IAMGOLD (NYSE:IAG) Should Rebound on Essakane, Rosebel Mines

IAMGOLD Corporation (NYSE:IAG) disppointed on their recent earnings report, mostly on their unplanned shutdown of their Essakane mine during the last quarter.

That also forced the company to lower guidance on the temporary situation. The shutdown was the result of a mechanical failure.

Canaccord Genuity still likes them and sees them rebounding going forward, maintaining their "Buy" rating on them.

"We are reiterating our rating on IAG following the release of lower-than-expected Q3/10 results and lowered 2010 production guidance due to an unplanned temporary shutdown of the Essakane mill in Q4/10 following a mechanical failure. We expect the issues to be resolved in the near term and continue to rate IAMGOLD's shares a BUY based on relative valuation and reserve/resource upside particularly at the flagship Rosebel and Essakane mines as well as the potential for additional value associated with an eventual expansion of Essakane," said Canaccord.

IAMGOLD was trading at $18.55, gaining $0.05, or 0.27 percent, as of 12:48. Canaccord has a price target of $26.50 on the gold miner.