Why Iamgold Stock Jumped This Week
More gold sold at high prices equals surging profits for shareholders.
Shares of Iamgold (IAG 3.75%) climbed more than 12% this past week after the miner reported soaring free cash flow fueled by higher gold prices.
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Pulling more gold from the ground Iamgold produced 183,600 ounces in the first quarter, up from 161,000 in the prior-year period. The mining stock's Westwood site performed particularly well. Higher grades and improved operating efficiency drove its gold production up by 51% to 36,200 ounces. ExpandNYSE: IAGIamgoldToday's Change(-3.75%) $-0.66Current Price$16.84Key Data PointsMarket Cap$10BDay's Range$16.79 - $17.1752wk Range$6.69 - $24.87Volume198.9KAvg Vol6.9MGross Margin47.04% It's a golden time to be a gold miner Iamgold's growing production was made even more valuable by sharply higher gold prices. The company's average realized gold price soared 78% to $4,859 per ounce. Central banks have been accumulating the precious metal to diversify their currency reserves. In all, Iamgold's revenue rocketed 116% higher to $1 billion. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) increased an even more impressive 226% to $666 million. Iamgold also generated $525 million in mine-site free cash flow, which enabled it to pay down debt and reward shareowners with $260 million in stock buybacks. On track to achieve its 2026 targets Iamgold reaffirmed its full-year production forecast of 720,000 to 820,000 ounces. Management also noted that technical reports due later this year are expected to show significant potential for production growth and mine-life extension at several of its sites. Gold prices could also receive a boost if central banks move to reduce interest rates. The Federal Reserve is widely expected to cut rates after the current conflict in the Middle East is resolved. "We are well-positioned to deliver value for our shareholders in 2026 and beyond," CEO Renaud Adams said.