Source: Streetwise Reports 05/10/2018
CIBC reviewed this mid-tier company’s Q1/18 results.
In a May 7 research note, CIBC analyst David Haughton reported that IAMGOLD Corp. (IMG:TSX; IAG:NYSE) “continued the recent positive operating momentum with strong Q1/18 results, and these good results should be well received.”
The miner’s adjusted earnings per share for the quarter were $0.09, higher than CIBC’s estimate of $0.05 and “well ahead of consensus” at $0.03, Haughton indicated.
During Q1/18, IAMGOLD generated about $41 million ($41M) in free cash flow “with net cash balance increasing to $312M from $272M at year-end, plus $126M in short-term investment,” relayed Haughton.
The company produced 229 thousand ounces (229 Koz) of gold, more than CIBC’s estimated 219 Koz. Gold sales during Q1/18 totaled 235 Koz. Westwood had a record quarter in terms of production with higher grades and throughput. Essakane, also with a strong operating performance during the quarter, produced higher grades, too. Essakane and Westwood offset numbers out of Rosebel. That mine, in contrast, did not meet expected production due to “lower grades (mining sequencing) and throughput (more hard rock processed),” Haughton explained.
IAMGOLD’s costs during Q1/18 were a beat. Cash costs were $737 an ounce ($737/oz), lower than CIBC’s $776/oz estimate. All-in sustaining costs were $953/oz, under CIBC’s predicted $960/oz.
As for catalysts anticipated this year, a heap-leach prefeasibility study for Essakane is due out this quarter, Q2/18. Expected in H2/18 are an initial reserve estimate for Saramacca and a feasibility study for Boto.
About IAMGOLD overall, Haughton concluded that it “presents reasonable value with improving operations and near-term production growth.”
CIBC has an Outperformer rating and a US$7.50 per share target price on IAMGOLD, whose stock is currently trading at US$6.18 per share.
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Disclosures from CIBC, IAMGOLD Corp., May 7, 2018
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From:: The Gold Report