Clarification of Recent PR from IAG
Below is the latest press release regarding IAG's renewal of their ability to sell shares in order to raise money. I noticed this has sparked some selling on the part of investors after hours, but it should not have sparked any selling at all. Gold has gone up in price after hours, and so has nearly every single gold mining company, yet IAG has dropped a few cents. This shouldn't be. So, since investors are apparently worried about nothing, let me mention a few pieces of information from the press release which should help every IAG investor rest confident that he/she has invested in a very good company which has no plans to sell shares:
1. Notice the words in the heading: "IAMGOLD RENEWS preliminary..." They have always been able to sell more shares in order to raise money. They were able last month, last year, and 3 years ago. But they didn't, and they don't plan to.
2. Notice the last sentence of the PR: "The Company filed this preliminary base shelf prospectus to maintain financial flexibility BUT HAS NO IMMEDIATE INTENTIONS TO UNDERTAKE AN OFFERING." They have absolutely no plans, and not even intentions, to sell shares. The reason they renewed this prospectus is to leave their options open for the sake of timely acquisition in case a lucrative mine becomes available for purchase or partnership.
3. Finally, just so no one would miss it (though it appears many missed it), the PR says, "This filing is a RENEWAL of the Company's EXISTING base shelf prospectus THAT WAS NEVER DRAWN ON." Long story short, since this renewal lasts 25 months, 25 months from today we can expect the exact same press release with one exception: it will be dated 2015 rather than 2013.
Hope this helps; I'm sorry to those of you who sold your shares. You might want to buy them back ASAP if you sold solely on the basis of this PR.
IAMGOLD renews preliminary base shelf prospectus
TORONTO, July 22, 2013 /PRNewswire/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today announced it has filed a preliminary short form base shelf prospectus with the securities regulators in each province and territory of Canada, except for the Province of Quebec, and a corresponding registration statement with the United States Securities and Exchange Commission. These filings, when made final or effective, will allow the Company to make offerings of common shares, first preference shares, second preference shares, debt securities, warrants, subscription receipts or any combination thereof of up to US $1 billion during the next 25 months in the United States and Canada, except for the Province of Quebec. The net proceeds from any such offerings may be used by the Company to fund on-going operations and/or capital requirements, reduce the level of indebtedness outstanding from time to time, fund capital programs, potential future acquisitions and for general corporate purposes. This filing is a renewal of the Company's existing base shelf prospectus that was never drawn on. The Company filed this preliminary base shelf prospectus to maintain financial flexibility but has no immediate intentions to undertake an offering.
