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Saturday, 08/15/2015 2:11:43 PM

Saturday, August 15, 2015 2:11:43 PM

Post# of 63744
Good article on AISC of the GDX component companies:
http://www.321gold.com/editorials/hamilton/hamilton081415.html

IMO Semafo is the best company in this list for doing a peer comparison with Banro for following reasons:
-Its production at 265koz/yr is of comparable magnitude
-Its AISC at $604 and and projected to fall further this year is one of the lowest in the industry (as is Banro's)
-All its production is in Africa

Where they differ is primarily in the balance sheet. Semafo has a high quality balance sheet with no debt and over $100 million in cash. But Semafo's market cap is 14X that of Banro. So in the scenario where POG has recovered to $1500 and Banro is on track to repairing its balance sheet it should have 10X the leverage of Semafo on the upside. All Banro needs to do is hang in there without massive share dilution until the inevitable turnaround in the gold price, which is a WHEN not IF type situation. Which is why I am sticking with Banro and have all my eggs in this one basket. I should add that Banro has vastly superior organic growth prospects to Semafo or any other gold producer out there.

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