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Iamgold Completes Senior Notes Offering Worth $400 Million

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Trades from $3

Iamgold Corporation (IAG - Free Report) has recently announced the completion of its offering of $400 million aggregate principal amount of 7% senior notes due 2025. The company plans to use the net proceeds from the notes as well as the existing cash in hand to redeem $489 million of outstanding 6.75% senior notes due in Oct 2020 on Apr 2.

Iamgold posted earnings of a penny per share and revenues of $252.5 million in fourth-quarter 2016, both of which beat the Zacks Consensus Estimate. The company increased its gross profit by $156.8 million to $102.2 million for full-year 2016. For 2017, the company not only intends to increase gold production to 1 million ounces but also to reduce costs significantly.

Iamgold outperformed the Zacks categorized Mining-Gold industry over the last three months. The company’s shares have rallied 20.3% in the last three months compared to a 17.8% decline of the industry over the same period.



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

For 2017, the company has increased the exploration budget to $47 million, compared with the year-ago figure of $39 million. The company anticipates capital expenditure for 2017 to be around $250 million.

Iamgold Corporation Price and Consensus

 

Zacks Rank & Key Picks

IAMGOLD currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the mining space include BHP Billiton Limited (BHP - Free Report) , Hi-Crush Partners LP (HCLP - Free Report) and U.S. Silica Holdings, Inc. (SLCA - Free Report) .

BHP Billiton has an expected long-term growth of 5.6% and sports a Zacks Rank #1 (Strong Buy). You can the complete list of today’s Zacks #1 Rank stocks here.

Hi-Crush Partners has an expected long-term growth of 20% and flaunts a Zacks Rank #1.

U.S. Silica Holdings has an expected long-term growth of 15% and carries a Zacks Rank #2 (Buy).

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