CymorFund CEO Larry Cyna in an interview with SmallCapPower.com (watch the interview here) on December 12, 2013, mentioned shares of Romarco Minerals Inc. (TSX: R) at $0.37 as being a potential 10 bagger for investors. Although he said the stock is a little more risky, he described the company as having an “enormous” gold deposit in the southeastern United States.
Mr. Cyna added that Romarco had been hit with delays in their permits a well as various other issues, but he believed these setbacks are behind the company. He thought Romarco was ready to begin mining gold and will be a “low-cost” producer.
Since his interview, Romarco Minerals stock has shot up 143% to its recent price of $0.90. While a much-improved gold price environment has aided the share price rise, the company’s flagship Haile Gold Project in the mining-friendly jurisdiction of South Carolina has about 2 million Proven & Probable gold ounces in addition to about 4 million Measured & Indicated ounces of gold at a little more than 2 grams per tonne.
Romarco estimates the project’s total capital costs at just US$320 million, and expects to mine this gold at a cash cost of US$379 an ounce, which includes silver by-product credits. The company also had about US$32 million in cash as of June 30, 2014, and recently announced a US$200 million debt financing mandate for the project.
Romarco forecasts mine construction to begin in 2015 with initial production anticipated sometime in 2016. Its expected gold output is about 150,000 ounces per year. The company, though, has nearly 700 million fully-diluted shares outstanding, which could weigh on its share price going forward. About 70% of its stock is held by institutional investors.
Romarco Minerals has also been the second best performing stock in the Ubika Gold 20 index in 2014, up 122% as of July 18.
See all 20 gold companies in the Ubika Gold 20 index and their share price performances HERE >>
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