09. IAMGOLD Corporation (NYSE:IAG)
Upside Potential: 42%
Forward P/E Ratio: 5.94
Year To Date Share Price Gain: 101%
IAMGOLD Corporation (NYSE:IAG) is an intermediate gold producer and developer headquartered in Toronto, Canada, with operations spanning Canada and Burkina Faso. With a forward P/E ratio of 5.94 as of December 20 and an impressive upside potential of 42% based on a target price of $7.24 compared to its current share price of $5.09, IAMGOLD deserves a spot among the best gold stocks to invest in now.
The company boasts a diversified portfolio, including a 100% interest in the Westwood project in Quebec, a 60% stake in the Côté Gold project in Ontario, and a 90% interest in the Essakane project in Burkina Faso. In its Q3 2024 earnings call, IAMGOLD showcased robust performance, surpassing expectations with earnings per share (EPS) of $0.18 against an anticipated $0.10.
Production in Q3 reached 173,000 attributable gold ounces, marking a substantial year-over-year increase from 109,000 ounces in Q3 2023. This growth was fueled by stable operations at Essakane, a successful turnaround at Westwood, and the ramp-up at Côté Gold, which achieved commercial production in August. The company's year-to-date production of 490,000 ounces positions it to hit the upper end of its guidance range of 495,000 to 540,000 ounces for 2024.
IAMGOLD's financials further highlight its strong fundamentals. Q3 revenues stood at $438.9 million, with an average realized gold price of $2,391 per ounce. The quarter delivered record adjusted EBITDA of $221.7 million, bringing year-to-date EBITDA to $565.2 million. The company ended the quarter with cash and cash equivalents of $553.4 million, maintaining robust liquidity of approximately $959.3 million.
On the cost front, IAMGOLD reported all-in sustaining costs (AISC) of $1,756 per ounce, aligned with expectations and well-positioned relative to industry averages. As Côté Gold continues its ramp-up and Essakane and Westwood approach record cash flow potential, IAMGOLD is on track to strengthen its balance sheet and deliver value to investors.
With a proven ability to navigate operational challenges and leverage favorable gold prices, IAMGOLD presents a compelling investment case for those seeking exposure to gold's potential upside.