Iamgold: A Fantastic 2017, but Can It Do It Again?



Returns for IAG

Iamgold (IAG) is the best-performing stock in the gold miner space with a YTD (year-to-date) return of 44.2% as of December 18, 2017. The VanEck Vectors Gold Miners ETF (GDX), which replicates the performance of the NYSE Arca Gold Miners Index, has returned 5.2% in the same period. Overall, gold miners have lagged behind gold’s performance in 2017. Its close peers have mostly had negative returns YTD. Eldorado Gold (EGO), New Gold (NGD), and Yamana Gold (AUY) have fallen 60.2%, 14.6%, and 5.8%, respectively.

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Strong operational and exploration results

IAG has reported strong operating results for the first nine months of the year. For more details on the company’s latest quarterly results and outlook, be sure to read Where Investors Stand on IAMGOLD’s Transformation. Its exploration results YTD have also been exceptional. In July 2017, it announced an 80% increase in its Rosebel mine reserves to 3.5 million ounces. In September 2017, it announced a significant gold discovery at its Saramacca site in Suriname. Many analysts turned around for the stock after these developments.

Future catalysts

Its Essakane mine pre-feasibility results are expected by the second quarter of 2018. There is the potential to add three to five years to its mine life. In addition to these catalysts, Essakane has many untapped satellite deposits near the mine. These deposits could also mean an upside to its mine life. The updated resources from Falagountou are also expected by the end of 2017. That could lead to value enhancement at Essakane.


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