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IAMGOLD Corp T.IMG

Alternate Symbol(s):  IAG

IAMGOLD Corporation is a Canada-based intermediate gold producer and developer. Its principal activities are the exploration, development, and operation of gold mining properties in North America and West Africa. Its projects include Essakane, Westwood and Cote Gold. The Essakane project is in north-eastern Burkina Faso, West Africa. It straddles the boundary of the Oudalan and Seno provinces in the Sahel region of Burkina Faso and is approximately 330 kilometers (km) northeast of the capital, Ouagadougou. The Westwood Project is located on the Doyon property, 2.5 km east of the former Doyon Gold Mine in Bousquet Township. The Cote Gold Project is in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario. It owns a 100% interest in the Nelligan Gold Project, located 60Km southwest of Chibougamau. It holds claims of Nelligan, as well as other earlier stage exploration properties in Northern Quebec. It also owns Rich Lake and Lac a l’Eau Jaune (gold) properties.


TSX:IMG - Post by User

Bullboard Posts
Comment by iwasgoldon Jul 04, 2013 1:10pm
117 Views
Post# 21589140

RE: IMG cash

RE: IMG cashThanks Mr Sly One, but let us not forget that they also have $600 million debt, which you do not mention. Also oil prices are trending higher, as are most other costs. While you are correct that IMG has plusses in (the diamond royalty) and rare earth mine, they do not outweight the huge negatives of uncertain gold prices, potentially much lower down the road. You also do not mention the outrageous debacle of the purchase for cash of the Cote Lake low-grade deposit with environmental issues. You also do not trumpet the production at Westwood, possibly because the costs there are high. You will find that good mining company managers always purchase other companies by issuing shares, to bring about a merger. This is smart since it binds the sellers to the quality of the asset through the performance of the new company, thus reducing risk for the buyer. The management of Iamgold bought Cote Lake with cash, allowing the sellers to avoid risk altogether. As subsequent events have shown the cash would have been enormously helpful. At the very least Iamgold is facing a write-down in the hundreds of millions for the purchase.   This kind of management blunder is why Iamgold is down some 60 % in share price while a comparable company like Yamana is actually up over the same period. If Iamgold is actually as good as you think, it will certainly be a target for take-over by another miner, such as Yamana or Newmont, and many shareholders would be glad to have such good assets in the hands of competent management and be willing to give up IMG shares for another company shares, of course at a suitable premium to  current prices. Who knows, maybe someone might even pay us cash, say $6-$7 per share, and the deal is done.


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