IAMGOLD (IMG) AI Stock Analysis

264 Followers

Top Page

IAMGOLD

(TSX:IMG)

80Outperform

IAMGOLD's overall score reflects strong financial and production performance, supported by technical trends and a favorable valuation. Key strengths include significant revenue growth, improved financial metrics, and robust production outputs. However, the company faces challenges in managing operational costs and achieving positive free cash flow, which slightly offsets the positive outlook.

Positive Factors

Earnings

IAMGOLD's full-year 2024 total attributable gold production of 667koz achieved company guidance, revised upwardly with Q2 results after strong performance from Westwood and Essakane in the first half of the year.

Financial Performance

IAMGOLD has reduced net debt from $1.15 billion at Q1/24 to $833 million at year-end, with further deleveraging forecasted to end 2025 with net debt of $389 million.

Valuation

Shares are expected to further re-rate to a higher valuation as Côté ramps-up.

Negative Factors

Operational Challenges

The ramp-up of Côté Gold faced challenges, notably with the crushing and grinding circuits, leading to unscheduled downtimes.

Operational Risks

IAMGOLD repurchased the 9.7% interest in Côté from Sumitomo for $377.7 million, ending 2024 with $347.5 million in cash and $418.5 million available on its $650 million credit facility.

IAMGOLD (IMG) vs. S&P 500 (SPY)

Market Cap

$5.28B

Dividend YieldN/A

Average Volume (3M)2.07M

Price to Earnings (P/E)4.8

Beta (1Y)2.15

Revenue Growth71.21%

EPS Growth667.30%

CountryCA

Employees3,700

SectorBasic Materials

Sector Strength52

IndustryGold

Share Statistics

EPS (TTM)2.02

Shares Outstanding574,788,760

10 Day Avg. Volume2,375,091

30 Day Avg. Volume2,074,306

Financial Highlights & Ratios

PEG Ratio0.00713

Price to Book (P/B)N/A

Price to Sales (P/S)2.09

Price to Cash Flow (P/CF)8.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$11.14

Price Target Upside15.85% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

IAMGOLD Business Overview & Revenue Model

Company DescriptionIAMGOLD Corporation (IMG) is a mid-tier mining company primarily engaged in the exploration, development, and production of gold. Headquartered in Canada, the company operates in several countries, including Canada, Suriname, and Burkina Faso. IAMGOLD focuses on sustainable mining practices and is committed to ethical and environmentally responsible operations. Its core products include gold bullion and by-products such as silver and copper, which are extracted during the mining process.

How the Company Makes MoneyIAMGOLD generates revenue primarily through the sale of gold produced at its mining operations. The company operates multiple mines and sells the extracted gold in the global markets. Key revenue streams include the direct sale of gold to refineries and gold trading markets. Additionally, IAMGOLD may earn income from the sale of by-products like silver and copper, which are extracted alongside gold. The company's earnings are influenced by factors such as gold market prices, production costs, and the efficiency of its mining operations. Strategic partnerships and joint ventures in exploration and development also contribute to IAMGOLD's revenue by sharing operational risks and leveraging additional resources.

IAMGOLD Financial Statement Overview

Summary

IAMGOLD's financial performance has improved significantly, with strong revenue and profit growth. The company is efficiently utilizing its equity and managing its debt levels. However, it needs to address its negative free cash flow by optimizing capital expenditures to sustain long-term growth.

Income Statement

Very Positive

IAMGOLD has shown significant revenue growth from 2023 to 2024, with a notable increase in net income and gross profit margins. The EBIT and EBITDA margins have improved drastically, indicating better operational efficiency and profitability. However, the company faced challenges in previous years, with fluctuating profitability.

Balance Sheet

Positive

The balance sheet reflects a strong equity position with an improving debt-to-equity ratio over the years. The return on equity has significantly increased, indicating efficient use of equity capital. However, the total debt has increased, which could pose a risk if not managed properly.

Cash Flow

Positive

The cash flow statement shows improvement in operating cash flow, though free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income, but the company needs to better manage its capital expenditures to achieve positive free cash flow.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.63B	987.10M	958.80M	1.15B	1.24B
	Gross Profit
549.90M	124.10M	147.90M	2.70M	250.30M
	EBIT
944.00M	-300.00K	58.80M	-103.30M	74.10M
	EBITDA
1.25B	315.40M	273.60M	219.00M	375.90M
	Net Income Common Stockholders
819.60M	94.30M	-36.40M	-255.10M	42.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
348.50M	367.10M	407.80M	552.50M	947.50M
	Total Assets
5.37B	4.54B	4.43B	3.97B	4.15B
	Total Debt
1.15B	952.10M	992.50M	530.00M	533.40M
	Net Debt
805.60M	585.00M	584.70M	-14.90M	-408.10M
	Total Liabilities
1.97B	2.27B	2.22B	1.65B	1.61B
	Stockholders Equity
3.34B	2.21B	2.13B	2.24B	2.46B
Cash Flow		Free Cash Flow
-151.40M	-817.30M	-371.80M	-370.20M	30.40M
	Operating Cash Flow
486.00M	159.40M	408.70M	285.00M	347.60M
	Investing Cash Flow
-582.40M	-402.30M	-891.90M	-630.70M	-246.20M
	Financing Cash Flow
83.30M	201.70M	404.00M	-41.20M	800.00K

IAMGOLD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.62

Price Trends

50DMA

8.66

Positive

100DMA

8.26

Positive

200DMA

7.43

Positive

Market Momentum

MACD

0.17

Negative

RSI

58.67

Neutral

STOCH

57.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IMG, the sentiment is Positive. The current price of 9.62 is above the 20-day moving average (MA) of 8.78, above the 50-day MA of 8.66, and above the 200-day MA of 7.43, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 57.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IMG.

