The company purchases mill feed from government-registered small-scale producers and processes it at its Chala One and 90%-owned Kori One facilities in southern Peru.

It produced 24,850 ounces of gold in 2019, a 13% increase on 2018 and its third consecutive annual increase.

The company said the Peruvian government had created a further four-month period for new and existing miners to register and demonstrate their compliance with environmental and safety regulations and remit taxes on sales of extracted minerals.

"This window of opportunity represents potentially a significant increase in market supply of mineral rich material and an expanded customer base," Inca One said.

President and CEO Edward Kelly said the company had continued to invest in its plants, upgraded tailings facilities, replaced older equipment, integrated Kori One and focused on "right-sizing the business in preparation for our next phase of growth in 2020".

"This will transform Inca One from a small-scale processor towards a combined, larger-scale 450tpd operator," he said.

It had acquired the stake in the Koricancha mill from Equinox Gold in 2018.  

Inca One consolidated its shares on a 1 for 10 basis in January after its share price spent months below the C5c mark, the minimum level to allow for a financing, putting a constraint on its ability to raise capital "and in turn give confidence to current and future shareholders".

The company had a working capital deficit of US$1.8 million at October 31.

Its shares gained 8.3% on Friday to close at 19.5c, capitalising it about $5.2 million (US$3.9 million).