IAMGOLD (IMG) AI Stock Analysis

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IAMGOLD

(TSX:IMG)

Rating:70Outperform

Price Target:

C$10.00

▲( 8.11% Upside)

IAMGOLD's strong valuation due to its low P/E ratio, combined with solid financial performance, drives the overall score. The earnings call provided mixed insights, with strong production and financial position tempered by higher operational costs. Technical analysis presents a neutral to slightly bearish outlook, impacting the score.

Positive Factors

Financial Stability

IAMGOLD Corp plans to restructure its high-cost debt into a lower-cost facility, which will enhance financial stability.

Margin Expansion

The Côté asset is expected to drive margin expansion for IAMGOLD Corp by bringing high-volume, lower-cost ounces into production.

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. iShares MSCI Canada ETF (EWC)

Market Cap

$5.30B

Dividend YieldN/A

Average Volume (3M)2.51M

Price to Earnings (P/E)4.7

Beta (1Y)2.08

Revenue Growth69.19%

EPS Growth417.02%

CountryCA

Employees3,700

SectorBasic Materials

Sector Strength60

IndustryGold

Share Statistics

EPS (TTM)0.14

Shares Outstanding575,100,000

10 Day Avg. Volume2,342,702

30 Day Avg. Volume2,508,983

Financial Highlights & Ratios

PEG Ratio-1.74

Price to Book (P/B)1.07

Price to Sales (P/S)0.00

P/FCF Ratio-34.92

Enterprise Value/Market Cap0.84

Enterprise Value/Revenue0.73

Enterprise Value/Gross Profit7.62

Enterprise Value/Ebitda1.10

Forecast

1Y Price Target

$11.72

Price Target Upside26.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

IAMGOLD Business Overview & Revenue Model

Company DescriptionIAMGOLD Corporation is a mid-tier mining company primarily engaged in the exploration, development, and production of gold. The company operates in several countries, focusing on gold mining projects and leveraging its expertise in the mining sector to enhance production and efficiency. Key operations include mines in North America, South America, and West Africa. IAMGOLD aims to create sustainable value for its stakeholders by optimizing operations and exploring new opportunities in the gold sector.

How the Company Makes MoneyIAMGOLD makes money primarily through the extraction and sale of gold from its mining operations. The company generates revenue by producing gold at its various mining sites and selling it on the global market. Key revenue streams include the sale of gold bullion and, to a lesser extent, by-products such as silver. IAMGOLD's earnings are influenced by factors such as gold market prices, production costs, and operational efficiency. The company may also engage in strategic partnerships and joint ventures to enhance its mining capabilities and expand its resource base, contributing to its overall revenue.

IAMGOLD Financial Statement Overview

Summary

IAMGOLD presents a strong financial position with growing revenues and robust profitability margins, particularly in its EBIT and EBITDA. While leverage is under control, the overall stability of the financial structure is slightly impacted by high liabilities. The negative free cash flow highlights a need for careful capital allocation to ensure sustainable growth without compromising liquidity.

Income Statement

Positive

IAMGOLD has shown a solid revenue growth of approximately 8.47% over the TTM (Trailing-Twelve-Months), and both EBIT and EBITDA margins are strong at 54.74% and 73.50% respectively, indicating strong operational efficiency. The gross profit margin stands at 33.05%, showing improvement in profitability. However, the net profit margin decreased slightly to 45.43% in the TTM, down from 50.18% in the previous year due to higher operating expenses.

Balance Sheet

Positive

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.34, indicating manageable leverage. The equity ratio is robust at 62.95%, suggesting strong asset backing by equity. Return on Equity (ROE) improved significantly to 23.72%, but potential risks include high total liabilities compared to historical levels, which could constrain future financing options.

Cash Flow

Neutral

IAMGOLD's cash flow reveals challenges with free cash flow being negative at -$104 million, indicating high capital expenditures relative to cash generated from operations. The operating cash flow to net income ratio is 0.60, suggesting good cash generation from operations. However, consistent negative free cash flow poses a concern for long-term sustainability if capital spending remains high.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.77B	1.63B	987.10M	958.80M	1.15B	1.24B
	Gross Profit
585.40M	549.90M	124.10M	147.90M	2.70M	250.30M
	EBIT
969.60M	944.00M	-300.00K	58.80M	-103.30M	74.10M
	EBITDA
1.30B	1.25B	315.40M	273.60M	219.00M	375.90M
	Net Income Common Stockholders
804.50M	819.60M	94.30M	-36.40M	-255.10M	42.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
317.30M	348.50M	367.10M	407.80M	552.50M	947.50M
	Total Assets
5.39B	5.37B	4.54B	4.43B	3.97B	4.15B
	Total Debt
1.15B	1.15B	952.10M	992.50M	530.00M	533.40M
	Net Debt
832.00M	805.60M	585.00M	584.70M	-14.90M	-408.10M
	Total Liabilities
1.93B	1.97B	2.27B	2.22B	1.65B	1.61B
	Stockholders Equity
3.39B	3.34B	2.21B	2.13B	2.24B	2.46B
Cash Flow		Free Cash Flow
-104.00M	-151.40M	-817.30M	-371.80M	-370.20M	30.40M
	Operating Cash Flow
483.20M	486.00M	159.40M	408.70M	285.00M	347.60M
	Investing Cash Flow
-504.60M	-582.40M	-402.30M	-891.90M	-630.70M	-246.20M
	Financing Cash Flow
44.00M	83.30M	201.70M	404.00M	-41.20M	800.00K

