Intrinsic value of IAMGOLD - IAG

Previous Close

$5.76

  Intrinsic Value

$1.22

stock screener

  Rating & Target

str. sell

-79%

  Value-price divergence*

-48%

Previous close

$5.76

 
Intrinsic value

$1.22

 
Up/down potential

-79%

 
Rating

str. sell

 
Value-price divergence*

-48%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of IAG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 2.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.63
  18.60
  17.24
  16.02
  14.91
  13.92
  13.03
  12.23
  11.50
  10.85
  10.27
  9.74
  9.27
  8.84
  8.46
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.21
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
Revenue, $m
  987
  1,171
  1,372
  1,592
  1,830
  2,084
  2,356
  2,644
  2,948
  3,268
  3,604
  3,955
  4,322
  4,704
  5,101
  5,515
  5,945
  6,393
  6,857
  7,340
  7,842
  8,364
  8,906
  9,471
  10,058
  10,671
  11,308
  11,973
  12,666
  13,390
  14,145
Variable operating expenses, $m
 
  2,141
  2,510
  2,912
  3,346
  3,812
  4,309
  4,836
  5,392
  5,978
  6,592
  7,234
  7,904
  8,603
  9,331
  10,087
  10,874
  11,692
  12,542
  13,425
  14,343
  15,297
  16,289
  17,322
  18,397
  19,516
  20,683
  21,899
  23,167
  24,490
  25,871
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  951
  2,141
  2,510
  2,912
  3,346
  3,812
  4,309
  4,836
  5,392
  5,978
  6,592
  7,234
  7,904
  8,603
  9,331
  10,087
  10,874
  11,692
  12,542
  13,425
  14,343
  15,297
  16,289
  17,322
  18,397
  19,516
  20,683
  21,899
  23,167
  24,490
  25,871
Operating income, $m
  37
  -970
  -1,138
  -1,320
  -1,517
  -1,728
  -1,953
  -2,192
  -2,444
  -2,709
  -2,988
  -3,279
  -3,583
  -3,899
  -4,229
  -4,572
  -4,929
  -5,299
  -5,685
  -6,085
  -6,501
  -6,933
  -7,383
  -7,851
  -8,338
  -8,846
  -9,375
  -9,926
  -10,500
  -11,100
  -11,726
EBITDA, $m
  301
  -750
  -879
  -1,020
  -1,172
  -1,335
  -1,509
  -1,693
  -1,888
  -2,093
  -2,308
  -2,533
  -2,768
  -3,012
  -3,267
  -3,532
  -3,807
  -4,094
  -4,391
  -4,701
  -5,022
  -5,356
  -5,704
  -6,065
  -6,441
  -6,833
  -7,242
  -7,668
  -8,112
  -8,575
  -9,059
Interest expense (income), $m
  25
  20
  30
  40
  51
  63
  75
  89
  104
  119
  135
  152
  169
  188
  207
  227
  248
  269
  292
  315
  339
  364
  391
  418
  446
  476
  506
  538
  572
  607
  643
Earnings before tax, $m
  95
  -991
  -1,167
  -1,360
  -1,568
  -1,791
  -2,029
  -2,281
  -2,548
  -2,828
  -3,123
  -3,430
  -3,752
  -4,087
  -4,436
  -4,799
  -5,176
  -5,569
  -5,976
  -6,400
  -6,840
  -7,298
  -7,774
  -8,269
  -8,785
  -9,322
  -9,881
  -10,464
  -11,072
  -11,707
  -12,369
Tax expense, $m
  33
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  53
  -991
  -1,167
  -1,360
  -1,568
  -1,791
  -2,029
  -2,281
  -2,548
  -2,828
  -3,123
  -3,430
  -3,752
  -4,087
  -4,436
  -4,799
  -5,176
  -5,569
  -5,976
  -6,400
  -6,840
  -7,298
  -7,774
  -8,269
  -8,785
  -9,322
  -9,881
  -10,464
  -11,072
  -11,707
  -12,369

