IAMGold Says "I Am Profitable"

By Brad Zigler

IAMGold's (IAG) net earnings shot up 169% to $33.3 million, or $0.11 per share, versus the second quarter of 2007 on a 35% increase in revenue. EPS beat Street estimates by a penny a share, or 10%.

Year-over-year, the company's average sale price for gold climbed from $660 an ounce to $878 for the quarter ending June 30. Production was pegged at 255,000 ounces at an average cost of $472 an ounce. IAMGold projects the full year's output of 950,000 ounces will now cost between $485 and $495 an ounce.

Investors reacted to the earnings surprise by taking IAMGold shares up 8 cents on the open to $5.49 a share, only to watch the stock sell off as much 2.2%, or 12 cents, as the reports of the company's narrowing margins were digested. By midday, prices had climbed back to the unchanged level at $5.41.

This year, IAMGoldshares have slipped 33.2% while the Market Vectors Gold Mining ETF (GDX) shed 24.9%. IAMGOLD makes up 2.9% of the ETF's underlying index.

 

IAMGOLD Corp. Vs. Market Vectors Gold Miners ETF

Comments

[Francis Sch...:]

Apparently not the right time to write this kind of article. Sentiment is (incorrectly) extremely bearish. Maybe you should try to write another one in a couple of months from now. This is the way the markets are.

2008 Aug 12 05:55 PM

[petpesie:]

How can you say that the stock sold off as much as 2.2% as the company's narrowing margins were digested? Did you take a gander at the price of gold that day or at ALL the other gold stocks. It performed the best of the bunch that day.

2008 Aug 12 08:00 PM

[secmaven:]

ELEVEN CENTS per share in a quarter. That is laughable. Let's see .11x4x 10 makes the stock worth at most 4.40.

2008 Aug 13 03:02 PM