Iamgold increases 2009 production guidance to 940,000 to 950,000 ounces of gold

By The Canadian Press

TORONTO - Iamgold Corp. (TSX: IMG.TO) has increased its 2009 production guidance by 3.3 per cent to between 940,000 and 950,000 ounces of gold at an average cash cost of between $460 and $470 per ounce.

This is 30,000 ounces higher than guidance issued in June 2009 and 60,000 to 70,000 ounces higher than original guidance issued in January.

The Toronto-based gold miner said Monday the increased production guidance reflects productivity increases at the Rosebel mine in Suriname and the extended life of the Doyon mine in Quebec into the fourth quarter of this year.

"Iamgold's production has continued to excel throughout 2009, allowing us to again increase our production guidance for the year. The fact that we are one of the few gold producers increasing guidance is a testament to the experience and resourcefulness of our operating teams," stated president and CEO Joseph Conway.

"We are pursuing opportunities to optimize our existing operations as well as potential acquisitions where we can capitalize on our operating strength," he added.

The company said full-year niobium production from the Niobec mine in Quebec is expected to be between 4,200 and 4,400 ounces with an operating margin between $19 and $21 per kilogram, a decrease of $1 due to the stronger Canadian dollar.

Niobium is used to improve the strength of steel.

Iamgold is a mid-tier gold producer with mines and development projects in Quebec, South America and Africa.

Shares in the company gained 37 cents or 2.6 per cent to $14.86 in early trading on the Toronto Stock Exchange.