R:TSX

Romarco Minerals Inc.

Romarco Minerals Inc. is a gold development company primarily focused on production in the United States. The company has completed a positive feasibility study, received all major permits and secured financing commitments for its flagship project, the Haile gold mine in South Carolina. Romarco's current construction schedule contemplates first production during Q4/16.

Expert Comments:

Jamie Spratt, Clarus Securities (7/31/15)
"Romarco Minerals Inc. has entered into a definitive agreement with OceanaGold Corp. to be acquired in an all-share transaction. . .the combined company would be a low-cost intermediate producer diversified across three jurisdictions (New Zealand, Philippines and the U.S.) producing over 500 Koz gold per year starting in 2017 with a top-quartile all-in sustaining cost of less than $600/oz. . .while we see this as an opportunistic takeout, we believe this bid provides Romarco shareholders with a significant premium and immediate value creation rather than having to wait for a producer re-rating 18 months from now."

Don Blyth, Paradigm Capital (7/31/15)
"OceanaGold Corp. and Romarco Minerals Inc. have entered into a definitive agreement whereby OceanaGold has agreed to acquire all of the issued and outstanding common shares of Romarco. . .the pro-forma combined company is forecast to be a new global intermediate gold producer with one of the lowest costs in the industry (2017 production forecast at 540 Koz at an all-in sustaining cost of less than $600/oz). . .we view this as an intelligent acquisition that adds growth and lowers the geopolitical risk profile of OceanaGold, which has its core asset in the Philippines. . .this was a strong bid (approximately 72% premium at initial announcement)."

Henry Lazenby, Mining Weekly (7/30/15)
"Triple-listed OceanaGold Corp. has agreed to buy Canadian project developer Romarco Minerals Inc. in an all-script deal valued at about CA$856M, which upon closing would create the lowest-cost global gold producer. . .boosted by a long reserve life, a portfolio of high-quality assets that generate significant free cash flow, and a solid pipeline of organic growth opportunities. . .the combined entity would operate from four operating platforms in three countries, with about 75% of 2017 gold output expected to come from New Zealand and the U.S. . .and would have greater financial flexibility."

Mike Parkin, Desjardins Securities (7/30/15)
"OceanaGold Corp. announced a friendly acquisition of Romarco Minerals Inc., whereby OceanaGold would acquire Romarco through an all-share offer at an implied offer price of CA$0.68 per share, a 72.7% premium based on yesterday's closing price (CA$0.39). Overall, we view this as a very good offer given weakness in the current gold price. . .the 72.7% premium is higher than the 53% average premium paid for developers since 2011. The price paid on a per total resource ounce also appears high at $136/oz compared with the average of $84/oz since 2011."

Ryan Walker, Euro Pacific Canada (7/30/15)
"Romarco Minerals Inc. has entered into a definitive agreement to be acquired by OceanaGold Corp. via an all-share offer. . .we view the bid positively as it represents a 71.8% premium to Romarco stock's 30-day value-weighted average price (at June 29). That premium exceeds the premiums offered in other recent merger and acquisition activity. . .the proposed combination would help to de-risk the company, transforming it from a single-asset development-stage company by bringing Haile into the fold of an existing low-cost, multi-jurisdictional/multi-asset producer, boosting consolidated production, and further lowering overall costs, and as such demanding a premium in the market."

Andrew Kaip, BMO Capital Markets (7/30/15)
"Romarco Minerals Inc. announced an all-share acquisition by OceanaGold Corp. . .the exchange values each Romarco share at CA$0.68, which represents a 72.7% premium from the July 29, 2015 close and a 71.8% premium based on the VWAP. . .the transaction premium provides significant value for Romarco shareholders."

More Expert Comments

Experts Commenting on This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Matt Badiali, Editor – Stansberry Research
Don Blyth, Analyst – Paradigm Capital
Eric Coffin, Owner – HRA Advisory
Adrian Day, Founder – Adrian Day Asset Management
Jessica Fung, Research Analyst – BMO Capital Markets
Doug Groh, Senior Research Analyst – Tocqueville Asset Management L.P.
John Hathaway, Senior Managing Director – Tocqueville Asset Management L.P.
Pav Jordan, Media Relations – BMO Capital Markets
Andrew Kaip, Analyst – BMO Capital Markets
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Chris Mancini, Research Analyst – Gabelli Gold Fund
Tony Robson, Managing Director and Co-Head for Global Mining Research – BMO Capital Markets
Lawrence Roulston – Quintana Resources Capital ULC
David Sadowski, Analyst – Raymond James
Florian Siegfried, Senior Portfolio Manager – AgaNola
Jamie Spratt, Analyst – Clarus Securities
Ron Stewart, Analyst – Macquarie Equity Research
Amanda van Dyke, Managing Director, Europe – Palisade Capital
Ryan Walker, Analyst – Euro Pacific Canada

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
High-Grade, Low-Cost Gold Mine
 
Fully Permitted & Funded World-Class Ore Body in USA
 
Strong Institutional Shareholder Base
catalyst Calendar
Q1
2015
Fully Permitted
Q1
2015
Fully Financed
Q2
2015
Q2
2015
Break Ground on Construction
Q3
2015
Q4
2015
Exploration Results
Romarco Minerals Inc. Content