Iamgold's (IAG) 2011 Inflation, Costs Pressures

Gold miners like Iamgold (NYSE:IAG), while performing solidly, have been receiving attention from investors who are concerned over how the company will respond to higher inflation and rising costs.

Even coming off of great quarters, and Iamgold itself generating 39 cents a share on revenues of $495 million, which far surpassed analysts' estimations, there is still a sense of uncertainty for the year going forward.

In the case of inflation it's somewhat surprising, as well-run gold miners tend to do well in those circumstances, with gold prices usually pushed up as a result of money flowing into the sector for safety.

Concerns over higher costs in the case of Iamgold are well-founded, as they rose by close to $100 an ounce from last year in the same quarter, to $574 an ounce.

But high gold prices can be forgiving, and it appears that should continue on into 2011, helping negate that factor, although they'll perform lower than some of their peers.

Guidance for 2011 is for cash costs to range from $565 and $595 an ounce on production of 1.1 million to 1.2 million ounces of gold.

Iamgold recently raised its dividend to 8 cents a share.