Iamgold Shares Fall After Q1 Sales Miss Expectations Despite Higher Output: What's Going On?

Iamgold Corp IAG shares are trading lower Tuesday following the release of the company's first-quarter 2025 financial results, which showed a significant miss on sales despite an increase in production.

What To Know: The company reported revenue of $477.1 million, falling short of the $521.08 million expected by analysts. This revenue miss appears to be the primary driver behind the stock's decline, despite earnings per share of 10 cents, which slightly beat consensus estimates of nine cents. Year-over-year, EPS was down from 11 cents in the first quarter of 2024.

Gold production for the quarter totaled 161,000 attributable ounces across Iamgold's three active mines. While this marked a meaningful increase over the prior year, production at Westwood declined compared to the last quarter and ramp-up constraints at the Côté mine affected early throughput. The company did note that the Côté plant reached 90% of its nameplate throughput capacity in March and averaged 96% in the following month, signaling operational improvements ahead of full capacity later this year.

Management reaffirmed full-year guidance of 735,000 to 820,000 ounces of gold production and highlighted improvements in cost control and operating cash flow. The company posted a mine-site free cash flow of $139.6 million and ended the quarter with $745.8 million in available liquidity.

Despite solid operational progress and stronger production figures, investors focused on the weaker-than-expected top-line performance, leading to the stock's decline.

The market’s response reflects concerns about pricing, timing of deliveries and broader execution risks, even as Iamgold emphasized a strong outlook for the rest of 2025.

IAG Price Action: IamGold shares were down 5.83% at $6.95 at the time of writing, according to Benzinga Pro.

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