PRECIOUS METALS

IAMGOLD a gold leverage play, for better or worse

As metals prices go, so do mining stocks, but for some names the relationship is more pronounced than others. Canadian mid-tier IAMGOLD Corp (CN:IMG) (US:IAG) benefited from its high leverage to gold last year, riding surging bullion prices to a near four-fold stock rise between January and August.

IAMGOLD a gold leverage play, for better or worse

Of course, if you’re not of the opinion that bullion prices are set to enter another bull phase, the high leverage becomes a symptom of a problem: high costs. With last year’s easy stock gains having dried...

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