Four stocks to dispel the gloomSTEVE LADURANTAYE Globe and Mail Update January 30, 2009 at 6:10 PM EST
Iamgold Corp.
With gold hovering above $900 (U.S.) an ounce, producers such as Iamgold Corp. [IMG-T]are seeing their stocks steadily climb. The Toronto-based miner said last week that it mined almost one million ounces in 2008, but that production would drop 12 per cent after the sale of a Quebec mine. Production in 2009 is projected to be 880,000 ounces at a cash cost of $470 to $480 an ounce.
“We continue to believe Iamgold is attractive compared to its peers due to its project pipeline adding growth in production,” Scotia Capital analyst David Christie said Friday as he raised his price target to $10 from $8.50. “We believe that for a company trading at just over 1 times NAV [net asset value] and many of its peers trading at over two times NAV, Iamgold is very attractive.”
Scotia wasn't alone Friday – TD Securities raised its target to $10 from $9.50 and GMP Securities raised its target to $11. Dundee Securities Corp. wasn't feeling so bullish, dropping its target to $11.60 from $12.