Romarco Minerals Inc (RTRAF)

[SilverSurfer]

Ron Stewart Presents Juicy Gold Takeover Targets

"We look for good management teams, good balance sheets and projects that are not highly leveraged."

TGR: Which near-term U.S. gold producer are you keen on?

RS: Romarco Minerals Inc.'s (R:TSX) Haile mine in South Carolina is now fully permitted, and its debt is secured. The company still needs to complete its financing, but Haile is shovel-ready. Haile should produce 150–175 Koz per year for 10–12 years. Its reserve is about 2.6 g/t, which means an all-in sustaining production cost of less than $700/oz.

TGR: Until the company suspended exploration in 2013, Romarco was regularly getting outstanding assay results. Now that mine construction is close, will exploration recommence?

RS: Haile has a current gold reserve of 2 million ounces (2 Moz), with a Measured and Indicated resource of 4 Moz. So the possibility of expansion is already contained in the mining plan. Romarco's priority is money. It was successful in organizing a bank syndicate to give it a $200 million ($200M) term sheet, but it still needs to secure an additional $250M or so needed to build the mine. I would expect to see news on that front ahead of exploration news.

We believe that Haile will be built and that it will be a success. We've given Romarco an Outperform rating, with a target price of $1.15/share, which is over an 80% premium over its current share price.
http://www.theaureport.com/pub/na/ron-stewart-presents-juicy-gold-takeover-targets