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Gold/Mining/Energy : Gold and Silver Mining Stocks

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To: Ptaskmaster who started this subject	5/13/2002 7:52:35 PM
From: Len Hynes	Read Replies (1) of 4051

Banro-Gold at $2 an Ounce. Just saw on Kitco..http://www.321gold.com/...reference to Banro's gold assets.The bottom line is that Banro's gold assets are being valued at $2 per ounce. Shareholders and investors who follow Banro are beginning to understand that this is becoming a gold asset play.Recent widespread buying that has brought the share price to the $5 level is evidence of this.Furthermore,the price consolidation and the buying strength that is lined up suggests that we may be getting near to another price surge. It is important to note that the industry standard for new gold discoveries is U.S.$30 an ounce.Banro already has proven and probable reserves in the range of 15 million ounces ..or approx. U.S. $2 an ounce based on Banro's current market cap of U.S.$30 million...(U.S.$3.50/share x 9 million shares).....very cheap indeed.Also, their is no discovery risk involved. Investors in Banro prior to troubles in the Congo may remember that Banro was trading at ~$13/share on approx. 13 million shares for a market cap of Can. $169 million.That compares to a current market cap of Can. $45 million...almost four times today's value. Very obvious that Banro's share price has a long ways to go yet to reflect a reasonable valuation.With gold consolidating at the $310 level in advance of further expected price moves, and investors coming to realize the undervalued level of the company's gold assets,Banro should prove to be a real winner in the coming months. Take this scenario:15 million oz gold multiplied by one-half the industry price level($30) for new discoveries($15)....equates to $225 million.Add on a speculative premium of 50%...we have a value of ~$325 million or approx Can.$35 a share.There's a seven-bagger in this one yet. 15 mill. oz x $15/share x .50 =~$325 /9 million shares...for approx $35/share I was never a Math wiz, however, I'm sure you get the point. Len

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