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Banro only has rights to the gold on their concessions. Their mining convention does not include rights to the copper or any other resource other than gold. Correct me if I am reading the following wrong:
>>In early 1997, Banro, SOMINKI and the government of the DRC ratified a new 30 year mining convention that provided for SOMINKI to transfer its gold assets to a newly created company. Societé Aurifère du Kivu et du Maniema, SARL (“SAKIMA”) was incorporated to acquire the assets of SOMINKI as stipulated in the new mining convention. In addition to this asset transfer, the new mining convention included a ten year tax moratorium from the start of commercial production, the ability to export all gold production, the ability to operate in US currency, the elimination of import duties and title confirmation for all of the properties. <<
http://www.sec.gov/Archives/edgar/data/1286597/000091228206000400/banro6k_lugushwa-techrpt.htm
2 possibilities:
1)The recent 50% drop in oil has impaired the liquidity of our streaming financier based in Dubai whose wealth is entirely derived from oil
2)Having fixed the streaming deal at $1000/oz they are waiting for a spike in the gold price to $1300 before signing the deal. In this way they will lock in a guaranteed $300 margin per oz or $12 million total profit over 4 years.
current price of gold = $1800 based on the historic gold/oil ratio of around 15. This ratio has made a 3 year high on the weekly chart. We will need to see it hold at these lofty levels for several weeks or more before the markets start to believe that this more than just a blow of spike:
http://stockcharts.com/freecharts/gallery.html?$GOLD:$WTIC
As already mentioned on this thread, the significance of rising gold price relative to oil is that it reflects very favorably on decreasing input costs and thus rising profit margins.
http://thedailygold.com/precious-metals-starting-show-bullish-signs/
Can you pls show how you came up with a 20% reduction in production costs ? I was expecting it to be closer to 10%.
Until the $40 million financing is closed BAA is still very risky and only funds allocated for speculative investments and that you can afford to lose should be invested into BAA. This would mean you already need to be a millionaire right now in order to be able to prudently speculate with the $350K needed to buy 1% of BAA.
While this is my advise to others, I am not saying that I am following it myself :). With eyes wide open, I have invested more than is prudent into Banro. I will continue to dollar cost average small purchases every 2 weeks. But for any bigger purchase I will await for the $40 million financing to first close.
I suppose there are some friends and relatives of the Arab sheiks who own Gold Holdings and who may be privy to inside knowledge of the financing progress and they can be quietly accumulating at these levels if they know it is a done deal. Why should inside trading only be restricted to the London, Baystreet and Wallstreet Banksters ?
nice find thank you.
>>The trust's other unlisted investment is in royalty-like gold-linked preference shares issued by Banro (BAA.TO), a Canadian gold miner operating in the Democratic Republic of Congo. Banro is a listed company, but the preference shares are not. The trust bought $30 million-worth of these shares at $25 each in February 2013. They are redeemable at the price of 0.015625 ounces of gold - currently around $18 - and offer a yield of between 10% and 15% of that redemption price, based on Banro's production levels.
Since the trust made that investment, Banro's share price has fallen 90%. As the trust's holding is unlisted, its stake hasn't suffered that fall, although investors may worry the situation echoes the run-up to London Mining's problem. However, Hambro (pictured) said he was comfortable with the investment in the analyst meeting. 'Evy Hambro acknowledged that Banro's share price had been very weak, reflecting production problems at its Namoya mine,' said Urquhart. 'However, he stressed that this company has access to capital and is unaffected by ebola, and consequently he is comfortable with the position.'<<
Yes you are right that there are no filings by Blackrock to indicate that they have sold. So I think we should assume they are still holding until proven otherwise:
http://www.sec.gov/cgi-bin/browse-edgar?CIK=0001286597&action=getcompany
>> Who bought those shares? <<
Probably traders and retail shareholders. Unfortunately not the heavyweight institutional shareholders needed to keep management accountable. And we know that management has little skin in the game.
I think a r/s may be needed if they are unable to close on the $40 million financing.
Problem with morningstar is their data is as of 11/29/2013 which is over a year old.
I think the nasdaq site's data is more current since morningstar is still showing Franklin Resources as a shareholder and we already know they have sold out:
http://www.nasdaq.com/symbol/baa/institutional-holdings
>> Are we missing anything <<
How about the fact that their has been huge selling by institutions ? Per Nasdaq site Blackrock has sold out.
