Company Performance - IAMGOLD Corporation has been named to the 2025 TSX30, ranking 13th among the top 30 performing stocks on the Toronto Stock Exchange based on dividend-adjusted share price appreciation of 385% over the three years ending June 30, 2025 [2][3] - The TSX30 ranking recognizes companies that deliver exceptional performance and contribute to Canada's economic transformation [3] Company Overview - IAMGOLD is an intermediate gold producer and developer based in Canada, with operating mines in North America and West Africa, including Côté Gold, Westwood, and Essakane [4] - The Côté Gold Mine achieved full nameplate production in June 2025 and is positioned to be one of the largest gold mines in Canada [4] - The company employs approximately 3,700 people and is committed to high standards of Environmental, Social, and Governance practices [4]

Group 1 - IAMGOLD derives 44% of its production from Burkina Faso, which raises concerns about the company's exposure to this region [1] - The significant reliance on Burkina Faso for production could pose risks to IAMGOLD's overall performance [1] Group 2 - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential across various sectors [2] - The investment philosophy emphasizes long-term value and disciplined research to uncover opportunities for strong returns [2] - The firm aims to provide actionable investment ideas that withstand the test of time [2]

Core Insights - B2Gold Corp (BTG) and IAMGOLD (IAG) are prominent Canadian gold producers with strong positions in the global mining industry [1][2] - Gold prices have increased by 29% this year, driven by safe-haven demand and geopolitical risks, which is expected to continue supporting gold prices [3] B2Gold Overview - B2Gold reported Q2 revenues of $692 million, a 40% increase year-over-year, primarily due to higher gold prices, with flat sales volumes [4] - The company achieved gold production of 229,454 ounces in Q2, a 12.3% increase year-over-year, and is on track for total production of 970,000-1,075,000 ounces in 2025 [5] - As of June 30, 2025, B2Gold had cash and cash equivalents of $308 million and a total debt-to-capital ratio of 0.12 [6] - A positive Feasibility Study for the Gramalote Project indicates an initial life of 13 years with an average annual production of 227,000 ounces in the first five years [7] - The Fekola underground operations are projected to contribute 25,000–35,000 ounces in 2025, with significant ramp-up expected from 2026 [8] IAMGOLD Overview - IAMGOLD reported Q2 revenues of $581 million, a 51% increase year-over-year, driven by a 9% increase in sales volume and 39% higher prices, although earnings fell 19% due to higher financing costs [11] - The company produced 173,000 ounces of gold in Q2, a 4% increase year-over-year, with the Côté mine contributing 67,000 ounces [12] - IAMGOLD ended Q2 with available liquidity of $616.5 million and a total debt-to-capital ratio of 0.24 [14] - The company is advancing expansion plans for the Côté mine and has several operational projects aimed at improving efficiency and reducing costs [15] Financial Comparisons - B2Gold's return on equity is 10.42%, higher than IAMGOLD's 8.54%, indicating more efficient use of shareholder funds [25] - B2Gold has a dividend yield of 1.97%, surpassing the industry's 1.44%, while IAMGOLD does not pay dividends [26] - Year-to-date, B2Gold has gained 66.4% and IAMGOLD has appreciated 77.6% [22] Earnings Estimates - The Zacks Consensus Estimate for B2Gold's 2025 earnings is 58 cents per share, indicating a 262.5% year-over-year surge [17] - IAMGOLD's earnings estimate for 2025 is 80 cents per share, reflecting a 45.5% year-over-year growth [18] Investment Considerations - Both companies are well-positioned to benefit from rising gold prices, but B2Gold's attractive valuation, stronger estimate revisions, and superior return on equity provide it with a distinct advantage [27]

Group 1 - IAMGOLD Corp. is focusing on Canada and large-scale production targets to transform into a mid-tier gold champion [1] - The company is nearing completion of its repositioning and is set to significantly increase output [1] - IAMGOLD aims to enter a strong free cash flow cycle while advancing new growth initiatives for long-term value creation [1]