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  652
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,401
  3,261
  3,823
  4,435
  5,097
  5,806
  6,563
  7,365
  8,213
  9,104
  10,039
  11,017
  12,038
  13,102
  14,210
  15,363
  16,561
  17,806
  19,101
  20,446
  21,843
  23,297
  24,808
  26,381
  28,018
  29,723
  31,499
  33,351
  35,282
  37,298
  39,401
Adjusted assets (=assets-cash), $m
  2,749
  3,261
  3,823
  4,435
  5,097
  5,806
  6,563
  7,365
  8,213
  9,104
  10,039
  11,017
  12,038
  13,102
  14,210
  15,363
  16,561
  17,806
  19,101
  20,446
  21,843
  23,297
  24,808
  26,381
  28,018
  29,723
  31,499
  33,351
  35,282
  37,298
  39,401
Revenue / Adjusted assets
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
Average production assets, $m
  1,861
  2,208
  2,588
  3,003
  3,451
  3,931
  4,443
  4,987
  5,560
  6,164
  6,797
  7,459
  8,150
  8,871
  9,621
  10,402
  11,213
  12,056
  12,933
  13,843
  14,790
  15,774
  16,797
  17,862
  18,970
  20,125
  21,327
  22,581
  23,889
  25,253
  26,678
Working capital, $m
  817
  195
  229
  266
  306
  348
  393
  442
  492
  546
  602
  660
  722
  786
  852
  921
  993
  1,068
  1,145
  1,226
  1,310
  1,397
  1,487
  1,582
  1,680
  1,782
  1,888
  1,999
  2,115
  2,236
  2,362
Total debt, $m
  485
  705
  946
  1,209
  1,492
  1,797
  2,121
  2,466
  2,829
  3,212
  3,613
  4,032
  4,470
  4,927
  5,402
  5,897
  6,411
  6,945
  7,500
  8,077
  8,677
  9,300
  9,949
  10,623
  11,326
  12,057
  12,819
  13,614
  14,442
  15,307
  16,209
Total liabilities, $m
  1,179
  1,399
  1,640
  1,903
  2,186
  2,491
  2,815
  3,160
  3,523
  3,906
  4,307
  4,726
  5,164
  5,621
  6,096
  6,591
  7,105
  7,639
  8,194
  8,771
  9,371
  9,994
  10,643
  11,317
  12,020
  12,751
  13,513
  14,308
  15,136
  16,001
  16,903
Total equity, $m
  2,222
  1,862
  2,183
  2,532
  2,910
  3,315
  3,747
  4,206
  4,689
  5,198
  5,732
  6,291
  6,874
  7,481
  8,114
  8,772
  9,456
  10,167
  10,906
  11,674
  12,473
  13,302
  14,166
  15,064
  15,998
  16,972
  17,986
  19,043
  20,146
  21,297
  22,498
Total liabilities and equity, $m
  3,401
  3,261
  3,823
  4,435
  5,096
  5,806
  6,562
  7,366
  8,212
  9,104
  10,039
  11,017
  12,038
  13,102
  14,210
  15,363
  16,561
  17,806
  19,100
  20,445
  21,844
  23,296
  24,809
  26,381
  28,018
  29,723
  31,499
  33,351
  35,282
  37,298
  39,401
Debt-to-equity ratio
  0.218
  0.380
  0.430
  0.480
  0.510
  0.540
  0.570
  0.590
  0.600
  0.620
  0.630
  0.640
  0.650
  0.660
  0.670
  0.670
  0.680
  0.680
  0.690
  0.690
  0.700
  0.700
  0.700
  0.710
  0.710
  0.710
  0.710
  0.710
  0.720
  0.720
  0.720
Adjusted equity ratio
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  53
  -991
  -1,167
  -1,360
  -1,568
  -1,791
  -2,029
  -2,281
  -2,548
  -2,828
  -3,123
  -3,430
  -3,752
  -4,087
  -4,436
  -4,799
  -5,176
  -5,569
  -5,976
  -6,400
  -6,840
  -7,298
  -7,774
  -8,269
  -8,785
  -9,322
  -9,881
  -10,464
  -11,072
  -11,707
  -12,369
Depreciation, amort., depletion, $m
  264
  221
  259
  300
  345
  393
  444
  499
  556
  616
  680
  746
  815
  887
  962
  1,040
  1,121
  1,206
  1,293
  1,384
  1,479
  1,577
  1,680
  1,786
  1,897
  2,012
  2,133
  2,258
  2,389
  2,525
