Cash flow makes these golds attractive

Article Excerpt

IAMGOLD $5.07 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 450.7 million; Market cap: $2.2 billion; No dividends paid) owns 41% of the Sadiola mine in Mali; 90% of the Essakane mine in Burkina Faso; 100% of the Westwood mine in Quebec; and 95% of the Rosebel mine in Suriname, South America. It also owns 92.3% of the Cote gold project in Ontario. In the three months ended June 30, 2016, IAMGold’s revenue rose 2.6%%, to $232.5 million from $226.5 million a year earlier. (All figures except share price and market cap in U.S. dollars.) Cash flow per share rose 33.3%, to $0.16 from $0.12. The increases came from higher gold prices and lower costs. IAMGold’s long-term production outlook is positive. Meantime, the company holds a high $554.2 million in cash and gold bullion. Most of that cash came from the $500 million sale of its Niobec niobium mine in Quebec’s Saguenay-Lac-Saint-Jean region in early 2015. When used as an…