Shares of IAMGOLD Corporation IAG scaled a new 52-week high of $5.12 on Aug 16 before ending the session slightly lower at $5.08. The increase was fueled by rising gold prices and IAG's solid second-quarter production numbers and results.
IAMGOLD has a market capitalization of $2.89 billion and currently sports a Zacks Rank #1 (Strong Buy).
Shares of the company have gained 135.2% in the past year, outpacing the industry's 43.6% growth. The S&P 500 has risen 28.3% in the same time frame.
What's Aiding the Stock?
Gold sales were 167,000 ounces on an attributable basis, 38% higher than 121,000 ounces in the second quarter of 2023. The average realized gold price per ounce was up 16% year over year to $2,294.
On Mar 31, 2024, the company announced the first gold pour at the Côté Gold mine. The mine is operated as a joint venture between IAG and Sumitomo Metal Mining Co., Ltd., a subsidiary of Sumitomo SSUMY. The Côté Gold mine reached commercial production on Aug 2, 2024.
The mine's contribution to IAG's production was 20,000 ounces of gold in the second quarter. This took IAG's attributable total production to 166,000 ounces, a 55.1% year-over-year increase.
Upbeat Outlook: IAMGOLD expects the Côté Gold mine to produce 220,000-290,000 ounces of gold (on a 100% basis) in 2024.
Strong performances at the Essakane and Westwood mines also aided solid second-quarter results. The Essakane mine reported attributable production of 111,000 ounces in the second quarter of 2024, a 26.1% year-over-year increase mainly due to higher grades. Westwood's output was 35,000 ounces (up 84% year over year).
The company thus increased Essakane and Westwood's total production guidance to 495,000-540,000 ounces from the prior stated 430,000-490,000 ounces.
Uptick in Gold Prices: Gold prices have been on an upward trend in 2024 as traders see a potential for the Fed to begin lowering rates. Since the start of 2024, gold prices have risen 21.3% and remained consistently above the $2,000-per-ounce mark. Several factors have contributed to this upward trajectory, including increased geopolitical tensions, the potential for monetary policy easing and continuous purchasing by central banks. The yellow metal is currently at an all-time high at around $2,500 per ounce.
Other Stocks to Consider
Some other top-ranked stocks from the basic materials space are Carpenter Technology Corporation and Eldorado Gold Corporation. CRS and EGO sport a Zacks Rank #1 at present.
