IAMGOLD Corp (USA) (NYSE:IAG) focus on cost reduction


Dallas, Texas 09/25/2013 (Financialstrend) – On September 24, IAMGOLD Corp (USA) (NYSE:IAG) management during its presentation at the annual Denver Gold Forum highlighted its key areas of focus over the next few quarters and explained how it planned to counter the heavy headwinds the company is facing at the browsers since the beginning of the year.

The biggest focus for the company is on cost reduction with cut down in projected capital investments and operational costs to counter the reduced revenue inflows. The company is in the midst of implementing a projected $100 million cost reduction program this fiscal. This involves paring down of its capital expenditure to the bare minimum of $250 to $300 million eventually. As a first milestone in this context, the company is targeting to bring its capital expenditure down 50% in 2014 in comparison to its 2013 outlay. It is managing to accomplish this by pushing its long term expansion projects into the back burner for now. The company hopes to nurse its current cash and cash equivalent holding over the next fiscal by which time it hopes the economics around precious metals would improve.

As of close of business on September 24, the stock is trading at $4.86 per share up0.21 percent from its previous day close of $4.85. Total of 11.7 million shares of CIG got traded in comparison to average trading volume of 8.4 million. The share is up35% from its 52 week low pricing of $3.81 it had plummeted to in July’13. It is down 69% from its 52 week high valuation of $15.72. The share has shed over 9.55 of its stock value in the last week and is down by over 27% in value over the past one month. At current depleted valuation levels the company market capitalization is $1.83 billion with 376 million outstanding shares.