Q: What is your opinion about recent earning of IMG?
5i Research Answer:
EPS of 10c beat estimates of 9c; Revenue of $477.1M missed estimates of $503.4M. EBITDA of $204.5M missed estimates by 3%. Gold production also missed estimates (161,000 ounces vs 171,000). The Cote mine is performing well, though, with record production in March. This mine, potentially, makes IMG a potential target. Revenue rose 41% due to higher gold prices. The stock took a hit, and these are not great results, but we think its very low valuation at 9X earnings reflects some of the issues.