Replies to post #6781 on Banro Corp. fka BAA

[investorwisdom]

The value of Banro's reserves are $6-$7 dollars per ounce of Gold in the Ground. Anywhere in the World is there such a low valuation for a company with two operating mines, that has already spent over 800 million on the project? The valuation is so incredibly off kilter with the rest of the market, and by historical standards that it's just mind boggling. I can't imagine a situation where 2 years or so down the road they won't qualify to refinance with massive cash flow generated from two new mines. The specialists Thys Terblanche and Derrick Weyrauch were brought on-board because they have truly excelled in these types of situations, and can greatly contribute if the price of Gold stagnates.

[Techamental Logic]

Banro's creditors have the final say for the second option. They currently have Banro on a pretty tight leash. Should Banro borrow more than $7M then Banro would be required to pay the full amount of their loans on demand.

The good news on that front is that Banro's largest bondholders are also their largest shareholders so they would be unlikely to do anything that would cause BAA shares to drop any farther.

Gramercy is also likely to play a large part in the discussions. I'm still hopeful they'll hammer something out this week so we and more importantly the institutional investors can see that Banro has this situation well in hand.