12:15 PM EDT, 05/27/2025 (MT Newswires) -- Iamgold ( IAG ) maintained its Outperform rating and C$15 price target, National Bank of Canada said in a Tuesday note.

The price target was based on an unchanged 4.50x NTM EV/EBITDA multiple, the bank said. Iamgold ( IAG ) remains National Bank's top pick in its coverage universe.

Franco-Nevada ( FNV ) agreed to buy a 7.5% gross margin royalty on Iamgold's ( IAG ) Cote project in Ontario from Treelawn Group for a total cash consideration of US$1.05 billion.

The bank said the buyback option on the royalty further improves the long-term optionality on the asset by improving the overall cost profile, which further boosts the M&A attractiveness of Iamgold ( IAG ) as it "unlocks long-term optionality on an expansion", the bank said.

Accounting for a buyback of 50% of the royalty on Cote Gold in 2028 would increase National Bank's FCF generated from 2029 onwards US$13.1 billion to US$12.4 billion and improve the bank's AISC from LOM of $1,170/oz to $1,091/oz. National Bank's model currently does not include an expansion at Gosselin in its DCF but includes value on an in-situ basis.

Iamgold ( IAG ) traded 4.2% higher at $9.65 per share at last look on the TSX.

Price: 9.66, Change: +0.40, Percent Change: +4.32