Also we are 2 weeks past the due date for closing on the 40 million financing.
Petrodollar on it last legs:
http://www.gold-eagle.com/article/grandmaster-putins-golden-trap
The Western world has never faced such economic events and phenomena that are happening right now. The former USSR rapidly sold gold during the fall of oil prices. Today, Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.
The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries…based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense.
Led by Russia and China, what the BRICS are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ultimate financial asset - gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – GOLD!
Don't you just love the internet where you can be wrong 100% of the time like George4321 and still have a podium to spew his brain farts to his fan club consisting of himself and his multiple aliases ?
Cash-rich African Barrick Gold seeks 3rd 'transformational asset'
http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=257758&sn=Detail
ABG has reiterated 2014 full production guidance upwards of 700,000 gold ounces.
Gordon expects ABG to be generating significant amounts of cash, “and on the Capital Markets Day on the 27th of November, you’ll see just how much potential there will (be) for cash generation in the business.” The company is planning to reveal its long-term planning scenario on its Investor Day on November 27th.
“Obviously the next issue is then, what do we do with the cash? And then we’ve got a dividend policy, which we’ve been abiding by now for some years. So some of that is returned to shareholders, but the rest of the cash has to find a home, and how we apply that cash will be important,” Gordon observed.
“We can either return the remaining 70% to 85% after dividends to shareholders in addition to the dividend. We can apply at our existing operations, and it’s potentially an argument that we could increase production at Bulyanhulu, or we could look to M&A,” he said.
“We’re fortunate to have two great assets in our company and we wouldn’t want to dilute that quality by looking at anything that wasn’t as good as North Mara or Bulyanhulu,” he explained. “So an addition of an asset as good as those two would be transformational. And—that’s what we’re looking at.”
Manipulation is a crime and where there is a crime there has to be a motive. 2 motives that come to mind:
1) transfer the most shares at the lowest price from weak hand retailers and institutions to the strong hand institutions. The weak hand institutions being the ones with market cap rules or others who feel compelled to window dress their portfolios by removing positions from their books that are showing a huge paper loss, regardless of whether or not they have a very favorable opinion on the merits of the stock in the long term.
2)increase the value of warrants associated with financings. For example warrants with strike price of 15 cents are much more valuable than warrants with a strike price of $1.
So it seems both the strong hand institutions and Banro are benefiting from the current extremely depressed share price. Banro benefits because the gold streaming financing is all the more compelling to the financier if it comes with many many millions of warrants for shares at 15 cents strike price for shares that will be trading for dollars in a few years.
Banro has bottomed according to Bo Polny:
Listen to the Band of Robbers playing the 10c, 6c, 5c Banro share price song or be a resolute Bull and run for the lifeboats buying Banro like there's no tomorrow ?
https://drive.google.com/file/d/0Bywe0LES4bGiYnhhZTE0Z3RIWXdvRVpadHRlYzk3dzhQaXo0/view
BO POLNY: Runaway Gold & Silver Bull Markets
Dear Gold friends,
As the Titanic was sinking, the Band continued Playing! As Gold’s price sank down to low of $1190 Friday October 3, 2014 and closed under $1200 the Band played the $1050 song even louder! Heck there were even some very prominent and respected Band member playing the $650 Gold and $12 Silver Song!
Gold’s triple 2-year chart bottom at $1180 and will NOT break as stated in prior updates and reiterated again here.
Gold sits on the rising support line from back from 2000 - 2001 when the Bull Market began. Buying Gold today in the very low $1200 range is equivalent to buying Gold back in 2001 when it was $255.
Remember my May 14, 2014 New York Kitco Interview and forecast, Gold cycle analysis indicated Gold was expected to rise in May/June and make a Top in June, then drop down in price making a Final Summer Low and in conclusion Spike and reach $2000 before year end. The May 2014 Interview stated a ‘Final Summer Low’ would be a final entry point.
Since the May 2014 Interview, Gold when up starting early June, came into an early summer July top that turn into a washout low and now SUMMER 2014 HAS ENDED!
