IAMGOLD $5.23 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold- .com; Shares outstanding: 376.6 million; Market cap: $1.9 billion; Dividend yield: 4.7%) owns 38% of the Sadiola mine and 40% of the Yatela mine, both located in Mali; 90% of its new Essakane gold mine in Burkina Faso; 100% of the Doyon mine in Quebec; and 100% of the Rosebel mine in Suriname, South America.
IAMGold also has a 1% royalty interest in the Diavik diamond mine in the Northwest Territories. As well, it owns the Niobec niobium mine in Quebec. When used as an additive, niobium makes steel stronger, more heat resistant and easier to weld.
In the three months ended March 31, 2013, IAMGold’s revenue fell 13.8%, to $305.3 million from $354.l million a year earlier. Cash flow per share fell 35.4%, to $0.49 from $0.57. The declines mostly resulted from lower gold prices, partly offset by a decline in the company’s costs.
IAMGold’s production outlook is positive, and it’s cutting its risk by steadily diversifying away from Africa. Last year, it acquired the Côté Lake gold project, located between Timmins and Sudbury, when it bought Trelawney Mining and Exploration for $608 million. Côté Lake holds an estimated 8.2 million ounces of gold, and there’s lots of room for more drilling to further expand the project’s reserves.
IAMGold is a buy.
