This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Iamgold Slumps On Forecast For Higher Mining Costs

NEW YORK (AP) â¿¿ Shares of Iamgold Corp. continued to fall Thursday after the gold mining company said it expects mining costs to grow in 2012.

THE SPARK: After the market closed on Tuesday, Iamgold said its expenses in 2012 would be slightly above its previous expectations and said those costs would increase significantly in 2013.

The company said production costs will rise because of an increase in harder ore at its older mines. As the proportion of harder ore at a particular mine increases, costs and energy use also increase. Iamgold said it expects greater costs at one mine that will be in its first year of operation.

THE BIG PICTURE: Iamgold had said it expected gold to cost $670 to $695 per ounce in 2012, but now says costs will be about 3 percent greater than that â¿¿ implying a total of around $716 per ounce. The company says its full-year production totaled about 830,000 ounces of gold, which was less than it previously expected.

In November, Iamgold said production would be at the low end of its estimate because of weak results from mines the company doesn't operate itself.

In 2013 the company expects to produce 875,000 to 950,000 ounces of gold for $850 to $925 per ounce.

THE ANALYSIS: Stifel Nicolaus analyst Michael Scoon downgraded Iamgold shares to "Hold" from "Buy," saying he was disappointing with the company's outlook.

"Management of Iamgold has done an insufficient job managing analyst and investor expectations as we believe many were caught more offside than we were," Scoon wrote.

SHARE ACTION: Iamgold stock dropped 14.4 percent Wednesday and lost 48 cents, or 5.2 percent, to $8.75 on Thursday. Earlier the shares reached fell to $8.71, their lowest price in about 3 1/2 years.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs