UPDATE: BMO Capital Markets Downgrades Banro Corporation to Market Perform, Lowers PT

In a report published Friday, BMO Capital Markets downgraded its rating on Banro Corporation BAA from Outperform to Market Perform, and slightly lowered its price target from $5.00 to $4.00. BMO Capital noted, “After declaring commercial production at Twangiza, the company sold 5,123oz in September versus a target of 8,000oz per month and reported operating costs of approximately US$1,084/oz. Near-term production and cost guidance was not provided. Namoya appears to be advancing rapidly, but higher capital costs are now expected. The mechanical challenges coupled with higher funding requirements have prompted management to consider measures to ensure that it has sufficient cash to fulfill its objectives.” Banro Corporation closed on Thursday at $3.66.