Memories for veterans
bullforever Friday, 11/06/15 07:58:30 AM
Re: StockItOut post# 44391
Post # of 61279
The Wall Street Journal article "How a BlackRock Bet on African Gold Lost Its Luster" made me added another 85K shares of BAA.
Although the attitude of the article is negative the facts mentioned are greatly positive.
1, "In Cinjira, a mountaintop village built for people displaced by Banro Corp.’s industrial gold-mining operation in eastern Congo, residents dig gold ore from the hillside and use a series of small ponds to separate out the gold, in contrast to industrial methods Banro uses in its mine nearby"
This indicates how rich in gold BAA mines are.
2, "A man digs ore from the mountainside beneath his village. While Banro uses industrial methods in its mine in the background, these ‘artisanal’ miners carry buckets of ore uphill on their heads to bring it to their processing area and work it by hand"
This indicates how effective BAA gold processing is, so the profit must be great.
3, "In Cinjira, ‘artisanal’ miners use water to separate gold from dirt. They say they hand-mix mercury into the concentrated ore—it binds to the gold, making it easier to extract"
This indicates how easy extraction of gold around BAA mines is
4, "a bulldozer working on a Banro waste pile dislodged a rock that struck 16-year-old Bukuze Kabalabala, who died hours later, say locals. Villagers stormed Banro’s gate. “It created an enormous animosity,” says Crispin Mutwedu, a Banro employee in Congo who handles community relations. He says he offered Ms. Kabalabala’s father two cows’ value and that they settled on $16,000, about eight cows’ value"
No matter it is true or not, accidents are normal for mining. but it indicates how economic and easy to deal with accident in Congo.
5, "A new Banro mine, in Namoya, was on a jungle road that militia leader William Yakutumba says he controlled. Last year, a United Nations committee reported, his militia attacked villages and boats, stealing money and raping women. A Banro contractor agreed to pay Mr. Yakutumba’s men to let their drivers pass, say people involved in the convoys.
Mr. Clarke wrote: “At no time did Banro ever pay money, or pay tolls, or provide any favour to ANY armed rebel, to gain some sort of road access.”
Mr. Yakutumba says his group helped Banro workers travel the route but “never taxed Banro"
It indicates BAA gets reputation even from militia or armed rebel, so unrest in Congo does not affect BAA.
6, "In Twangiza, tensions continued. On May 29, Ishara Chasinga, then 18, left home and saw protesters blocking Banro’s gate. Villagers say a Banro truck and mine police pulled up.
“They just got off the car and started shooting,” said Mr. Chasinga five days later at the hospital.
A bullet pierced his leg, he said, showing his bandaged thigh. Protests continued for two days. Mr. Clarke in July said the shot was a warning and hit Mr. Chasinga accidentally, but was “inexcusable.”"
It indicates how powerful BAA is.
7, "Starting in 2010, after the government approved Banro’s plan to mine near Katombwe, about 1,000 people were relocated from a fertile hillside where Banro would build its mine to Cinjira, a barren mountaintop. Cinjira residents say crops won’t grow well there.
Banro built homes, a market and a water system for the displaced. It provided some with cash compensation. Banro’s Mr. Clarke wrote that the relocation “was voluntary,” that Banro didn’t choose the relocation spot and that “the Cinjira site was chosen by the community.”
Cinjira residents say police came to their homes and said they must leave. The local government leader, Esperance Barahanyi, says an official from Congo’s capital made the site decision."
It indicates how favorable to gold mining and BAA Congo policy makers are.
I believe many institutions and retails will be attracted to BAA after they read this article.
