What Are Analysts’ Revenue Expectations for Iamgold?



Wall Street analyst forecasts

Wall Street analyst forecasts for revenues for gold mining companies (GDX) (RING) give a good idea of analysts’ views on gold prices going forward. In this part of the series, we’ll assess analysts’ revenue expectations for Iamgold (IAG) in 2Q16 and beyond.

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Analyst revenue estimates

Wall Street analysts are estimating 2Q16 revenue of $236 million for IAG. Its actual revenues for 1Q16 were $220 million. This implies a quarter-over-quarter (or QoQ) growth of 8%.

Investors should note that this is despite the company’s expectations of lower production QoQ and higher costs. Higher metal prices are the most likely reason for the revenue growth expectations. They’re expected to offset the production decline.

Long-term estimates

Iamgold’s revenue expectations for 2016 are $972 million, which is an increase of 6% year-over-year (or YoY). Despite management’s lower YoY production guidance, higher gold prices will be the main driver for revenue growth.

The consensus growth expectation for 2017 is higher at 11.8% since the Market expects the Westwood ramp-up to produce higher tons. Investors should note, however, that long-term production growth for Iamgold is still dependent on the full ramp-up of the Westwood mine in Canada. The company needs to demonstrate a robust ramp-up and consistent stability at the site.

Due to higher gold price and production growth, analysts are estimating production growth for other miners (RING) (GDXJ) such as Eldorado Gold (EGO), Coeur Mining (CDE), Yamana Gold (AUY), Kinross Gold (KGC), and AngloGold Ashanti (AU).

In the next part, we’ll have a look at analysts’ earnings estimates for IAMGOLD.


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