8 Cheap Gold Stocks To Buy According to Hedge Funds

02. IAMGOLD Corporation (NYSE:IAG)

Number of Hedge Fund Holders: 19 

Forward P/E Ratio as of September 29: 7.39

IAMGOLD Corporation (NYSE:IAG) is an intermediate gold producer with operations in Canada and Burkina Faso. The company holds a 100% interest in the Westwood project in Quebec, a 60% interest in the Côté Gold project in Ontario, and a 90% stake in the Essakane project in Burkina Faso. As of Q2 2024, 14 hedge funds held stakes in IAMGOLD Corporation (NYSE:IAG), down from 19 in the previous quarter.

IAMGOLD Corporation (NYSE:IAG) fundamentals suggest a positive outlook due to its operational performance and strong project portfolio. In Q2 2024, the company produced 122,319 ounces of gold, maintaining its full-year guidance of 505,000-555,000 ounces. The company’s gold production is expected to increase in the second half of the year as grades improve at multiple operations. Despite facing challenges like a temporary work stoppage at its Olympias mine, IAMGOLD remained on track with its production targets.

Financial metrics show that IAMGOLD Corporation (NYSE:IAG) is managing costs effectively. Total cash costs for Q2 2024 were $940 per ounce, while all-in sustaining costs (AISC) were $1,331 per ounce. These figures, although impacted by higher royalties due to increased gold prices and higher labor costs, were in line with the company’s guidance. IAMGOLD Corporation (NYSE:IAG) stable cost structure, coupled with its potential to benefit from sustained high gold prices, underscores its solid financial position.

In terms of financial results, IAMGOLD Corporation (NYSE:IAG) reported net earnings of $56 million for the quarter, or $0.28 per share, up from the previous year’s results. Adjusted net earnings were $66.6 million, or $0.33 per share, excluding one-time items such as foreign exchange gains and unrealized losses on derivative instruments. Furthermore, the company’s free cash flow was $33.9 million, excluding capital investments, indicating a strong cash generation capability.

IAMGOLD Corporation (NYSE:IAG) liquidity position remains robust, with total liquidity of $810 million, including $595 million in cash and cash equivalents. The company proactively extended its senior secured credit facility, providing additional financial flexibility to support growth initiatives, including the advancement of its Skouries project. With its strong balance sheet and a focus on maintaining cost discipline, IAMGOLD Corporation (NYSE:IAG) is well-positioned to continue delivering value to shareholders and remains a compelling pick among cheap gold stocks.