Globe says Romarco Minerals hiked to "outperform"

2014-07-31 06:30 ET - In the News

The Globe and Mail reports in its Thursday, July 31, edition that RBC Dominion Securities analyst Sam Crittenden upgraded Romarco Minerals (90 cents) to "outperform" from "sector perform" and raised his price target to $1.25 from $1. The Globe's Darcy Keith writes in the Eye On Equities column that the company provided more clarity on the permitting timeline for its Haile project, which RBC views as one of the best early-stage gold projects. Mr. Crittenden says: "We view Romarco as a takeover candidate once permits are received based on potential for low-cost production, the scalability of the project, and regional exploration potential. ... Using similar metrics to B2Gold's recently announced acquisition of Papillon Resources would imply 20-per-cent upside from the current share price (Fekola is higher grade, while Haile has better infrastructure and lower geopolitical risk, and both projects have above average grades and meaningful exploration upside." Ramarco said this week that the United States Army Corps expects to issue its permitting decision on the project in November of this year. That would allow for construction to start in early 2015, with potential for first gold production in late 2016.