Donald Smith & Co Acquires 10% Position in IAMGOLD Corp (USA) (NYSE:IAG)

Donald Smith & Co., Inc.  is a New York-based investment firm which manages a portfolio of over $4.466 billion. On Monday December 19th,  Donald Smith & Co., Inc. disclosed a passive stake in the Toronto-based international gold producer IAMGOLD Corp (USA) (NYSE:IAG). The fund owns over 45.12 million shares of the company, which accounts for a 10.01% of IAMGOLD’s total float.

IAMGOLD Corp’s (USA) (NYSE:IAG) shares are up by 139% year-to-date. Earlier this week, a notable insider transaction took place at IAMGOLD Corp (TSE:IMG) (NYSE:IAG) when Insider Jeffery Alexander Snow sold 90,000 shares of the company at an average price of C$5.30 ($3.96). In the third quarter, IAMGOLD earned $0.05 a share on $282.4 million revenue, better than the estimates of $0.02 EPS and $258.1 million revenue. After the results, investment firm TD Securities upgraded the company to ‘Buy’ from ‘Hold’ and set a price target of C$7.5.

During the earnings call, IAMGOLD Corp’s (USA) (NYSE:IAG) CEO Steve Letwin said that the company had a strong third quarter, as its net operating cash increased by $117 million as compared to the same quarter last year. Gold production was also increased to 7% to 210,000 ounces as compared to the second quarter.  IAMGOLD’s stock moved in to the green on Monday after gold prices extended their recovery as the US dollar slipped. But the price trend has not be petty for gold companies and the future outlook is also bleak. Gold prices have plummeted for six consecutive weeks, as chances of higher borrowing costs are now a reality.  Last week after increasing short-term interest rates by 0.25% points the Federal Reserve signaled that more rate hikes may be coming in 2017.

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Last week, Zacks Investment Research upgraded its rating for Iamgold Corp. (NYSE:IAG) to ‘Hold’ from ‘Sell’.

As of the end of the third quarter, notable shareholders of Iamgold Corp. (NYSE:IAG) include Jim Simons’ Renaissance Technologies and John Paulson’s Paulson & Co.