  2,668
Funds from operations, $m
  333
  -770
  -908
  -1,059
  -1,222
  -1,398
  -1,584
  -1,782
  -1,992
  -2,212
  -2,443
  -2,685
  -2,937
  -3,200
  -3,474
  -3,759
  -4,055
  -4,363
  -4,683
  -5,016
  -5,361
  -5,720
  -6,094
  -6,483
  -6,888
  -7,309
  -7,748
  -8,206
  -8,683
  -9,181
  -9,701
Change in working capital, $m
  19
  31
  34
  37
  40
  43
  45
  48
  51
  53
  56
  59
  61
  64
  66
  69
  72
  75
  78
  81
  84
  87
  91
  94
  98
  102
  106
  111
  116
  121
  126
Cash from operations, $m
  314
  -801
  -942
  -1,096
  -1,262
  -1,440
  -1,630
  -1,830
  -2,042
  -2,265
  -2,499
  -2,743
  -2,998
  -3,264
  -3,540
  -3,828
  -4,127
  -4,438
  -4,761
  -5,096
  -5,445
  -5,808
  -6,185
  -6,577
  -6,986
  -7,411
  -7,855
  -8,317
  -8,799
  -9,302
  -9,828
Maintenance CAPEX, $m
  0
  -186
  -221
  -259
  -300
  -345
  -393
  -444
  -499
  -556
  -616
  -680
  -746
  -815
  -887
  -962
  -1,040
  -1,121
  -1,206
  -1,293
  -1,384
  -1,479
  -1,577
  -1,680
  -1,786
  -1,897
  -2,012
  -2,133
  -2,258
  -2,389
  -2,525
New CAPEX, $m
  -274
  -347
  -381
  -415
  -448
  -480
  -512
  -543
  -574
  -604
  -633
  -662
  -691
  -721
  -750
  -780
  -811
  -843
  -876
  -911
  -946
  -984
  -1,023
  -1,065
  -1,108
  -1,154
  -1,203
  -1,254
  -1,308
  -1,364
  -1,424
Cash from investing activities, $m
  -165
  -533
  -602
  -674
  -748
  -825
  -905
  -987
  -1,073
  -1,160
  -1,249
  -1,342
  -1,437
  -1,536
  -1,637
  -1,742
  -1,851
  -1,964
  -2,082
  -2,204
  -2,330
  -2,463
  -2,600
  -2,745
  -2,894
  -3,051
  -3,215
  -3,387
  -3,566
  -3,753
  -3,949
Free cash flow, $m
  149
  -1,333
  -1,544
  -1,769
  -2,010
  -2,266
  -2,535
  -2,818
  -3,115
  -3,425
  -3,748
  -4,085
  -4,435
  -4,799
  -5,178
  -5,570
  -5,978
  -6,402
  -6,842
  -7,300
  -7,776
  -8,271
  -8,786
  -9,322
  -9,880
  -10,463
  -11,070
  -11,703
  -12,365
  -13,056
  -13,777
Issuance/(repayment) of debt, $m
  -143
  220
  241
  263
  284
  304
  325
  344
  364
  382
  401
  420
  438
  457
  475
  494
  514
  534
  555
  577
  600
  623
  648
  675
  702
  731
  762
  794
  829
  865
  903
Issuance/(repurchase) of shares, $m
  264
  1,283
  1,488
  1,709
  1,945
  2,196
  2,461
  2,739
  3,032
  3,337
  3,656
  3,989
  4,335
  4,695
  5,069
  5,457
  5,861
  6,280
  6,715
  7,168
  7,638
  8,128
  8,637
  9,167
  9,719
  10,295
  10,895
  11,521
  12,175
  12,857
  13,570
Cash from financing (excl. dividends), $m  
  22
  1,503
  1,729
  1,972
  2,229
  2,500
  2,786
  3,083
  3,396
  3,719
  4,057
  4,409
  4,773
  5,152
  5,544
  5,951
  6,375
  6,814
  7,270
  7,745
  8,238
  8,751
  9,285
  9,842
  10,421
  11,026
  11,657
  12,315
  13,004
  13,722
  14,473
Total cash flow (excl. dividends), $m
  171
  169
  186
  202
  219
  235
  250
  265
  280
  295
  309
  323
  338
  352
  366
  381
  396
  412
  428
  445
  462
  481
  500
  520
  541
  564
  587
  612
  639
  666
  696
Retained Cash Flow (-), $m
  -326
  -1,283
  -1,488
  -1,709
  -1,945
  -2,196
  -2,461
  -2,739
  -3,032
  -3,337
  -3,656
  -3,989
  -4,335
  -4,695
  -5,069
  -5,457
  -5,861
  -6,280
  -6,715
  -7,168
  -7,638
  -8,128
  -8,637
  -9,167
  -9,719
  -10,295
  -10,895
  -11,521
  -12,175
  -12,857
  -13,570
Prev. year cash balance distribution, $m
 
