Can IAMGOLD Keep Up Its Stock Performance after 4Q17 Earnings?



IAG’s 4Q17 earnings

IAMGOLD (IAG) reported its 4Q17 and 2017 results after the market closed on February 21. The conference call to discuss the results with analysts took place the next day.

IAG reported its 4Q17 EPS (earnings per share) of -$0.03, missing the consensus estimate by $0.04. Its revenues, however, beat the consensus estimate by $14 million, coming in at $291 million.

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Stock performance year-to-date

IAG was the best-performing stock of 2017, with a gain of 51.4% during the year. It also significantly outperformed its peers and the VanEck Vectors Gold Miners ETF (GDX) as well as the SPDR Gold Shares fund (GLD). IAG’s operational results for 2017 were quite strong, and the company reported exceptional exploration results in 2017. In July, it announced an 80% increase in its Rosebel mine reserves to 3.5 million ounces.

The stock performance year-to-date (or YTD), in comparison, is muted. Its stock had lost 6.9% as of February 23, 2018. This loss is higher than the -5.5% return of the GDX YTD. However, there are very few gold mining stocks that have offered significant positive returns in 2018. Eldorado Gold (EGO), New Gold (NGD), Agnico Eagle Mines (AEM), and Yamana Gold (AUY) have lost 24.5%, 19.8%, 12.2%, and 5.4%, respectively.

Series overview

On the 4Q17 earnings call, management noted several catalysts that could lead to further upside for the stock. In this series, we’ll discuss each of the company’s mine performances. We’ll also look at its valuation multiple and any catalysts that could lead to its rerating.

In the next part of this series (below), we’ll look at more highlights from IAMGOLD’s 4Q17 earnings.


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