Today Banro released its 3Q 2016 report. Below you will find the chart showing the performance of the oldest mine, called Twangiza:
As the chart shows, Twangiza is deteriorating. Despite higher gold prices received, the margins demonstrated by the mine are going down.
Why? Here is the answer:
Simply put, grades and recovery ratios are going down. As a result, margins are going down as well.
Somebody could say that over time every mine is deteriorating. Yes, but Twangiza is a relatively new operation. It is too early to deteriorate so much....