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Topic: Mining Stocks

Gold mining stocks: IAMGold profits from soaring gold prices

IAMGold, symbol IMG on Toronto, owns 38% of the Sadiola mine and 40% of the Yatela mine, both located in Mali; 100% of the Mupane gold mine in Botswana, 90% of the Essakane gold mine in Burkina Faso; 100% of the Doyon mine in Quebec; and 100% of the Rosebel mine in Suriname, South America.

We analyze IAMGold in Stock Pickers Digest, our newsletter that recommends stocks (including gold mining stocks) for the part of your portfolio you devote to aggressive investing.

IAMGold also owns the Niobec niobium mine in Quebec, and has a 1% royalty interest in the Diavik diamond mine in the Northwest Territories.

In the three months ended June 30, 2011, the gold mining stock’s revenue rose 74.5%, to $345.7 million from $198.1 million (all figures except share price in U.S. dollars). The company’s production rose, partly because the Essakane mine started up in late 2010. Higher gold prices also pushed up revenue. The gold mining stock’s cash flow almost doubled, to $0.40 a share from $0.22 a share a year earlier.

Earlier in 2011, IAMGold sold its 18.9% stake in the Tarkwa and Damang gold mines in Ghana to South African mining giant Gold Fields Ltd. IAMGold received cash of $667 million U.S. for these interests.

The company now holds over $1.2 billion U.S. in cash and gold bullion.

We updated our advice on IAMGold in our August 26, 2011, Stock Pickers Digest hotline, which you can immediately view when you take a 1-month free trial to Stock Pickers Digest. Click here to learn how you can start profiting from Stock Pickers Digest right away.

(Note: If you are a current Stock Pickers Digest subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

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