Press Release: Banro Announces Q3 2014 Financial Results
8:00a ET November 11, 2014 (Dow Jones) Print
Press Release: Banro Announces Q3 2014 Financial Results
Banro Announces Q3 2014 Financial Results
TORONTO, ONTARIO--(Marketwired - Nov. 11, 2014) - Banro Corporation ("Banro" or the "Company") (NYSE MKT:BAA)(TSX:BAA) today announced its financial and operating results for the third quarter of 2014.
FINANCIAL HIGHLIGHTS
-- Revenue of $33.3 million ($27.1 million in Q3 2013) and a net income of
$3.8 million or $0.01 per share (net loss of $3.7 million or $0.01 per
share in Q3 2013)
-- Gross earnings from operations of $8.1 million, a 174% increase over
gross earnings from operations of $3.0 million in Q3 2013
OPERATIONAL HIGHLIGHTS
-- Production of 27,171 ounces of gold in Q3 2014 (compared to 20,784 ounces
in Q3 2013), an increase of 30.7% over Q3 2013
-- Sales of 26,997 ounces of gold at an average price of $1,233 per ounce
(20,410 ounces of gold were sold in Q3 2013 at an average gold price of
$1,329 per ounce)
-- Cash costs at Twangiza decreased 26% to $615 per ounce, down from $834
per ounce in Q3 2013
All dollar amounts in this press release are expressed in thousands of dollars and, unless otherwise specified, in United States dollars.
The table below provides a summary of financial and operating results for the three and nine-month periods ended September 30, 2014 and corresponding periods in 2013 as well as the second quarter of 2014:
(I) FINANCIAL
YTD YTD
Q3 2014 Q3 2013 Q2 2014 2014(1) 2013(1)
---------------- ------- ------- ------- ------- -------
Selected
Financial Data
Revenues 33,285 27,133 26,534 90,258 84,786
Total mine
operating
expenses(2) (25,192) (24,183) (22,243) (71,833) (68,926)
Gross earnings
from
operations 8,093 2,950 4,291 18,425 15,860
Net
(loss)/income 3,750 (3,671) (2,998) 48 (456)
Basic net
(loss)/earnings
per share
($/share) 0.01 (0.01) (0.01) 0.00 (0.00)
---------------- ------- ------- ------- ------- -------
Key Operating
Statistics
---------------- ------- ------- ------- ------- -------
Average gold
price received
($/oz) 1,233 1,329 1,292 1,254 1,434
Gold sales (oz) 26,997 20,410 20,537 71,961 59,118
Gold production
(oz) 27,171 20,784 21,431 68,739 59,733
All-in
sustaining cost
per ounce
($/oz)(3) 698 1,072 906 866 1,109
Adjusted all-in
sustaining cost
per ounce
($/oz)(4) 702 1,092 945 827 1,120
Cash cost per
ounce
($/oz)(3) 615 834 732 762 831
Adjusted cash
cost per ounce
($/oz)(4) 618 850 764 728 840
Gold margin
($/oz)(3) 618 495 560 492 603
---------------- ------- ------- ------- ------- -------
Financial
Position
---------------- ------- ------- ------- ------- -------
Cash and cash
equivalents 2,148 14,827 6,460 2,148 14,827
Gold bullion
inventory at
market
value(5) 2,335 4,962 2,476 2,335 4,962
Total assets 869,068 783,190 861,162 869,068 783,190
Long term debt 192,079 157,621 160,827 192,079 157,621
---------------- ------- ------- ------- ------- -------
(1) For the nine-month periods ended Sept. 30, 2014 and
2013
(2) Includes depletion and depreciation.
(3) All-in sustaining cost per ounce, cash cost per ounce
and gold margin are non-IFRS measures. Refer to the
non-IFRS measures section of Banro's Q3 2014 MD&A
for additional information. All-in sustaining cost
per ounce, cash cost per ounce and gold margin for
2013 have been restated on a production basis as compared
to a sales basis in prior periods.
(4) All-in sustaining cost per ounce and cash cost per
ounce have been adjusted to be presented on a sales
basis as opposed to the current presentation which
is on a production basis
(5) This represents 1,919 ounces of gold bullion inventory,
with a cost of $791, shown at the September 30, 2014
closing market price of $1,217 per ounce of gold.
-- Revenues during the three months ended September 30, 2014 were $33,285 a
23% increase compared to the prior year's quarter of $27,133. During the
third quarter of 2014, ounces of gold sold increased by 32% to 26,997
ounces compared to sales of 20,410 ounces during the third quarter of
2013. The average gold price of $1,233 per ounce was obtained for total
revenues of $33,285 realized during Q3 2014 (compared to an average price
of $1,329 per ounce obtained during the corresponding period in 2013 for
total revenues of $27,133).
