There Is More To Iamgold's Dividend Elimination Than Meets The Eye
On Wednesday, December 11, IAMGOLD (IAG) announced that it would be suspending its dividend of $0.25/share/year, or $94 million, sending shares plunging more than 10% to their lowest level in over 5 years. This is substantial considering the unusual strength seen in gold mining shares more generally, which fell less than 1% on a day when the gold price was down over 2%. On the surface it might appear that the company is simply reacting to lower gold prices--it is not a low cost producer and it has $640 million in debt outstanding, and with gold prices so low it would make sense that the company might want to attempt to preserve capital. Yet I think that there are other factors at work. After all the company did not cut its dividend during the summer when the gold price fell to an even lower level than $1,230/ounce where it... Read more
Latest Price: $ 18.80
Dividend Yield (TTM): 0.00%
- No dividends the last 12 months.
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