2023-05-01 11:13:35 ET
Iamgold ( NYSE: IAG ) +3.2% in Monday's trading after BMO Capital resumed coverage and upgraded the stock to Outperform from Market Perform with a $3.25 price target, saying the company is now cleaner and better funded than in December, when BMO restricted coverage.
Iamgold ( IAG ) "has made a remarkable financial recovery in recent months, and it has shed some of its higher cost/higher risk assets," BMO's Jackie Przybylowski wrote, also expecting operations recovery will follow despite continued risks to startup at the Côté project in Ontario.
Following various sales in last year's Q4 and an "incredibly favorable funding arrangement" with Sumitomo Metal Mining in December , plus strong cash flows from the Essakane gold mine in Burkina Faso, Przybylowski assumes Iamgold ( IAG ) is fully funded for Côté construction.
The analyst also pointed to a strengthened management team, including new CEO Renaud Adams and his "strong track record" as CEO at New Gold and Richmont mines.
More on Iamgold:
- See financial and valuation comparisons to sector peers
- SA analysis: Iamgold: We Have A Second Elephant In The Room
- Stock price return: 16.5% gain YTD, 5.5% gain in the past 12 months
For further details see:
'Cleaner, well-funded' Iamgold upgraded to Outperform at BMO