Core Viewpoint - IAG has demonstrated strong financial performance in Q2, with significant revenue growth and profitability, but faces challenges in the North American market that may impact future performance [4][10][12]. Financial Performance - Total revenue increased by 6.8% to €8.86 billion, driven by a 4.9% rise in passenger revenue to €7.77 billion and a 9.9% increase in cargo revenue to €311 million [5]. - EBIT surged by 35.4% to €1.68 billion, exceeding consensus estimates, primarily due to lower fuel costs, with fuel CASK down 12.7% to 1.99¢ [8]. - Pre-tax profit rose by 33.0% to €1.51 billion, and EPS increased by 27.6% to 23.6¢ [8]. Passenger and Cargo Dynamics - Passenger growth was impacted by a 0.8% decline in passenger numbers to 31,624k, leading to a load factor decrease of 1.3% to 85.4% [6]. - The growth in passenger revenue was supported by a combination of capacity expansion and yield improvement, although the growth rate in RASK slowed to 2.6% [6][7]. North American Market Concerns - The North American market showed its first contraction in RPK in nearly three years, with passenger numbers down 1.6% to 3,655k, raising concerns about overcapacity and potential downward pressure on ticket prices [10][11]. - Management noted a stabilization in NA ticket yields and flat capacity expectations for Q3, which may help preserve yields [12]. Future Outlook - The company anticipates a rebound in yields in other regions, particularly Iberia, driven by strong demand between Spain and LATAM [14]. - The introduction of a new revenue management system is expected to enhance yield management and customer spending [17]. - Despite current challenges, the company remains optimistic about long-term growth, projecting a price target of 470p, close to its historical high [18].

Financial Data and Key Metrics Changes - IAMGOLD reported revenues from continuing operations of $580.9 million from sales of 182,000 ounces at an average realized price of $3,182 per ounce, compared to a spot price of $3,302 per ounce [19] - Adjusted EBITDA reached a record $276.4 million, up from $191 million in the previous year [19] - The company ended the second quarter with $223.8 million in cash and cash equivalents and net debt of $1 billion [15] Business Line Data and Key Metrics Changes - IAMGOLD produced 173,000 ounces of gold in Q2, with Cote contributing 96,000 ounces, Westwood 29,000 ounces, and Essakane 77,000 ounces [8][27][31] - Cash costs for Q2 were reported at $15.56 per ounce, with all-in sustaining costs at $2,041 per ounce [8] - The company expects a stronger second half of the year, with production guidance of 735,000 to 820,000 ounces of gold [9] Market Data and Key Metrics Changes - The average gold price during the quarter was $3,100 per ounce, impacting the company's revenue and cost structure [5] - IAMGOLD's interest in Essakane was adjusted from 90% to 85% due to changes in the Burkina Faso Mining Code, affecting production guidance [15][33] Company Strategy and Development Direction - IAMGOLD is focused on stabilizing and optimizing the Cote mine, with plans to unlock expansion potential targeting over 20 million ounces of measured and indicated resources [5][25] - The company aims to responsibly deleverage its balance sheet and is prioritizing repayment of high-cost debt [16][18] - Future growth is expected from the Nelligan and Monster Lake projects in Quebec, which have significant gold resources [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production guidance for the year, citing improvements at the Cote mine and expected increases in grades at other operations [9][30] - The company acknowledged challenges related to rising costs due to higher royalties and currency fluctuations but remains optimistic about cash flow generation [10][32] Other Important Information - IAMGOLD's total recordable injury frequency rate continued to trend below prior year levels, reflecting a commitment to safety [7] - The company released its 2024 sustainability report, marking 18 years of commitment to responsible mining practices [7] Q&A Session Summary Question: Cost increase at Cote and strip ratio for the second half - Management indicated a strip ratio closer to 2.5 for the second half, with expectations of reduced rehandling as operations transition to a direct feed strategy [38][40] Question: Processing costs evolution with upcoming shutdowns - Management expects temporary increases in processing costs during maintenance shutdowns but anticipates stabilization and potential reductions in 2026 [43][46] Question: New agreement at Essakane and potential divestment - The new agreement allows for efficient cash flow movement, and while divestment is not currently a focus, the company sees Essakane as a strategic asset for cash flow generation [63][68]

