Stronger output bolsters their appeal

Article Excerpt

IAMGOLD $7.67 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 450.7 million; Market cap: $3.6 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. It also owns 92.5% of the Cote gold project in Ontario. In the three months ended June 30, 2017, IAMGold’s revenue rose 18.1%, to $274.5 million from $232.5 million a year earlier. (All figures except share price and market cap in U.S. dollars.) Cash flow rose 6.8%, to $70.4 million from $65.9 million, mostly due to 13.2% higher production. Cash flow per share fell 6.3%, to $0.15 from $0.16, on more shares outstanding. IAMGold’s long-term production outlook is positive. Meantime, the company holds a high $776.21 million in cash and gold bullion. IAMGold’s cash reserves put it in a strong position to pay down its long-term debt of $373.9 million. It…