Listen to the Band of Robbers playing the $1050, $1000, $650 Gold and $12 Silver song or be a resolute Bull and run for the lifeboats buying Gold and Silver like there's no tomorrow? It is your choice here and now. The thieves den will be entered and a Runaway Bull Market will follow. Listen to the Band and they will have done their job to intentionally rob you of your riches leave you empty handed when $2000 arrives.
>>Tax Selling for October 15th tax deadline. <<
You are obviously not American. October 15 is the deadline for filing. But April 15th is the deadline for paying any taxes owed. So October 15 does not have any significance.
Am I the only one who feels that the 88 million shares holding by BlackRock Fund Managers Limited being reported by msn and morningstar is bogus ?
http://investing.money.msn.com/investments/institutional-ownership?symbol=BAA
BlackRock Fund Managers Limited 88,087,125 88,087,125 NA 42,176,626 34.94 2.47 06-30-14
BlackRock Fund Managers Limited is based in the UK. The shareholding in Banro by the BlackRock UK managers was recently reported to be around 25 million shares. I think the chances these holdings were increased from 25 million to 88 million is slim to none. Anyone have any evidence to support that the various BlackRock UK funds actually own 88 million shares of Banro in the aggregrate ?
BLACKROCK GROUP LIMITED Multiple Portfolios 24,978,176 0 3/31/2014 MF-AGG N-P 9.91 - Investment Advisor London BRITAIN
BLACKROCK GROUP LIMITED BLACKROCK GLOBAL FUNDS-WORLD GOLD FUND 14,819,276 0 3/31/2014 UT-UK N-C 5.88 0.20 Investment Advisor London BRITAIN
BLACKROCK INVESTMENT MANAGEMENT BLACKROCK GOLD AND GENERAL FUND 10,158,900 0 3/31/2014 UT-UK N-C 4.03 0.27 Investment Advisor London BRITAIN
My guess is that the preferred share financing of $40 million done by BlackRock in 2013 included rights to convert into common shares and these potential shares are being erroneously counted.
> we get Shanghai gold exchange sold gold between $1313.88 and $1315.4/ounce. That means a difference of $90~$100/ounce.<
Does that mean gold miners such as Banro can get $100/ounce more revenues for their gold production by selling the gold from their mines in Shanghai instead of at the Comex ?
Here is another analyst who sees $2000 this year:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/28_The_Gold_Market_Is_A_Coiled_Spring_That_Will_Soar_To_$2,000.html
Looks like Banro has the right to issue another $20 million in preferred shares to Blackrock:
http://www.sec.gov/Archives/edgar/data/1286597/000091228213000151/ex99_1.htm
the issue of preferred shares to the value of US$40 million to BlackRock World Mining Trust plc (“BlackRock”), subject to increase at Banro’s option to US$60 million, and provided certain conditions are satisfied; and
.
.
.
Banro will have the right, following payment of an annual fee of US$200,000 and subject to certain conditions being satisfied, at any time on or before the fifth anniversary of the closing date of the issuance of the Initial Preferred Shares, which right may be exercised only once, to issue to BlackRock up to US$20,000,000 of additional preferred shares (the “Additional Preferred Shares”) at an issue price per Additional Preferred Share equal to the dollar-equivalent value of approximately 0.015625 ounces of gold (subject to certain adjustments) on the date the Additional Preferred Shares are issued. If this additional issuance right is exercised, the annual dividend yield on the preferred shares will automatically increase by one percentage point (to a range of between 9% and 14%) and the early redemption premium on the preferred shares will also automatically increase to 3%. The Company may cancel its obligation to pay for, and its right to exercise, and BlackRock may cancel the Company’s obligation to pay for, and its right to exercise, this additional issuance right once total cumulative gold production from the Company’s existing properties (measured from the closing date of the Private Placement) reaches 400,000 ounces.
