UPDATE 1-Peter Hambro sees FY gold output at upper end of view

* Had forecast FY production of 460,000-510,000 ounces

* Says first 5 months gold output slightly above plan

* Says underlying unit production costs in line with plan

* Shares rise 2 pct

(Adds details, share movement)

June 25 (Reuters) - Russian gold producer Peter Hambro Mining Plc (POG.L) said on Thursday it expected full-year production to be towards the upper end of its prior forecast as output for the first five months had been slightly above plan.

In March, London-listed Peter Hambro had forecast gold production to be between 460,000 ounces and 510,000 ounces for 2009.

Peter Hambro also said the second stage of its Pioneer mine was on track to commission in July, with ramp up to full production expected during the third quarter.

"Production volume increases and the processing of high grade material that has been encountered have had a corresponding beneficial effect on unit costs-per-ounce," the company added.

At 1422 GMT, Peter Hambro shares were up about 2 percent at 598 pence on the London Stock Exchange. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Aradhana Aravindan)