Financial Performance - The company reported attributable gold production of 173,000 ounces in Q2 2025[22], and 334,000 ounces year-to-date[23] - The average realized gold price was $3,182 per ounce[24] - The company's cash costs were $1,556 per ounce and AISC was $2,041 per ounce[22] - H1 2025 adjusted EBITDA reached $480.9 million[22] - The company maintains a strong balance sheet with a liquidity position of $616.5 million, including $223.8 million in cash and equivalents[22] Operational Highlights - Côté Gold achieved 100% nameplate throughput of 36,000 tonnes per day in June 2025[22, 24] - Essakane declared a dividend of $855 million during Q2 2025, with IAMGOLD's attributable portion being $680 million net of taxes[31] - Westwood produced 29,000 ounces of gold in Q2 2025[24] - Essakane produced 77,000 attributable ounces in Q2 2025[24] Guidance and Outlook - The company anticipates 2025 attributable gold production of 735,000 to 820,000 ounces at an AISC of $1,830 to $1,930 per ounce[22] - Côté Gold is expected to produce 250,000 to 280,000 attributable ounces in 2025[30] - Westwood is expected to produce 125,000 to 140,000 ounces in 2025[30] - Essakane is expected to produce 360,000 to 400,000 ounces in 2025[30]

Core Viewpoint - IAMGOLD Corporation is experiencing a transformative period with improved operations and significant cash flow generation potential, particularly from its Canadian portfolio, following the successful ramp-up of Côté Gold to nameplate capacity [2][4]. Financial Performance - In Q2 2025, IAMGOLD produced 173,000 ounces of gold, with year-to-date production reaching 334,000 ounces. The company reported revenues of $580.9 million from gold sales at an average realized price of $3,182 per ounce [6][12]. - Adjusted EBITDA for Q2 2025 was $276.4 million, with net earnings attributable to equity holders at $78.7 million, translating to $0.14 per share [8][14]. - The company has revised its annual cash cost guidance to $1,375 to $1,475 per ounce sold, and all-in sustaining costs (AISC) to $1,830 to $1,930 per ounce sold due to increased royalties and operational costs [3][21]. Production and Operations - Côté Gold achieved a significant milestone by operating at 100% nameplate throughput capacity of 36,000 tonnes per day for over thirty consecutive days, producing 67,000 attributable ounces in Q2 2025 [6][39]. - The company expects higher production in the second half of 2025, with total attributable production forecasted between 735,000 to 820,000 ounces for the full year [16][50]. Cost Management - IAMGOLD's cost of sales per ounce sold was $1,561 in Q2 2025, with cash costs at $1,556 and AISC at $2,041 [8][12]. - The company anticipates that costs will decline as mining operations transition to a bulk mining plan, which is expected to reduce rehandling and improve operational efficiencies [25][54]. Capital Expenditures - Total capital expenditures for 2025 are expected to be $335 million, with $310 million categorized as sustaining capital, reflecting investments in plant improvements and operational efficiency [23][55]. - The company has increased its sustaining capital expenditures guidance to $130 million due to non-recurring plant improvements [55]. Exploration and Growth - IAMGOLD plans to continue its exploration activities, with a focus on the Gosselin zone and infill drilling at the Côté zone, aiming to increase resource confidence and convert Inferred Resources to Indicated Resources [56][58]. - The exploration budget for 2025 is approximately $38 million, with significant spending planned at Côté Gold [27]. Health and Safety - The company reported a total recordable injuries frequency rate (TRIFR) of 0.41 for Q2 2025, indicating improved safety performance compared to the previous year [31]. Environmental and Social Governance - IAMGOLD released its 2024 Sustainability Report, highlighting its commitment to environmental, social, and governance (ESG) standards [30]. - The company is actively working on initiatives to enhance its relationships with Indigenous communities and promote equity, diversity, and inclusion within its workforce [34][35].

