Here’s why the IAMGOLD Corporation (IAG) share price has plunged

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There has been a decline in the share price of IAMGOLD Corporation (AGI) by -9.79% and were trading at a price of $ 2.54. IAG’s share volume remained the same at 4.97 million shares, however, it was higher than the average volume for the past 50 days, which was 3.96 million shares. Over the past 12 months, there has been a decline in IAG shares of -41.09%, and last week they have fallen by -4.42%. IAG’s stock has fallen -18.79% in the past three months and over the past six months the share’s value has fallen by -19.48%. IAMGOLD’s outstanding shares are $ 475.80 million and their current market value is $ 1.42 billion.

IAMGOLD Corporation at a glance

IAMGOLD Corporation, headquartered in Toronto, Canada, is a developer, operator and explorer of gold mining properties in three regions: West Africa, North America and South America. IAMGOLD develops high potential mining districts that help it develop, operate and explore projects. Its operational mines include the Westwood mine (Quebec, Canada), the Essakane mine (Burkina Faso, West Africa) and the Rosebel mine (Suriname, South America). Some of its development and exploration projects are the Diakha-Siribaya Gold Project (Mali), the Cote Gold Project (Ontario) and the Boto Gold Project (Senegal), and various other countries located in America and Africa. Where is. It is estimated that IAMGOLD employs 5,000 people and is committed to maintaining the culture of responsible mining by following high social and environmental standards practices.

IAMGOLD Reports Second Quarter Financial Results for 2021

the Essakane mine had produced strong and promising second quarter results with high gold production despite the fact that there were many challenges in processing high graphite grade ore. Production forecasts have been revised upwards for the Essakane project, which will reflect higher production in the first two quarters of 2021.
On the other hand, the Westwood mine required additional safety measures due to which the production forecast for Westwood 2021 had to be reduced to reflect this.
Due to difficult operating conditions, mining activities at the Rosebel mine were impacted in the second quarter, which was caused by heavy rains. In addition to the operating conditions, there has also been a significant increase in COVID-19 cases as a new variant emerged in Suriname during the second quarter. The social impact of this situation strongly affected projects and operations. Rosebel’s guidances have been adjusted downward for these reasons.

The company summarized preliminary results from second quarter operations and also updated the 2021 forecast on certain metrics. The focus changes have been made based on the performance of the first half of 2021 and successive efforts to develop an updated outlook for the second half of 2021.
The full year assumptions for the updated forecast for the year 2021 included the average crude oil price per barrel of $ 65 and the average realized gold price of $ 1,745 per ounce with a rate exchange rate EUR: USD of 1.2 and USD: CAD of 1.22.
Production forecast for the whole company was reduced mainly due to reduced actual production at the Rosebel and Westwood mines, which was somewhat offset by high actual production at the Essakane mine for the first half of 2021. The forecast of total costs per ounce has been increased. which reflects a decrease in total forecast attributable company-wide. The company, in accordance with IFRS, is trying to determine any type of depreciation for the Westwood mine and whether it needs an adjustment or not.


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