TORONTO (miningweekly.com) – The TSX-listed stock of gold miner Allied Nevada on Wednesday continued to slide, a day after the Nevada-focused miner said it would defer construction of the mill at Hycroft until it had completed a new feasibility study to optimise the project.

The Reno, Nevada-based company’s shares dropped 26% on Tuesday to close at C$4.48 apiece, and on Wednesday gave back another 12.72% to trade at C$3.91 at noon. This was the lowest share price in more than four years, since the company’s stock touched these levels at the end of 2008.

Net income for the second quarter ended June 30 decreased 31% to $4.2-million, or $0.04 per share, compared with $6.1-million, or $0.07 per share, in the same quarter in 2012. Net income was primarily impacted by increased production costs as well as lower metals prices.

Analysts had, on average, expected an adjusted net profit of $0.08 a share on revenue of $81.44-million.

As a result of a 134% increase in gold ounces sold, revenue increased 75% in the period to $59-million, compared with $33.7-million, despite lower realised gold and silver selling prices.

The Hycroft mine produced 39 195 oz of gold and 132 841 oz of silver and production was expected to ramp up through the second half of 2013, benefiting from additional tons under leach and the increasing capacity of the Merrill-Crowe plant. The company, however, reduced its output guidance to between 175 000 oz and 200 000 oz of gold and between 900 000 oz and 1.1-million ounces of silver.

The adjusted cash costs per ounce of $775/oz were higher than expected, mainly owing to the additional drilling, lime and cyanide costs associated with the Lewis leach pad remediation; reduced silver sales; increased maintenance costs for older loading equipment; and inefficient use of the mobile fleet. As a result of these factors, adjusted cash costs per ounce were expected to be in the range of $800/oz to $825/oz for 2013.