Banro Corp. fka BAA

[braised007]

The "Book Value" of the company is NOT $1B. A 4-second glance at the financial statements will show you as much.

The "book value" of the assets at June 30, '15 is about $880M. The write-off of Namoya amounted to 50.2M. Asset value prewrite off would be $930M. So that 5% Jennings mentioned, $50.2/$930 = 5.3%.

Book value of company is the owners equity (A-L). Page 3 of http://www.banro.com/i/pdf/2015-Q2.pdf will show you that BV/share has gone down, as it should have given the writeoff of the asset.

"but, but, but Braised, you idiot, they paid off $40M in debt" "yes, indeed they did. They paid it from cash. Liability decreases $40M, cash decreases $40M - a wash on the balance sheet. A non-cash charge to write down the asset decreased the owners equity account (aka Book Value) by the same amount - accounting 101"

owner's equity at June 30, 2015 stood at $450.37M, which when divided by the amount of outstanding shares 252.1M = $1.79 BV/share. BV of the company decreased by right around the amount of the write off. Per IFRS, they can add that back when the asset, gold outlook, whatever, turns around. The writedown, writeup of assets is heavily scrutinized by regulators as Jennings mentioned during the Q&A.

In summary, the value of the company's assets was about $1B before the writeoff, and the writeoff amounted to about 5% of that value. We don't need people on here touting $4/share book value when CLEARLY that is not the case.

Have a great weekend.