IAG - Iamgold -8% after BMO downgrade citing Côté project caution

Iamgold (NYSE:IAG) plunged from 10-month highs Monday after BMO Capital downgraded shares to Market Perform from Outperform and cut its price target to $2.75 from $4, expecting the miner's review of Côté's project scope and budget will be negative compared with previous guidance. BMO's Jackie Przybylowski currently estimates project Côté's capex at $1.96B, above $1.86B guidance, but she sees risk that the budget could grow further. The analyst also also cites the stock's 19% YTD appreciation and 27% surge since mid-February, compared with gold bullion's 8% gain YTD and 5.5% during the past two months. Iamgold (IAG) is investing in the Côté project, which should significantly help the gold production in 2024, but the company is struggling to keep capex and costs under control, Fun Trading notes in an analysis posted on Seeking Alpha.

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Iamgold -8% after BMO downgrade, citing Côté project caution