Azerbaijani gold, copper and silver explorer Anglo Asian Mining returned to profit in the first half of the year, but reduced its target gold production.
For the six months ended 30 June, profit before tax increased to $3.5m after a $4.1m loss last year. Revenue decreased slightly by 6% to $39.3m due to low gold bullion sales, which was partially offset by higher sales of copper concentrate.
Target gold production for the year to 31 December was lowered to between 69,000 and 71,000 ounces. Target copper production remains the same between 1,700 and 2,100 tonnes.
Chairman Khosrow Zamani, said: "Unfortunately, the late commissioning of the second semi-autogenous grinding mill and the Gadir development work required in August resulted in a shortfall in gold doré production in July and August of 2,779 ounces compared to budget. These issues have now been overcome but as a result we have had to lower our target gold production for the 2016 financial year".
Average cash operating costs fell by 26% to $546 per ounce of gold bullion due to low mining and processing costs and higher by-product sales.
Capital expenditure was down 27% to $6.6m with spending mainly on advanced stripping, the new SAG mill and underground equipment.
Net debt narrowed by 17% to $40.7m and cash rose to $3.3m at 30 June, from $200,000 in December 2015.
The AIM-listed company reported strong copper and silver production figures in the six-month period. Copper production rose to 969 tonnes from 418 tonnes last year, and silver rose to 90,782 ounces from 6,478 ounces.
Gold production reduced slightly to 33,837 ounces from 35,938 ounces last year.
Copper concentrate sales of 2,912 dry metric tonnes (dmt) generated revenue of $5.2m, compared to 606 dmt with revenue of $1.7m.
Gold bullion sales of 27,719 ounces at an average of $1,230 per ounce in comparison to 33,294 ounces at $1,204 per ounce last year.
The company said 18,000 ounces of gold bullion sales were hedged at no cost with a minimum sale price per ounce of $1,200 and maximum of $1,426.
Zamani added: "The increase in metal prices since the beginning of 2016 and the recent devaluations of the Azerbaijan Manat have materially assisted in our return to profitability.
"However, the company is always mindful of the volatile environment in which it operates and therefore remains highly focused on optimising the efficiency of its operations and reducing costs wherever possible."