IAMGOLD Peers Comparison

Overall Rating

UnderperformOutperform

Sector (47)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMG	80 Outperform	$5.28B	4.76	29.57%	―	71.21%	667.30%
K	80 Outperform	$22.60B	17.37	14.66%	0.94%	23.38%	131.87%
AEM	80 Outperform	C$75.47B	28.74	9.42%	1.51%	26.99%	-6.63%
ABX	73 Outperform	$45.63B	15.82	9.00%	2.15%	15.40%	72.49%
NGD	73 Outperform	$3.61B	25.92	11.14%	―	18.32%	―
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%

* Basic Materials Sector Average

Performance Comparison

TSE:IMG

IAMGOLD

9.62

4.64

93.17%

TSE:K

Kinross Gold

19.14

10.47

120.81%

TSE:NGD

New Gold

4.75

2.26

90.76%

TSE:ABX

Barrick Gold

26.89

2.80

11.61%

TSE:AEM

Agnico Eagle

156.03

73.04

88.01%

IAMGOLD Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: 7.37% | Next Earnings Date: May 6, 2025

Earnings Call Sentiment Positive

The earnings call highlights significant achievements in production growth and financial strength, notably with the startup of Côté Gold and updates to mineral resources. However, operational challenges at Côté Gold and increased costs at Essakane present notable concerns. The overall sentiment is slightly positive, driven by strong production and financial outcomes, albeit with some operational setbacks.

Highlights

Record Gold Production Increase

IAMGOLD Corporation finished 2024 with total attributable gold production of 667,000 ounces, a 43% increase from the prior year, driven by the successful startup of Côté Gold and operational output from Essakane and Westwood.

Financial Strength and Liquidity

IAMGOLD ended the year with total liquidity of approximately $767 million, including a significant adjusted EBITDA of $781 million, and strengthened its balance sheet with bolstered credit facilities.

Significant Mineral Resource Updates

The Nelligan project saw a significant increase in ounces and grades, positioning it among the top largest gold deposits in Canada, with indications of continued growth.

Safety Improvement

The total recordable injury frequency rate improved to 0.63, showcasing efforts in health and safety.

Lowlights

Côté Gold Operational Challenges

Côté Gold faced higher-than-expected downtime due to unplanned repairs, impacting throughput and not meeting the intended 90% of nameplate throughput by year-end.

Increased Cash Costs and AISC

Cash costs and all-in sustaining costs (AISC) increased quarter over quarter, primarily due to rising waste stripping and lower grades at Essakane, and external pressures on supply chains and consumables.

Operational Delays at Côté Gold

Operational delays at Côté Gold were caused by unscheduled equipment maintenance, including conveyor belt issues and accelerated wear on HPGR rollers.

Company Guidance

During the IAMGOLD Corporation's fourth quarter and year-end 2024 conference call, several key metrics and guidance were discussed. The company reported total attributable gold production of 667,000 ounces for 2024, reflecting a 43% increase from the previous year and aligning with their revised guidance of 625,000 to 715,000 ounces. This was supported by the successful startup of Côté Gold and robust performance from Essakane and Westwood. Financially, IAMGOLD strengthened its position, generating approximately $781 million in adjusted EBITDA and ending the year with a total liquidity of around $767 million. The cash cost per ounce sold, excluding Côté, was $1,176 for the year, with an all-in sustaining cost (AISC) of $1,725 per ounce. For 2025, the company forecasts production of 360,000 to 400,000 ounces at Côté Gold, with cash costs expected between $950 to $1,100 per ounce and AISC ranging from $1,350 to $1,550. The company also highlighted an updated mineral resource estimate at its Nelligan project, with a significant increase in ounces, positioning it among Canada's largest gold deposits. IAMGOLD aims to ramp up Côté Gold to a steady state by the fourth quarter of 2025, while continuing to optimize operations and manage costs across its assets.

IAMGOLD Corporate Events

Financial DisclosuresRegulatory Filings and Compliance

IAMGOLD Files 2024 Financial Reports with Regulatory Authorities

Neutral

Mar 21, 2025

IAMGOLD Corporation has filed its 2024 annual audited financial statements and related documents with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. These filings, available on EDGAR and SEDAR, provide stakeholders with insights into the company’s financial health and strategic direction. The release of these documents is a critical step in maintaining transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.