UPDATE: Bank of America Downgrades IAMGOLD Corporation to Neutral on Cost Outlook

Bank of America downgraded IAMGOLD Corporation IAG from Buy to Neutral and lowered the price target from $16.50 to $10.00. Bank of America said, "IAMGOLD provided 2013 operating guidance which showed cash costs rising 20%-30% yoy to $850-$925/oz due to lower ore grades mined, inflationary factors and harder ores. Taking a more conservative view on IAMGOLD's longer term cost structure, we have reduced our NAV by 11.6% to $9.90/sh (comprised of $8.80 dcf of gold mining assets and $1.10/sh value for Niobec). Due to the higher cost view, we have reduced our target multiple from 1.50 to 1.00 times. Based on these, our PO has been lowered to $10.00/sh and our rating cut to Neutral." IAMGOLD Corporation closed at $8.75 on Thursday.