(RTTNews) - Canadian gold mining company Iamgold Corp. (IAG: News ,IMG.TO: News ) Wednesday reported a surge in profit for the third quarter, helped by 13% increase in average realized gold prices as well as lower production costs. On a per-share basis, earnings topped analysts' estimates for the quarter.

Net earnings for the quarter were US$64.9 million or US$0.18 per share, up 245% from US$18.8 million or US$0.06 per share in the prior-year quarter. Last year's results included an impairment charge of US$4.6 million. Prior-year quarter's adjusted net income was US$23.4 million or US$0.08 per share.

On an average, eight analysts polled by Thomson Reuters expected the company to report earnings of US$0.10 per share for the quarter. Analysts' estimates typically exclude special items.

The Toronto, Ontario-based company's revenues increased 24% to US$235.2 million from US$226.9 million in the comparable period. Three analysts had consensus revenue estimate of US$223.88 million for the quarter.

Average realized gold price was US$961 per ounce during the quarter, up 13% from US$853 per ounce in the previous year.

Cash cost of production dropped 5% to US$457 per ounce from US$481 per ounce in the comparable period. Lower cash cost per ounce in the third quarter of 2009 is primarily a result of productivity improvements at Rosebel combined with royalty expense savings, the company said.

Attributable gold sales for the quarter declined 6% to 244 thousand ounces from 260 thousand ounces last year, while attributable gold production decreased 4% to 244 thousand ounces from 253 thousand ounces a year ago.
The company said that it had record production at its flagship Rosebel mine, and continued extensions at the Doyon Division in Quebec. At the Rosebel mine in Suriname, the recent completion of the mill expansion continued to drive results during the third quarter, and resulted in record production of 106 thousand ounces, up 29% over the prior year period.

Meanwhile, niobium production from Niobec Niobium Mine for the third quarter was 982,000 kilograms, down from 1.154 million kilograms last year, mainly due to mechanical problems in the converter leading to lower conversion of niobium oxide concentrate to ferroniobium.

The company said that the third quarter exploration activities and new projects focused on its key areas, namely West Africa, Quebec, the Guiana Shield, Brazil and the northern Andean regions of South America.

Late last month, the miner had increased its guidance for 2009 gold production reflecting primarily the higher productivity at Rosebel mine in Surinam, South America and the extended life of the Doyon mine in Canada into the fourth quarter. Iamgold projects full-year production in a range of approximately 940,000 to 950,000 ounces, an increase of 30,000 ounces over previous guidance issued in June.

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