Excellent analysis bullforever and much appreciated. Helps to keep ones emotions in check as the share price diverges from reality
you are clueless if you think that website tells the whole story on the BAA short position
It looks Banro has the right to issue another US$30 million in preferred shares to BlackRock, since only US$30 of the $60 million total have been issued to date ?
http://news.banro.com/press-releases/banro-closes-us100-million-financing-tsx-baa-201304250869085001
116,000 Series A Shares priced at US$25.00 per Series A Share for gross aggregate proceeds of US$2,900,000. The Concurrent Offering consisted of 1,200,000 Subco Shares and associated Series B Shares priced at US$25.00 per Subco Share and Series B Share for gross aggregate proceeds of US$30,000,000.
http://news.banro.com/press-releases/banro-announces-financing-package-for-up-to-us90--tsx-baa-201302210855095001
the issue of preferred shares to the value of US$40 million to BlackRock World Mining Trust plc ("BlackRock"), subject to increase at Banro's option to US$60 million, and provided certain conditions are satisfied; and
Banro will have the right, following payment of an annual fee of US$200,000 and subject to certain conditions being satisfied, at any time on or before the fifth anniversary of the closing date of the issuance of the Initial Preferred Shares, which right may be exercised only once, to issue to BlackRock up to US$20,000,000 of additional preferred shares (the "Additional Preferred Shares") at an issue price per Additional Preferred Share equal to the dollar-equivalent value of approximately 0.015625 ounces of gold (subject to certain adjustments) on the date the Additional Preferred Shares are issued. If this additional issuance right is exercised, the annual dividend yield on the preferred shares will automatically increase by one percentage point (to a range of between 9% and 14%) and the early redemption premium on the preferred shares will also automatically increase to 3%. The Company may cancel its obligation to pay for, and its right to exercise, and BlackRock may cancel the Company's obligation to pay for, and its right to exercise, this additional issuance right once total cumulative gold production from the Company's existing properties (measured from the closing date of the Private Placement) reaches 400,000 ounces.
Actually "I believe" was a poor choice of words on my part. What I really meant is that "I am open to the possiblity".
What I really believe is that the washout in quality junior gold stocks is behind us and that we are close to a powerful up leg in gold and junior gold stocks similar to 2000 and I am not going to try to time my entry.
Below is a post by another poster from another site who is an independent and contrarian thinker:
"I realize that 98% of the people on SI either day trade the miners or are extremely short term oriented. I suppose a three year crushing bear can do that. I seem to be the only one who thinks that the Miners are now in a cyclical bull market that is leading to new all time highs.
Listen, the 81.50 level looks like (knock on wood) it will hold on a closing basis this week after a couple of intraday spikes above that level. $1280 POG has appeared to hold on a closing basis after being retested yesterday and today The Miners are diverging bullishly and made a higher high yesterday as the POG hit new multi-week lows.
What more do you want? Price appreciation is coming.
I love washouts. In fact, I collapsed on the couch in utter despair in October 2000 after my wife and mother ripped into me after investing their IRAs in gold mining stocks. They both were screaming on the top of their lungs telling me I had no right to blow their money on fu-kin POS gold stocks. They never apologized either after they tripled their money.
I promised myself never again. So, I remain calm and just slowly scaled in since December 2012.
Emotional outbursts can be cathartic if they only occur once in a blue moon.
PS The night they ripped into me became the bottom the next morning with the XAU dipping below 40 intraday (in the morning) before rallying."
Yes I am, but not enough to sell out. I am not a good trader and I want to be fully invested in quality junior gold stocks when gold takes out its previous highs and crosses over $2000, which I think will happen within 12 months timeframe. If I was to sell Banro I would be compelled to immediately buy some other gold stock. But IMO Banro is right now the most undervalued gold stock on the planet. It is priced as if it is in imminent danger of going bankrupt, which I don't think is a risk in the short term. In the intermediate term a rising gold price will bail it out.
Gran Colombia was all doom and gloom when it dropped to 80 cents in december 2013 after it did a 25 for 1 RS, followed by getting dropped from the GDXJ, and to top it off announcing in nov 2013 that it needed to do a significant financing to stay afloat.
Then junior gold stocks started a powerfull rally right out of the gate at the start of Jan 2014 and management lent the company $4 million as a bridge loan until financing closed. In the end the company successfully refinanced at around $1.90, which was more than double the 2013 closing share price:
http://stockcharts.com/freecharts/gallery.html?gcm.TO
I am hopeful that a rising gold price will also allow Banro to refinance with less dilution than the market is currently fearing. Bottom line, I feel I made a favorable switch from the 2nd most undervalued gold stock to the most undervalued gold stock in the world that is available to North American investors like me:
http://stockcharts.com/freecharts/gallery.html?gcm.TO:baa
I believe you are correct regarding GDXJ's $75 million market cap threshold. But I don't think they have the discretion to waive it. I would expect that there are hedge funds out there who understand perfectly well GDXJ's market cap rule and exactly when it will be triggered and have set up some HFT program to trigger a forced liquidation by GDXJ of all its 25 million shares in Banro by pushing the market cap down below this threshold. One of my former holdings was Gran Colombia gold and it use to be in the GDXJ until it got dropped and as I recall their position was literally liquidated in a matter of days, causing the share price to plummet.
