Is IAMGOLD (TSX:IMG) A Bargain After Its Quebec Drill Results?

IAMGOLD (TSX:IMG) has released new drill results from its Nelligan Mining Complex to investors, confirming extended mineralization at Nelligan, Monster Lake and Philibert and reinforcing the scale of this pre-production Quebec gold camp.

IAMGOLD’s recent drilling update comes after a sharp 10.32% 1 day share price gain to CA$24.48, which caps an 8.90% 90 day share price return and a very large 3 year total shareholder return of around 7x that may indicate rising investor conviction in its growth projects.

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The surge after the drilling news is already partly reflected in the share price. For IAMGOLD, the key issue is whether the current valuation still offers meaningful upside or whether the easier gains have already been realized.

Most Popular Narrative: 32% Undervalued

Against IAMGOLD’s last close of CA$24.48, the most followed narrative anchors fair value at about CA$36.04, which points to a sizeable valuation gap and puts extra weight on whether Côté, Essakane and the Canadian projects can keep throwing off cash at current levels.

The fully consolidated Nelligan Mining Complex, which now holds 4.3 million ounces of indicated and 7.5 million ounces of inferred resources and is supported by a roughly $24 million, 70,000 metre drilling budget for 2026 ahead of a first economic study in 2027, provides IAMGOLD with a potential new Quebec production hub that could change the long run revenue mix and valuation of its Canadian portfolio.

See why 11 investors see IAMGOLD as 32% undervalued.

The narrative work behind that CA$36.04 figure applies a 7.96% discount rate and leans on analyst expectations for IAMGOLD’s earnings and margins over the next few years, including the contribution from Côté Gold and the broader Canadian pipeline. It effectively asks whether investors agree that the current CA$11.56 gap between the market price and this fair value marker leaves enough room for drilling results and project updates to keep challenging today’s pricing.

Result: Fair Value of CA$36.04 (UNDERVALUED)

Still, the bullish IAMGOLD narrative leans heavily on cost control at Côté and Essakane, so any sustained cost pressure or tougher royalty terms could quickly erode that upside story.

Find out about the key risks to this IAMGOLD narrative.

Next Steps

If this bullish tone on IAMGOLD feels compelling, consider quickly reviewing the underlying data yourself, pressure testing the assumptions, and weighing the 4 key rewards.

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