Target: $2.50 (Unchanged)

Stock Rating: Outperform (Unchanged)

Risk Rating: Speculative (Unchanged)

Event:

Romarco provided updated guidance for the additional work to complete the hydrology as part of the Draft EIS. In addition, the company secured staged payments of its operating equipment to provide additional financial flexibility.

Key Takeaways:

Romarco expects the data collection and associated modeling to be completed in Q2/13. This is within our modeled expectations and should allow for enough time for final permits in Q2/14. The company’s year-end cash balance of $65 mln was in line with our model expectations. Conference call at 8:30 a.m. ET 1-888-231-8191. We continue to contend that Romarco is one of a small handful of executable projects with a low capital cost intensity that should benefit under our production cliff scenario. Catalysts: 1) updated permitting timeline, 2) ongoing drill results, 3) Draft EIS and 4) final permits.