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IAMGOLD Corp (TSE:IMG)
TSX:IMG
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IAMGOLD
(TSX:IMG)
72Outperform
Positive Factors
Analyst Rating
The analyst maintains a BUY rating on IAMGOLD and increases the target price to C$13.00 following the company's Q4/24 results and year-end reserve and resource update.
Financial Position
IAMGOLD has reduced net debt from $1.15 billion at Q1/24 to $833 million at year-end, with further deleveraging forecasted to end 2025 with net debt of $389 million.
Production Performance
IAMGOLD's full-year 2024 total attributable gold production of 667koz achieved company guidance, revised upwardly with Q2 results after strong performance from Westwood and Essakane in the first half of the year.
Negative Factors
Operational Challenges
The ramp-up of Côté Gold faced challenges, notably with the crushing and grinding circuits, leading to unscheduled downtimes.
IAMGOLD (IMG) vs. S&P 500 (SPY)
Market Cap
$4.95B
Dividend YieldN/A
Average Volume (3M)1.96M
Price to Earnings (P/E)4.2
Beta (1Y)2.20
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees3,700
SectorBasic Materials
Sector Strength61
IndustryGold
Share Statistics
EPS (TTM)2.02
Shares Outstanding572,400,000
10 Day Avg. Volume2,300,585
30 Day Avg. Volume1,964,393
Financial Highlights & Ratios
PEG Ratio0.00631
Price to Book (P/B)N/A
Price to Sales (P/S)2.09
Price to Cash Flow (P/CF)8.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.07Price Target Upside30.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
IAMGOLD Business Overview & Revenue Model
Company DescriptionIAMGOLD Corporation, through its subsidiaries, explores, develops, and operates gold mining properties in North America, South America, and West Africa. The company owns interests in the Rosebel mine located in Suriname, South America; the Essakane mine situated in Burkina Faso and Boto gold project located in Senegal, West Africa; and Westwood mine, covers an area of 1,925 hectare and located in Quebec and the Côté gold project, which covers an area of 586 square kilometer located in Ontario, Canada. Its exploration and development projects include the Pitangui project in Brazil; the Karita project located in Guinea; the Diakha-Siribaya project situated in Mali; and the Nelligan and Monster Lake projects located in Quebec, Canada. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.
How the Company Makes MoneyIAMGOLD generates revenue primarily through the sale of gold produced at its mining operations. The company operates multiple mines and sells the extracted gold in the global markets. Key revenue streams include the direct sale of gold to refineries and gold trading markets. Additionally, IAMGOLD may earn income from the sale of by-products like silver and copper, which are extracted alongside gold. The company's earnings are influenced by factors such as gold market prices, production costs, and the efficiency of its mining operations. Strategic partnerships and joint ventures in exploration and development also contribute to IAMGOLD's revenue by sharing operational risks and leveraging additional resources.
IAMGOLD Financial Statement Overview
Summary
IAMGOLD shows strong profitability and revenue growth with a healthy balance sheet. However, cash flow challenges due to high capital expenditures present potential risks.Income Statement
IAMGOLD's income statement for TTM shows strong profitability with a gross profit margin of 32.1% and a net profit margin of 49.6%. The company has achieved a significant revenue growth rate of 48.0% from the previous year. EBIT and EBITDA margins are also solid at 56.1% and 74.0% respectively, indicating efficient operations and cost management. However, past volatility in net income and EBIT margins suggests some historical instability.78
Positive
Balance Sheet
The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 0.29. The equity ratio stands at 58.5%, demonstrating a solid capital structure. ROE is impressively high at 22.2%, indicating effective use of equity. However, the fluctuation in debt levels over the years poses a risk that should be monitored.70
Positive
Cash Flow
Cash flow analysis shows a challenging free cash flow situation with negative free cash flow in the TTM. Despite this, the operating cash flow to net income ratio is healthy at 0.63, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio is negative, indicating high capital expenditures affecting cash reserves.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.46B | 987.10M | 958.80M | 1.15B | 1.24B | 1.07B | Gross Profit |
| 468.80M | 124.10M | 147.90M | 2.70M | 250.30M | 69.60M | EBIT |
| 819.00M | -300.00K | 58.80M | -103.30M | 74.10M | -22.60M | EBITDA |
| 1.08B | 315.40M | 273.60M | 219.00M | 375.90M | -43.60M | Net Income Common Stockholders |
| 724.00M | 94.30M | -36.40M | -255.10M | 42.60M | -358.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 734.60M | 367.10M | 407.80M | 552.50M | 947.50M | 836.70M | Total Assets |
| 3.96B | 4.54B | 4.43B | 3.97B | 4.15B | 3.86B | Total Debt |
| 398.50M | 952.10M | 992.50M | 530.00M | 533.40M | 467.30M | Net Debt |
| -216.60M | 585.00M | 584.70M | -14.90M | -408.10M | -363.30M | Total Liabilities |
| 1.17B | 2.27B | 2.22B | 1.65B | 1.61B | 1.44B | Stockholders Equity |
| 2.73B | 2.21B | 2.13B | 2.24B | 2.46B | 2.35B |
| Cash Flow | Free Cash Flow | ||||
| -274.00M | -747.90M | -371.80M | -370.20M | 30.40M | 88.60M | Operating Cash Flow |
| 453.30M | 159.40M | 408.70M | 285.00M | 347.60M | 363.00M | Investing Cash Flow |
| -752.10M | -402.30M | -891.90M | -630.70M | -246.20M | -149.80M | Financing Cash Flow |
| 295.10M | 201.70M | 404.00M | -41.20M | 800.00K | 800.00K |
IAMGOLD Technical Analysis
Positive
8.51
Price Trends
8.49
Positive
8.06
Positive
7.19
Positive
Market Momentum
0.06
Negative
51.70
Neutral
77.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IMG, the sentiment is Positive. The current price of 8.51 is above the 20-day moving average (MA) of 8.22, above the 50-day MA of 8.49, and above the 200-day MA of 7.19, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IMG.
