Iamgold upgraded to Buy at Canaccord on operational improvements

|By:, SA News Editor

Iamgold (IAG +4.6%) is upgraded to Buy from Hold with an $8 price target, raised from $7.50, at Canaccord Genuity, which says a recent tour of the company's operations showed productivity improvements and major cost savings in most areas.

The firm says IAG is ahead of schedule in completing the secondary crusher at the Rosebel gold mine in Suriname, with additional crushing supply apparently ready to come online in November.

Canaccord also notes that IAG shares have dropped ~35% since peaking in August and now trade at a 17% discount to peers on a price/NAV basis.