UPDATE 2-Barrick profit lifted by surging bullion price

* Q3 adjusted EPS $1.39 Vs $0.93 a year earlier

* Co reaffirms gold output forecast; trims copper view

* Barrick shares up 2 pct in trade before morning bell

By Euan Rocha

Oct 27 (Reuters) - Barrick Gold , the world's top gold miner, reported a 45 percent increase in its quarterly profit on Thursday, driven by a sharp increase in bullion prices.

Toronto, Ontario-based Barrick said its third-quarter net income rose to $1.37 billion, or $1.36 a share, from a year-earlier profit of $942 million, or 94 cents.

Excluding one-time items, profit rose to $1.39 billion or $1.39 a share, from $912 million or 93 cents.

The company said its third-quarter gold production was 1.93 million ounces, at total cash costs of $453 per ounce.

Barrick said it remains on track to meet its 2011 operating outlook, with production expected to be between 7.6 and 7.8 million ounces, at total cash costs of $460 to $475 per ounce.

The company said it now expects total copper production of between 450 million and 460 million pounds in 2011, which is slightly lower than its previous forecast of 455 million to 475 million pounds.

Total copper cash costs in 2011 are expected to be between $1.60 and $1.70 a pound, at the upper-end of its previously forecast range of $1.55 to $1.70 a pound.

Barrick's New York-listed shares rose 2 percent at $48.36 in trade before the morning bell on Thursday.

PROJECT DEVELOPMENT

Barrick said development work at its Pueblo Viejo project in the Dominican Republic and Pascua-Lama gold-silver project on the border of Chile andArgentina is on track, with first production expected in mid-2012 and mid-2013, respectively.

The two mines are at the center of Barrick's growth plans and are expected to contribute between 1.4 million and 1.5 million ounces of average annual gold production in the first full five years of operation, at costs much lower than Barrick's current cost profile.

Barrick on Wednesday said its board authorized a 25 percent increase in its quarterly dividend.

Analysts had called on the world's top gold miner to raise its dividend for a few months now, as it last increased it more than a year ago and its payout ratio trailed that of many of its smaller peers in the sector.

The surge in the price of gold has significantly boosted the earnings of gold miners this year and many companies, including Goldcorp , Kinross , Newmont and others had already boost dividend payouts earlier this year.

Barrick said it is raising its dividend to 15 cents a share from 12 cents. The quarterly dividend is payable on Dec. 15 to shareholders of record at the close of business on Nov. 30, the company said.