Banro Corp. fka BAA

[Congo Mining]

Page 13

http://www.banro.com/i/pdf/Interim-FS-Quarter-1-2015.pdf

"Mines under construction are not depreciated until construction is completed. This is signified by the formal commissioning of a mine for production. Revenues realized before commencement of commercial production (“pre-commercial production revenue”) are recorded as a reduction of the respective mining asset. A capitalization rate of 10.2% was used for general borrowings."

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a separate issue...i think

Your statement.

"Interest expense is what is capitalized, meaning it is added to the value of the asset since it is under construction and it does not flow through the income statement which is just an accounting formality. It is a very real expense and would have resulted in negative earnings Q1 had it not been capitalized. Q2 has minimal interest expense/interest payments. Revenue flows through the IS no matter how it's derived."

You pointed the interest expense issue out to me previously, I appreciate it, you are obviously correct on that issue. My statement has to do with the accounting of pre commercial production revenue at Namoya.


Perhaps I'm misinterpreting...I'm not 100% sure due to the last sentence.
If you can elaborate I'd like to understand better the facts.