TORONTO, ONTARIO--(Marketwired - May 11, 2016) - Banro Corporation ("Banro" or the "Company") (NYSE MKT:BAA)(TSX:BAA) today announced its financial and operating results for the first quarter of 2016.
HIGHLIGHTS
All dollar amounts in this press release are expressed in thousands of dollars and, unless otherwise specified, in United States dollars.
"These results are in line with expectations for the first quarter, as indicated in our 2016 production guidance," said Banro President and CEO John Clarke. "We are pleased to see the increase in gold production and revenues in Q1 2016 over the same quarter of 2015, but we look forward to much better results in the remainder of the year. Consolidated production from the two mines is heavily weighted in the mine plan to the second half of the year, with production progressively improving toward steady-state capacity levels at Namoya and increased production at Twangiza due primarily to enhanced access to higher grade ore."
(i) Financial
Effective January 1, 2016, commercial production was declared at Namoya. As such, the financial results for the three months ended March 31, 2016, reflect the activity of both Twangiza and Namoya. The table below provides a summary of financial and operating results for the three month periods ended March 31, 2016 and 2015 as well as the three months ended December 31, 2015:
Q1 2016 | Q1 2015 | Change % | Q4 2015 | |||||
Selected Financial Data | ||||||||
Revenues | 46,540 | 41,003 | 14 | % | 34,606 | |||
Total mine operating expenses(1) | (44,408 | ) | (24,281 | ) | 83 | % | (25,232 | ) |
Gross earnings from operations | 2,132 | 16,722 | (87 | %) | 9,374 | |||
Net (loss)/income | (23,134 | ) | 6,780 | (441 | %) | (19,446 | ) | |
EBITDA | 9,992 | 20,042 | (50 | %) | 4,312 | |||
Basic net (loss)/earnings per share ($/share) | (0.09 | ) | 0.03 | (100 | %) | (0.08 | ) | |
Key Operating Statistics | ||||||||
Average gold price received ($/oz) | 1,109 | 1,208 | (8 | %) | 1,106 | |||
Gold sales (oz) | 41,967 | 33,956 | 24 | % | 31,303 | |||
Gold production (oz) | 44,192 | 35,943 | 23 | % | 30,440 | |||
Mine site all-in sustaining cost per ounce ($/oz) | 855 | 581 | 47 | % | 745 | |||
Cash cost per ounce ($/oz) | 767 | 527 | 46 | % | 601 | |||
Gold margin ($/oz) | 342 | 681 | (50 | %) | 505 | |||
Financial Position | ||||||||
Cash including restricted cash | 25,029 | 3,024 | 2,262 | |||||
Gold bullion inventory at market value(2) | 7,231 | 4,922 | 2,398 | |||||
Total assets | 897,240 | 903,489 | 871,731 | |||||
Long term debt | 190,489 | 204,055 | 168,127 |
(1) | Includes depletion and depreciation. |
(2) | This represents 5,845 ounces of gold bullion inventory shown at March 31, 2016 closing market price of $1,237 per ounce of gold. |
(ii) Operational - Twangiza
(iii) Operational - Namoya
(iv) Exploration
(v) Corporate Development
(vi) Subsequent Event
Mineral Resources and Mineral Reserves
In April 2016, the Company announced its annual update of the Mineral Resource and Mineral Reserve estimates at its wholly-owned projects on the Twangiza-Namoya gold belt in the DRC. The annual review of Mineral Resources and Mineral Reserves at Twangiza and Namoya, resulted in a replacement of depleted ore and an increase in Mineral Reserves at both operations.
As at December 31, 2015 | As at December 31, 2014 | |||||
Mineral Reserves |
Tonnes (Mt) |
Grade (g/t Au) |
Gold (Moz) |
Tonnes (Mt) |
Grade (g/t Au) |
Gold (Moz) |
Twangiza | ||||||
Proven | 6.21 | 2.19 | 0.44 | 7.47 | 2.41 | 0.58 |
Probable | 21.47 | 2.01 | 1.39 | 14.91 | 2.22 | 1.06 |
Proven and Probable | 27.67 | 2.05 | 1.82 | 22.38 | 2.28 | 1.64 |
Namoya | ||||||
Proven | 17.90 | 2.10 | 1.21 | 18.44 | 1.98 | 1.17 |
Probable | 3.04 | 1.53 | 0.15 | 2.09 | 1.43 | 0.10 |
Proven and Probable | 20.94 | 2.02 | 1.36 | 20.53 | 1.92 | 1.27 |
TOTAL MINERAL RESERVE | ||||||
Proven | 24.10 | 2.12 | 1.65 | 25.91 | 2.10 | 1.75 |
Probable | 24.50 | 1.95 | 1.54 | 17.00 | 2.12 | 1.16 |
Total Proven and Probable | 48.61 | 2.03 | 3.18 | 42.91 | 2.11 | 2.91 |
Note: Rounding of numbers may result in computational discrepancies
Refer to Banro's April 19, 2016 press release for additional details relating to the Mineral Resources and Mineral Reserves update.
