IAG - Iamgold Has A Bright Future And Shares Could Get Cheaper
2024-07-17 08:46:19 ET
Summary
- IAMGOLD develops gold resources in Canada and Burkina Faso. The risk profile will be lowered by the new gold mine that the company is putting into commercial production in Ontario.
- Positive outlook for growth driven by rising gold prices and new production in Ontario, with all these assets being fed by a solid financial position.
- The share price is not expensive in light of the growth outlook, but the Fed's persistently higher for longer interest rates against inflation could make IAG shares cheaper.
- In principle, a "Buy" rating for IAMGOLD Corporation stock with the possibility to benefit from a dip in the coming weeks.
A “Buy” Rating for the Stock of IAMGOLD Corporation
In the previous analysis of the NYSE-listed shares of IAMGOLD Corporation ( IAG ), a “Buy” rating was also recommended. Buoyed by another gold production facility that was on track to be commissioned in Ontario and actually began pouring gold on April 2, this stock was believed to be well-positioned to benefit from an expected sharp rise in the price of gold.
About IAMGOLD Corporation
Headquartered in Toronto, Canada, IAMGOLD Corporation -- hereafter just “Iamgold” -- develops and extracts the yellow metal from three gold resources:
- A 100% interest in the 1,925-hectare Westwood project in Quebec, Canada.
- A 60% stake in the Côté gold project on a 596 square kilometer site in Ontario, Canada. Japan's Sumitomo Metal Mining (SMMYY) owns 40%.
- A 90% interest in the Essakane project in an area of ??274,000 square kilometers in Burkina Faso. The Government of Burkina Faso owns 10%.