| Iamgold Corp Experiences Collapse | |
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- By Alberto Abaterusso
Iamgold Corp. (IAG) collapsed 8.9% following the release of fourth-quarter 2017 results. By early Friday, it was trading just under $6 a share, up 1.4%.
Iamgold closed the last three months of fiscal 2017 with an adjusted loss of 3 cents per share or an adjusted loss of $13.8 million. This was a negative turnaround from the prior-year quarter when Iamgold Corp. reported an adjusted net profit of one cent per share or an adjusted net income of $3.3 million. The Canadian mid-tier gold producer missed expectations on the quarterly bottom line by 4 cents. The negative surprise of 400% sent Iamgold Corp. 4.6% below the 200-SMA line ($5.592) at a share price that sank at $5.34, which is just a whisper away from the midst of $3.36 to $7.25 52-week range. Source: Yahoo Finance The quarterly figure of revenue came in at $291.1 million and the Canadian miner beat consensus by $14.32 million. Fourth-quarter 2017 revenue was 15.3% higher than the prior-year quarter helped by higher volumes of metal sold at Westwood (southwestern Quebec, Canada) and at Essakane (Burkina Faso, West Africa), and by a higher price realized by the company from the sale of one ounce of gold in the quarter. The company reported a decrease in sales at Rosebel (Suriname), but this could only partially counterbalance the positive effects mentioned before. With regard to the entire year of fiscal 2017, Steve Letwin, president and chief executive officer, said that "it was a year of outstanding accomplishments" in terms of solid operating performance, improvements in the company's cost structure and gross profit. Total liquidity as of Dec. 30, 2017 amounts to $1 billion. The recent tumble widened the current market value to the average target price margin enhancing the chances of stock appreciation for growth catalysts in 2018. Iamgold Corp highlights the following impetuses:
- Preliminary reserve estimate expected for Saramacca H2/18; integrated scheduling with Rosebel's resources to commence in 2018; production start expected H2/19.
- Completion of pre-feasibility study for Essakane's Heap Leach Project expected Q2/18.
- Commissioning of oxygen plant to improve recoveries at Essakane expected end of 2018.
- Completion of 15 megawatt-peak solar power plant at Essakane expected end of Q1/18.
- Completion of Boto Gold feasibility study expected H2/18.
Source: Iamgold Corp's News Release
As of Dec. 30, 2017, the miner has a price-book (P/B) ratio of 0.87 times versus an industry average that for GuruFocus is 2.05 times. (Disclosure:I have no positions in any stock mentioned in this article.) This article first appeared on GuruFocus.
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IAMGOLD Corporation
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PRODUCER |
CODE : IMG.TO |
ISIN : CA4509131088 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
IAMGOLD is a gold producing company based in Canada. IAMGOLD produces gold, diamonds, lead, niobium, rare earth, silver and zinc in Botswana, in Canada, in Ecuador, in Ghana, in Guyana, in Indonesia, in Mali, in Peru, in South Africa, in Suriname and in Tanzania, develops gold in Burkina Faso, in Ecuador and in French Guyana, and holds various exploration projects in Canada, in Ecuador, in Honduras, in Peru and in South Africa. Its main assets in production are OMAI MINE in Guyana, MOUSKA MINE, PORCUPINE, SLEEPING GIANT, DOYON, NIOBEC and GRAND DUC in Canada, YATELA and SADIOLA in Mali, MUPANE in Botswana, DAMANG PROJECT, TARKWA and TEBEREBIE in Ghana, ROSEBEL in Suriname, ZARUMA in Ecuador, ARDO MINE in South Africa, BUCKREEF in Tanzania, RAWAS GOLD PROJECT in Indonesia and TAMBORAQUE in Peru, its main assets in development are ESSAKANE in Burkina Faso, CAMP CAIMAN in French Guyana and QUIMSACOCHA PROJECT in Ecuador and its main exploration properties are BAMBADJI in Senegal, TEX-SOL, LESPERANCE, CREVIER and WESTWOOD in Canada, ALAMOUTALA (SADIOLA II) and SIRIBAYA in Mali, GILT EDGE MINE & ANCHOR HILL in Ecuador, PODEROSA MINE in Peru and VUELTAS DEL RIO / EL ZAPOTAL in Honduras. IAMGOLD is listed in Australia, in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 2.4 billions as of today (US$ 1.8 billions, € 1.6 billions). Its stock quote reached its highest recent level on April 28, 2006 at CA$ 9.98, and its lowest recent point on September 30, 2022 at CA$ 1.27. IAMGOLD has 464 620 000 shares outstanding. |