Industry and firm characteristics
IAMGOLD Corporation (IAMGOLD) is a mining company. IAMGOLD’s interests include five operating gold mines, a niobium mine, a diamond royalty, and exploration and development projects located in Africa and the Americas. IAMGOLD is focused in West Africa, select countries in South America and in the Canadian province of Quebec. The Company's operating mines include Rosebel Gold Mine, Essakane Gold Mine, Doyon Division Gold Mines and Niobec Niobium Mine. The Company's development projects include Westwood Project, Quimsacocha Project and Camp Caiman Project. In November 2012, the Company sold IAMGOLD Ecuador S.A., which includes the ...view middle of the document...
The last time the stock was at this level was in January 2009 when the financial system was still on the brink of the abyss. Since that time, the financial system has mended and both the S&P 500 and the price of gold have increased by +85%, yet IAMGOLD's stock remains at the same level.
Not much has been golden at IAMGOLD lately. IAMGOLD has released negative news for just about every possible variable that impacts a mining company. The company's list of woe includes an employee fatality, higher cash costs, lower production guidance, and geopolitical unrest. Despite all of the deserved pessimism, a disconnection between the stock price for IAMGOLD and the intrinsic value of the company. Given the ridiculously strong balance sheet, a LBO would be a great way for the bidding group to unlock this value.
The stock price for IAMGOLD is $6.62, with 376.9m shares outstanding it has a market cap of $2.49 B. However, IAMGOLD has $1.026 B in cash and gold bullion holdings (the company...