Yahoo Finance Could 2016 be a Turnaround Year for IAMGOLD?
Could 2016 Be a Turnaround Year for IAMGOLD?
1Q16 results
IAMGOLD Corporation (IAG) released its 1Q16 results on May 3, 2016, after the markets closed. IAG held a conference call the next day to discuss its results.
IAG’s 1Q16 results were better than expected on its bottom line compared to Wall Street’s expectations. Its adjusted earnings per share (or EPS) came in at -$0.02 compared to analysts’ consensus expectation of -$0.07. The beat was mainly driven by lower operating costs. The company maintained its guidance for production and costs for 2016.
Relative price outperformance
IAMGOLD’s stock fell by 1% following its 1Q16 results, but this was an outperformance compared to its peers. The Market Vectors Gold Miners ETF (GDX) fell by 5% on the same day.
Year-to-date (or YTD), IAMGOLD’s stock price has risen 105% on an absolute basis. Even on a relative basis, it has outperformed most if its peers. Eldorado Gold (EGO), New Gold (NGD), Agnico Eagle Mines (AEM), and Yamana Gold (AUY) have risen 20%, 80%, 63%, and 119%, respectively, as of May 4, 2016.
IAG has higher costs compared to most of its peers, which makes it relatively highly leveraged to gold prices. Gold’s price rise since the start of 2016 has helped IAG’s operational leverage to work in its favor.
Series overview
In this series, we’ll see how IAMGOLD’s future prospects look based on its recent 1Q16 earnings and its management’s comments. We’ll look at the company’s production and cost performances. We’ll do this in an effort to interpret how the company’s management is trying to position itself within the context of this volatile gold price environment.
In the next part of this series, we’ll take a look at IAMGOLD’s result highlights for 1Q16.
Browse this series on Market Realist:
