IAMGOLD Corporation (IAG - Free Report) announced that the initial mineral resource estimates for the Saramacca deposit, strategically located near its Rosebelgold mine in Suriname, exceeded its initial targets.
The resource estimates were in accordance to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards, incorporated by the National Instrument 43-101 (or NI 43-101). Estimates reveal that the Saramacca deposits contain 14.4 million tons of indicated resources averaging 2.2 grams of gold per ton for 1,022,000 ounces and 13.6 million tons of inferred resources averaging 1.18 grams per ton of gold for 518,000 ounces.
Further, more than 60% of the resources were found in soft, shallow saprolite and laterite hosted mineralization. Notably, the estimates assume a long-term gold price of $1,500 per ounce and only mineralization contained within the preliminary pit shell has been included.
According to the company, the NI 43-101 estimates confirms significant gold discovery which not only surpasses its initial expectations but also holds significant value for shareholders. IAMGOLD plans to expand current resources and make additional discoveries on the property.
The company plans to follow up a drilling program this quarter to convert inferred into indicated resources, expand the existing resource and evaluate the identified exploration targets for presence of additional mineral resources.
IAMGOLD intends to complete a roughly 20,000 meters of diamond and reverse circulation drilling program by the end of this year. The company plans to complete the necessary permitting works and generate preliminary reserve estimate for Saramacca during the first half of 2018 and proceed toward initial production in 2019.
Shares of IAMGOLD have moved up 37% in the last three months, significantly outperforming the industry’s 3.4% gain.
Solid Q2 Numbers, View Reiterated
IAMGOLD swung to a net profit (as reported) of $506.5 million or $1.09 per share in second-quarter 2017, against a net loss of $12.2 million or 3 cents recorded a year ago. Barring one-time items, adjusted earnings came in at a penny per share for the quarter, compared with a break-even result reported a year ago. The figure was in line with the Zacks Consensus Estimate.
IAMGOLD maintained its cost and production guidance for 2017. It expects gold production in 2017 to be in the band of 845,000 to 885,000 ounces. Also, all-in sustaining cost is anticipated between $1,000 and $1,080 an ounce.
The company, in its second-quarter call, also noted that Essakane and Rosebel are benefiting from operational improvements while developments at Westwood continue to be on track. The reserves at Rosebel concession increased by 80% and the company has also entered into a joint venture for its Cote Gold Project, which demonstrated low operating costs, significant conversion of resources into reserves and attractive returns.
Zacks Rank & Stocks to Consider
IAMGOLD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Chemours Company (CC - Free Report) , Kronos Worldwide Inc (KRO - Free Report) and Air Liquide (AIQUY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Chemours has an expected long-term earnings growth rate of 15.5%.
Kronos Worldwide has an expected long-term earnings growth rate of 5%.
Air Liquide has an expected long-term earnings growth rate of 8.1%.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.
See Stocks Now>>