Banro risks default on debt

[miningmx.com] – GOLD exploration and development firm, Banro, risks defaulting on its bonds, said Bloomberg citing an analyst who said below anticipated production levels were heaping pressure on the company’s debt.

“With more cash needed from reduced revenue, decreased ability to push back local debt given operational uncertainty, and equity appetite diminished, the risk of default now increases,’ said Brock Salier, an equity analyst at GMP Securities.

The Toronto-based company said in a statement on July 9 that the throughput capacity at its Twangiza mine may be closer to 1.5 million tons a year, below the 1.7 million tons the facility was designed for. Banro also warned that a plant at its Namoya site won’t run at capacity because of technical setbacks at the facility.

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