Iamgold Corp (NYSE:IAG), the Toronto-based gold producer, saw shares fall Friday as it responded to recent trading activity after reports emerged it was mulling a possible sale of all or part of the group.
Yesterday and earlier today, the stock saw sharp rises as reports emerged of a possible sale from people "familiar with the matter" saying the group was working with advisers and it had spoken to several potential buyers.
Shares in Iamgold were recently down 2.67% to stand at US$2.55 in New York. In Toronto, they are off 2.29% to stand at $3.42.
"As a general policy, the company does not comment on speculation and rumours," said Iamgold in a statement.
"The company is not aware of any material change that would account for recent trading activity in its stock. The company regularly reviews strategic alternatives available to it and may engage in discussions regarding potential transactions. The company will inform the market as required and does not have any further comment at this time."
Consolidation in the gold sector continues to be a big theme.
Experts have pointed out that now is the time for gold miners to go on a shopping spree because there isn’t enough lead time for most to develop new projects to capitalize on the next bull market of the yellow metal.
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