(B)(N) IMG IAMGOLD Corporation

Drama. IAMGOLD Corporation has reduced exploration activity in the extraordinary and fabled west African country of Mali as a security precaution during political and civil unrest (The Canadian Press, January 23, 2013, Iamgold shares drop eight per cent day after miner reduces Mali exploration). It’s evident from the Risk Price Chart (please see Exhibit 1 below) that investors have been writing down the Company’s ability to produce its otherwise substantial gold and other mining interests which have not declined but increased since 2011 when the stock price was better than $20. The Company has a current market value of about $3.4 billion which is less than half of what it was a year ago and substantially below the Risk Price (SF) at $19 and an implied acquisition price of $7 billion at the present time. Governments, of course, never pay the market price and, after all, gold is just money with a significant production cost.

Exhibit 1: (B)(N) IMG IAMGOLD Corporation – Risk Price Chart

Iamgold Corporation is a mid-tier gold mining company producing approximately one million ounces of gold annually from five operating gold mines on three continents in Canada, South America and Africa.

(Please Click on the Chart to make it larger if required.)

The Company also operates Niobec Incorporated which is one of the world’s top three producers of niobium, and owns a rare earth element resource close to its niobium mine in the Canadian Province of Quebec

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
“Alpha-smart with 100% Capital Safety and 100% Liquidity”
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.