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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

Post by Luke555on Jul 25, 2021 9:55am
273 Views
Post# 33601813

STORY BEHIND TD REPORT

STORY BEHIND TD REPORTSTORY BEHIND STORY:

Shareholders, please read carefully the up-dated TD Report. The underlying message is very clear regarding IMG’s Q2 production update, as well as the company announcement that they are reducing production guidance and increasing their capex estimate on the Cote Project. Aside from the production downgrade and ongoing operational rising costs, our worst nightmare is about to unfold, the Cote Project will turn out to be another Westwood failure.

I’ve spent a lifetime in the mining business and this is not my first rodeo in the mine construction business.  The TD NEWS is only the tip of the iceberg of what’s really going to unfold in the next few years regarding the Cote Project.   Note that  this project is estimated at 27 % complete and we are only in the infrastructure phase and the estimated costs are already starting to rise! Wait until, we get into the structural construction phase and you will see costs skyrocket!

Here’s the real back-breaker about the Billion dollars sitting idle in the bank.
Per TD announcement.  “IMG remains well funded and has estimated $930-$980mm in remaining spending at Cote. The project is on sche
dule and is ~27% complete. IAMGOLD remains well-funded, in our view, with available liquidity of approximately $1.5B as of March 31 (cash of $968mm and undrawn credit of $500mm)”.
 
You can forget about share buybacks, and declaration of dividends. Their operating strategy has never been about growth or supporting the share price. It isn’t going to happen. The picture painted by TD is about the best you can wish for under the circumstance. Be aware of wolves in sheep skin!
 
TD Investment Conclusion:   We are maintaining our BUY recommendation and decreasing our target price to C$6.00 from C$7.50 previously. 
 

 
Story 
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