IAMGOLD craters 19% after reducing guidance, nears 52-week low
IAMGOLD (NYSE:IAG) (TSX:IMG) lost 19% of its value over the last two days after falling short of guidance and announcing plans to reduce exploration activity in Mali.
Earlier this week IAMGOLD reported that its 2012 gold production of 830,000 ounces was slightly below the lower end of its guidance range of 840,000 to 910,000 ounces. Political turmoil in Mali has spooked investors as half of IAMGOLD's output comes from mines in Mali and Burkina Faso.
IAMGOLD closed at $8.75 on Thursday and it was down almost 3.2% in Toronto at midday today, trading at $8.53. Bank of America downgraded the company on Friday from "Buy" to "Hold" and lowered the price target from $16.50 to $10.00.
The company said that it expects to produce 875,000-950,000 ounces this year.
Alongside its production forecasts, IAMGOLD unveiled a new mineral resource estimate for its Cote Gold project in northern Ontario. The new estimate consists of an indicated resource of 269 million tonnes, grading 0.88 grams per tonne or 7.6 million ounces, and an inferred resource of 44 million tonnes, grading 0.74 grams or 1 million ounces.
The latest figure marks a 114% increase upon the company’s earlier estimate.
Source: Yahoo Finance