UPDATE 1-Iamgold profit falls on lower metal prices, lower sales volumes

Wed Feb 20, 2013 7:57pm EST

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Feb 20 (Reuters) - Iamgold Corp reported a 37 percent decrease in quarterly net profit on Wednesday due to lower metal prices and lower sales volumes.

Net earnings from continuing operations attributable to equity holders fell to $84.6 million, or 22 cents per share, in the fourth quarter from $133.6 million, or 36 cents per share, a year earlier.

In November, the company cut its 2013 production target to a range of 875,000 to 950,000 ounces of gold from an earlier forecast of 1 million to 1.1 million ounces. Total cash costs were set to increase to a range of between $850 and $925 an ounce.

Total cash costs for the quarter rose to $731 an ounce, compared to $643 an ounce in the same prior year period, the company said.

AngloGold Ashanti, Iamgold's partner on the Sadiola mine in western Mali, said last week that it will hold off on a $500 million expansion plan for the joint venture until the security situation becomes clearer.

The company cut its capital expenditure for 2013 to $665 million, compared with about $750 to $780 million in 2012, due to delayed approval of the Sadiola sulphide project and deferral of capital spending at Niobec.

Attributable gold production was 214,000 ounces in the fourth quarter 2012 versus 253,000 ounces, a year earlier.

Adjusted to remove one-time items, earnings were $90.3 million, or 24 cents a share. Analysts, on average, had expected earnings of 25 cents a share, according to Thomson Reuters I/B/E/S.

Revenue fell 3 percent to $468.4 million.

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