UPDATE: BMO Capital Markets Downgrades IAMGOLD Corporation to Market Perform, Lowers PT
In a report published Wednesday, BMO Capital Markets downgraded its rating on IAMGOLD Corporation (NYSE: IAG) from Outperform to Market Perform, and lowered its price target from $16.00 to $14.00.
BMO Capital Markets noted, “Attributable gold sales of 214koz on production of 205koz at cash costs expected to be ~US$674-716/oz are in line with BMO Research forecast of 211koz at US$715/oz; while niobium production of 4.7kt for 2012 was in line with expectations. For 2013, IAMGOLD reiterates production of 875-950koz gold, but cash costs of US$850-925/oz are higher than forecast of US$730/oz. The company ascribed the higher costs to one-third inflation and one-third lower grades (especially Essakane), while production mix (high cost Sadiola and Yatela) and harder ore (Essakene and Rosebel) also contributed. Niobium production guidance of 4.7-5.1kt is higher than forecast for 4.4kt. The Côté Gold resource estimate now stands at 269Mt at 0.88g/t (or 7.61Moz) in the Indicated category and 44Mt at 0.74g/t (or 1.04Moz) in the Inferred category.”
IAMGOLD Corporation closed on Tuesday at $10.87.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.