Investorideas.com
Search  Follow Investorideas on Twitter  Investorideas is on Facebook  Investorideas is on Google Plus  Investorideas is on Youtube  Investorideas is on Pinterest  Investorideas is on tumblr  Investorideas is on LinkedIn  Investorideas is on Medium  Investorideas RSS 


Investorideas podcasts on iTunes, Google Play Music and iHeart.com


Gold Producer Posts Q3 Beat on Lower Costs

Source: Streetwise Reports

 

November 13, 2017 (Investorideas.com Newswire) BMO Capital Markets reported the Q3/17 financial and operating results for this international, mid-tier gold miner.


A Nov. 7 BMO Capital Markets research note indicated that IAMGOLD Corp. (IMG:TSX; IAG:NYSE) achieved a Q3/17 headline earnings per share (EPS) of $0.07, which was a beat due to costs being lower than estimated, according to analyst Andrew Kaip. BMO and consensus expected an EPS of $0.02.

The Canadian company's operating cash flow of $77 million ($77M) was exactly in line with BMO's estimate, Kaip noted. Free cash flow of $36M was three times the expected $12M, "as capital spending came in below expectations ($41M versus BMO at $65M)." On this result, IAMGOLD lowered capital guidance for 2017 by $25M to $225M (+/-5%).

Production in Q3/17 of 217,000 ounces (217 Koz) was a slight miss, coming in below BMO's estimate for 223 Koz, "on lower-than-expected production from Rosebel," wrote Kaip. Yet, the company reiterated 2017 production guidance of 845–885 Koz gold.

All costs during the quarter were lower than anticipated. Total cash costs were $771 per ounce ($771/oz) versus the $797/oz estimate. All-in sustaining costs (AISCs), excluding royalties, were $969/oz and compared to the projected $1,059/oz. Consequently, "AISC guidance was narrowed to $1,000–1,040/oz (was $1,000–1,080/oz)," relayed Kaip.

As of Sept. 30, 2017, Kaip added, IAMGOLD had "cash and short-term investments of $810M and long-term debt of $389M, for net cash of $422M."

In other news, a near-term catalyst for IAMGOLD—"by H1/18"—is completion of both a preliminary reserve estimate for and permitting work at the Saramucca deposit, Kaip said. The company "is working towards advancing the project toward production in 2019."

BMO Capital has an Outperform rating and a $5.75 per share target price on IAMGOLD, whose stock is currently trading at around $8 per share.

Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.


Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources

Gold-MiningStocks.com - investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

Get News on Mining Stocks


More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.


Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max



Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner