IAMGOLD Corp (USA) (NYSE:IAG) announced that employees at theCompany’s Rosebel Gold Mine in Suriname (“Rosebel”) have embarked on a strike over the issue of the process of laying off approximately 10% of the employees. Rosebel has, however, followed the process required by law and has offered a fair severance package, which over 50% of the affected employees have already accepted.
The layoffs were announced in a news release on October 8, 2015 as a step to further reduce costs at Rosebel as necessitated by the current gold price environment. Over the past two years IAMGOLD has improved productivity and reduced overall costs by approximately $175 million and Rosebel has made a significant contribution to that effort. Further cost reductions, however, are needed as the gold price has continued to decline below $1,100 per ounce.
Rosebel has produced approximately 4 million ounces of gold in its first 11 years of operation and in the first nine months of 2015 has produced 217,000 ounces of gold on an attributable basis at an all-in sustaining cost of $1,082 per ounce. The Company’s 2015 annual guidance for Rosebel to produce between 290,000 and 300,000 ounces remains unchanged, but will be re-assessed depending on the length of the strike. (Original Source)
Shares of IAMGOLD Corp closed today at $1.56, down $0.04 or -2.50%. IAG has a 1-year high of $3.39 and a 1-year low of $1.15. The stock’s 50-day moving average is $1.70 and its 200-day moving average is $1.78.
On the ratings front, IAMGOLD has been the subject of a number of recent research reports. In a report issued on November 25, Morgan Stanley analyst Brad Humphrey initiated coverage with a Sell rating on IAG and a price target of $1.35, which reflects a potential downside of -13.5% from last closing price. Separately, on November 24, HSBC’s Botir Sharipov upgraded the stock to Hold and has a price target of $1.60.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brad Humphrey and Botir Sharipov have a total average return of -11.1% and 17.4% respectively. Humphrey has a success rate of 43.8% and is ranked #3285 out of 3644 analysts, while Sharipov has a success rate of 80.0% and is ranked #1297.
Iamgold Corp is a gold mining company. The Company explores, develops and operates gold mining properties. It also operates the niobium mine.