The current share price is totally unacceptable,” Chief Executive Officer Steve Letwin said today in an interview in Melbourne. “The company is in great financial shape but we’ve got a terrible sentiment out there and my job is to make sure we maximize value for shareholders.”
Iamgold, which had $897 million in cash and cash equivalents on its balance sheet at Sept. 30, is seeking to curb spending on projects to control costs that are increasing at a rate of about 15 percent a year, said Letwin. The company paid a second-half dividend of 12.5 cents a share.
“We can pay extra dividend, we can buy shares back, we can restructure the company,” said Letwin. “We’ll do it when the time is right but I am completely focused at getting the share prices up. When you do the math there should be ways to do that.”
I am all for buying back shares to tighten up the float. Iamgold has many options at their disposal at the moment. The downside is this stock could continue to trade lower. I hate to say it but with poor market sentiment in the golds this stock could get to the 5's. I am a holder and bought in the 12's. Definitely holding and watching and not buying any more.