IAMGOLD Corp T.IMG

Strong Financial Position

[Luke555]

I'd like to mention a couple of important facts that I picked-up reading the year-end financial reports. First, the cash & cash equivalents were $941.5 million dollars and $ 483.3 million was available under the credit faciliy. That's around  $1.4 B in cash!!!   That raises the question, "WHAT ARE THEY GOING TO DO WITH THIS HOARD OF CASH?"   Secondly, the company made a wise desicion of initiating a gold hedging program during the year for about 25 % of its future production.  That reduces risk and I think its good insurance under the present gold price environment!  Remember fellow shareholders, "Be Right and Sit Tight".

[tallenuk]

Agreed, very confusing. They were fully planning to build Cote when gold was in the $1400 range when they had $1.3-$1.4bn of liquidity, why do they need so much now with gold prices where they are (should generate mine site FCF of $200-300m p/annum). PLUS they've already collared some of the gold risk on that! I personally believe it's because of their historic track record as a marginal