Qualified Person
Daniel K. Bansah, the Company's Head of Projects and Operations and a "qualified person" as such term is defined in National Instrument 43-101, has approved the technical information in this press release.
Non-IFRS Measures
Management uses cash cost, all-in sustaining costs, average gold price received, gold margin, and EBITDA to monitor financial performance and provide additional information to investors and analysts. These measures do not have a standard definition under International Financial Reporting Standards ("IFRS") and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies. However, the methodology used by the Company to determine cash cost per ounce is based on a standard developed by the Gold Institute, which was an association which included gold mining organizations, amongst others, from around the world.
The Company defines cash cost, as recommended by the Gold Institute standard, as all direct costs that the Company incurs relating to mine production, transport and refinery costs, general and administrative costs, movement in production inventories and ore stockpiles, less depreciation and depletion. Cash cost per ounce is determined on a sales basis. The Company defines all-in sustaining costs as all direct costs that the Company incurs relating to mine production, transport and refinery costs, general and administrative costs, movement in production inventories and ore stockpiles, less depreciation and depletion plus all sustaining capital costs (excluding exploration). All-in sustaining cost per ounce is determined on a sales basis.
Q1 2016 | Q1 2015 | Q4 2015 | ||||||||
Twangiza | Namoya | Consolidated | Twangiza | Twangiza | ||||||
Mine Operating Costs | 22,367 | 22,041 | 44,408 | 24,281 | 25,232 | |||||
Depreciation | (6,241 | ) | (5,990 | ) | (12,231 | ) | (6,386 | ) | (6,416 | ) |
Cash Costs | 16,126 | 16,051 | 32,177 | 17,895 | 18,816 | |||||
Sustaining Capital | 2,906 | 797 | 3,703 | 1,825 | 4,507 | |||||
All-In Sustaining Cost - Mine Site | 19,032 | 16,848 | 35,880 | 19,720 | 23,323 | |||||
General and Administrative Costs and Other | 3,929 | |||||||||
All-In Sustaining Cost - Total | 39,809 | |||||||||
Ounces Sold | 25,224 | 16,743 | 41,967 | 33,956 | 31,303 | |||||
Cash Cost per Ounce | 639 | 959 | 767 | 527 | 601 | |||||
All-In Sustaining Cost per Ounce - Mine Site | 755 | 1,006 | 855 | 581 | 745 | |||||
All-In Sustaining Cost per Ounce - Total | 949 |
The Company defines gold margin as the difference between the cash cost per ounce disclosed and the average price per ounce of gold sold during the reporting period.
