Replies to post #34799 on Banro Corp. fka BAA

[Libertarian_Statist]

My understanding is Twangiza is operated at 101% of capacity last quarter, 15% q/q increase is a stretch imo. Namoya looks like a decent prediction.

[braised007]

What does this mean:

*****sails revenue resulting from production at Namoya will be capitalized as a deduction of construction expense and will not factor into earnings.

Interest expense is what is capitalized, meaning it is added to the value of the asset since it is under construction and it does not flow through the income statement which is just an accounting formality. It is a very real expense and would have resulted in negative earnings Q1 had it not been capitalized. Q2 has minimal interest expense/interest payments. Revenue flows through the IS no matter how it's derived.