UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or
15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2015.
Commission File Number 001-32399
BANRO CORPORATION
(Translation of registrants name into English)
1 First Canadian Place
100 King Street West,
Suite 7070
Toronto, Ontario, Canada
M5X
1E3
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F
Form 20-F [X] Form
40-F [ ]
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1):[ ]
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an attached
annual report to security holders.
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7):[ ]
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report or other
document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated,
domiciled or legally organized (the registrants home country), or under the
rules of the home country exchange on which the registrants securities are
traded, as long as the report or other document is not a press release, is not
required to be and has not been distributed to the registrants security
holders, and, if discussing a material event, has already been the subject of a
Form 6-K submission or other Commission filing on EDGAR.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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BANRO CORPORATION |
|
|
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/s/
Kevin Jennings |
Date: July 13, 2015 |
Kevin Jennings |
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Chief Financial Officer |
-2-
INDEX TO EXHIBITS
-3-
BANRO ANNOUNCES Q2 PRODUCTION
RESULTS
Twangiza Production Remains Strong as
Namoya Continues Ramp-up
to Commercial Production
Toronto, Canada July 9, 2015 Banro Corporation
("Banro" or the "Company") (NYSE MKT - "BAA"; TSX - "BAA") today announced its
operating results for the second quarter of 2015.
Q2 OPERATIONAL HIGHLIGHTS
- Twangiza produced 34,325 ounces of gold in the second quarter of 2015, a
60% increase over Q2 2014 (21,431 ounces in Q2 2014), for year-to-date
production of 70,268 ounces of gold.
- Namoya achieved stacking levels greater than 140,000 tonnes in June as the
mine continued its ramp-up to commercial production.
- For the second consecutive quarter, throughput at the Twangiza process
plant achieved 101% of the 1.7 million tonnes per annum (Mtpa) annualized
design capacity.
- This throughput achievement at Twangiza includes processing an average of
43% non- oxide material at an overall average process recovery of 82.2%.
- Twangiza and Namoya produced a combined 44,850 ounces of gold during Q2
2015.
Twangiza continued to perform well through the quarter.
Performance levels are stabilizing as the mine continues to process increased
levels of non-oxide material. Mine management is continuing to build on the
achievements to date, with a particular focus on optimizing operations at
Twangiza. Namoyas operational performance progressively improved during the
second quarter as capital equipment was commissioned. Namoya continues to
achieve improved ore production and stacking rates and is now well-positioned
for continued incremental improvements as it builds toward commercial production
levels in Q3 2015," commented Banro President and CEO John Clarke.
Twangiza Update
Twangiza focused on debottlenecking during the second quarter
of 2015, and incrementally improved the processing of ore with the ongoing
blending of non-oxide material. This focus allowed for the operation to maintain
throughput at the annualized design capacity of 1.7 Mtpa, while increasing the
proportion of non-oxide material to an average of 43% for the quarter. The
previously reported upgrade in mineral reserves, together with the plants
success in maintaining annualized throughput levels through two consecutive
quarters, provides confidence in the plants ability to maintain current
performance levels. Similar to the first quarter, mine productivity allowed for
the availability of high grade ore in addition to appropriate blending of oxide
and non-oxide material. Twangiza management will continue to focus on process
debottlenecking and optimization to secure reliable throughput levels that can
be maintained through the rainy season.
Twangiza poured 10,569 ounces in April, 12,059 ounces in May
and 11,697 ounces in June for a second quarter 2015 total of 34,325 ounces of
gold. Similar to the first quarter of 2015, these production levels significantly exceeded the 2015 monthly
average production guidance of 9,000 ounces. As a result of this strong
performance in the first half of the year, Banro is pleased to increase
Twangizas 2015 gold production guidance to a range of 115,000 to 125,000
ounces.
The Company's preliminary 2015 second quarter production
results for the Twangiza mine, in comparison to the same quarter of 2014 and the
previous quarter in 2015, are as follows:
Operating
Metrics |
Units |
Q2 2015 |
Q2 2014 |
%
Change |
Q1 2015 |
%
Change |
H1 2015 |
H1 2014 |
%
Change
|
Total material
mined |
Tonnes |
770,162 |
871,849 |
(12%) |
975,716 |
(21%) |
1,745,878 |
1,599,272 |
9% |
Total ore mined |
Tonnes |
548,175 |
485,276 |
13% |
632,264 |
(13%) |
1,180,439 |
781,600 |
51% |
Total ore milled |
Tonnes |
428,661 |
340,654 |
26% |
428,844 |
0% |
857,505 |
593,344 |
45% |
Head grade |
g/t Au |
3.01 |
2.44 |
23% |
3.21 |
-6% |
3.10 |
2.56 |
21% |
Recovery |
% |
82.2 |
84.3 |
(2%) |
80.7 |
2% |
81.4 |
84.6 |
(4%) |
Strip ratio |
t:t |
0.41 |
0.80 |
(49%) |
0.54 |
(24%) |
0.48 |
0.98 |
(51%) |
Gold production |
Ounces |
34,325 |
21,431 |
60% |
35,943 |
(5%) |
70,268 |
41,568 |
69% |
The insights gained from Twangizas experience with the
treatment of non-oxide material and improved blending with oxide material
allowed for a significant increase over the previous quarter in the percentage
of non-oxide material processed coupled with an increase in overall
recoveries.
