IAG - Iamgold: Industry-Leading Growth At Improving Margins

2024-05-01 10:04:42 ET

Summary

• Iamgold Corporation had another year in 2023 with industry-lagging margins, despite beating its guidance midpoint and having a much better Q4 at Westwood.
• Unfortunately, this trend of razor-thin margins is expected to continue into Q1 despite the higher gold price, but we will see Iamgold morph into a lower-cost producer by year-end.
• In this update, we’ll dig into Iamgold’s FY2023 results, its Q1 2024 outlook, and if the company’s industry-growth profile from its Cote Gold Project is priced into the stock after.

The Q1 Earnings Season began last week, and the results have been solid overall, with most producers enjoying significant margin expansion year-over-year. Unfortunately, Iamgold Corporation ( IAG ) was one name that ended FY2023 with razor-thin margins, and while its Cote Gold Project (~55% ownership) has poured its first gold , the company will see another high-cost Q1 and H1 on deck as the asset ramps up towards full production. In this update, we’ll dig into Iamgold’s FY2023 results, its Q1 2024 outlook (the release is expected post-market on May 9th), and if the company’s industry-growth profile from its Cote Gold Project is priced into the stock after a monster rally....

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