IAG - Iamgold: An Inferior Way To Buy The Dip

• Iamgold released its Q1 results earlier this month, reporting quarterly attributable production of ~174,000 ounces of gold, a 14% increase from the year-ago period.
• However, while a significant improvement on a year-over-year basis, the company was up against very easy comps, and continues to have one of the worst production trends sector-wide.
• While the construction-stage Cote Project will solve this declining production issue, getting into production won't be as easy as envisioned, with IAG announcing another massive increase in capex estimates.
• Given Iamgold's poor track record, razor-thin margins relative to peers, and what's now a risk of share dilution to fund the Cote Project shortfall, I continue to see the stock as an Avoid.

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