IMG:CC - Iamgold plunges more than 25% as analysts cite unexpected Côté capex rise

Iamgold (NYSE:IAG) -26.5% pre-market on Wednesday following a Q1 earnings report that sparked at least three analyst downgrades. Credit Suisse cut Iamgold (IAG) shares to Underperform from Neutral with a $2.50 target, lowered from $3.50, saying the Q1 earnings beat was "overshadowed by ballooning" capital spending at the company's Côté gold project in Ontario. Iamgold (IAG) maintained full-year attributable gold production guidance of 605K oz at all-in sustained cost of $1,125-$1,670/oz, but the company noted cost/capex guidance could be revised higher to reflect inflationary pressures, and how sees remaining Côté capex of $1.2B-$1.3B and has withdrawn 2022-23 Côté capex guidance. "Preliminary cost estimates from the ongoing risk analysis at our Côté development project... represent significant near- and mid-term challenges," the company said. Canaccord Genuity downgraded shares to Sell from Hold with a C$2.75 PT, cut from C$4.50, saying Iamgold (IAG) is heading toward a funding shortfall in 2023; the firm

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Iamgold plunges more than 25% as analysts cite unexpected Côté capex rise