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IAMGOLD (IAG -3.6%) is downgraded to Neutral from Buy with a $10 price target, down from $16.50,...

IAMGOLD (IAG -3.6%) is downgraded to Neutral from Buy with a $10 price target, down from $16.50, at BofA/Merrill after the miner forecast significantly higher costs in 2013. IAG's operating guidance showed cash costs rising 20%-30% Y/Y to $850-$925/oz. due to lower ore grades mined, inflationary factors and harder ores.
Comments (4)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Let me get this straight...gold costs of mining going up....price of PM´s going down...demand up.....price of PM´s going down....yeah..this market is not fixed.....lol
    25 Jan 2013, 02:59 PM Reply Like
  • NuclearDickie
    , contributor
    Comments (238) | Send Message
     
    youngman, you hit it on the head!

     

    Read Jim Sinclair's commentary on http://www.jsmineset.com.

     

    ND
    25 Jan 2013, 09:17 PM Reply Like
  • NuclearDickie
    , contributor
    Comments (238) | Send Message
     
    IAMGOLD (NYSE:IAG) was upgraded from Neutral to Outperform at Macquarie (pre-open) today. The stock closed yesterday at $8.75 on volume of 9.3 million shares, above average daily volume of 3.1 million. In the past 52 weeks, shares of IAMGOLD have traded between a low of $8.71 and a high of $17.74 and closed yesterday at $8.75, which is 0% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 0.3% while the 50-day MA has declined 3%.

     

    IAMGOLD has overhead space with shares priced $8.75, or 49.8% below the average consensus analyst price target of $17.42. The stock should find initial resistance at its 50-day moving average (MA) of $11.40 and further resistance at its 200-day MA of $12.44.

     

    IAMGOLD Corporation is a mid-tier gold mining company. The Company is focused in West Africa, the Guiana Shield of South America and in Quebec where it has a pipeline of development and exploration projects.
    25 Jan 2013, 09:19 PM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    It's one reason Barrick, NEM - and most unfairly, GG - have been slaughtered the past three months: Prices of their midsize companions in the XAU and TSX Gold indices are now utterly compelling, so a lot of the analysts and other observers are thinking the bigger ones have to make bids soon.

     

    As I have said before, I really think GG is out of the picture for now as an acquirer, because it fully expects to get El Morro re-approval soon and put its effort into that one. (The GG takedown is pretty darn silly at this point - and some of the world's biggest hedge funds which like PMs now agree with me. It is making more and more "top PM buy" lists for 2013.)

     

    But NEM and Barrick desperately need to make new acquisitions.

     

    IAG probably doesn't fit NEM's profile, so Barrick could be the most likely bidder. Some of us think NEM will instead go after some of the really promising plays which are safer geographically. I think they should just snatch up PZG - very much in its profile - before its impressive properties become even more impressive. Someone will eventually take out Seabridge and ANV. AUY is always a possibility, but it's expensive for anyone but Barrick or NEM now - and again, I am not sure it quite fits either of their profiles.

     

    Before the latest spate of African geopolitical troubles, I admit I thought AUY and IAG would just merge. But now, why should AUY take the risk?

     

    In any case, fast and furious PM sector M&A is on the way very soon now.
    26 Jan 2013, 11:34 AM Reply Like
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