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IAMGOLD (IAG) to Report Q2 Earnings: What's in the Cards?
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IAMGOLD Corporation (IAG - Free Report) is expected to deliver a year-over-year improvement in its bottom line when it reports second-quarter 2024 results on Aug 8, after market close.
The Zacks Consensus Estimate for IAG’s earnings has moved up over the past 60 days to 9 cents per share. The consensus mark indicates a significant improvement from the loss of 1 cent per share reported in the second quarter of 2023.
Image Source: Zacks Investment Research
Solid Earnings Surprise History
IAMGOLD’s bottom line beat the Zacks Consensus Estimate in the trailing four quarters. Over the same period, the company has recorded an average surprise of 187.5%.
Image Source: Zacks Investment Research
Factors Likely to Have Shaped Q2 Performance
In the first quarter of 2024, IAG’s Essakane mine reported attributable production of 118,000 ounces, a 28% year-over-year increase due to higher grades. Westwood’s output was 32,000 ounces, up 50% year over year. The mine achieved its highest quarter of production since it restarted in 2021. We expect this momentum to have continued in the second quarter, leading to higher year-over-year production numbers.
On Mar 31, 2024, the company announced the first gold pour at the Côté Gold mine. The mine is operated as a joint venture between IAG and Sumitomo Metal Mining Co., Ltd., a subsidiary of Sumitomo (SSUMY - Free Report) . The mine contributed 1,000 ounces to IAG’s production in the first quarter, resulting in an attributable total production of 151,000 ounces, up 34% year over year.
On May 24, IAG completed a bought deal equity financing of 72 million shares and raised gross proceeds of $300.24 million. Net proceeds will be utilized to repurchase a 9.7% interest in the Côté Gold mine from Sumitomo Metal Mining Co. Ltd., a subsidiary of Sumitomo, restoring its 70% interest in the Côté Gold Mine.
IAMGOLD expects the Côté Gold mine to produce 220,000-290,000 ounces of gold (on a 100% basis) in 2024. Recently, the company announced that the Côté Gold Mine has reached commercial production, which is defined as the achievement of reaching a minimum of 30 consecutive days of operations during which the mill operated at an average of 60% of nameplate throughput of 36,000 tons per day.
Taking into account the Côté Gold mine’s contribution, IAG’s second-quarter production is expected to have increased, both year over year and sequentially.
Average gold prices were a record $2,338 an ounce, marking 18% year-over-year growth. Contributing factors included heightened geopolitical tensions, a weaker U.S. dollar, elevated demand and increasing speculation for monetary policy easing.
Higher gold prices and upbeat production numbers are expected to have boosted IAG’s top-line performance.
However, pricing for certain main consumables, including cyanide and grinding media, is expected to have dented IAMGOLD’s margins. Also, at the Côté Gold Mine, operating and capitalized waste stripping unit costs are expected to be higher until it achieves a throughput rate of 90% of nameplate (expected by the end of 2024). While these factors are expected to have somewhat dented IAG’s earnings, higher revenues are likely to have offset the impacts.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for IAMGOLD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Earnings ESP: The Earnings ESP for IAG is -1.16%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: IAMGOLD currently sports a Zacks Rank of 1.
Price Performance
The IAG stock has gained 53.1% over the past year compared with the industry’s 20.8% growth.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for GOLD’s earnings for the second quarter is pegged at 26 cents per share. It indicates year-over-year growth of 36.8%. The company has a trailing four-quarter earnings surprise of 18.3%, on average.
HudBay Minerals (HBM - Free Report) , slated to release earnings on Aug 13, has an Earnings ESP of +1.12% and a Zacks Rank of 3 at present.
The consensus mark for HBM’s second-quarter earnings is pegged at 6 cents per share. It indicates a substantial improvement from the loss of 7 cents per share reported in the second quarter of 2023. Hudbay Minerals has a trailing four-quarter earnings surprise of 39.9%, on average.