EBITDA is intended to provide additional information to investors and analysts to determine cash earnings before financing and taxes. Banro calculates EBITDA as net income or loss for the period excluding: interest, income tax expense, depreciation and amortization, and other non-cash charges. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA differently. A reconciliation between net profit for the period and EBITDA is presented below:
Q1 2016 | Twangiza | Namoya | Total Mine |
Corporate | Consolidated | |||||
Net Loss | (1,786 | ) | (7,287 | ) | (9,073 | ) | (14,061 | ) | (23,134 | ) |
Finance Expenses | 3,059 | 917 | 3,976 | 7,442 | 11,418 | |||||
Other non-cash charges | 2,835 | 1,433 | 4,268 | 5,155 | 9,423 | |||||
Share-based payments | 4 | 2 | 6 | 35 | 41 | |||||
Depletion and Depreciation | 6,241 | 5,990 | 12,231 | 13 | 12,244 | |||||
EBITDA | 10,353 | 1,055 | 11,408 | (1,416 | ) | 9,992 | ||||
Q1 2015 | Twangiza | Namoya | Total Mine |
Corporate | Consolidated | |||||
Net Income/(Loss) | 14,556 | (98 | ) | 14,458 | (7,678 | ) | 6,780 | |||
Finance Expenses | 172 | 98 | 270 | 5,434 | 5,704 | |||||
Other non-cash charges | 464 | - | 464 | 280 | 744 | |||||
Share-based payments | 60 | - | 60 | 343 | 403 | |||||
Depletion and Depreciation | 6,386 | - | 6,386 | 25 | 6,411 | |||||
EBITDA | 21,638 | - | 21,638 | (1,596 | ) | 20,042 | ||||
Q4 2015 | Twangiza | Namoya | Total Mine |
Corporate | Consolidated | |||||
Net Income/(Loss) | 2,784 | (15,311 | ) | (12,527 | ) | (6,919 | ) | (19,446 | ) | |
Finance Expenses | 727 | 108 | 835 | 2,480 | 3,315 | |||||
Other non-cash charges | 1,641 | 11,128 | 12,769 | 760 | 13,529 | |||||
Share-based payments | 12 | - | 12 | 72 | 84 | |||||
Depletion and Depreciation | 6,416 | - | 6,416 | 14 | 6,430 | |||||
Taxes | - | - | - | 400 | 400 | |||||
EBITDA | 11,580 | (4,075 | ) | 7,505 | (3,193 | ) | 4,312 |
Q1 2016 Financial Results Conference Call Information
Banro will host a conference call at 11:00AM EST on May 12, 2016. Please use the following dial in numbers:
Q1 2016 Financial Results Conference Call Information
Toll Free (North America): | +1 877-291-4570 | Conf ID: 10056027 |
Toronto Local & International: | +1 647-788-4919 | Conf ID: 10056027 |
Q1 2016 Financial Results Conference Call REPLAY
Toll Free Replay Call (North America): | +1 800-585-8367 | Conf ID: 10056027 |
Toronto Local & International: | +1 416-621-4642 | Conf ID: 10056027 |
The conference call replay will be available from 2:00PM EST on May 12, 2016 until 11:59 PM EST on May 26, 2016.
For further information regarding this conference call, please contact Banro Investor Relations or visit the Company website, www.banro.com.
Banro Corporation is a Canadian gold mining company focused on production from the Twangiza mine, which began commercial production September 1, 2012, and the ramp-up to full production at its second gold mine at Namoya, where commercial production was declared effective January 1, 2016. The Company's longer term objectives include the development of two additional major, wholly-owned gold projects, Lugushwa and Kamituga. The four projects, each of which has a mining license, are located along the 210 kilometre long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the Democratic Republic of the Congo (the "DRC"). All business activities are followed in a socially and environmentally responsible manner.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (the "SEC") permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Certain terms are used by the Company, such as "Measured", "Indicated", and "Inferred" "Resources", that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in the Company's Form 40-F, File No. 001-32399, which may be secured from the Company, or from the SEC's website at www.sec.gov/edgar.shtml.
Cautionary Note Concerning Mineral Resource and Mineral Reserve Estimates
The Company's Mineral Resource and Mineral Reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that its Mineral Resource and Mineral Reserve estimates are well established, by their nature Mineral Resource and Mineral Reserve estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of Mineral Reserve estimates, future gold production, mine life extension, gold recoveries, costs, potential Mineral Resources and Mineral Reserves and the Company's production, development and exploration plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return of the Company's projects; the possibility that actual circumstances will differ from the estimates and assumptions used in the economic studies of the Company's projects; failure to establish estimated Mineral Resources and Mineral Reserves (the Company's Mineral Resource and Mineral Reserve figures are estimates and no assurance can be given that the intended levels of gold will be produced); fluctuations in gold prices and currency exchange rates; inflation; gold recoveries being less than expected; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; political developments in the DRC; lack of infrastructure; failure to procure or maintain, or delays in procuring or maintaining, permits and approvals; lack of availability at a reasonable cost or at all, of plants, equipment or labour; inability to attract and retain key management and personnel; changes to regulations affecting the Company's activities; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 28, 2016 filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
For further information, please visit our website at www.banro.com.
Banro Corporation
Martin Jones
+1 (416) 366-2221, Ext. 3213 or +1-800-714-7938, Ext. 3213
[email protected]
www.banro.com
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