, not whole life! Tech may be wrong this time, you must have shorted BAA heavily using margin last Friday.
I think it is Liberty manipulation for shares. If it does not like BAA why it would pay for that expensive BAA attack. That attack cost BAA $0.5M, I think it should cost Liberty a lot more. Liberty wants to recover that cost with BAA retail investors' cost
If people don't know why, it means no why. But some people are making why. So, now we should know why.
The flow chart of Namoya mine should be as the link shows,
http://snobear.colorado.edu/Markw/Intro/Summitville/Cyanide_Leach/cyanide.html
Not expensive for Rotary Drum Agglomerator, only $10K-100K for 5-35 Ton/hour Capacity. So, $2M budget(inclusive of all associated costs, labour and taxes)is doable.
http://zzkysb.en.made-in-china.com/product/TKuxZwgXhncG/China-Rotary-Drum-Agglomerator-Granulator-RDG-100-.html
Oh, so easy to resolve Namoya problem. On page 9 of MD&A "At the present time, the Company has recognized the need to introduce a traditional agglomeration drum into the circuit. This means not washing all of the ore at the front end of the process as currently designed and installed, but introducing a dry ore feed with appropriate cement additions into an agglomeration drum to bind the fine components of the ore to allow for efficient percolation of the cyanide solution on the heap"
The following link explains how is an agglomeration drum important in a heap leaching.
http://feeco.com/agglomeration-drums-in-the-heap-leaching-process/
that means they know BAA is very good now, but they still want to shake weak hands further.
You have super ability to find information, but you have no ability to digest information. It looks like that when you see a 300-pound person is a billionaire then you will think 300 pounds is the standard of billionaire.
All are big positive, no single negative from the Q2 earning itself.
Lets analyze it page by page, line by line.
1 Income/loss: BAA reported $0.01 loss per share on page 4 of earnings, produced 21,431 oz gold but sold only 20,537 oz on page 4 of MD&A, so $1M+ money did not enter into the income, plus $482K one-time legal fee against Liberty attack on page 11 of MD&A. If adding these two money back to earnings BAA will be $0.00 loss per share. But estimate from analyst is $0.03-0.05 loss per share. So BAA beats the estimate hard. At fair market, BAA should double, instead decrease 17% with the earning release. Now the question is why the market is so unfair? The answer is simple, someone needs shares badly!
conclusion: BAA management is much better than analyst expected.
2 All-in sustaining cost per ounce by production: $893 for Q2 2014, $1,086 for Q2 2013, $1,035 for Q1 2014 on page 4 of MD&A. That is a 16% improvement against Q1 2014, a 22% improvement against Q2 2013. We will expect further improvement when production continues increasing and wet weather protection applied.
Conclusion: BAA controls production expense very well and BAA mine is one of the lowest cost mines in the world.
3 Cash flow: Q2 2014 cash on hand is $6.46 M on page 3 of earnings while Q1 2014 is $17.4 M, a $11 M decrease for this Q. But BAA used 1.776 M cash for exploration and evaluation, $15.725 M for the development of the Namoya mine, $4,266 M for capital assets on page 14 of MD&A. So, total cash used about $22M. That means BAA used $11M cash from the leftover of Q1 2014 and $11M cash from the cash flow of Q2 2014.
Now you can see BAA cash flow can not only covers its operation, but also has $11M per Q, $44M per year for its exploration and evaluation, development and capital assets. So, if BAA does not want to be aggressive it can fix everything itself slowly.
Conclusion: BAA can survive and develop without any finance aid.
The above are facts, nobody can deny. If somebody wants to debate I will be very happy to join the debate.
But these two companies are totally different. One has revenue and the other has not
Becareful of the biggest conspiracy! Everyone here needs thinking, How can institutions think BAA earnings negative when it lost $0.01 against $0.03-0.05 estimate? If they did not like the -0.01 they should hate the -0.03 to -0.05 more. If they could not accept -0.03 to -0.05 they should sell before the earnings out. So they would like to accept the -0.03 to -0.05 for the low price before earnings out.
Actually, institutions should know that BAA did not lose money in deed for the Q2 when they check the earnings detail due to two items:
BAA produced 21,431 oz, but sold only 20,537 oz. So, $ 1M+ money did not go into the Q2 earnings.
The legal fee about $0.5M against Liberty attack is a one time and unexpected issue.
These two items together almost $2M, about $-0.01 per share.
I can not understand how can educated investors be panic if they can read and analyze earning data?
