Macquarie Downgraded IAMGOLD Due to Lack of Catalyst

In a note published Tuesday, Macquarie analyst Pierre Vaillancourt cut IAMGOLD's IAG rating from Outperform to Neutral. Vaillancourt commented that higher cost structure, delayed commercial output at Westwood, and the lack of growth will "hold back" shares over the next year. Although IAMGOLD's valuation is attractive among peers, the analyst noted that there is no catalyst over the next 12 months. Macquarie added that the recent dividend suspension raises questions on the capital need of the company and their ability to generate a return of capital and free cash flow at $1200 per ounce for gold. Shares of IAMGOLD closed at $3.69 on Monday on the Toronto stock exchange.