Cheap Stocks to Buy Now: Iamgold (IAG)
Without a doubt, the most hated metals and mining sector has to be gold mining stocks. Faced with rising costs and falling gold prices, many of the precious metals miners have tanked, moving them into the cheap stocks category.
One of the more interesting bets could be mid-tier producer Iamgold (IAG).
IAG operates six different mines and its stock has fallen right along with gold prices. However, the junior producer does have a few aces up its sleeve.
First, it has a relatively low all-in cash cost of production for a junior miner — approximately $1,155 per ounce. The secret to that low cost is that IAG operates one of the world’s three niobium mines. That element is used in everything from high-tension steel to superconducting magnets, and it provides a nice cushion to IAG’s costs. With gold trading flat and slightly upwards, IAG is still profitable at these price levels.
Secondly, IAG holds plenty of reserves in the ground — the kind of reserves that a larger miner would want. Shares of IAG haven’t been this cheap since before the Great Recession. That means a major miner could come calling and snatch up IAG stock before too long.