I use to think Gran Colombia was the most undervalued gold producer in the world until I rediscovered Banro a couple of weeks ago. At which point I sold all my Gran Colombia and moved the proceeds into Banro. Now I am 100% in Banro and unfortunately am out of funds to buy more, except at the rate of 10,000 shares per month at these prices.
debt payments have 2 components, interest and principal. While I agree that principal payments won't be counted, I think interest is counted as an expense and so would effect Net Income. Only in EBITDA (earnings before interest, taxes, depreciation) calculations is interest not counted.
Now would be the ideal time for Thys to join the top executive ranks of the company as he could get more than a million long term share options with a strike price well under $1. At $10 per share each million options would be in the money for a cool $10 million. Now this type of payoff should be enough to recruit someone of his caliber. There could also be an additional bonus payout when there is a change of control in the company.
Also don't you think it is odd that Thys coming on board as a director coincided with Liberty attempt to hijack the company ?
It would be a sign of desperation if the company was to issue shares at the current low prices and is unlikely IMO. Over $400 million from equity financing has been raised over the last 10 years with the lowest price being $1.35 per share:
TORONTO, ONTARIO--(Marketwired - Feb. 28, 2014) - Banro Corporation ("Banro" or the "Company") (NYSE MKT:BAA)(TSX:BAA) announces that it has closed its previously announced US$40 million financing involving the issue of convertible preferred shares to investment funds managed by Gramercy Funds Management LLC by way of a non-brokered private placement (the "Private Placement"). The convertible preferred shares issued under the Private Placement, which were issued through two Banro subsidiaries, will pay an 8% cumulative preferential cash dividend, payable quarterly, and mature on June 1, 2017. At the option of the holders and at any time before the maturity date, the holders will be entitled to exchange their preferred shares into 55,525,000 common shares of Banro at a strike price of US$0.7204 per common share.
TORONTO, ONTARIO--(Marketwired - April 25, 2013) - Banro Corporation ("Banro" or the "Company") (TSX:BAA)(NYSE MKT:BAA)(NYSE Amex:BAA) is pleased to announce the closing of its previously announced short form prospectus offering (the "Offering") of Common Shares and gold-linked preferred Series A Shares, and its previously announced concurrent private placement (the "Concurrent Offering") of gold linked preferred Subco Shares and associated Series B Shares. The Offering consisted of 50,218,634 Common Shares priced at C$1.35 per Common Share for gross aggregate proceeds of C$67,795,156 and 116,000 Series A Shares priced at US$25.00 per Series A Share for gross aggregate proceeds of US$2,900,000. The Concurrent Offering consisted of 1,200,000 Subco Shares and associated Series B Shares priced at US$25.00 per Subco Share and Series B Share for gross aggregate proceeds of US$30,000,000.
Fri Mar 2, 2012 Banro Closes US$175 Million Debt Financing and Provides Twangiza & Namoya Updates - US$175 million facilitates fast-tracking the construction of Namoya, Banro's second gold mine, and increasing exploration activity across the core projects with a continued focus on oxides.
TORONTO, ONTARIO--(Marketwire - March 2, 2012) - Banro Corporation ("Banro" or the "Company") (NYSE Amex:BAA)(TSX:BAA) is pleased to announce the closing of its US$175 million debt financing detailed in its press release dated February 24, 2012.
This debt offering by the Company of 175,000 units consisted of US$175,000,000 aggregate principal amount of senior secured notes with an interest rate of 10% and a maturity date of March 1, 2017 (the "Notes") and 8,400,000 warrants (the "Warrants") to purchase an aggregate of 8,400,000 common shares of the Company, representing dilution of 3.8% on a fully - diluted basis. Each such unit consisted of US$1,000 principal amount of Notes and 48 Warrants, with each Warrant entitling the holder to purchase one common share of the Company at a price of US$6.65 for a period of five years.
