Banro Corp. fka BAA

[baystock1]

BAA is beyond DIRT cheap @20 cents/$50 million Market cap for a low cost profitable 250k oz/yr gold producer with the ability to organically double production within 3-5 years. So basically you can buy a not too far in the future 500K+ producer for $50 million.

BAA is priced for bankruptcy. After the recent $90 million financing, the odds of bankruptcy have been greatly reduced. Randgold has 100 times the market cap of BAA, but at 1 million oz/yr has only 4x the production of Banro's 250K/oz yr 2016 expected production. Going forward the production gap will close as Banro's growth rate is vastly higher as it has all new un-depleted mines and can double its number of mines from 2 to 4. As for political risk, ALL Randgold's mines are in Africa and its flagship mine is the Kibali mine in Northeastern DRC.

The main explanation for this valuation discrepancy is:
-debt: Randgold has no debt VS. $200+ million for Banro
-single mine risk: but this will soon change with commercial production at Namoya imminent
-country risk: Randgold has multiple mines spread over many countries in West and Central Africa while all Banro's mines are in DRC.
-track record: Banro is an emerging turn around situation while Randgold with MD Bristow at the helm is one of the most respected gold miners on the planet.