UPDATE: BMO Capital Markets Reiterates on Banro Following In-Line Q3/13 EPS Report

In a report published Wednesday, BMO Capital Markets analyst Andrew Breichmanas reiterated a Market Perform rating on Banro BAA, but lowered the price target from $1.00 to $0.90. In the report, BMO Capital Markets noted, “Banro reported Q3/13 EPS of US$0.00 after adjusting for a US$3.2M charge related to the fair value of preferred shares, in line with the BMO Research estimate and slightly ahead of consensus of (US$0.01). Sales of 20,410oz were consistent with production of 20,784oz which had previously been released. Total cash costs of US$821/oz and all-in costs of US$1,059/oz compared to BMO Research forecasts of US$809/oz and US$1,169/oz respectively, as slightly higher unit costs (US$64.10/t versus US$63.15/t) were offset by lower sustaining capital (US$5.0M versus US$5.7M). Namoya capital expenditures of US$30.2M were in line with the BMO Research forecast of US$30.0M. Cash at quarter-end was higher than expected (US$14.8M versus US$9.5M) with earlier access to bank loans announced in October and working capital changes partially offset by higher interest and exploration expenses.” Banro closed on Tuesday at $0.77.