No need worried at all, as management MD&A said "If at any time during the year it becomes apparent that there may be a strain on the Company’s cash flows, the Company may elect to defer non-essential capital expenditures to a future year". That means we will not have dilution and BAA will fix itself using its cash flow slowly
Zero bankruptcy possibility! If you read the earnings carefully you will be sure BAA can survive very well without any finance aid needed. I will post my earning digestion detail later
It is almost break even if it sells all gold that was produced in the Q2 and if without the legal charge against Liberty attack. These two items together are about $2M. As for rain forest, it needs money and time for fix it, it is not too late for fixing it from now on
GDXJ bought 224380 BAA shares today, total holding is 25433764 shares now
That is good because I don't want to see you in trouble because you are an informative contributor to the board although negative
although BAA price is not improved its operation improved a lot.
You see,
All-in sustaining cost per ounce ($/oz) by production
2014 Q2 (893), 2013 Q2 (1,086) and 2014 Q1 (1,035). Improved more than 20%.
It will continue to improve with increased production and wet weather protection.
So, you should be careful if you shorted BAA. You know that if BAA has nothing to say it could simply avoid a CC; if BAA has nothing to wait it would do the CC immediately after the earnings.
It looks BAA management is setting trap for bears to enter. Now I think you already entered, but you still have chance to get out of the trap before it tightens the trap.
Because some people too greedy and when BAA is down then they think they can short BAA to 0, if so they don't need to cover. However, based on my reading from the earnings, BAA even does not need to do anything and it can cover its operation from now on.
Actually, I like these shorters because they will make BAA price increase much faster when squeeze happens
If he is a shorter he should be very nervous for the whole weekend. Everybody knows that the earning is beating estimate a lot and BAA should go to sky for the earnings itself.
Actually, I was surprised when it was below $0.40.
But now, I will not be surprised with anything, either $0.05 or $5 because some superpowers can make anything happened. As you posted that BAA might increase a couple of cents today after the earnings out, due to its beating estimate a lot, but it decrease a lot today actually.
I like this action because the superpowers make it decrease for its increase finally.
I have the patience! Since I bought I never think I will sell until either BK or BIG
In the current situation, BAA does not need to do any additional financing
"As a result of restrictive covenants in the Indenture under which the Company’s outstanding Notes were issued, the
Company’s ability to incur additional debt is currently limited to approximately $15 million. Should the Company experience
further production shortfalls at Twangiza, delays in ramp up at Namoya, suspension or delays in the receipt of goods and
services, equipment breakdowns, or should the price of gold decrease further, the Company may need to further examine
funding options"
It looks BAA is in good shape now
"Based on the revenues expected to be generated from the Company’s Twangiza mine, together with the Company’s
renegotiation of bank loan repayment terms and cash on hand, the Company expects to have access to sufficient funds to
carry out its proposed 2014 operating and capital budgets for the Twangiza mine and for corporate overhead. The Company
has been evaluating options for the optimization of the Namoya gold plant and assessing the financial requirements to carry
out the modifications required at Namoya. As disclosed in the July 30, 2014 press release, the Company has engaged CIBC
World Markets Inc., as well as Mining Research Group, an affiliate of HanOcci Capital Partners Inc., to assist and advise the
Company in this review. If at any time during the year it becomes apparent that there may be a strain on the Company’s cash
flows, the Company may elect to defer non-essential capital expenditures to a future year."
Now it looks vey easy for namoya improvement, just "need to introduce a traditional agglomeration drum into the circuit".
BAA may have big things waiting to be closed before the CC
you are the most informative person on the board.
Thanks for your efforts
Now, I can go to sleep!
Here are my email and Naomi response:
Mine:
Dear Naomi,
I am a big retail BAA investor and am nervously waiting for the report release because it is reaching the deadline. Would you please tell your investors if BAA will report it in time or BAA is planning to delay?
Thanks
Naomi's:
All reports will be filed before the deadline.
Regards,
Naomi Nemeth,
Vice President, Investor Relations
Banro Corp
E: nnemeth@banro.com
T: +1 416 366 9189, M: +1 416 903 0811 TF: +1 800 714 7938
www.banro.com
Would you mind to post the entire email contents both you sent and she replied?
I also sent one out just couples of hours earlier and I will post it if I get response.
Thanks
My TD and Merrill both said 08/18, but they said expected from YBE. What is YBE?
But when it is late, then people will be not sure if BAA will file or not, then a big panic will be induced
It will be too late to ask why after BAA missed the deadline. If BAA misses the deadline BAA management is no longer trustful.
So, please call or write her as soon as possible if you have a happy contact with her before.
Thanks
For my experience, it is nervous to late earning release or no earning release.
Could you please tell us the exact time when you wrote to Naomi and she replied you?
We may get insight based on the time frame.
Thanks
Did you get any response from Naomi recently? Did she talk about the real reason the earning can not report on time?
thanks
Banro may not pay it because its service does not deserve the pay