IAMGold Stock (IAG) Great Growth and Undervalue (Q4 2024 Earnings)

IAMGOLD Corporation (NYSE: IAG) has emerged as one of the most compelling gold mining stocks in recent months, driven by outstanding financial performance and impressive stock price growth. The company’s fourth-quarter (Q4) 2024 earnings report showcased substantial revenue and earnings gains, reinforcing its strong position in the gold sector. Despite this remarkable growth, IAMGOLD remains undervalued compared to industry peers, presenting a unique opportunity for investors. This article delves into the company’s financial performance, stock valuation, growth potential, and associated risks to determine why IAMGOLD remains an attractive investment choice.

About IAMGOLD Corporation

Founded in 1990, IAMGOLD Corporation is a mid-tier gold mining company engaged in the exploration, development, and production of gold. Headquartered in Toronto, Canada, the company operates a diversified portfolio of mining assets across North America, South America, and West Africa.

IAMGOLD’s primary mining operations include the Essakane Mine in Burkina Faso, the Rosebel Mine in Suriname, and the newly developed Côté Gold Mine in Ontario, Canada. The company is focused on responsible mining practices, sustainable development, and operational efficiency to maximize shareholder value.

With a commitment to long-term growth, IAMGOLD continues to expand its resource base through exploration and strategic investments. The company’s focus on cost management, production efficiency, and asset optimization has positioned it as a key player in the global gold industry.

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IAMGOLD Financial Performance

According to Stockanalysis, IAMGOLD Corporation delivered an outstanding financial performance in Q4 2024, reflecting strong growth across key metrics. The company reported quarterly revenue of $469.9 million, marking a 57.9% increase from $297.6 million in Q4 2023. Earnings per share (EPS) also showed significant improvement, rising to $0.15, compared to a loss of $0.02 per share in the same period last year. On a trailing twelve-month (TTM) basis, IAMGOLD's total revenue reached $1.63 billion, representing a 65.4% increase from $987.1 million in 2023. Additionally, its TTM EPS surged by 677.2%, from $0.19 to $1.52, highlighting remarkable profitability growth. Looking ahead, analysts forecast further revenue expansion, projecting $2.26 billion in 2025, a 38.27% increase from 2024. However, EPS is expected to decline to $0.79, a 47.6% drop from 2024's EPS of $1.52, primarily due to higher capital expenditures and operational investments.

IAG Stock Price Performance and Valuation

IAMGOLD's stock has demonstrated impressive growth over the past year, significantly outperforming the broader market. As of March 14, 2025, the stock is trading at $5.77 per share, marking an 84.3% increase compared to the previous year, far surpassing the S&P 500's 6.8% gain during the same period. From a valuation perspective, IAMGOLD remains attractively priced relative to its earnings and sales.

The company's price-to-sales (P/S) TTM ratio stands at 2.03, with a forward P/S ratio of 1.46, suggesting strong revenue growth potential. Additionally, IAMGOLD's price-to-earnings (P/E) TTM ratio is 4.04, while its forward P/E ratio is 7.3, indicating that despite recent stock appreciation, the company remains undervalued compared to its future earnings expectations. These metrics highlight IAMGOLD as a compelling investment opportunity, with significant upside potential.

IAMGOLD Growth Potential

Several factors contribute to IAMGOLD's potential for continued growth:

• Operational Efficiency: The company's focus on cost management and operational efficiency has led to improved profit margins. The cost of sales for Q4 2024 was $339 million, up 36.8% from the previous year, while gross profit increased by 162.9% to $130.9 million.
• Market Conditions: Favorable gold market conditions, driven by economic uncertainties like US trade war and inflationary pressures, have increased demand for gold, benefiting producers like IAMGOLD.
• Exploration and Development: The company's ongoing exploration like Côté Gold Mine and development projects aim to expand its resource base and production capacity, positioning IAMGOLD for future growth.

Risks to Consider

While IAMGOLD presents a promising investment opportunity, potential investors should consider the following risks:

• Commodity Price Volatility: Fluctuations in gold prices can significantly impact the company's revenue and profitability.
• Operational Risks: Mining operations are subject to risks such as equipment failures, labor disputes, and regulatory changes, which can affect production and costs.
• Geopolitical Risks: With operations in multiple countries, IAMGOLD is exposed to geopolitical risks, including changes in government policies, taxation, and political stability.

Despite these risks, IAMGOLD's strong financial performance, strategic initiatives, and favorable market conditions make it a compelling investment option.

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Conclusion

IAMGOLD Corporation's impressive financial performance in Q4 2024, marked by substantial increases in revenue and earnings, underscores the company's growth trajectory. The significant appreciation in stock price, coupled with favorable valuation metrics, suggests that IAMGOLD remains undervalued. With strategic initiatives aimed at enhancing operational efficiency and expanding production capacity, the company is well-positioned for future growth. While potential risks exist, IAMGOLD's robust fundamentals and market positioning make it a recommended consideration for investors seeking exposure to the gold mining sector.