"We believe there are several risks to IAG's achievement of our $2 target price. IAG is subject to operating risks, commodity price and foreign exchange risk as fluctuations in the gold, copper, silver and foreign exchange rates will impact profitability," analysts' said.
Analysts cited additional risks including "inflationary pressures particularly for fuel, consumables, equipment and labour, fluctuations in ore grade or recovery rates or changes to the mining sequence [that could] impact production and costs forecasts, and [exposure] to development and commissioning risk as it brings Westwood online and operates Essakane, Rosebel and Sadiola."
Gold futures for February delivery were down 1.08% to $1,194.70 an ounce at 1:45 p.m. on the COMEX in New York.
Gold futures posted the longest slump in five weeks yesterday on concern that the Federal Reserve is moving closer to raising U.S. interest rates, crimping demand for the precious metal as an alternative investment, according to Bloomberg.
Separately, TheStreet Ratings team rates IAMGOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate IAMGOLD CORP (IAG) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."