Production and Sales - Attributable gold production was 173,000 ounces in Q2 2025, up from 166,000 ounces in Q2 2024, with year-to-date production at 334,000 ounces compared to 317,000 ounces last year[10]. - The Côté Gold Mine achieved full nameplate capacity of 36,000 tonnes per day in June 2025, producing 67,000 attributable ounces in Q2 2025[6]. - Attributable gold production was 67,000 ounces in Q2 2025, a significant increase from 20,000 ounces in Q2 2024, with total gold production of 96,000 ounces on a 100% basis[50]. - Total ore mined in Q2 2025 was 413,000 tonnes, an increase of 196,000 tonnes or 90% from the same prior year period[65]. - The company expects 2025 production at Côté Gold to be between 360,000 to 400,000 ounces on a 100% basis, with a focus on stabilizing the processing plant at 36,000 tpd[51]. - The company expects Westwood production in 2025 to be between 125,000 to 140,000 ounces, with an increase in grade anticipated in the second half of the year[64]. - Essakane produced 77,000 ounces of attributable gold in Q2 2025, a decrease of 34,000 ounces or 31% compared to Q2 2024[74]. - Essakane's production outlook for 2025 is expected to be between 400,000 to 440,000 ounces, with higher grades anticipated in the second half of the year[77]. Financial Performance - Revenues for Q2 2025 were $580.9 million from sales of 182,000 ounces at an average realized gold price of $3,182 per ounce, compared to $356.0 million from 156,000 ounces at $2,294 per ounce in Q2 2024[10]. - Revenues for Q2 2025 increased to $580.9 million, up 50.8% from $385.3 million in Q2 2024[14]. - Year-to-date revenues for 2025 reached $1,058.0 million, up $333.8 million or 46% from the previous year, primarily due to a $774 per ounce increase in realized gold price[145]. - Gross profit for Q2 2025 was $198.8 million, representing a 31.9% increase compared to $150.7 million in Q2 2024[14]. - Net earnings attributable to equity holders for Q2 2025 were $78.7 million, or $0.14 per share, compared to $118.4 million year-to-date[6]. - The average realized gold price for Q2 2025 was $3,336 per ounce, compared to $2,341 per ounce in Q2 2024[45]. - The average realized gold price in Q2 2025 was $3,284 per ounce, compared to $2,362 per ounce in Q2 2024[74]. - Year-to-date cost of sales excluding depreciation was $543.3 million, up $191.6 million or 54% compared to the prior year, attributed to the ramp-up of sales at the Côté Gold mine[147]. Costs and Expenses - Cost of sales per ounce sold increased to $1,561 in Q2 2025 from $1,076 in Q2 2024, with cash costs at $1,556 per ounce compared to $1,071 per ounce last year[10]. - The annual attributable cash cost guidance has been revised to $1,375 to $1,475 per ounce sold, and AISC guidance has been revised to $1,830 to $1,930 per ounce sold[6]. - Cash costs per ounce sold for Côté Gold increased to $1,237, with updated full year guidance of $1,100 to $1,200[27]. - Cost of sales, excluding depreciation, increased by $29.3 million or 23% to $158.1 million in Q2 2025, with cost per ounce sold rising by $774 or 71% to $1,858[74]. - Cash costs for Q2 2025 were $157.8 million, up by $29.4 million or 23%, resulting in cash costs per ounce sold of $1,855, an increase of $774 or 72%[74]. - AISC per ounce sold in Q2 2025 was $2,224, higher by $743 or 50% compared to the prior year period[74]. - The Company revised cash cost guidance to $1,275 to $1,375 per ounce sold, and AISC to $1,800 to $1,900 per ounce sold[66]. Capital Expenditures and Investments - Capital expenditures for 2025 are now expected to total $335 million, with $310 million categorized as sustaining capital[32]. - Sustaining capital expenditures guidance has been increased to $130 million attributable to IAMGOLD, primarily for plant improvements and tailings dam construction[54]. - The Company expects to pay cash taxes in the range of $165 to $175 million during 2025, revised upwards from previous guidance[34]. - The Company completed a transaction with Summit Royalty Corporation, resulting in cash proceeds of $10.0 million and share consideration valued at $7.5 million[93]. - The Company issued $450 million of 5.75% Senior Notes, maturing on October 15, 2028, with semi-annual interest payments of approximately $12.9 million[114]. - The Company entered into a $400.0 million Term Loan in May 2023, with a floating interest rate of SOFR + 8.25% and a maturity date of May 16, 2028[116]. Exploration and Development - The Gosselin zone drilling program plans to complete 45,000 metres in 2025, with 19,700 metres completed in Q2 2025, contributing to resource confidence and category conversion[55]. - The Côté zone infill drilling program has initiated with a target of 20,000 metres, aiming to convert Inferred Resources to Indicated Resources, with 6,500 metres completed in Q2 2025[57]. - Exploration expenditures for 2025 are projected to be approximately $38 million, primarily focused on Côté Gold and Essakane[33]. - The diamond drilling program for 2025 has been increased from 13,000 metres to 16,000 metres, with 4,300 metres completed in Q2 2025[85]. - Exploration drilling activities in Q2 2025 totaled approximately 56,300 metres, with a total of 99,800 metres year-to-date[91]. Regulatory and Operational Challenges - The Burkina Faso Government's new Mining Code increased the government's free-carried interest from 10% to 15%, impacting the Company's financial outlook[176]. - The Company faces risks related to political instability in Burkina Faso, which has seen military coups and increased militant attacks, affecting supply chains and operational costs[173][174]. - VAT refunds from the Burkina Faso Government remain unpaid, potentially constraining the Company's cash flow and dividend payments[175]. - Security-related costs continue to burden operating expenses, with no assurance of reduction in the near future[175]. - The Company is actively assessing its exposure to tariffs and trade restrictions, which could further complicate its supply chain and financial health[172].

