February 25, 2009 / 2:11 AM / 9 years ago

UPDATE 1-Iamgold posts fourth-quarter loss on charge

(In U.S. dollars, unless noted)

LOS ANGELES, Feb 24 (Reuters) - Iamgold (IMG.TO) posted a quarterly net loss on Tuesday after it took $113 million in charges for higher capital costs to develop its Buckreef project in Tanzania.

The mid-tier Canadian gold producer lost $96.4 million, or 33 cents a share, in the quarter ended Dec. 31. That compared with a profit of $8.5 million, or 3 cents a share, in the year-before quarter.

Excluding the charge, Iamgold earned 6 cents a share. On that basis, analysts polled by Thomson Reuters had expected, on average, a profit of 7 cents a share.

Revenue rose 8 percent to $209.6 million.

Cash costs per ounce were $408, down 15 percent from the previous quarter. Realized gold prices were $793 an ounce, up from $787 an ounce a year ago.

Toronto-based Iamgold operates seven gold mines in Canada, South America and Africa, and is in the process of completing a takeover of Orezone Resources, which will give it control of the Essakane gold project in Burkina Faso.

It also has five other development projects, and produces Niobium, a key component in specialty high strength steels, at a mine in Quebec.

The company said last month it expects to produce 880,000 ounces of gold in 2009 at an average cash cost of $470 to $480 an ounce. It has a target of 1.8 million ounces of annual output by 2012. (Reporting by Nichola Groom; editing by Richard Chang)

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