Toronto, February 24, 2011 - Banro Corporation ("Banro" or the "Company") (NYSE AMEX - "BAA" ; TSX - "BAA") is pleased to announce the closing of its underwritten private placement of 17,500,000 special warrants of the Company (the "Special Warrants") at a price of C$3.25 per Special Warrant for aggregate gross proceeds of C$56,875,000 (the "Offering"). The Offering was completed through a syndicate of investment dealers. Each Special Warrant entitles the holder thereof to receive one common share of the Company (a "Common Share").
Toronto, Canada -- May 20, 2010 -- Banro Corporation ("Banro" or the "Company") (NYSE AMEX -- "BAA"; TSX -- "BAA") is pleased to announce that it has closed the issuance and sale of 67,100,000 common shares of the Company at a price of CDN$2.05 per share for aggregate gross proceeds of CDN$137,555,000 (the "Offering").
Toronto, Canada - June 25, 2009 - Banro Corporation ("Banro" or the "Company") (NYSE AMEX - "BAA"; TSX - "BAA") is pleased to announce that it has closed the issuance and sale of 43,479,000 common shares of the Company at a price of CDN$2.30 per share for aggregate gross proceeds of CDN$100,001,700 (the "Offering").
Toronto, Canada - February 19, 2009 - Banro Corporation ("Banro" or the "Company") (NYSE Alternext US - "BAA"; TSX - "BAA") is pleased to announce that it has closed the issuance and sale of 10,000,000 common shares of the Company at a price of US$1.40 per share for gross proceeds of US$14,000,000 (the "Offering").
Toronto, Canada - September 23, 2008 - Banro Corporation ("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce that RBC Capital Markets, on behalf of itself, CIBC World Markets Inc., UBS Securities Canada Inc. and Raymond James Ltd. (collectively the "Underwriters"), has given notice to the Company that the Underwriters wish to exercise their over-allotment option to acquire 1,000,000 additional common shares of the Company at a price of U.S.$1.60 per common share, the exercise of the option will bring the total gross proceeds raised from the offering to U.S.$21,000,000.
Toronto, Canada - May 4, 2006 - Banro Corporation ("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce that it closed today its previously announced financing (the "Financing"). The Company has issued 3,925,000 common shares at a price of Cdn$12.80 per share for total gross proceeds of Cdn$50,240,000. The underwriters who conducted the Financing were RBC Capital Markets as lead manager, Raymond James Ltd. and MGI Securities Inc.
Toronto, Canada - October 14, 2005 - Banro Corporation ("Banro" or the "Company") (AMEX - "BAA"; TSX Venture Exchange - "BAA") is pleased to announce that it has completed its previously announced non-brokered private placement of 2,000,000 common shares of the Company (the "Shares") at a price of Cdn$6.50 per Share for total proceeds to the Company of Cdn$13,000,000. The purchasers of the Shares were an investment fund managed by Actis Capital LLP and an investment fund co-managed by Actis Capital LLP and Cordiant Capital Inc.
Fri Jul 29, 2005 Banro Closes $18,375,000 Financing - Banro Corporation (the "Company") (AMEX - "BAA"; TSX Venture Exchange - "BAA") announces that it has completed its previously announced financing (the "Financing"). The Company has issued, by way of private placement, 3,500,000 common shares at a price of $5.25 per share resulting in aggregate gross proceeds to the Company of $18,375,000. RBC Capital Markets acted as the Company's agent in connection with the Financing.
Toronto, March 31, 2004 -- Banro Corporation (the "Company") (TSX Venture -- BNR) announces that it has completed its previously announced financing (the "Financing"). The Company has issued, by way of private placement, 2,000,000 common shares at a price of $8.00 per share resulting in aggregate gross proceeds to the Company of $16,000,000.
>>Do you know how many dollars BlackRock costed for its 28M BAA shares? It is over $100M (I checked its filing it bought when BAA at $3-4 in 2012).<<
bullforever, thanks for sharing. Very interesting. You would think that with BlackRock paying more than $3.50 per share on average for a high risk investment in a company with no revenues and in the DRC, that they were anticipating a large return on their investment that would justify the risks. Something like $10 per share. $5 per share would not be enough reward for the risk.
You make a great point that the institutions who own 70% of the company and are now down 90% on their investments have a vested interest to help Banro raise the mere $22 million needed to safeguard their many hundreds of millions they have already sunk into the company. It clearly is not a case of throwing good money after bad.
