Stratex International plc (LON:STI) said output at its Altintepe gold mine in Turkey was on track to meet the annual minimum production target of 30,000 ounces, while the high gold price is also auguring well for future mine planning.
The AIM firm owns 45% of the property and is partnered with local Bahar Madencilik, which runs the mine.
The first half to end June saw 19,467 ounces produced and total gold and silver sales has led to revenue of US$32.73mln.
Since the first pour in November last year, revenues have been US$33.39mln.
A new clay treatment facility has proved very successful and crusher throughput now regularly exceeds 3,500tpd (tonnes per day) targeted.
Discussions over mine planning continue with Bahar, noteably on construction of a leach pad for phase two of the site's expansion, which is expected to be completed during November this year.
Stage I exploration and reserve drilling on the extension ridge zone to allow for future mine planning is nearly complete, with 44 holes drilled to the end of June.
Stratex's share of profits from Altintepe for the half year were £1.6mln, which helped to offset the group loss before tax of £1.98mln versus a loss of £1.38mln in the same period of last year.
The widening loss was put down however to accounting losses due to the reduction in Stratex's interest in its associated companies, Thani Stratex Resources Limited and Muratdere Madencilik.
The operating loss for the first six months was £1.185mln, compared to an operating loss for the same period last year of £1.182mln.
Net cash used in operating activities was £802,260 compared to £1.67mln last year, while cash as at June 30 was £2.72mln (30 June 2015: £2.53mln).
The firm said: "Looking back at the first half of 2016 it would appear that the fortunes of smaller exploration and mining companies have at last bottomed.
"The gold price has improved significantly and the outlook for base metals is looking more positive, although many commodities' prices remain relatively weak. The shares of juniors, including Stratex, have strengthened and equity funding has recommenced on improved terms."