Image: Bigstock
IAMGOLD (IAG) to Report Q2 Earnings: What's in the Cards?
IAMGOLD Corporation (IAG - Free Report) is expected to deliver a year-over-year improvement in its bottom line when it reports second-quarter 2024 results on Aug 8, after market close.
The Zacks Consensus Estimate for IAG’s earnings has moved up over the past 60 days to 9 cents per share. The consensus mark indicates a significant improvement from the loss of 1 cent per share reported in the second quarter of 2023.
Solid Earnings Surprise History
IAMGOLD’s bottom line beat the Zacks Consensus Estimate in the trailing four quarters. Over the same period, the company has recorded an average surprise of 187.5%.
Image Source: Zacks Investment Research
Factors Likely to Have Shaped Q2 Performance
In the first quarter of 2024, IAG’s Essakane mine reported attributable production of 118,000 ounces, a 28% year-over-year increase due to higher grades. Westwood’s output was 32,000 ounces, up 50% year over year. The mine achieved its highest quarter of production since it restarted in 2021. We expect this momentum to have continued in the second quarter, leading to higher year-over-year production numbers.
On Mar 31, 2024, the company announced the first gold pour at the Côté Gold mine. The mine is operated as a joint venture between IAG and Sumitomo Metal Mining Co., Ltd., a subsidiary of Sumitomo (SSUMY - Free Report) . The mine contributed 1,000 ounces to IAG’s production in the first quarter, resulting in an attributable total production of 151,000 ounces, up 34% year over year.
On May 24, IAG completed a bought deal equity financing of 72 million shares and raised gross proceeds of $300.24 million. Net proceeds will be utilized to repurchase a 9.7% interest in the Côté Gold mine from Sumitomo Metal Mining Co. Ltd., a subsidiary of Sumitomo, restoring its 70% interest in the Côté Gold Mine.
IAMGOLD expects the Côté Gold mine to produce 220,000-290,000 ounces of gold (on a 100% basis) in 2024. Recently, the company announced that the Côté Gold Mine has reached commercial production, which is defined as the achievement of reaching a minimum of 30 consecutive days of operations during which the mill operated at an average of 60% of nameplate throughput of 36,000 tons per day.
Taking into account the Côté Gold mine’s contribution, IAG’s second-quarter production is expected to have increased, both year over year and sequentially.
Average gold prices were a record $2,338 an ounce, marking 18% year-over-year growth. Contributing factors included heightened geopolitical tensions, a weaker U.S. dollar, elevated demand and increasing speculation for monetary policy easing.
Higher gold prices and upbeat production numbers are expected to have boosted IAG’s top-line performance.
However, pricing for certain main consumables, including cyanide and grinding media, is expected to have dented IAMGOLD’s margins. Also, at the Côté Gold Mine, operating and capitalized waste stripping unit costs are expected to be higher until it achieves a throughput rate of 90% of nameplate (expected by the end of 2024). While these factors are expected to have somewhat dented IAG’s earnings, higher revenues are likely to have offset the impacts.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for IAMGOLD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Earnings ESP: The Earnings ESP for IAG is -1.16%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: IAMGOLD currently sports a Zacks Rank of 1.
Price Performance
The IAG stock has gained 53.1% over the past year compared with the industry’s 20.8% growth.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
Barrick Gold Corporation (GOLD - Free Report) , scheduled to release earnings on Aug 12, has an Earnings ESP of +3.29% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GOLD’s earnings for the second quarter is pegged at 26 cents per share. It indicates year-over-year growth of 36.8%. The company has a trailing four-quarter earnings surprise of 18.3%, on average.
HudBay Minerals (HBM - Free Report) , slated to release earnings on Aug 13, has an Earnings ESP of +1.12% and a Zacks Rank of 3 at present.
The consensus mark for HBM’s second-quarter earnings is pegged at 6 cents per share. It indicates a substantial improvement from the loss of 7 cents per share reported in the second quarter of 2023. Hudbay Minerals has a trailing four-quarter earnings surprise of 39.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.