  652
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -462
  -1,302
  -1,507
  -1,727
  -1,961
  -2,210
  -2,474
  -2,751
  -3,042
  -3,347
  -3,665
  -3,997
  -4,343
  -4,702
  -5,076
  -5,464
  -5,868
  -6,287
  -6,723
  -7,176
  -7,647
  -8,137
  -8,647
  -9,178
  -9,731
  -10,308
  -10,909
  -11,536
  -12,191
  -12,875
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  -443
  -1,192
  -1,311
  -1,422
  -1,520
  -1,604
  -1,671
  -1,720
  -1,748
  -1,755
  -1,741
  -1,706
  -1,651
  -1,579
  -1,490
  -1,389
  -1,277
  -1,158
  -1,035
  -912
  -791
  -675
  -567
  -467
  -379
  -301
  -234
  -178
  -133
  -97
Current shareholders' claim on cash, %
  100
  59.1
  35.2
  21.2
  12.8
  7.8
  4.8
  3.0
  1.8
  1.1
  0.7
  0.5
  0.3
  0.2
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

IAMGOLD Corporation explores for, develops, and operates gold mining properties in North and South America, and West Africa. It also explores for copper and silver. The company owns interest in the Rosebel gold mine located in north eastern Suriname, South America; Essakane gold mine in north-eastern Burkina Faso, West Africa; Westwood gold mine in southwestern Québec, Canada; and Sadiola, as well as Yatela gold mines situated in southwest Mali, West Africa. It also holds interests in various exploration projects, including Boto gold project in Senegal; and Pitangui project in Brazil. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

FINANCIAL RATIOS  of  IAMGOLD (IAG)

Valuation Ratios
P/E Ratio 49.3
Price to Sales 2.6
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 8.3
Price to Free Cash Flow 65.3
Growth Rates
Sales Growth Rate 7.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 36.3%
Cap. Spend. - 3 Yr. Gr. Rate -15%
Financial Strength
Quick Ratio NaN
Current Ratio 0.5
LT Debt to Equity 21.8%
Total Debt to Equity 21.8%
Interest Coverage 5
Management Effectiveness
Return On Assets 2.1%
Ret/ On Assets - 3 Yr. Avg. -7%
Return On Total Capital 2%
Ret/ On T. Cap. - 3 Yr. Avg. -10%
Return On Equity 2.6%
Return On Equity - 3 Yr. Avg. -12.8%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 10.3%
Gross Margin - 3 Yr. Avg. 5.2%
EBITDA Margin 38.9%
EBITDA Margin - 3 Yr. Avg. -1.1%
Operating Margin 3.6%
Oper. Margin - 3 Yr. Avg. -27.7%
Pre-Tax Margin 9.6%
Pre-Tax Margin - 3 Yr. Avg. -30.1%
Net Profit Margin 5.4%
Net Profit Margin - 3 Yr. Avg. -32.5%
Effective Tax Rate 34.7%
Eff/ Tax Rate - 3 Yr. Avg. -16.2%
Payout Ratio 0%

IAG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IAG stock intrinsic value calculation we used $987 million for the last fiscal year's total revenue generated by IAMGOLD. The default revenue input number comes from 2016 income statement of IAMGOLD. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our IAG stock valuation model: a) initial revenue growth rate of 18.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for IAG is calculated based on our internal credit rating of IAMGOLD, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of IAMGOLD.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of IAG stock the variable cost ratio is equal to 182.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for IAG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.2% for IAMGOLD.

Corporate tax rate of 27% is the nominal tax rate for IAMGOLD. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the IAG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for IAG are equal to 188.6%.

Life of production assets of 10 years is the average useful life of capital assets used in IAMGOLD operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for IAG is equal to 16.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2222 million for IAMGOLD - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 455.013 million for IAMGOLD is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of IAMGOLD at the current share price and the inputted number of shares is $2.6 billion.

