Each one in plain English, with the numbers worked through for a shareholder.
19 June 2012material agreement termination▲ Good
Took mining and earthworks at Twangiza in-house, ending the contract with Banlaw Afrique DRC that had run since January 2010, to cut costs and get more control ahead of building further mines on the belt. The Banlaw crew stayed on in the same roles as Banro employees.
Closed the US$175m senior secured note issue at 10% due March 2017. Twangiza had produced 14,795 ounces to that point and poured 7,441 ounces in February, with commercial production expected by the end of Q1 2012 and 10,000 ounces a month by April; Namoya was targeted for commissioning in Q1 2013 and about 11,500 ounces a month by the end of Q2 2013.
Raised the debt offering by US$50m to US$175m: senior secured notes at 10% maturing 1 March 2017, with 48 warrants per US$1,000 unit - 8.4 million warrants exercisable at US$6.65 for five years. Proceeds go to Namoya construction, repaying an existing credit facility, and work on a hydro power option for the belt.
Announced a private placement of up to US$125m of units, each US$1,000 of senior notes due 2017 plus a warrant, to build the Namoya mine. This is Banro's first substantial debt.
Updated economic assessment for Namoya Phase 1, a gravity and heap-leach operation on oxide and transitional ore: 122,000 ounces a year for the first five years at US$464 an ounce cash cost, US$148m to build, a 71.3% after-tax return and a US$366m net present value at US$1,500 gold with a ten-month payback.
Initial trenching at the Kamituga project returned 51.0 m at 2.65 g/t, 32.0 m at 2.36 g/t and 18.0 m at 3.06 g/t gold from the Kibukila and Mobale prospects - the third of Banro's four projects on the 210 km Twangiza-Namoya belt to show grade at surface.
Lifted measured and indicated resources at Namoya, the second mine on the belt, 39% to 1.58 million ounces (24.77 Mt at 1.99 g/t, 0.4 g/t cut-off), with 440,000 inferred ounces (9.47 Mt at 1.44 g/t). The ounce count rose on far more tonnes at a lower grade: the January 2011 estimate was 14.58 Mt at 2.43 g/t.
Poured first gold at Twangiza in South Kivu province, the first new commercial gold mine in the Democratic Republic of the Congo in more than half a century, two years after the board decided to build it. Management guided to about 120,000 ounces a year in 2012.
Infill drilling at Namoya for the feasibility study returned 28.30 m at 2.78 g/t, 11.76 m at 6.44 g/t and 9.34 m at 7.56 g/t gold, none of it in the January 2011 resource estimate. Namoya was then being tabled for production in Q1 2013, with the feasibility study due December 2011 and construction from Q1 2012.
Signed a non-binding memorandum of understanding with China Gold International Resources to negotiate a joint venture over Twangiza Phase 2 and a related hydro power project, potentially extending to the rest of the belt. It never became a definitive agreement in the record that follows; Banro funded the belt itself, with 10% notes a year later.
Twangiza Phase 1 construction on schedule for commercial production in Q4 2011 and fully funded: US$94m of cash at 1 April against a US$209m capital budget including a US$13.5m contingency, about US$25m more than the cost to complete. Plant and civils 86% done, whole mine 60%.
SENET's NI 43-101 preliminary assessment of the Namoya heap-leach project, effective 3 March 2011 - the study behind the January 2011 Namoya numbers that were superseded by the January 2012 assessment.
Pre-feasibility study on the Twangiza gold project in South Kivu: a mine averaging 345,125 ounces a year in its first three years and 195,772 over its life, at cash costs of US$212 an ounce falling out to US$345, with a post-tax net present value of US$352m and a 20.5% return. The authors recommended progressing to a bankable feasibility study and flagged that much of the indicated resource rested on relatively wide-spaced data needing infill drilling to firm up the early mine schedule.