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--Analyst Action: Iamgold Corp Gets To Keep Buy at Wellington, Which Says M&A Activity May Be Coming

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Iamgold Corp. (IMG.TO) is looking at growth opportunities, and Wellington West Capital Markets analyst Paolo Lostritto reportedly wrote that its plans may involve M&A activity.

That echoes comments from chief executive Steve Letwin himself, the Financial Post noted. Iamgold is flush with cash (like most gold miners) and will have even more once it completes an asset sale, it said.

According to the FP, Lostritto noted that potential acquisitions will be measured against organic opportunities, and that the company will be seeking deposits in politically safe jurisdictions with at least two million ounces of gold and annual production of more than 150,000 ounces a year.

But, the FP said, there is one piece of bad news dogging Iamgold right now: a strike at its flagship Essakane mine in Burkina Faso. Lostritto reportedly wrote that the strike "takes the shine off a superb ramp-up quarter" at Essakane, which produced 95,000 ounces of gold in Q1. Cash flow per share in the quarter was US59 cents, ahead of his estimate of US47 cents.

He reportedly maintained a Buy rating on the stock and a target of $21 a share.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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