IAMGOLD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.25

Price Trends

50DMA

9.26

Negative

100DMA

8.81

Positive

200DMA

8.01

Positive

Market Momentum

MACD

-0.14

Positive

RSI

48.88

Neutral

STOCH

42.90

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 9.25 is below the 20-day moving average (MA) of 9.44, below the 50-day MA of 9.26, and above the 200-day MA of 8.01, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 42.90 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 (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OR	74 Outperform	$6.38B	144.91	2.50%	0.77%	12.78%	―
ELD	74 Outperform	$5.52B	12.31	8.91%	―	41.46%	187.54%
OLA	71 Outperform	C$4.32B	40.45	-0.28%	―	72.95%	97.10%
BTO	70 Outperform	$5.90B	―	-17.61%	4.38%	5.97%	-1677.31%
IMG	70 Outperform	$5.30B	4.70	28.42%	―	69.19%	417.02%
ARTG	62 Neutral	$4.81B	―	-3.49%	―	―	-154.04%
Sector *	50 Neutral	$2.00B	-1.02	-21.34%	3.70%	2.00%	-30.65%

* Basic Materials Sector Average

Performance Comparison

TSE:IMG

IAMGOLD

9.11

3.80

71.56%

TSE:OR

Osisko Gold Royalties

34.61

12.76

58.37%

TSE:BTO

B2Gold

4.56

1.00

28.02%

TSE:ELD

Eldorado Gold

26.95

5.87

27.85%

TSE:OLA

Orla Mining

14.19

8.68

157.53%

TSE:ARTG

Artemis Gold

21.78

11.38

109.42%

IAMGOLD Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -9.14%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive and negative aspects. The highlights include significant production ramp-up at Cote Gold, strong financial position, and progress in debt reduction. However, these were tempered by higher cash costs, challenges at Westwood, and increased operational costs at Essakane.

Q1-2025 Updates

Positive Updates

Record Production Ramp-up at Cote Gold

Cote Gold achieved a monthly throughput of 1 million tonnes processed, operating at 90% of nameplate capacity. The plant is on target to achieve full nameplate production of 36,000 tonnes per day by the end of the year.

Increased Attributable Production

IAMGOLD reported an attributable production of 161,000 ounces for the first quarter, a 7% year-over-year increase, mainly due to the addition of Cote Gold.

Strong Financial Position

IAMGOLD ended the quarter with $316.6 million in cash and cash equivalents and a liquidity of approximately $745.8 million.

Progress in Debt Reduction

IAMGOLD made significant progress in reducing debt, delivering 37,500 ounces into gold prepay arrangements, with the remaining 25,000 ounces to be delivered by mid-year.

Positive Free Cash Flow

Mine site free cash flow increased to $140 million in Q1 2025, compared to $46 million in the same period of the prior year.

Potential Expansion at Cote

Plans to conduct a 45,000-meter drill program focusing on resource conversion at Gosselin, potentially leading to a 'super pit' combining Cote and Gosselin zones.

Negative Updates

Higher Cash Costs

Cash costs averaged $1,459 per ounce, and all-in sustaining costs averaged $1,908 per ounce, higher than industry averages.

Challenges at Westwood

Westwood's underground head grade came in lower at 6.28 grams per tonne due to temporary equipment challenges, affecting blasting efficiency.

Security and Costs at Essakane

Essakane faced increased costs due to higher landed fuel prices and security concerns in Burkina Faso, with royalties accounting for $203 per ounce.

Company Guidance

During the IAMGOLD First Quarter 2025 Conference Call, the company provided detailed guidance and performance metrics. IAMGOLD began the year with a modest production of 161,000 ounces of gold and remains confident in achieving its 2025 attributable production guidance of 735,000 to 820,000 ounces. The Cote Gold mine achieved monthly throughput of 1 million tonnes processed, with the plant operating at over 90% of nameplate capacity, and aims to reach 36,000 tonnes per day by year-end. Cash costs were reported at $1,459 per ounce, with all-in sustaining costs at $1,908 per ounce. The company generated a mine site free cash flow of $140 million in Q1, a significant increase from $46 million in the same period the prior year. IAMGOLD also delivered 37,500 ounces into its gold prepay arrangements and expects to complete these obligations by mid-year. Financially, the company ended the quarter with $316.6 million in cash and cash equivalents and net debt of $882.3 million, with plans to reduce debt levels and costs progressively.

IAMGOLD Corporate Events

Financial DisclosuresRegulatory Filings and Compliance

IAMGOLD Files 2024 Financial Reports with Regulatory Authorities

Neutral

Mar 21, 2025

IAMGOLD Corporation has filed its 2024 annual audited financial statements and related documents with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. These filings, available on EDGAR and SEDAR, provide stakeholders with insights into the company’s financial health and strategic direction. The release of these documents is a critical step in maintaining transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

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.