IAMGOLD extends Westwood mine life and increases stake in Côté Gold mine, positive.

From Nasdaq: 2024-12-06 15:00:00

IAMGOLD (IAG) extends Westwood mine life to 2032 and increases its stake in the Côté Gold mine to 70%. Despite lower-than-expected gold production estimates, IAMGOLD remains confident in its growth potential. The company expects an average of 925,000 ounces of gold production over the life of the mine, with an accelerated pace in the first three years.

The Côté Gold mine, a joint venture with Sumitomo Metal Mining Co., is expected to be a significant growth driver for IAMGOLD. The mine commenced commercial production in August 2024 and is projected to produce 220,000-290,000 ounces. With advanced technology and autonomous equipment, Côté Gold aims for efficient operations and cost reduction.

IAMGOLD’s stock price has surged 121% year-to-date, outperforming the gold mine industry’s growth. The company’s positive performance is attributed to strong quarterly results, the successful start of production at Côté Gold, and a favorable trend in gold prices. Trading at a discount to its 52-week high, IAMGOLD’s stock valuation appears attractive.

Analysts have raised earnings estimates for IAMGOLD, reflecting optimism about the company’s production potential and gold prices. The Zacks Consensus Estimate indicates year-over-year improvements in both top and bottom lines. IAMGOLD is positioned for growth with its diverse portfolio of projects and operations in high-potential mining districts.



Read more at Nasdaq: IAG Boosts Westwood Mine Life & Cote Gold Stake: Is the Stock a Buy?