IAMGOLD Corp. IMG Q4 Preview and 2010 Outlook

admin — Wed, 27 Jan 2010 17:43:46 +0000

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.

IMG Solid Q3 Results Ratcheting Up Our Multiples

admin — Tue, 24 Nov 2009 18:06:57 +0000

RBC CM is increasing its target multiples for IAMGOLD after a solid Q3/09. Backing out non-cash and extra-ordinary items, operating EPS remained $0.18/sh, beating both RBC CM’ $0.07/sh estimate and consensus at $0.10/sh. CFPS of $0.28/sh was also better than RBC CM’ $0.18/sh estimate and consensus at $0.20/sh. IAMGOLD produced of 244Koz of gold, higher than RBC CM’ 222Koz estimate, and at cash costs of $457/oz were better than RBC CM’ $469/oz estimate. Higher gold output from the Rosebel mine in Suriname was the main cause for the variance with RBC CM’ estimates. The company raised guidance by 30Koz to 940-950Koz of gold output at the same cash cost of $460-470/oz (previously 910-920Koz gold output). With solid cash flows from operations, and a strong balance sheet, RBC CM believes IAMGOLD shares can achieve higher trading multiples. It is increasing its target multiples from 1.5 to 1.75x NAV and from 15 to 17.5x CF. With the current growth phase not expected to begin delivering results until H1/11, RBC CM thinks it unlikely that IAMGOLD shares will be able to achieve premium multiples to the peer group of Tier II gold producers in the short term.

TSX Commentary » IAMGOLD Corporation

IAMGOLD Corp. IMG Q4 Preview and 2010 Outlook

IMG Solid Q3 Results Ratcheting Up Our Multiples