Evolution Mining shares have come under pressure after the gold miner failed to meet its March quarter production targets due to cyclone activity and record rainfall.
Cash costs also increased sharply as Evolution produced 84,251 ounces in the March quarter, down from 101,663 ounces in the December quarter.
"This result was marginally below production guidance for the quarter and was above full-year 2013 cash cost guidance, largely due to the impact of Cyclone Oswald on the Queensland operations," Evolution said in its quarterly production report.
Average cash costs were $918 per ounce in the March quarter, up from $764 in the December quarter.
Shares in the company fell three cents, or 3.1 per cent, to 92.5 cents at 10am.
The company's full year production and cash cost guidance remains unchanged at 370,000 to 410,000 ounces of gold equivalent at a cost of $730 to $790 per ounce.
June quarter production is forecast to exceed 100,000 ounces.
Evolution has started ramping up its Mount Carlton project in Queensland, with its first concentrate produced during the March quarter.
Evolution operates four gold and silver mines in Queensland and WA and is developing a fifth project in Queensland.
Gold production at the company's Mt Rawdon operation was hit by extremely high rainfall from ex-tropical Cyclone Oswald in January, followed by heavy rainfall in February and March.
Mt Rawdon was battered by 1,126mm of rain during the quarter, the highest quarterly rainfall recorded since operations began in 2001.
Cash costs at the mine spiked to $891 per ounce during the quarter as a result.
The company's credit facility was $106.8 million at the end of the quarter with available credit of $93.2 million.