UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on IAMGOLD Corporation Following In-Line Q1/13 Earnings

In a report published Wednesday, BMO Capital Markets analyst David Haughton reiterated a Market Perform rating on IAMGOLD Corporation IAG, but slightly lowered the price target from $8.50 to $8.00. In the report, Haughton noted, “Attributable gold sales of 171koz on production of 188koz were lower than the BMO Research forecast of 227koz, but cash costs of US$787/oz were significantly better than expectations for US$926/oz; while niobium production of 1.2kt for Q1/13 was in line. The company's US$100M cost reduction program includes refocusing exploration, a hiring freeze at most operations, a re-sequencing of mining, negotiations with key suppliers, reduced reagent consumption, corporate travel savings and a fuel management program. IAMGOLD maintained 2013 guidance for 875-950koz gold at cash costs in the US$850-925/oz range, with US$665M in projected capex. Niobium production guidance stands at 4.7-5.1kt. BMO Research forecasts production of 893koz of gold at US$835/oz and 4.8kt of niobium in 2013E, with ~US$700M in capex.” IAMGOLD Corporation closed on Tuesday at $5.38.