Replies to post #38621 on Banro Corp. fka BAA

[theme_investor]

braised....why don't u call the CFO and talk it all over to c if your assumptions are true ? You've got a good feel of everything so that is a logical thing 2 do.

[Congo Mining]

Curious what you think about the insider buying.

It's not peanuts even for their salary.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116167623

[stuckinthestock]

I had been in BAA for a year and a half and exited after the Q2 results. They burn through way too much cash way too fast, and always have. Also I don't trust the price of gold anymore. I wish you luck and hope BAA really does turn it around. I appreciate your knowledge. You are truly one of the most reasonable minds on this board.

[goldismoney1]

Hey braised007 good work and good points. .

Regarding ~ $10 million in working capital being used to have to pay for cat777's.

The new cat777 fleet was as per q2 report listed under the liquidity and capital resources section:

"In the second quarter of 2015, the Company closed a $10 million forward sale to finance the purchase of the expanded mobile fleet. The forward sale transaction provides for the prepayment by the purchaser of $10 million for its purchase of 9,508 ounces of gold from the Twangiza mine, with the gold deliverable over two years, at 396 ounces per month."

So it looks to me that they have already paid for the fleet through forward gold sale so that should help with leaving current $10 million working capital untouched.

Please correct me if I am wrong, maybe I am not understanding correctly.

Additionally, in q2 report it states that mgt is expecting namoya to be producing 9k ounces a month by the end of 2015! Thats about what its been producing per qtr.

Were in a race to make it to namoya commercial production, I think we gonna make it pretty easily. I think experienced mgmt would NEVER risk a companies livelihood by spending $10 million on a new fleet of trucks knowing it would put them outta business! What you think?

[goldismoney1]

By the way reread your post and you never stated that they were using working capital for cat777 fleet so sorry about that.

[Libertarian_Statist]

Braised, I share you're concerns about Banro's liquidity;

If I am to be frank I don't belive there is a Banro Shareholder who saw that quarterly report and didn't think:
"isn't this almost as scary a liquidity position as Banro had pre-financing..."

Usually at this point after seeing the state of the balance sheet after WE JUST HAD A FINANCING I would have pitched my shares and rebought 4months later if Banro were still around.

But I realize the financial statements do not tell the whole story, it can't tell us how flexible their trade payables partners are, nor how much spending is actually required for Namoya.

Most importantly; If Banro were to declare bankrupcy it would be hands down, no contest, the worst, I repeat WORST stewardship of capital I've ever seen in a publically traded company.

Quick walk down memory lane:
- 3.755mil on a new corperate office in Dec 2014
- 3.3mil Paying the dividend which the could have accured on preffered shares in 2015
- 40mil of forward sales to pay off the facillity....a non-current debenture

Call it a leap of faith, call it Banro only makes up a small part of my portfolio, or call it I just don't belive managment could possibly be this stupid but I am holding long.

[nagoya1]

Bottom line, Namoya soon to be commercial mining. They've been stacking 5Ts a day and it's been percolating...good things are coming within a month at most.

If the POG can finally start the upswing, the revenues at Namoya will significantly affect BAA's bottom line. Nothing that BAA has undertaken has been a cake walk....BAA is at least 1 year behind schedule due to that Gold Holding financing F'UP.
(Kind of hard mining without trucks and the proper equipment:drum)

Looking at the volume since the 2Q, it seems that LT investors are holding onto their shares. I'M constantly adding and haven't changed my LT outlook at how mgmt has been steering the company.

GO BAA