TORONTO (miningweekly.com) – Toronto-based Iamgold more than tripled its third-quarter net income year-on-year, helped by lower costs and strong bullion prices, the firm reported on Wednesday.

Iamgold, which has mines in Africa, South America and Canada, earned $64,9-million in the third quarter, a record for the company and an increase of 245% from the net income of $18,8-million a year earlier.

The company produced 244 000 oz of gold during the period, compared with 253 000 oz a year earlier, but cash costs improved to $457/oz, from $481/oz in the third quarter of 2008.

Iamgold achieved “outstanding” results during the third quarter, CEO Joseph Conway said on Wednesday.

Revenue increased 4% year-on-year, to $235,2-million, compared with $226,9-million last year.

Iamgold ended the third quarter with available cash and gold bullion positions of $343,7-million, plus $123-million of available liquidity under a credit facility.

"We are one of the few that are in this business right now that are actually net cash positive," he told analysts and investors on a conference call.

"And we will continue to focus on keeping that cash balance in good shape."

Iamgold realised an average gold price during the quarter of $961/oz, 13% higher than the $853/oz in the same period of 2008.

However, Conway said that, even in a lower gold price environment - say around $700/oz - the firm would still have the funds it needed to complete the projects it has committed to.

Last week, Iamgold increased its gold production forecast for 2009, mainly thanks to improved productivity at its Rosebel mine, in Suriname, and the extended life of the Doyon mine, which continued to produce into the fourth quarter

The company now expects to produce between 940 000 oz and 950 000 oz of gold this year.

It initially said in January that it would produce about 880 000 oz, but increased its guidance to between 910 000 oz and 920 000 oz in June.

Iamgold will also start production next year at the Essakane gold project, in Burkina Faso, which it bought in February by acquiring Canadian junior Orezone Resources.

The project remains ahead of schedule and within budget, Conway said on Wednesday.

Earlier this week, the firm announced that it and its partners at the Sadiola mine, in Mali, had approved the start of a feasibility study on the deep sulphides project at the mine.

The company has trimmed its capital expenditure forecast for the full year to $422,1-million, down from previous guidance of $448,4-million, because of decreased spending at the Niobec niobium mine, in Canada, partly offset by equipment purchases at Rosebel earlier in the year.

Shares in Iamgold rose 3,2% on Wednesday, to C$16,64 apiece by 16:16 in Toronto.