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Iamgold’s Q2 2018 Results Were a Mixed Bag: Is Outlook Better?

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IAG’s Q2 2018 earnings

Iamgold (IAG) reported its Q2 2018 results after the market closed on August 8. It reported EPS of $0.03, beating the consensus estimate by $0.02. Its revenues, however, missed the expectation, coming in at $277.4 million compared to the consensus of $301 million.

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Stock momentum weak

While IAG reported an earnings beat, its overall results were mostly in line with expectations, including its production and unit costs. The stock traded down 3.8% on August 9 after the conference call. In comparison, the VanEck Vector Gold Miners ETF (GDX) and the SPDR Gold Shares (GLD) returned -0.2% and -0.1%, respectively, that day.

Year-to-date, IAG stock has fallen 13.9%, which is an underperformance given the loss of 10.9% in GDX. Its peers Agnico Eagle Mines (AEM), Yamana Gold (AUY), and Kinross Gold (KGC) have returned -12.5%, -2.6%, and -25%, respectively, YTD.

Series overview

In this series, we’ll look at the key drivers of Iamgold’s strong operational performance in Q2 2018. We’ll discuss the company’s production progress, unit cost update, project progress, and financial position. We’ll also look at its valuation multiple and any catalysts that could lead to its rerating.

In the next part of this series, let’s look at more highlights from Iamgold’s second-quarter earnings.

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