Iamgold CorporationIAG has declared that it has completed the early redemption of $489 million of outstanding 6.75% Senior Notes due in Oct 2020.
The net proceeds of the company's recent issue of $400 million aggregate principal amount of 7.00% Senior Notes due in 2025 and cash on hand were used to fund the redemption. This redemption occurred after the end of first-quarter 2017. With this redemption, Iamgold's capital structure continues to support its ability to finance the company's growth pipeline.
Iamgold posted earnings of a penny per share and revenues of $252.5 million in fourth-quarter 2016, both of which beat the Zacks Consensus Estimate. The company increased its gross profit by $156.8 million to $102.2 million for full-year 2016. For 2017, the company not only intends to increase gold production to 1 million ounces but also to reduce costs significantly.
Iamgold's shares rallied 30.6% in the last six months, outperforming the Zacks categorized Mining-Gold industry's gain of 2.9%.
Iamgold remains focused on increasing reserves and preventing depletion of resources. The company's joint ventures in South and Central America, West Africa and Canada have undertaken exploration projects, along with targeting soft rock resources near existing mines.
For 2017, the company has increased the exploration budget to $47 million, compared with the year-ago figure of $39 million. The company anticipates capital expenditure for 2017 to be around $250 million.
Iamgold Corporation Price and Consensus
Zacks Rank & Key Picks
Iamgold currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space include Univar Inc. UNVR , The Chemours Company CC and Kronos Worldwide Inc KRO , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Univar has expected long-term growth of 9.4%.
Chemours has expected long-term growth of 15.5%.
Kronos has expected long-term growth of 5%.
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