Banro Corporation (USA) (NYSEMKT:BAA) in bad shape


Dallas, Texas 09/17/2013 (Financialstrend) -In Monday’s trading Banro Corporation (USA) (NYSEMKT:BAA) stock dipped 3.03%.The opening price of the shares was $0.68  which rose to an intraday high of $0.71 and dipped to close at $0.64. Approximately 0.963 million shares were traded on Monday and the average volume of shares traded over a 30 day period was 0.876 million. The company has a market cap of $161.34 million.

Difficult times

Banro Corporation (USA) (NYSEMKT:BAA) is a precious-metal exploration and production company. It mainly operates in the Democratic Republic of the Congo region. The past 6-months have truly left the company struggling and its shares have touched tremendously low levels. Its 2013 second-quarter performance was extremely disappointing and it is now trying very hard to maintain its share value. On 6 May, the share prices stood at $2.2. On 16 September these had dropped to $0.64.

Disappointing performance

Banro Corporation (USA) (NYSEMKT:BAA)’s production has troughed when compared the levels that it was in the second-quarter. The company’s gold-production had plummeted 0.6% in the 2013 second-quarter. This had a negative impact on its revenue as well as its sales figures. Sales dipped by approximately 10% and gold sales-revenues dipped by 26%. There was a 77% plunge in gross-earnings in comparison to the Q1 levels. The per ounce average gold-price that the company received was 17% below its first quarter price.

Repair time

Banro Corporation (USA) (NYSEMKT:BAA) is making every effort to rectify the situation. It is trying to maintain a semblance of compatibility between its various Congo mines. It has undertaken a few aggressive restructuring measures in June this year. The company has some entities that were operating independently. It has now consolidated these entities. Apart from this, it has also commenced on certain exploration and drilling-activity at the Congo Namoya Gold Project and these have been made public.