IAMGOLD Corp (USA) (NYSE:IAG) shares trading low


Dallas, Texas 07/03/2013 (Financialstrend) – Shares of IAMGOLD Corp (USA) (NYSE:IAG) closed at $4.03 on Tuesday, recording a loss of 8.62 percent. The share price ranged between $3.96 and $4.40 during the day, with a 52-week high of $16.88 and a 52-week low of $3.81 per share.

IAMGOLD Corp (USA) (NYSE:IAG) had very high trading volumes of 9.02 million shares on Tuesday, with an average volume of 7.22 million shares per day. IAMGOLD Corp (USA) (NYSE:IAG) currently has 57.54 million shares outstanding in the market with a market cap of $1.52 billion and an institutional ownership of 80 percent of the total share capital.

IAMGOLD Corporation (IAG) is a mining company with interests in a niobium mine, five operating gold mines, a diamond royalty and other development and exploration projects located in Africa and the Americas. The company focuses its operations on selective countries in South America, West Africa and in the Canadian province of Quebec.

The average net profit margin for IAMGOLD Corporation for the most recent five years is 25.4%, compared to 6.6% for Barrick. IAMGOLD Corporation’s (USA) (NYSE:IAG) cash and cash equivalents stand at $648 million, having $215 million worth of gold bullion.  With current liabilities standing only at $317.9 million, IAMGOLD Corporation (USA) (NYSE:IAG) has the ability to pile on additional debt. IAMGOLD is also traded at a substantial discount to book value. The company’s price to tangible book value is 0.44, compared to 1.19 for Barrick. The market price for gold has been pretty volatile recently. To provide a nice cushion against volatility, a large discount to tangible book value is needed.