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TICKERS: IMG; IAG

Gold Producer's Shares Upgraded on News of Project Construction Deferral
Research Report

Source:

A BMO Capital Markets report discussed this mining company's decision and its implications.

In a Jan. 28 research note, analyst Andrew Kaip reported BMO Capital Markets upgraded IAMGOLD Corp. (IMG:TSX; IAG:NYSE) after its announced decision to postpone construction the Cote gold project. "With the announcement, we are of the view that the risk profile has changed," technically and financially, he indicated.

BMO raised its rating on the company to Outperform and its target price to CA$5 from CA$3.75. IAMGOLD's shares are currently trading at CA$3.76 apiece.

IAMGOLD intends to push back construction of Cote until market conditions have improved and are sustainable. In the interim, Kaip indicated, the company will keep working on engineering and permitting for the project and concentrating on various internal initiatives at its operations, "including the delivery of Saramacca."

As for risks inherent in delaying the project, Kaip wrote, "We are of the view that these risks are minimal and well within the capabilities of IAMGOLD's management as it relates to staging the Cote gold project."

Management will give capital guidance for the Cote work plan when it announces Q4/18 and year-end 2018 corporate results on Feb. 20.

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Disclosures from BMO Capital Markets, IAMGOLD, January 28, 2019

IMPORTANT DISCLOSURES

Analyst's Certification
I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures
Disclosure 9B: BMO Capital Markets makes a market in IAMGOLD in United States.
Disclosure 16: A research analyst has extensively viewed the material operations of IAMGOLD.
Disclosure 17: IAMGOLD has paid or reimbursed some or all of the research analyst's travel expenses.

For Important Disclosures on the stocks discussed in this report, please click here.




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