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ABX Barrick Gold 16.86 1.45  str.sell

COMPANY NEWS

▶ Better Buy: Franco-Nevada Corporation vs. IAMGOLD Corp.   [Aug-21-17 08:17AM  Motley Fool]
▶ This Could Be The Biggest Gold Discovery In History   [Aug-20-17 07:30PM  Oilprice.com]
▶ Iamgold Acquires a 19.98% Stake in TomaGold   [Aug-16-17 01:49PM  GuruFocus.com]
▶ Why IAMGOLDs Valuation Could Climb Higher in 2017 and Beyond   [Aug-15-17 09:06AM  Market Realist]
▶ Iamgold Beats Expectations on 2nd-Quarter Revenue   [Aug-10-17 03:30PM  GuruFocus.com]
▶ Iamgold meets 2Q profit forecasts   [Aug-09-17 10:31PM  Associated Press]
▶ IAMGOLD Reports Another Solid Quarter   [05:05PM  CNW Group]
▶ How Miners Rebounded in the Past Month   [Aug-07-17 09:40AM  Market Realist]
▶ How Demand for Gold Is Moving in 2017   [Aug-01-17 10:40AM  Market Realist]
▶ Will Barrick Resolve Its Export Ban Issues in Tanzania Soon?   [Jul-28-17 04:06PM  Market Realist]
▶ Why Mining Stocks Swung Higher on Tuesday, July 25   [Jul-27-17 02:05PM  Market Realist]
▶ Is This The Next Gold Major?   [07:00PM  Oilprice.com]
▶ Gold Stocks For a Falling Dollar   [Jul-23-17 11:32AM  Motley Fool]
▶ The Latest Upgrades and Downgrades for Intermediate Miners   [Jul-19-17 05:35PM  Market Realist]
▶ IamGold Looks to Continue Its 1H17 Outperformance in 2H17   [Jul-17-17 07:37AM  Market Realist]
▶ How Mining Stock Volatility Is Trending   [Jul-14-17 07:40AM  Market Realist]
▶ Can New Gold Expect Its Rainy River Project to Outperform?   [Jul-13-17 04:35PM  Market Realist]
▶ Precious Metals Continued to Fall on July 7   [07:41AM  Market Realist]
▶ Reading Miners Price Fluctuations as of July 5   [Jul-06-17 03:14PM  Market Realist]
▶ Gold Performance Versus Other Investments in 1H17   [Jul-05-17 02:14PM  Market Realist]
▶ Reading Mining Stocks with Volatility Indicators   [Jun-29-17 02:14PM  Market Realist]
▶ How Are Miners Moving amid Slumping Metals Prices?   [Jun-27-17 04:03PM  Market Realist]
▶ Gold Prices To Spike On Middle East Turmoil   [Jun-25-17 07:22PM  Oilprice.com]
▶ Behind Agnico Eagle Mines Analyst Earnings Estimates   [Jun-22-17 07:37AM  Market Realist]
▶ Iamgold, Sumitomo Metal Close Cote Gold Joint Venture Deal   [Jun-21-17 04:12PM  GuruFocus.com]
▶ New Strong Buy Stocks for June 20th   [Jun-20-17 10:12AM  Zacks]
▶ Iamgold Is Climbing Again   [Jun-19-17 12:02PM  GuruFocus.com]
▶ Miners Slumped after June Fed Meeting   [12:05PM  Market Realist]
▶ Analysts on Gold: Whats in Store for the Rest of 2017   [Jun-15-17 10:37AM  Market Realist]
▶ What Caused Gold to Rally in JuneAnd What Could Keep It Up   [Jun-14-17 03:43PM  Market Realist]
▶ Here's Why These Gold Stocks Popped in May   [Jun-12-17 10:08AM  Motley Fool]
▶ The Brightest Day for Mining This WeekSo Far   [Jun-09-17 07:37AM  Market Realist]
▶ Iamgold Completes C?t? Gold Project Prefeasibility Study   [Jun-08-17 04:48PM  GuruFocus.com]
▶ These Factors Are Driving Gold and Silver   [09:39AM  Market Realist]
▶ Iamgold Reports More Good Results From Drilling in Senegal   [Jun-02-17 01:01PM  GuruFocus.com]
▶ How Coeur Mining Plans to Grow   [May-29-17 07:36AM  Market Realist]
▶ Event Study on Iamgold's 1st-Quarter Earnings Announcement   [May-24-17 05:18PM  GuruFocus.com]
▶ ETFs with exposure to IAMGOLD Corp. : May 22, 2017   [May-22-17 01:45PM  Capital Cube]
▶ Whats the Volatility of Mining Stocks in May 2017?   [May-18-17 11:06AM  Market Realist]
Financial statements of IAG
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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