IAMGOLD (TSE:IMG) (NYSE:IAG), a Canadian gold production and exploration company, soared over 24% today after announcing that it’s selling some of its assets to Moroccan company Managem for $282 million. Note: all figures in this article are in U.S. dollars unless otherwise stated. Separately, IMG also announced that it received $340 million in extra funding from Sumitomo Metal Mining to complete its Côté Gold Project.
The assets IAMGOLD sold are located in Mali, Senegal, and Guinea. The company stated that the funds received from the sale and the additional funding from Sumitomo are enough to sustain the completion of the Côté Gold Project, which is expected to be in production in early 2024. The transactions are expected to close between Q2 and Q3 of next year.
Regarding the funding from Sumitomo Metal Mining, IMG will be giving Sumitomo a ~10% stake in Côté as the $340 million of funding comes in. IMG will also have the ability to repurchase its stake between November 30, 2023, and November 30, 2026, subject to certain terms. Additionally, IAMGOLD will continue operating the mine itself.
Is IAMGOLD Stock a Buy, According to Analysts?
Turning to Wall Street, IMG stock comes in as a Hold based on one Buy, four Holds, and one Sell assigned in the past three months. The average IMG stock price target of C$2.89 implies 7.05% downside potential.
