What Iamgold’s Outperformance Could Mean for the Future



Significant outperformance

Iamgold’s (IAG) stock price has had a very strong performance in 2017 YTD (year-to-date), significantly outperforming peers and gaining 83% as of September 8, 2017. The VanEck Vectors Gold Miners ETF (GDX) has risen 21%, while the S&P 500 (SPY) (SPX) has risen 10.3%.

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Reasons for outperformance

No other gold miner has gained to the extent that IAG has gained on a YTD basis. The next best performances among major precious metal miners have come from Kinross Gold (KGC), Gold Fields (GFI), and Royal Gold (RGLD), with gains of 55.3%, 50.2%, and 46.6%, respectively.

The major reason for IAG’s strong relative and absolute stock price performance YTD is likely its robust operational performance and its exceptional exploration results. The company announced an 80% increase to its reserves at its Rosebel mine—a significant positive catalyst for the stock.

Series overview

Iamgold has announced a significant gold discovery in Saramacca on September 5, 2017. This, in itself, is a very positive development, but it also has the potential to extend the Rosebel mine’s life. The company also held a conference call with analysts after the announcement to share the details and next steps.

In this series, we’ll discuss IAG’s new development in detail. We’ll also check in with how analysts are viewing the development and assess any changes in valuation multiples for Iamgold.

Continue to the next part for a closer look at the details surrounding IAG’s Saramacca deposit.


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