Iamgold (IAG) Surges 3.31% on RBC Upgrade, Hits 3-Year High on Cote Mine Output

Iamgold (IAG) surged 3.31% on October 6, reaching its highest level since October 2025, with an intraday gain of 5.35%. The rally reflects growing confidence in the miner’s operational execution and favorable gold market dynamics.

The stock’s momentum was fueled by a key upgrade from RBC Capital Markets, which elevated Iamgold’s rating to “Outperform.” Analysts highlighted the company’s achievement of full capacity at its Cote Gold mine in Ontario—a critical milestone that reduces execution risks and validates management’s ability to deliver on ambitious production targets. The mine, now producing 365,000 ounces annually, is expected to drive lower all-in sustaining costs, potentially below $1,000 per ounce, enhancing profit margins amid elevated gold prices above $3,685 an ounce.

Broader macroeconomic trends also supported the rally. Analysts cite rising global inflation, geopolitical tensions, and central bank gold purchases as tailwinds for the precious metal. These factors have bolstered gold’s appeal as a safe-haven asset, amplifying demand for producers like Iamgold. Institutional investors, including T. Rowe Price and Vanguard, have increased stakes in the stock, signaling long-term confidence in its growth trajectory.

Iamgold’s strategic expansion further strengthens its outlook. The Cote mine’s success has unlocked exploration potential at adjacent deposits, such as the Gosselin project, which could extend the mine’s reserve life into the 2040s. Meanwhile, the company’s diversified portfolio—spanning high-grade assets in Quebec and Africa’s second-largest gold mine—reduces reliance on a single operation, mitigating localized risks.

Despite these positives, challenges remain. Gold price volatility and potential operational delays at Cote or Gosselin could impact margins and timelines. However, Iamgold’s strong balance sheet and cost discipline position it to navigate near-term uncertainties while capitalizing on the ongoing bull market in gold.