It is ridiculous to compare Banro to Anglogold Ashanti.
There is no company called Ashanti anymore. Ashanti was bought by Anglogold when its hedge book blew up and it is now called Anglogold Ashanti. The Ashanti mine is only a piece of what is the 3rd or 4th largest gold producer in the world and whose mines are in South Africa, Mali, Ghana, Tanzania, DRC, Australia, etc.
Also a mining company's gold reserves in the ground are not valued at the spot price of gold, so they are not worth $13 billion. Not even close.
Nice find on that video. One correction to is that GCM has very recently in their presentation at the Precious Metals Summit guided that cash costs will be under $700 an oz once the expansion to 200,000 oz per year is completed end of next year:
http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2013/09/20/gran-colombia-gold-corp/play/stream/8064
GCM.TO/TPRFF at Cambridge Vancouver show, you can hear Frank Holmes of U.S. Global say why he still likes Gran Colombia (at the 12 min mark):
Obviously the previous scenario has a less than 100% probability of materializing due to permitting risks, price of gold risks. If you want an investment with only gold price risk and no permitting or production ramp up risk, then you should invest in an already producing company such as Kinross or Pan American Silver, etc. But if you have some spec money for a higher risk/higher reward situation such as TLR, by all means that should be considered as part of a diversified investment portfolio. From the current trading prices the downside is quite limited and can be measured in pennies while the potential upside is in multiple dollars. Everyone should take the amount of risk that they are comfortable with, but I was buying a lot of shares during last weeks high volume sell off.
The following 3 things mitigate the risk for this play IMO:
1)draft hard rock permit in hand
2)carried for 50% where JV partner incurs all the cost. Also the partner was initially SMD who can be viewed as a smart money partner since hard rock underground mining was their business
3)There is a 2nd project in the pipeline Lookout mountain/South Eureka to fall back on if the final permit for Butte Highlands is delayed beyond mid 2013
Technical Gold Trader Gary Savage: “Big Players Use Panic Selling Events To Enter Billion Dollar Positions In Gold & Miners”
http://bullmarketthinking.com/technical-gold-trader-gary-savage-big-players-use-panic-selling-events-to-enter-billion-dollar-positions-in-gold-miners/
While I don't really think that any big players were accumulating TLR, I am sure the same tactics used by the big players in accumulating the bigger/higher quality gold shares are being imitated by smaller traders on the junior miners. TLR was very close to a breakout with the 50 dma on the verge of crossing over the 200 dma. This has been delayed by the orchestrated sell off we saw last week.
The following long term gold chart provides a great road map for where gold and gold shares are headed. Gold to $4000 by 2nd half of 2014:
http://bullmarketthinking.com/wp-content/uploads/2012/12/Long-Term-Gold-Chart.png
TLR looks to me to be a highly levaraged way to play this spike in the gold price as it will transition into being a gold producer within this time frame. Where will TLR share price be in this 18-21 month time frame with $4000 POG ? By then Butte will be producing 25,000 oz per year and TLR will be well on its way to tripling production to 75,000 oz per year as South Eureka comes close to coming on line with an additional 50,000 oz per year.
At the spike high price of $4000, assuming $1000 per oz operating cost, the cash flow margin will be 75000 * 3000 = $200 million per year. So a billion dollar market cap is not out of the question. 2nd half 2014 would be the time to sell while the herd is trying to get on board for several dollars per share instead of the pennies per share price of entry now.
The fact that Timberline felt it wise to dilute at 20 cents per share to fund development on their very promising South Eureka Nevada project, rather than wait for their Montana mine to go into production and for the resulting cash flow to kick in shows that the company's management shares the market's high level of scepticism that the Butte mine will ever be allowed to go into production. Montana is well known to be extremely unfriendly towards any new mining developments and it is doubtful that there will ever be a new mine allowed in Montana. That said IMO TLR is a buy at these levels, though not as undervalued as some would think due to their mistaken assumption that the company is self funding going forward. One should assume that further dilution will be needed to take South Eureka into production. Although in its favor is that South Eureka is a low capex project. If by some remote chance the Montana mine goes into production, that would IMO be an unexpected upside surpise:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64465422
>>Fwiw, I came across this post @ Coach247's site...