-- Mine operating expenses, including depletion and depreciation, for three
months ended September 30, 2014 were $25,192 compared to prior year
quarter of $24,183. The slight increase in costs was due to increased
milling throughput of 48%, as the operation reached an annualized run
rate of approximately 1.6 mtpa or 93% of the 1.7 mtpa design capacity.
These costs were partially offset by the lower mining tonnes moved to
achieve planned ore production. Production costs for the third quarter of
2014 were $16,697 compared to $17,339 for the third quarter of 2013 as a
result of the lower waste tonnes mined due to a decreased strip ratio and
lower consumables consumption.
-- Gross earnings from operations for the respective three and nine-month
periods ended September 30, 2014, were $8,093 and $18,425, compared to
$2,950 and $15,860, respectively, for the corresponding periods of 2013.
This translated into improved gross margins of 24% for the third quarter
of 2014 and 20% for the nine month period in 2014.
-- Cash costs per ounce on a production basis for the third quarter of 2014
were $615 per ounce of gold (compared to $834 per ounce of gold for the
third quarter of 2013 and $732 for the second quarter of 2014). Cash
costs for Q3 2014 were lower than prior quarters as a result of increased
mine and plant productivity as Twangiza progressed forward towards steady
state production levels and normalized production costs in line with life
of mine expectations.
-- All-in sustaining costs declined in the third quarter to $698 per ounce
(compared to $1,072 per ounce of gold for the third quarter of 2013 and
$906 for the second quarter of 2014) driven by lower cash costs and lower
levels of sustaining capital expenditures in the period.
-- Adjusted cash costs per ounce and adjusted all-in sustaining costs per
ounce for the third quarter of 2014, on a sales basis, were $618 and
$702, respectively. Adjusted cash costs per ounce and adjusted all-in
sustaining costs per ounce for the nine months of 2014, on a sales basis,
were $728 and $827, respectively. All-in sustaining costs per ounce and
cash costs per ounce are non-IFRS measures. Refer to the non-IFRS
measures section of Banro's Q3 2014 MD&A for additional information.
(II) OPERATIONAL - TWANGIZA
-- The Twangiza and Namoya mines incurred no lost time incidents during the
third quarter of 2014. Namoya has had no lost time incidents year-to-date,
and at the end of the third quarter, Twangiza had 242 incident free days.
-- During the three months ended September 30, 2014, the plant at the
Twangiza Mine processed 394,500 tonnes of ore (compared to 266,320 tonnes
during the corresponding period in 2013 and 340,654 tonnes in the second
quarter of 2014) achieving 93% of design capacity for the quarter. Ore
was processed at an indicated head grade of 2.60g/t Au (compared to 2.83
g/t Au during the corresponding period in 2013 and 2.44 in the second
quarter of 2014) with a recovery rate of 82.2% (compared to 82.9% during
the corresponding period in 2013 and 84.3% in the second quarter of 2014)
to produce 27,171 (compared to 20,784 during the corresponding period in
2013 and 21,431 in the second quarter of 2014) ounces of gold.
-- The Run-of-Mine ("ROM") Pad sheltered storage area was completed prior to
the commencement of the rainy season, providing 40,000 tonnes of dry
material storage to ensure the availability of sufficient tonnes of
acceptable moisture content to the processing plant.
-- With these ore delivery and throughput achievements, site management's
focus has now moved from the expansion mode to delivering incremental
operational efficiencies.
(III) MINE UNDER CONSTRUCTION - NAMOYA
-- During the third quarter of 2014, the Namoya Mine produced 4,671 ounces
of gold from a total of 150,304 tonnes of ore, stacked and sprayed on the
heap leach pads and processed through the CIL circuit, at an indicated
head grade of 2.11 g/t Au.
-- At the Namoya Mine, management, along with internal expertise and
external consultants, evaluated the issues identified during the
commissioning process as a result of the quantity of fine material
exceeding the design capacity of the plant. The Company has determined
that the optimal plan of action is through the acquisition of an
agglomeration drum to run the mine as an agglomerated heap leach
operation while pursuing options to best utilize the CIL plant to process
the fines material.
-- The plan for the fourth quarter of 2014 will be to increase the monthly
stacking rate to up to 90,000 tonnes per month of available high grade
ore and processing higher grade fine material through the CIL plant.
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November 11, 2014 08:00 ET (13:00 GMT)DN201411110052332014-11-11 13:00:00.0000E4CJ85GG8O3DFECIG5TR51NC2DJNF
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