West African gold miner, Avocet Mining, saw profits slump in the second quarter after poor performance in Burkina Faso.
In response to the weaker numbers the board said it would pay no dividend in the 2012 financial year.
Production and cash costs at the firm's 90%-owned Inata Gold Mine were weaker than forecast and investigations into expansion there had taken longer than anticipated, the firm said
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This led pre-tax profits to plummet 83% compared to the second quarter of 2011, to $2.46m.
Earnings per share dropped to 0.83c from 6.3c the year before.
However, across the first half of the year the company saw profits rise slightly to $23.3m on revenues of $109.5m.
In a recent trading update, the firm lowered annual production guidance to between 135,000 and 140,000 ounces at cash costs of US$1,000-1,050 per ounce for 2012.
Shortly afterwards Chief Executive Brett Richards resigned to be replaced by David Cather.
Avocet said measures were now being taken to improve mining capacity and operating efficiencies.
The company has contracted African Mining Services to provide two rental excavators and four dump trucks, while a new wheeled loader has been purchased and is in transit to the mine.
All seven are expected at site in September, Avocet said.
Consultants have been employed to come up with a plan to enhance efficiencies and reduce costs.
The on-site management team has also been expanded with the appointment of a new general manager, mine manager and a technical services manager.
Cather, the new CEO, said his immediate challenges were a better understanding of the Inata orebody, and ensuring mining and plant operations were optimised to deliver the maximum value to shareholders.
"In addition, we will look to expand the Inata Mine to its optimal processing capacity and to advance our assets in Guinea," he said.
"Our intention remains to grow Avocet into a leading West African gold mining and exploration company."
Zoopla: House prices slows to 1.4% in May as rate of sales at four year high
FCA reveals 'once in a generation' advice changes - what the reforms mean for you