http://www.mexicomike.ca/php/phpBB2/viewforum.php?f=2&sid=9ed1610e559aca3eb3cf373142d3f9fd
A visit to Timberline Resources and Butte Highlands
Posted: Mon Jun 20, 2011 2:29 pm
I was in Butte Montana 2 days last week and visited the Butte Highlands project of TLR. I had a chance to talk with the lead geologist Zane Smith and his assistant Eric about the drilling results. In fact they took me to the warehouse and showed me the cores of samples that assayed out at 27 ounces per ton. Their is little question that they are in the process of defining a very nice ore body. The company was very pleased to see a shareholder request an opportunity to see the project. They picked me up at my motel, drove to the project 30 minutes or so away and I went out to dinner with them following the project tour (at my own expense).
I went into the mine and saw exploratory drilling being conducted and met all their personnel on location. All in all they made a very favorable impression.
I asked about the status of the permit. They said that they would have all the questions raised by the DEQ answered by late summer/ early fall; it was then just a matter of the issuance of the permit to begin mining. They were confident that would be the case.
If you own TLR as I do, you know that the stock has been in a steady retreat down from around $1.30 to near $.70 over the last several months. It appears the stock has been capped at around a dollar for quite a while.
I went there to try to find out why the stock has not moved even when some eye-popping drill intersects were released. I discussed the mining environment with a number of Montana elected officials. By coincidence, I had my lodging at a hotel that was hosting a state wide (GOP) party convention!!
Every official expressed the same sentiment; that the DEQ ( an environmental agency) was aggressively hostile to the establishment of new mines in the region. Further there have been repeated protests and organized opposition by a coalition of local citizens and outside environmental groups. These groups have attended all public meetings and have mounted an aggressive campaign to deny a permit to TLR.
I talked with a mining engineer who works in the area of the Butte Highlands project and he said that the Gold may be there but "it may never get off the mountain". In fact he owned TLR at one time but sold when he saw the nature and extent of the opposition to the project. He cautioned me that they may get a DEQ permit to mine, but that he really doubts that that will end the opposition. He said that all I needed to do was to go to a local gathering spot in Whitehall Montana and talk to any of the locals at random and I could easily gauge that these folks are not going away any time soon.
Before I retired, I was involved as a consultant / attorney for "intense" development projects such as building a "power plant" and siting of Manufactured housing communities. Though I was able to avoid lawsuits from the opposition for my clients,I know from experience that a determined group can tie up a project in court for a long time.
I love the business model of TLR. Its Nevada prospects appear to be top quality. But I have sadly concluded that Butte Highlands chances of going to production in the immediate future without a further fight are not very good. The mining engineer did say that if TLR does get a mining permit that is not filled with onerous conditions and no lawsuits follow, that TLR would be a "really good buy". He said that he would wait until that time to buy the stock rather than gamble that TLR and its joint venture partner(SMD) would be operational by late this year early next. OUCH is all I can say.
http://www.mexicomike.ca/php/phpBB2/viewtopic.php?t=15683 <<
>At 1150 tpd (Q4 '14) they still project 3.5- 4.0 million silver-eq ounces. At merely $30/oz. silver, that provides $105-120 million cash flow annually.<
This is a wrong statement made by many amateur analysts. At $30/oz silver, revenues will be $105-120 million, not cash flow. To derive the cash flow number one will need to deduct all cash expenses including but not limited to mining cash costs and taxes.
>this is a big silver company. <
It would be more accurate to say this is a small silver producer with the ambition and high potential to become a big silver company.
Velardena even at 4 million AG equiv per year production won't be enough to cross the big silver hurdle. I think somewhere around 10 million oz per year production would be the threshold for big silver. Not sure where future growth will come from but visibility on this should improve over the next 1-2 years. It could come from El Quevar or from one of their promising properties in Mexico that they are planning to drill or from another acquisition a la ECU. But I think this company has the caliber of management needed to get Velerdena to 4 million oz and to then to grow the company beyond this from a second project.
>I bought a starter position in GCM.to today <
Glad to here this Bobwins. I have appreciated your posts on Axmin here and on SH and look forward to the same on Gran Colombia. GCM looks to me to have the makings of a home run investment. Would like to see insiders increase their ownership stake to over 10% though.