UPDATE: BMO Capital Markets Downgrades IAMGOLD Corporation to Market Perform on Higher Costs

BMO Capital Markets downgraded IAMGOLD Corporation (NYSE: IAG) with a Equal-weight and lowered the 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."

IAMGOLD Corporation closed at $10.87 on Tuesday.