Anglo-Asian Mining plc, which extracts precious metals in Azerbaijan, produced over 52,000 ounces of gold from the Gadabay mine complex in 2013, compared with 50,025 ounces in 2012.
However, it was expected to produce about 60,000 ounce of gold in 2013.
Anglo Asian CEO Reza Vaziri said, "Naturally we are disappointed to have missed our production target for the year due to unexpected weather conditions and processing issues in fourth quarter of 2013, especially given the successful commissioning of our new Agitation Leaching Plant in June 2013."
This, in tandem with the lower gold price, in particular during the second half, will see the cash cost per ounce increase and profitability for 2013 significantly reduced from 2012, he said.
"Looking ahead, we are taking steps to ensure we maximise our output and efficiency for 2014 and beyond. We are committed to increasing Gadabay's gold production by utilizing the Agitation Leaching Plant and aim to double production from the heap leaching operation through efficiencies," Vaziri said.
Additionally, the installation of a Knelson concentrator in the second quarter of 2014 is expected to enable isolation of copper sulphides that have been found to restrict gold recoveries in the agitation leach tanks during the latter part of 2013.
The company also makes good progress on the development of the second mining project in Azerbaijan, Gosha, located 50 km away from Gadabay, with the prospect of gold production in 2014.
Earlier, Anglo-Asian Mining announced further positive exploration updates from new drilling undertaken north of Gadabay mine.
Anglo-Asian Mining has also increased sales of gold. In 2013, the company sold 46,076 ounces of gold, while in 2012 the gold sales totaled 42,743 ounces. However, the gold was sold at a price of $1,387 per ounce, while in 2012 an average price was $1,660 per ounce.
Anglo Asian Mining, a cash generative and profitable gold and copper mining and exploration company, started gold and silver production in May 2009 and copper concentrate production in 2010 at the Gadabay mine.
The company has the rights to develop six deposits in the south-west of Azerbaijan - Gadabay, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu, under a production sharing agreement signed in August 1997 with Azerbaijan's government.
The gold and silver produced there are sent to Switzerland for refining, and gold bars are delivered to the country and preserved by the government.