Friday, May 30, 2025

Latest

BMO Lowers IAMGOLD Price Target Following Westwood Layoffs

Yesterday, IAMGOLD Corp (TSX: IMG) announced a temporary workforce reduction to the tune of 437 workers or roughly 70% of its underground workforce at their Westwood mine. This comes after a seismic event happened, which was reported on November 2. IAMGOLD provided minimal commentary, instead indicating, “an update will be provided in early 2021.”

Jackie Przybylowski, BMO’s metals and mining analyst, downgraded their 12-month price target from C$4.75 to C$4.50 while maintaining their market perform rating on the company.

She says that the event might have a, “more meaningful and longer-term impact than we had previously assumed.” Therefore she anticipates a, “more gradual ramp-up of the higher-grade underground material through 2021,” which will be helped along by lower-grade material from the stockpiles.

Przybylowski expects the update that is promised to come in early 2021 to be announced alongside IAMGOLD’s 2021 outlook, which is likely to come in mid-January. She says that by that time, the company should have a clearer understanding of Westwood’s plans for the following years. She mentions that the update could include, “timing of the restart, any impact on the mine reserve if ore must be left unmined (e.g., due to dangerous ground conditions or to act as ground support), and effects on the mine plan including volumes and grade.”

Przybylowski is now forecasting a longer ramp-up period as she says, “The company’s relatively significant cuts suggest a longer outage than we had previously envisioned.” They now expect that the impacts will cut IAMGOLD’s average grades and their 2021 estimated production at Westwood by 20% to 82,000 ounces, down from 103,000 ounces.

Below you can see the 2021 full-year adjustments Jackie has made to incorporate this new scenario.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Galaxy Digital Sees BMO Lift Price Target To $35 After Q4 Results

On April 3rd, BMO raised Galaxy Digital Holdings’ (TSX: GLXY) 12-month price target from $32...

Wednesday, April 6, 2022, 05:03:00 PM

Week Ahead: Earnings Expectations For AMC, RIVN, CRM And More

As we look to wrap up earnings season this week, a number of large names...

Sunday, February 26, 2023, 09:00:00 AM

Walt Disney: Analysts Anticipate $15.87 Billion In Q2 Revenue

Walt Disney (NYSE: DIS) will be reporting their fiscal second-quarter financial results today after market...

Thursday, May 13, 2021, 02:20:00 PM

Hexo: Canaccord Lowers Price Target Following Poor Execution

On Monday, Hexo Corp (TSX: HEXO) (NYSE: HEXO) reported their fiscal third-quarter estimates which missed...

Friday, June 18, 2021, 04:13:00 PM

Battle North Gold’s Takeover Price Has Negative Read-Through For Pure Gold’s Valuation

On March 14, Evolution Mining Limited (ASX: EVN) reached an agreement to acquire Battle North...

Sunday, March 21, 2021, 09:00:00 AM