Iamgold's 5-Year Growth Potential: A Gold Stock for the Long Haul

Iamgold's 2025 production trajectory underscores its operational strength. The company delivered 190,000 attributable ounces in Q3 2025, with year-to-date production reaching 524,000 ounces-a 43% increase since 2024. Its flagship Côté Gold Mine hit a record 106,000 ounces on a 100% basis in Q3, while Essakane and Westwood saw improved grades. These gains are translating into margin expansion: despite rising costs, Iamgold's cash costs per ounce sold fell to $1,588 in Q3 2025, well within its revised guidance of $1,375–$1,475 for the year.

The company's cost discipline is further bolstered by its debt reduction strategy. By repaying $270 million of second lien notes in 2025, Iamgold has enhanced liquidity, reducing financial risk and freeing capital for growth. With all-in sustaining costs projected to decline in the second half of 2025 as Côté Gold approaches nameplate production, margins are poised to widen further-a critical tailwind for earnings growth.

Gold's long-term trajectory is underpinned by structural demand. J.P. Morgan Research forecasts an average price of $3,675/oz by Q4 2025, climbing toward $4,000/oz by mid-2026, while UBS projects $3,800/oz by late 2025. These trends directly benefit Iamgold, which reported $706.7 million in Q3 2025 revenues at an average realized price of $3,492/oz.

The macroeconomic drivers are clear: central bank diversification away from the U.S. dollar, geopolitical tensions, and inflationary pressures are creating a "perfect storm" for gold. As noted by the World Gold Council, central banks added over 1,000 tonnes annually since 2022, a trend expected to persist. For Iamgold, this means a compounding effect-higher gold prices amplify revenue, while lower production costs (as seen in 2025) boost net margins.

Historical stock price data reinforces this narrative. From 2020 to 2025, IAG's share price surged from $3.67 to $15.31, a 320% increase. Even in 2022, when broader markets struggled, Iamgold's stock closed at $2.58, reflecting resilience amid volatility. With gold prices projected to rise further and Iamgold's production guidance intact, the stock appears poised for continued appreciation.

Iamgold's combination of operational excellence, strategic debt reduction, and alignment with rising gold prices positions it as a compelling long-term investment. With production costs trending downward, a robust balance sheet, and a bull case for gold extending through 2030, the company is well-equipped to deliver compounding returns. For investors seeking exposure to the gold sector's next phase of growth, Iamgold offers a rare blend of resilience and upside potential.