TSX Commentary

IAMGOLD Corp. (IMG) – $14.03 – Q4 Preview and 2010 Outlook
Sector Perform, Average Risk, Price Target: $18.00 (prev. $20.00)
The company reported gold production of 939Koz for 2009, in line with the 946Koz RBC CM had modeled for the year. Cash costs are expected to be within the company’s guidance range of $460 to $470/oz, slightly higher than RBC CM’s $450/oz estimate. Management expects gold production to increase slightly over 2009 levels to between 940Koz and 1MMoz. However, revised guidance for cash costs of $490 to $510/oz are significantly higher than the $426/oz RBC CM had previously modeled, leading to moderate declines to RBC CM’s 2010 EPS/CFPS forecasts. IAMGOLD had $418MM of cash, cash equivalents, and
gold inventory and virtually no debt at the end of Q4/09. The budget for 2010 capital spending is $373MM. The company announced that it will record a non-cash asset writedown in the range of $85 – $100 million in 2009 financial results, with the majority of the writedown related to the net carrying value of the Camp Caiman gold project in French Guiana, which has been idle since January 2008. On January 4, IAMGOLD announced that President and CEO Joe Conway would leave the company as of January 15. Director Peter C. Jones was appointed interim CEO by the Board of Directors. Mr. Jones was President and COO of INCO Limited from 2001 to 2006.