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IAMGOLD Corp. Message Board

  • lg_muscles lg_muscles Nov 14, 2012 12:22 PM Flag

    Sale of Quimsacocha

    It looks like Iamgold sold the 'Q' mine below market value. The CEO also issued new debt to raise 600 million. I suspect a major purchase of another company and the market is aticipating some dillution in the process.

    Sentiment: Buy

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    • 376 million shares outstanding in IAMGOLD. 'Q' mine was sold for 30 million dollars in shares in INV. It has more shares coming based on extended ownership. Based on these numbers the Q is less than 2% of Iamgold net asset value. It looks pretty oversold at this point.

      Sentiment: Hold

      • 1 Reply to lg_muscles
      • I still don't see the rationalization for a 25% drop in the stock, based on selling a small development asset to a partner for shares. Yes it probably needs a revaluation, but this size of sell off seems extremely pessimistic on the company as a whole. I still think Iamgold is a premium intermediate gold play, that has some really premium assets, which are mining fairly efficiently. I am also very optimistic on the Westwood asset, because of its location, history and in-place assets. The Cote project is something I am unfamiliar with, but the location is extremely geo-politically friendly.
        Sadiola is under-performing, but it will get better if you read between the lines.
        Rosebel is a great asset and its expanding at a very brisk past as far as gold mines go.

        The re-election of Obama is extremely 'gold friendly', just ask Romney and the republicans. Romney was going to fire Bernanke, Obama just tells him to stay and print more money.....completely different treasury philosophies. Inflation is coming...just look at your food and energy prices.

        Sentiment: Buy

    • Divesting Ecuador-based project is a good thing and it is impossible to sell such a project for good money anyway: location is too bad.

      This company has challenging year (2013) ahead with big capex spending promising to bring big increase in production (after 2013). As of now market is much more concerned about upcoming spending.

    • What I see is that they hold a 49.9% interest in a mine in a country that presents some difficult challenges for miners instead of being the operator. Isn't that an OK move, and how does market value have anything to do with it? They are sitting on there shares in the company as an investor and not seeking control. The market goes up and down, but does IAG's share price depend on their investment in this small part of their operation?

      I think it's a minipulation going on here. I would be surprised if they buy anything else. They have plenty to develop at this time, and will probably use the financing for projects already underway. I think they are in good shape. There's no share dilution - the financing was done with debt securities that will cost 6. something percent due to mature in 2020 something...

      Sentiment: Strong Buy

      • 1 Reply to grednam2000
      • The market is saying the sale for "stock" is a disaster and that IAG will likely never get any value in return. IAG might as well have given it away and get rid of the distraction. The market is rapidly losing faith in the CEO and does not believe he knows what he is doing. I sold much of my stake after the "gravel pit" purchase, but kept a little just in case the CEO did know what he is doing. Once again I relearn a similar lesson- never reduce a stake - just liquidate and move on. I just hate to give up on something that I had studied fairly carefully. Assets can be dissipated in the blink of an eye. Peter

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