Iamgold Corporation (IAG Quick QuoteIAG - Free Report) has closed the sale of 30% of its interest in the Cote Gold Project in Ontario to a fully-owned subsidiary of Sumitomo Metal Mining Co., Ltd. for $195 million. The deal was announced on Jun 5.

Iamgold received $100 million in cash on deal closing with the balance $95 million is payable on the date of public filing of feasibility study with respect to the Cote Gold project or 18 months following the deal closure, whichever is earlier.

Iamgold and Sumitomo have also entered into a joint venture (JV) with respect to the project with Iamgold owning 70% of the total participating interests in the JV while Sumitomo having the remaining 30%.

Iamgold’s shares have rallied 55.2% in the last six months, outperforming the Zacks categorized Mining-Gold industry’s gain of 12.3%.

Iamgold remains focused on increasing reserves and preventing depletion of resources. The company’s JVs in South and Central America, West Africa and Canada have undertaken exploration projects along with targeting soft rock resources near existing mines.

The company expects gold production in 2017 between 845,000 and 885,000 ounces. Also, total cash cost is expected between $740 and $780 per ounce. All-in sustaining cost is anticipated between $1,000 and $1,080 an ounce. Capital expenditure is expected to be around $250 million.

Iamgold Corporation Price and Consensus

Iamgold Corporation Price and Consensus | Iamgold Corporation Quote

Zacks Rank & Other Stocks to Consider

Iamgold currently sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the basic material space include BASF SE (BASFY Quick QuoteBASFY - Free Report) , The Chemours Company (CC Quick QuoteCC - Free Report) and Huntsman Corporation (HUN Quick QuoteHUN - Free Report) . All the three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BASF has expected long-term growth of 8.9%.

Chemours has expected long-term growth of 15.5%.

Huntsman has expected long-term growth of 7%.

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