Caledonia Mining (LON:CMCL) expects progressive increases in gold production from 2016 onwards as its investment at the Blanket mine, Zimbabwe, kicks in.
The firm expects then to see first production from below 750 meters - initially from the No. 6 Winze and subsequently from the Central shaft.
In its second quarter to end June, the miner produced 10,424 ounces of the yellow metal.
That's 4.7% more than in the first quarter this year but 7.1% down on the gold produced in Q2 of 2014.
Overall, the group said it remained on track to achieve targeted output for 2015 of 42,000 ounces.
Steve Curtis, chief executive, said: "The increased production reflects the improved management control over grade and tonnage.
"It is anticipated that production will increase somewhat in the second half of 2015 following completion of the tramming loop on 22 Level in June.
"The completed tramming loop will increase the underground haulage capacity and allow for an increase in development activity, which is expected to result in an increase in future production.
"Sinking of the no 6 Winze has been completed and work has commenced on equipping the completed shaft prior to the start of horizontal development toward the ore bodies.
"The start of initial production from the No. 6 Winze remains on target for January 2016."
Caledonia is debt-free and had cash of$26.1m at the end of March this year.
In 2014 Blanket's on-mine costs were US$652 per ounce of gold produced and its all-in sustaining cost was US$969 per ounce of gold produced.
Broker Shore Capital said: ” Caledonia attributed the improved Q2 production to improved management control over grade and tonnage, and expects production to increase further in H2 2015 now that the tramming loop has been completed.
“As a result, the company believes Blanket to be on-course to meet the full-year 2015 target of 42koz, although we feel that this target should now be capable of being exceeded.”
Shares were unchanged at 53p each.