Why IAMGOLD Corp (USA) Stock Popped 10% This Morning

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What happened

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Shares of gold miner IAMGOLD (NYSE: IAG) jumped 10.4% in early-morning trading Wednesday, after it reported its operational and financial performance for third-quarter 2017. According to the Associated Press, IAMGOLD reported net income of $0.07 per share versus Wall Street analyst estimates of $0.02 per share for the quarter.

So what

That's actually not quite correct. Reviewing IAMGOLD's report, available on its website, it turns out that what the gold miner actually reported was "adjusted net earnings" of $0.07, a non-GAAP (generally accepted accounting principles) measure. Be that as it may, the number was more than twice the $0.03 in adjusted net earnings that IAMGOLD reported in the year-ago quarter -- so, an improvement.

Also improved was the company's attributable production of gold, up 3% year over year to 217,000 ounces. However, net operating cash flow declined by 39% to $77 million. Fortunately, capital expenditures also declined, down 36% to $47 million, leaving IAMGOLD with free cash flow of $30 million for the quarter.

Now what

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Looking forward, IAMGOLD left its guidance for the year mostly unchanged. Investors can expect that by the end of this year IAMGOLD will have produced between 780,000 and 810,000 ounces of gold as an owner-operator, plus a further 65,000 to 75,000 ounces of gold produced through joint ventures, resulting in "total attributable production" of between 845,000 and 885,000 ounces of gold.

IAMGOLD's cost estimates have come down slightly, enough that the company expects "all-in sustaining costs" to amount to between $1,000 and $1,040 per ounce -- meaning the company should be profitable at any gold price above that range. In response to the good news, IAMGOLD stock remains up 9.2% as of 1:05 p.m. EST.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.