IAMGOLD: Operational and Financial Enhancements Drive ‘Buy’ Rating Amid Côté Project Optimism

IAMGOLD (IAG) has received a new Buy rating, initiated by BMO Capital analyst, Matt Murphy.

Matt Murphy has given his Buy rating due to a combination of factors including the anticipated improvements in IAMGOLD’s operations and financial position. The Côté project is expected to significantly enhance production and reduce costs by 2025, contributing to an expansion in margins. Additionally, the potential integration of the Côté pit with the Gosselin zone could lead to a substantial resource base, which the market may start to recognize soon.
Furthermore, IAMGOLD is positioned to improve its financial structure as the pre-pay at Côté concludes and long-term debt becomes callable, allowing for a restructuring into a lower-cost facility. Despite a recent increase in stock value, IAMGOLD still trades at a discount compared to its peers, suggesting further upside potential. The combination of these operational and financial improvements underpins the Outperform rating reinstated by Matt Murphy.

In another report released on April 10, J.P. Morgan also maintained a Buy rating on the stock with a €5.50 price target.