IMG: Share Buyback Plan Will Support Future Upside Potential

Analysts have modestly raised their price target on IAMGOLD to approximately $24.69 per share from about $24.22, citing slightly higher expected revenue growth and profit margins despite a marginal uptick in the discount rate and a largely unchanged future earnings multiple.

What's in the News

• IAMGOLD launched a normal course issuer bid to repurchase up to 57 million shares, or 9.9% of its outstanding common shares, over a 12 month period. Shares are to be cancelled or held in trust for incentive plans, subject to TSX approval and funded from operating cash flows (Key Developments).
• The buyback program will run until December 11, 2026, or earlier if completed, following the repayment of the company’s second lien notes (Key Developments).
• Third quarter 2025 gold production rose to 190,000 ounces from 173,000 ounces a year earlier, while year to date output increased to 524,000 ounces from 490,000 ounces, reflecting operational momentum across the portfolio (Key Developments).
• Extensive 2025 drilling at the 100% owned Nelligan and Monster Lake projects in Quebec confirmed extensions of mineralized zones. Mineralization at Nelligan has now been traced over more than 1.8 kilometers of strike and to depths beyond 550 meters, remaining open along strike and at depth (Key Developments).
• Upcoming drilling and technical studies at Nelligan and Monster Lake aim to convert Inferred to Indicated resources, test deeper extensions, and refine geological and structural models to guide future exploration across the broader land package (Key Developments).

Valuation Changes

• The Fair Value Estimate has risen slightly to approximately CA$24.69 per share from about CA$24.22.
• The Discount Rate has increased marginally to around 7.40% from roughly 7.33%, reflecting a modestly higher perceived risk profile.
• Revenue Growth has edged higher to about 11.7% from roughly 11.1%, indicating a small uplift in top line expectations.
• The Net Profit Margin has improved slightly to around 30.3% from about 29.6%, pointing to modestly better anticipated profitability.
• The Future P/E has dipped marginally to approximately 13.76x from about 13.78x, suggesting a nearly unchanged valuation multiple on forward earnings.