Replies to post #16256 on Banro Corp. fka BAA

[baystock1]

>>Now, your point about fuel costs being lower and therefore benefiting users of energy is obviously correct and a logical argument but the chart you attached has nothing to do with this argument. The actual amount of fuel savings to Banro is yet to be determined and I'm sure they will mention something about it in the next quarterly financial report. <<

This gold/oil ratio chart has EVERYTHING to do with my point, which is that margins will increase and thus positively impact the share price. Revenues track the price of gold. Expenses track their input costs for which industrial commodity prices are a reasonable proxy. Diesel makes up around 40% of Banro's input costs. If the price of crude oil declines by 50% this will eventually feed into significantly lower diesel costs. May be not 50% lower but much lower. This will feed straight into the bottom line as it will increase margins.