Replies to post #1189 on IAMGOLD Corp (IAG)

[roadkilll]

Gemini did the math for me
Q4 Gold Margin
Assuming AISC remains constant at $1,956/oz (which is a simplifying assumption, as costs often rise with higher gold prices due to royalties):
$4,100/oz-$1,956/oz=$2,144/oz

Increase in Profit per Ounce
$2,144/oz-$1,536/oz=$608/oz (This is equal to the gold price increase, as expected if costs are static).

3. Estimate Total Earnings Increase
We will apply the increased profit per ounce to the Q3 sales volume (187,000 ounces) to estimate the boost to earnings.
Estimated Earnings Increase: $608/oz×187,000 ounces˜$113.896 million

Free cash flow Q3 = $292.3 million do the potential for $500 million in Q4 is high.