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Re: coach tequila post# 37291

Wednesday, 07/29/2015 11:06:31 AM

Wednesday, July 29, 2015 11:06:31 AM

Post# of 63744
I'm sure there is a few following BAA

For instance Cosmos Chiu from CIBC just did a report on BAA

Here is an excerpt from the report

What's Changed

With the completion of the much needed capital injection of $90
million (closed in its entirety on April 30, 2015) involving forward
sales contracts at Twangiza and a gold stream at Namoya, we have
come off research restriction and are publishing our updated
numbers for the company.

Implications
Despite the capital injection, and based on our analysis, the balance
sheet of the company remains weak. We do not expect that
sufficient cash will be accumulated to satisfy the maturity of the
$175 million debt due in March 2017. We also do not expect Banro
to be able to generate meaningful free cash flow in the near term
given the financial burden placed on the company as a result of the
derivative instruments (forward sales and gold stream) that have
been put in place.

Valuation
After changes to our model, our NAV for the company remains
negative now at -$0.02/share (previously at -$0.16/share). With
that, we maintain our Sector Underperformer rating and continue to
have a suspended price target.

Based on our calculation, and taking into consideration the $90 million capital
injection and repayment of the liquidity backstop facility that had a total
outstanding balance of $37 million, Banro’s current cash balance is
approximately ~$35 million. We show below the projected cash balance based
on our modelled assumptions; clearly, the 2017 cash balance will be impacted
by the $175 million in debt (issued on March 2, 2012) that is maturing on March
1, 2017. Despite the recent capital injection, we would conclude that Banro’s
balance sheet continues to be on the weaker end of the spectrum.

GO BAA

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