Banro Corp. fka BAA

[nutsyprofessor]

sman, I would totally ignore Tech's post because he has NO idea how to even calculate Net Income! First off, Net Income does not in any way shape or form include anything to do with funds for financing (in or out). That information comes from the Cash Flow. Furthermore, Net Income is used to come up with EPS, and not Cash Flow.

So if you want a good idea of what numbers to use to calculate Net Income for the coming quarter you can do the following:
1) we will use Tech's 31,000 ounces which is a reasonable number.
2) we will use a Total Operating Expense/Revenue Ratio of 0.961; this comes directly from the last quarter.
3) we will use a Gold price of $1300/ounce.

Thus, the Net Income will be as follows:
31,000 ounces x $1,300/ounce = $40,300,000 (revenue)
$40,300,000 revenue x 0.961 (tot. cost/revenue ratio) = $38,728,300 is the total cost to produce this revenue.
Net Income = $40,300,000 - $38,728,300 = $1,571,700

So in reality, they should have a small net positive income, not a loss.