8 Most Undervalued Gold Stocks To Buy According To Analysts

05. IAMGOLD Corporation (NYSE:IAG)

Upside Potential: 25%

Forward Price to Earnings (P/E) Ratio: 6.48

Number of Hedge Fund Holders: 19

IAMGOLD Corporation (NYSE:IAG) stands out as one of the most undervalued gold stocks today, with a forward P/E ratio of just 6.48 as of October 12, 2024. At its current share price of $4.83, analysts expect a significant upside potential of 25%, projecting a target price of $6.02. With operations spanning across Canada and Burkina Faso, IAMGOLD’s portfolio includes a 100% interest in the Westwood project in Quebec, a 60% stake in the Côté gold project in Ontario, and a 90% interest in the Essakane project in Burkina Faso. These assets reflect the company’s growth prospects and operational reach, making it an attractive pick for value investors seeking exposure to gold.

IAMGOLD Corporation (NYSE:IAG) Q2 2024 results showcased robust production and operational improvements, driven by successful ramp-ups across key sites. The company produced 166,000 ounces of gold in the second quarter alone, contributing to a total of 317,000 ounces year-to-date. Notably, the Côté project is ramping up smoothly and is expected to become one of Canada’s largest gold mines, enhancing IAMGOLD’s production base while lowering costs.

From a cost-efficiency perspective, IAMGOLD Corporation (NYSE:IAG) financials are trending in the right direction. All-in sustaining costs (AISC) were reported at $1,617 per ounce, reflecting solid cost control amidst inflationary pressures. Meanwhile, capital expenditures decreased to $119.7 million in Q2 as the company transitions from development to production at Côté, setting the stage for stronger free cash flow in the coming quarters.

The company also strengthened its liquidity, ending the quarter with cash and cash equivalents of $511.4 million, contributing to total available liquidity of $915.7 million. IAMGOLD’s balance sheet remains unburdened, with an undrawn credit facility providing flexibility for strategic initiatives.

Moreover, the company’s production guidance for 2024 was increased, reflecting operational strength at Essakane and Westwood. With improved output and controlled costs, IAMGOLD Corporation (NYSE:IAG) is well-positioned to generate meaningful free cash flow, enabling it to reduce debt and enhance shareholder value.

Given its low valuation, strong fundamentals, and future growth potential, IAMGOLD Corporation (NYSE:IAG) presents an appealing investment opportunity for those seeking undervalued gold stocks with solid upside.