August 11, 2010 / 12:52 PM / 8 years ago

UPDATE 1-Iamgold net income slips, raises output forecast

* Q2 EPS $0.10 Vs $0.12 a yr-ago

* Q2 revenue down 5 pct to $214 mln

* Iamgold raises 2010 gold production forecast

(In U.S. dollars unless noted)

TORONTO, Aug 11 (Reuters) - Iamgold (IMG.TO) said on Wednesday its second-quarter profit fell nearly 20 percent, as gold output declined following the closure of its Doyon mine in Quebec and the processing of lower grade ore at its Rosebel mine in Suriname.

But the mid-tier gold producer raised its 2010 gold output forecast to a range of 980,000 to 1.01 million ounces, from a prior forecast of between 940,000 and 1 million ounces.

The company raised its production forecast as ore grades at Rosebel are expected to improve in the latter part of 2010, while it has already begun to process material at its recently built Essakane mine in Burkina Faso.

Net income in the quarter fell to $35.7 million, or 10 cents a share, down from a year-ago profit of $44.1 million, or 12 cents a share.

Iamgold said adjusted earnings — that include income from minority interests in certain mines, along with other items — rose to $39.1 million, or 11 cents a share, up from $31.5 million, or 9 cents a share, a year earlier.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 14 cents a share.

Quarterly revenue fell 5 percent to $214 million, as gains in its average realized gold price were more than offset by declines in gold sales volumes. (Reporting by Euan Rocha and Julie Gordon; Editing by Derek Caney)

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