London (AG) - The experts of "capital managers" have published an updated report on IAMGOLD (ISIN CA4509131088 / WKN 899 657).
Below is the exact wording of the report:
Analysts still advise to buy the stock - so do we ...
The gold from us repeatedly recommended corporate IAMGOLD (Canada: IMG) According to press reports another stock exchange listing in the eye. CEO Stephen Letwin thinks of London or Hong Kong as the third trading center after New York and Toronto. Letwin wants with this step, meet European shareholders, whose share has doubled since 2008 to a fifth. The bulk of the papers IAMGOLD is still in the U.S. (50%) and Canada (30%).
The bad news: Given the ongoing market turmoil are now plans for an IPO and spin-off of the niobium-division on ice. So goes the stock lost a large portion of soaring share prices. Said niobium-business accounts for about one-fourth of the total value of IAMGOLD, which currently adds up to $ 6.8 billion (Canadian dollars). IAMGOLD Niobec mine is among the top three global producers of niobium, a rare commodity for the hardening of steel.
IAMGOLD would triple the output of its mines in the next six years. The necessary funds, amounted to about $ 800 million should initially be collected in the capital market. Now 200 million coming from its own cash flow and $ 400 million from a convertible bond. 200 million will be financed by bank loans. Medium term, a quarter of Niobec goes public. A 20-percent package will put Canadians at a strategic investor, preferably a Chinese steel producers. Niobec 55% of shares are to remain at IAMGOLD. Unless the plan.
The resource could Niobec IAMGOLD eight times this year to nearly 1.93 billion kg, with corresponding implications for mine life and productivity. A preliminary feasibility study for the exploitation of these mega-resource should still be available in December. In addition, acquisitions are always possible, because the debt-free IAMGOLD currently sits at CAD 1.2 billion cash, the "work" sooner or later need.
Who is investing in IAMGOLD: Hold on! Provide mental stops, depending on the risk profile at 18 or 16 CAD. In the longer term there are still classes in there for 30 USD. Only in the last week of IAMGOLD was Macquarie and the Canadian Imperial Bank with an Outperform rating recommended for purchase. Chart Technically the stock is now oversold. And we still watch a lot of skepticism in gold stocks - a good starting point! (28.11.2011/ac/e/k)
Disclosure of potential conflicts of interest:
Potential conflicts of interest can be found on the site of the creator / source of the analysis.
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