IAMGOLD (Toronto symbol IMG; www.iamgold.com) owns 41% of the Sadiola mine and 40% of the Yatela mine, both located in Mali; 90% of its Essakane gold mine in Burkina Faso; 100% of the Doyon mine in Quebec; and 95% of the Rosebel mine in Suriname, South America.

In addition, IAMGold has a 1% royalty interest in the Diavik diamond mine in the Northwest Territories. It also owns the Niobec niobium mine in Quebec. When used as an additive, niobium makes steel stronger, more heat-resistant and easier to weld.

In the three months ended March 31, 2014, IAMGold’s revenue fell 8.5%, to $279.3 million from $305.3 million a year earlier. Cash flow per share dropped to $0.17 from $0.31. The declines were mostly due to 21.2% lower gold prices and an 8.5% production decrease.

IAMGold is cutting its risk by diversifying away from Africa. In 2012, it acquired the Côté Lake gold project, between Timmins and Sudbury, when it bought Trelawney Mining and Exploration for $608 million. Côté Lake holds an estimated 8 million ounces of gold, and there’s lots of room for more drilling to further expand the project’s reserves.

The company suspended its dividend payments in December 2013 to conserve cash while it waits for gold prices to recover. Meanwhile, it holds cash and gold bullion of $313.9 million. It’s also cutting costs to keep its cash flow positive despite lower gold prices.

Mining stocks: Imperial expects fully-owned Mount Polley to produce until mid-2023

IMPERIAL METALS (Toronto symbol III; www.imperialmetals.com) is a Vancouver-based firm that produces and explores for base and precious metals.

Imperial’s producing assets include two B.C. mines: 100%-owned Mount Polley (copper and gold) and 50% of Huckleberry (copper and molybdenum). Japan’s Mitsubishi Materials holds 31.1% of Huckleberry, and Furukawa Co., Dowa Holdings and Marubeni Corp. own 6.3% each.

Imperial restarted Mount Polley in 2005 and continues to explore around the deposit to increase the mine’s reserves and lengthen its life. The company expects Mount Polley to produce until mid-2023.

In the three months ended December 31, 2013, Imperial’s revenue fell 24.9%, to $44.0 million from $58.5 million a year earlier. Cash flow per share declined 17.9%, to $0.23 from $0.28. Lower copper and gold prices pushed down results.

Meanwhile, the company continues to develop its Red Chris copper/gold property in northwestern B.C. and aims to start up an open pit mine at the site later this year. Red Chris holds as much as 9 billion pounds of copper and 13.8 million ounces of gold.

In the latest edition of Stock Pickers Digest, we look at IAMGold’s production outlook and whether its cost-cutting will generate sufficient cash flow to develop Côté Lake and add to its other mines’ reserves. We also consider Imperial’s cash flow outlook in light of its efforts to bring its Red Chris property into full operation. We conclude with our clear buy-hold-sell advice on these two stocks.

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IAMGold has suspended its dividend payments. When you have owned stocks that suspended or reduced their dividends, have you sold them? Or kept them in hopes that the dividend would be restored? Was there one factor above all others that helped you decide whether to hold or sell a stock that had cut its dividend?