Back to top

Image: Bigstock

IAMGOLD (IAG) Hits 52-Week High: What's Driving the Stock?

Read MoreHide Full Article

Shares of IAMGOLD Corporation (IAG - Free Report) scaled a new 52-week high of $4.60 on May 20, before ending the session slightly lower at $4.53. The increase was fueled by rising gold prices and IAG’s solid first-quarter production numbers and results. Côté Gold mine commenced production during the quarter, contributing 1,000 ounces to its quarterly output. This marks a milestone for IAG as the mine is expected to significantly boost its production, while lowering the cost profile.

IAMGOLD has a market capitalization of $2.25 billion and currently sports a Zacks Rank #1 (Strong Buy).

Shares of the company have risen 75.6% in the past three months, outpacing the industry’s 35.5% growth. The S&P 500 grew 4.8% in the same time frame.

Zacks Investment Research
Image Source: Zacks Investment Research

Upbeat Production Numbers & Outlook

Côté Gold mine is operated as a joint venture between IAG and Sumitomo Metal Mining Co., Ltd., a subsidiary of Sumitomo (SSUMY - Free Report) . IAG and Sumitomo Metal Mining had started construction on the Côté Gold Project in the third quarter of 2020. With Côté Gold now coming online, IAMGOLD now operates three active mines, alongside Essakane in Burkina Faso and Westwood in Quebec, Canada.

The Essakane mine reported attributable production of 118,000 ounces in the first quarter of 2024, a 28% increase year over year mainly due to higher grades. Westwood’s output was 32,000 ounces (up 50% year over year), achieving its highest quarter of production since the mine restarted in 2021. Including the contribution of Côté Gold, IAG’s attributable production was 151,000 ounces in the first quarter of 2024, up 34% year over year.

The company expects Côté Gold mine to produce 220,000-290,000 ounces of gold (on a 100% basis) in 2024. It plans to ramp-up operations in the second quarter of 2024 and achieve commercial production in third-quarter 2024.
For 2024, excluding Côté Gold, IAMGOLD anticipates attributable gold production to be between 430,000 ounces and 490,000 ounces. It reported attributable gold production of 465,000 ounces for 2023.
Upbeat Q1 Results

IAMGOLD announced first-quarter adjusted earnings per share of 11 cents on May 9, which reflected a solid 120% year-over-year increase. The upside was driven by higher gold sales and realized gold prices. Revenues increased 50% year over year to $339 million.

Gold sales were 150,000 ounces on an attributable basis, 38% higher than 109,000 ounces in the first quarter of 2023. Average realized gold price per ounce were up 10% year over year to $2,077.

Solid Trend in Gold Prices

The company’s shares have also benefited from a 17.6% increase in gold prices year to date. Several factors have contributed to gold’s upward trajectory, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks. Physical demand has also been strong in China of late. Gold is currently priced at $2,414.87 an ounce, which is boosted by expectations of interest rate cuts and safe haven demand amid the potential escalation of geopolitical tensions.

Other Gold Stocks Trading Near 52-Week Highs

Other mining companies have also benefited from  price trends as well as their upbeat first-quarter performances and are currently trading near their 52-week highs.

Agnico Eagle Mines Limited (AEM - Free Report) shares have gained 45.2% in the past three months and closed at $70.78 on May 20, near its 52-week high of $71.50.

AEM reported adjusted earnings of 76 cents per share, up 33% year over year. The uptick was attributed to solid operational and cost performance. Agnico Eagle generated revenues of $1.83 billion, up nearly 21% year over year. AEM sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Centerra Gold (CGAU - Free Report) shares have gained 40.3% in the past three months and closed at $7.34 on May 20, near its 52-week high of $7.44.

CGAU reported quarterly adjusted earnings per share of 14 cents on May 14, marking a turnaround from a loss of 24 cents reported in the first quarter of 2023. Revenues improved 35% to $306 million. This was attributed to a 168% surge in gold sales volumes and a 27% rise in average gold realized prices. Centerra Gold currently carries a Zacks Rank #2 (Buy).

Published in