Fortune IAMgold reminds me of the old joke - How do you make a small fortune in gold mining? Answer - start with a large one.
Sad to say, this applies to all the shareholders.
I wish someone could explain to me why shares were not used to buy Trelawney. They saw Letwin coming, and that is inexcusable. He has to be fired for incompetence. It is clear that he expected gold to be above $1700 and closer to $2500 by now, and events have shown that he could not have been more wrong. For gambling with shareholders' money he needs to go. There is no place as CEO for a man who takes unnecessary risks. Maybe there is light on the horizon - by the time Trelawney is permitted maybe gold will recover, oil will be cheaper, and unemployment higher. If so, IMG might be up from here. Here's a thought Steven - next time if you think prices are good try hedging some of your production? That would have saved you. In the meantime things look bleak. Hard to believe that in the past two years three-quarters of the market value of this company has vanished, or $6 billion paper dollars, real to those who choose to sell or have to. Meantime the company is expanding operations at the two big mines, in Burkino Faso and Suriname, clearly to lower cost per ounce. To do this they are spending the company's cash, and at the end of it the POG might be lower still and they will have no choice but to rip through reserves at bargain prices, destroying more value. The better choice is to halt production and dividends and hunker down, and, if possible, make a cheap acquisition. Why sell reserves as ounces now when they will be worth more in future? This is a train wreck. Wish I wasn't a passenger.