Namoya Update
Throughout the second quarter of 2015, Namoya continued to ramp
up toward commercial production levels, achieving stacking levels greater than
140,000 tonnes of agglomerated ore in June. As previously reported, the delay in
financing resulted in a need to modify the mine plan to allow for the
pre-stripping of the Kakula reserve pit. This modification impacted ore
availability early in the second quarter as the mine fleet focused on waste
removal in order to allow for increased access to mining faces when the first
additions to the mobile fleet were commissioned in late May. This contributed to
a decrease in the stacking level in April to 57,211 tonnes, which subsequently
increased to 130,974 tonnes in May and 142,082 tonnes in June. The significant
decrease in stacking levels from Marchs 103,163 tonnes to April was also driven
by the adverse impact of unseasonably high rains which interrupted supply routes
and the ability to deliver procured materials and supplies. The availability of
ore from mining activities and the available medium grade stockpile material
resulted in the stacking of ore with an average grade of 1.52 g/t Au. Namoya
management is continuing to implement process modifications and upgrades, which
are resulting in significant progress toward steady-state operating levels.
Namoya poured 3,114 ounces in April, 3,315 ounces in May and 4,096 ounces in
June, for a second quarter 2015 total of 10,525 ounces of gold.
During the second half of June and early July, Namoya achieved
stacking rates in excess of 5,000 tonnes per day (tpd) and is expected to
increase to over 6,000 tpd by the end of July. As Namoya progresses through the
third quarter of 2015, the commissioning of the second stage of the additional
mobile fleet, which is now on site, and delivery of the currently procured third
stage, will allow the operation to advance more quickly with a number of mining
activities, including waste stripping which was re-sequenced following the delay
in financing. This will result in improved ore access in multiple pits, allowing
the mining team to effectively drill, blast and mine ore and enable the delivery
of ore at an average grade consistent with or above the average reserve grade in
the latter half of the third quarter and into the fourth quarter. These
activities will in turn support continuous increases in stacking rates following
the commissioning of process upgrades early in the third quarter.
2
Heap leach operations require several months of continuous
percolation to fully recover the leachable gold. Thus, the process advancements
from the second quarter, together with ongoing improvements to the heap leach
circuit, are projected to result in monthly gold production of about 9,000
ounces once steady-state operating levels are achieved during H2 2015. Taking
into account production at Namoya during the first six months of the year,
together with the impact of delays in mobile equipment financing and the
resulting delivery timelines on the ramp-up of Namoya, the Company has updated
expected 2015 gold production from Namoya to a range of 60,000 to 70,000 ounces.
The Company's preliminary 2015 second quarter production
results for the Namoya mine, compared to the same quarter of 2014 and the
previous quarter in 2015, are as follows:
Operating Metrics |
Units |
Q2
2015 |
Q2
2014 |
Q1
2015 |
Total ore mined |
Tonnes |
253,113 |
335,674 |
178,800 |
Total ore stacked |
Tonnes |
330,267 |
65,859 |
255,323 |
Head grade |
g/t Au |
1.53 |
2.03 |
1.97 |
Strip ratio |
t:t |
1.96 |
1.42 |
2.93 |
Gold production |
Ounces |
10,525 |
1,458 |
9,254 |
Commenting on the results, Dr. Clarke said, The strong
production levels at Twangiza, together with the progress achieved at Namoya and
continued improvements in cash flow, indicate that the Company is on course for
maintaining steady-state production at Twangiza and successfully ramping-up
production at Namoya to commercial production and steady-state levels.
Overall, the consolidated 2015 annual gold production as a
result of the outperformance of Twangiza combined with the delayed ramp-up of
Namoya is expected to be 175,000 to 195,000 ounces.
Banro Corporation is a Canadian gold mining
company focused on production from the Twangiza mine, which began commercial
production September 1, 2012, and completion of its second gold mine at Namoya
located approximately 200 kilometres southwest of the Twangiza gold mine. The
Companys 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
20-F Registration Statement, File No. 001-32399, which may be secured from the
Company, or from the SEC's website at http://www.sec.gov/edgar.shtml.
3
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 future gold
production (including the timing thereof), costs, cash flow and gold recoveries,
mineral resource and mineral reserve estimates, potential mineral resources and
mineral reserves and the Companys 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 Companys
projects; the possibility that actual circumstances will differ from the
estimates and assumptions used in the economic studies of the Companys
projects; failure to establish estimated mineral resources and mineral reserves
(the Companys 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 those indicated by the metallurgical testwork carried
out to date (there can be no assurance that gold recoveries in small scale
laboratory tests will be duplicated in large tests under on-site conditions or
during production); 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
report on Form 20-F dated April 6, 2015 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, or contact:
Martin Jones
+1 (416)
366-2221 Ext. 3213
+1-800-714-7938 Ext. 3213
info@banro.com
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