IAMGOLD Corp (IAG)

[4Godnwv]

IAMGold is a cheap stock

Both Yamana and Kinross are fairly cheap stocks, currently trading at around half their respective book values. IAMGold, however, is even cheaper still -- it's currently trading below one-third of its book value, making it one of the cheapest stocks in its industry. IAMGold has under-performed analyst expectations in recent quarters, which may be why investors are more skeptical. It also has higher costs than its peers: IAMGold's all-in sustaining cost for an ounce of gold was $1113 last quarter.

But those costs are coming down -- the all-in sustaining cost was $1198 per ounce in the first quarter of 2014. IAMGold's total production also rose, to 208,000 ounces last quarter, up more than 20% from the same period last year. IAMGold wasn't profitable -- its operating costs rose, and it lost money on some of its derivative contracts -- but it did generate $30 million in cash from its operating activities.

IAMGold has a healthy balance sheet, with over $800 million in cash and just over $600 million in long-term debt, so it should be able to continue to ride out the current gold bear market for many quarters to come. And if gold prices begin to rise, the stock could surge higher.

http://www.fool.com/investing/general/2015/06/06/oversold-gold-stocks-poised-for-a-turnaround.aspx?source=eptadnlnk0000002