May 11, 2011 / 10:04 PM / 7 years ago

UPDATE 1-Iamgold Q1 up on higher gold output

* Q1 adjusted EPS $0.36 vs est $0.32

* Q1 revenue up 80 pct at $432.5 mln

* Sees 2011 production of 950,000 to 1.05 mln ounces

* Says cuts outlook to reflect sale of stake in Ghana mines (Follows alerts)

May 11 (Reuters) - Canadian mid-tier gold miner Iamgold Corp’s first-quarter earnings almost tripled as it started production at its West African Essakane mine in Burkina Faso.

The company, however, cut its gold production outlook for the year to 950,000-1.05 million ounces, from its prior view of 1.1-1.2 million ounces, to reflect the proposed sale of its interest in two of its mines in Ghana.

January-March earnings rose to $162.3 million, or 41 cents a share, from $60.2 million, or 15 cents a share, a year ago.

Toronto-based Iamgold, which has mines in Canada, South America and Africa, posted an 80 percent rise in revenue at $432.5 million.

Adjusted earnings were 36 cents a share.

Analysts on average expected earnings of 32 cents a share on revenue of $410.4 million, according to Thomson Reuters I/B/E/S.

Quarterly gold production was 290,000 attributable ounces at a cash cost of $570-$580 per ounce. [ID:nL3E7FL3SA]

Last month, Iamgold had agreed to sell its 18.9 percent interest in the Tarkwa and Damang gold mines in Ghana to Gold Fields , the world’s fourth-largest gold producer, for $667 million in cash. [ID:nL3E7FF1UX]

Shares of the miner closed at C$18.59 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Saumyadeb Chakrabarty)

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