January 18, 2011 / 4:32 PM / 7 years ago

UPDATE 1-Iamgold posts sequential rise in Q4 production

* Posts Q4 gold production of more than 310,000 oz

* Backs FY11 production forecast of 1.1-1.2 mln oz

* Says FY10 production at higher end of its outlook

* Sets capex of $460 mln for 2011

* Shares rise 7 pct (Adds details, updates share movement)

Jan 18 (Reuters) - Mid-tier producer Iamgold Corp (IMG.TO) posted a 21 percent sequential rise in gold production in the fourth quarter and backed its 2011 production outlook.

Iamgold shares, which have shed nearly 5 percent in the last three months, rose 7 percent to C$18.26 on Tuesday morning on the Toronto Stock Exchange. They were up 6 percent at C$18.13 in late morning trade.

The Toronto-based company said on Monday it expects to produce 1.1-1.2 million ounces of gold in 2011, at cash costs of $565-$595 an ounce.

The company’s key operations are in West Africa, South America and in Canada’s Ontario and Quebec, where it also operates a niobium mine.

U.S. February gold futures GCG1 rose 0.8 percent to $1,371.00 on Tuesday. [ID:nLDE70H0YV]

The company said its 2010 production came in at the high end of its view of 940,000-970,000 ounces.

Iamgold also said it sees 2011 capital expenditure of $460 million, which will be mainly used for expansion of its Rosebel mine in Suriname, Essakane mine in Burkina Faso and the development of its Westwood gold project in Canada.

In the fourth quarter, Iamgold had attributable gold production of more than 310,000 ounces. (Reporting by Arnika Thakur and Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal, Unnikrishnan Nair)

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