Iamgold increases dividend by 33%

Iamgold Corp (IMG.TO) raised its annual dividend payment by 33 percent on Thursday, and forecast increased gold output in 2011.

The Toronto-based mid-tier producer said its 2011 gold output is expected to rise about 20 percent above its current forecast production for 2010. Iamgold has forecast gold production of between 940,000 and 970,000 ounces for 2010.

The company expects to produce between 1.1 million and 1.2 million ounces in 2011, at cash costs of between $565 and $595 an ounce.

Iamgold said it has now increased its annual dividend payment to 8 cents a share from 6 cents a share. The annual dividend will be paid on Jan. 14, to shareholders of record as of the close of trading on Dec. 24.

The company said it plans to pay its dividend semi-annually in the future.

($1= $1.01 Canadian)

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