IAMGOLD Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:IMG
IAMGOLD
8.51
4.30
102.14%
AEM
Agnico Eagle
104.18
49.27
89.73%
GOLD
Barrick Gold
18.89
3.66
24.03%
KGC
Kinross Gold
12.20
6.58
117.08%
NGD
New Gold
3.23
1.65
104.43%
IAMGOLD Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -5.02% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in production growth and financial strength, notably with the startup of Côté Gold and updates to mineral resources. However, operational challenges at Côté Gold and increased costs at Essakane present notable concerns. The overall sentiment is slightly positive, driven by strong production and financial outcomes, albeit with some operational setbacks.Highlights
Record Gold Production Increase
IAMGOLD Corporation finished 2024 with total attributable gold production of 667,000 ounces, a 43% increase from the prior year, driven by the successful startup of Côté Gold and operational output from Essakane and Westwood.
Financial Strength and Liquidity
IAMGOLD ended the year with total liquidity of approximately $767 million, including a significant adjusted EBITDA of $781 million, and strengthened its balance sheet with bolstered credit facilities.
Significant Mineral Resource Updates
The Nelligan project saw a significant increase in ounces and grades, positioning it among the top largest gold deposits in Canada, with indications of continued growth.
Safety Improvement
The total recordable injury frequency rate improved to 0.63, showcasing efforts in health and safety.
Lowlights
Côté Gold Operational Challenges
Côté Gold faced higher-than-expected downtime due to unplanned repairs, impacting throughput and not meeting the intended 90% of nameplate throughput by year-end.
Increased Cash Costs and AISC
Cash costs and all-in sustaining costs (AISC) increased quarter over quarter, primarily due to rising waste stripping and lower grades at Essakane, and external pressures on supply chains and consumables.
Operational Delays at Côté Gold
Operational delays at Côté Gold were caused by unscheduled equipment maintenance, including conveyor belt issues and accelerated wear on HPGR rollers.
Company Guidance
During the IAMGOLD Corporation's fourth quarter and year-end 2024 conference call, several key metrics and guidance were discussed. The company reported total attributable gold production of 667,000 ounces for 2024, reflecting a 43% increase from the previous year and aligning with their revised guidance of 625,000 to 715,000 ounces. This was supported by the successful startup of Côté Gold and robust performance from Essakane and Westwood. Financially, IAMGOLD strengthened its position, generating approximately $781 million in adjusted EBITDA and ending the year with a total liquidity of around $767 million. The cash cost per ounce sold, excluding Côté, was $1,176 for the year, with an all-in sustaining cost (AISC) of $1,725 per ounce. For 2025, the company forecasts production of 360,000 to 400,000 ounces at Côté Gold, with cash costs expected between $950 to $1,100 per ounce and AISC ranging from $1,350 to $1,550. The company also highlighted an updated mineral resource estimate at its Nelligan project, with a significant increase in ounces, positioning it among Canada's largest gold deposits. IAMGOLD aims to ramp up Côté Gold to a steady state by the fourth quarter of 2025, while continuing to optimize operations and manage costs across its assets.IAMGOLD Corporate Events
IAMGOLD Reclaims 70% Stake in Côté Gold Mine
Dec 2, 2024
IAMGOLD has regained a 70% ownership stake in the Côté Gold Mine by repurchasing a 9.7% interest from Sumitomo Metal Mining for approximately $377 million. This strategic move underscores IAMGOLD’s commitment to advancing one of Canada’s largest gold mines, with the Côté Gold project expected to reach full operational capacity next year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.