Core Insights - Value investing focuses on identifying stocks trading below their intrinsic value, allowing investors to benefit as market prices align with true company value over time [1] - Earnings yield, calculated as earnings per share divided by stock price, is a useful metric for identifying undervalued stocks, with a higher yield indicating potential undervaluation [2][4] - A screening criterion of an earnings yield greater than 10% is established, alongside other parameters like estimated EPS growth and average daily volume [6][7] Company Highlights - IAMGOLD Corporation (IAG) is a gold exploration and mining company with projected earnings growth of 44% and 40% for 2025 and 2026, respectively, and currently holds a Zacks Rank 1 [9] - Plains GP Holdings (PAGP) is involved in crude oil and refined products transportation, with earnings growth estimates of 206% and 24% for 2025 and 2026, respectively, also holding a Zacks Rank 1 [10][11] - Hope Bancorp (HOPE) provides commercial banking services, with earnings growth estimates of 12% and 40% for 2025 and 2026, and holds a Zacks Rank 1 [12] - CommScope Holding Company, Inc. (COMM) offers communication network infrastructure solutions, with an extraordinary earnings growth estimate of 3,167% for 2025 and 28% for 2026, holding a Zacks Rank 2 [13] - Harmony Biosciences Holdings Inc. (HRMY) focuses on therapies for rare neurological disorders, with earnings growth estimates of 22% and 32% for 2025 and 2026, and holds a Zacks Rank 2 [14]