The Perth-based gold miner, which operates the Paddington mine north of Kalgoorlie in Western Australia, now envisages gold production to come in at 175,000 ounces for 2010, down 12% from previous projections of 199,000oz.

Norton said gold production for the September quarter was below expectations at 30,165oz, due to a range of factors including a delay in obtaining regulatory approvals to begin mining at Janet Ivy.

Janet Ivy is now in full production, while Waldon is being prestripped and is due to deliver first ore on schedule next month.

"Homestead underground development continues to be within schedule to deliver high-grade feed to the mill in December," Norton said.

"Its high-grade feed will step up the production rate significantly and make a major contribution to gold output in addition to the open cut base load ore supply."

Norton added that all projects were now delivering ore at project mining rates and grades.

The company reported a $A16.8 million net loss for the 2009 financial year, a $26 million slump from last year's net profit.

At June 30, the company had cash of $45.3 million, including $5 million allocated to repayment of convertible notes.

During the financial year, Norton produced 135,067oz and expanded its resources to 6.13 million ounces including reserves of 1.24Moz.

Shares in Norton have gained 0.5c to 30c in morning trade.