Iamgold's stock rally after gold discovery and upgrade extends win streak to longest in 6 years
Shares of Iamgold Corp. surged 1.7% in morning trade Wednesday, putting them on track for the longest win streak in nearly six years, after the gold mine operator was upgraded at CIBC World Markets in the wake of a gold discovery announcement. The stock, which was trading at the highest level seen since April 1, 2013, was headed for a 7th-straight gain, which would be the longest win streak since the 7-session stretch ending Oct. 28, 2011. Late Tuesday, the Toronto-based company confirmed a "significant gold discovery exceeding initial targets" at the Saramacca deposits. Early Wednesday, CIBC analyst David Haughton upgraded Iamgold to outperformer, after being at neutral since Dec. 9, 2016 and raised his stock price target to $8.50 from $6.50. "The new Saramacca resourse is a 'game-changer' to drive lower costs and better valuation at Rosebel," Haughton wrote in a note to clients. He estimates Saramacca will add over 200,000 ounces per year of production at Rosebel, with indicated resource grades that are 120% higher than current Rosebel reserves. The stock has now soared 39.5% over the past three months, while the VanEck Gold Miners ETF has climbed 6.1% and the S&P 500 has gained 1.4%.
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