No. 5 -- Iamgold (IAG)
Foster: Iamgold is [a] mid-tier company in the portfolio ... They're expanding their mine in Suriname in South America. They're bringing on a new project in Burkina Faso that's going to be a world-class operation [that has] started up already and we think there may be some expansion in store for that project somewhere down the line.
Now the company did have some output production issues in the second quarter and profits fell about 20% so for an investor looking at the company what kind of risks do they need to brace for in the short term?
Foster: All of these companies have the potential to have operating issues. Mining in remote parts of the world is tough, so we don't look at it quarter by quarter. If we saw these issues persisting quarter after quarter then we would become concerned. One quarter of a miss is not something that comes up on our radar screen. I expect the company to show improvement in the third and fourth quarter as we go through the year.
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