A Look at IAMGOLD’s (TSX:IMG) Valuation Following Strong Production Growth and New Share Buyback Plan

IAMGOLD (TSX:IMG) recently reported increased gold production and sales for both the third quarter and year to date. The company also announced the initiation of a buyback program covering up to 10% of outstanding shares.

See our latest analysis for IAMGOLD.

It has been a pivotal year for IAMGOLD, with momentum noticeably building following higher gold production and the announcement of a major buyback program. After a quiet start, excitement around operational gains has fueled a 152% share price return year-to-date and a remarkable 1-year total shareholder return of 189%, with performance accelerating sharply over the past three months. Longer-term holders have seen even greater rewards, as the company’s three-year total shareholder return stands at over 738%. This is clear evidence that sentiment and growth prospects have shifted significantly in the company’s favor.

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Yet with the share price more than doubling and analyst targets still some way off, investors may wonder whether IAMGOLD remains undervalued after its run or if the market has already priced in the company’s future growth trajectory.

Most Popular Narrative: 15% Undervalued

IAMGOLD’s most widely followed narrative points to a fair value of CA$23.79, approximately 15% above the last close at CA$20.21. This signals optimism among analysts regarding the company’s forward earnings potential and operational momentum.

The successful ramp-up and ahead-of-schedule capacity achievement at the Côté Gold mine, coupled with consistent production and ongoing cost optimization, set the stage for a material near-term increase in gold output. This should significantly boost future revenues and cash flow as temporary ramp-up costs subside.

Read the complete narrative.

Want to uncover what’s driving this bullish target? This narrative leans heavily on strong future cash flow from record gold output and a profit trajectory that challenges industry norms. Find out which bold quantitative assumptions are shaping this valuation by clicking through to reveal the full story.

Result: Fair Value of $23.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent net debt and reliance on a limited number of key assets could put pressure on IAMGOLD's projected growth if adverse events arise.

Find out about the key risks to this IAMGOLD narrative.

Build Your Own IAMGOLD Narrative

If the consensus doesn’t quite fit your outlook, or you want to dig deeper into the data, you can build your own narrative quickly. Do it your way.

A great starting point for your IAMGOLD research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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