KEY HIGHLIGHTS

•       CMM shares rose 0.61% to $11.56 on 29 April 2026, with Market Capitalisation of $5.24 billion and trading Volume of 199,542 shares on the day.

•       Karlawinda Gold Project delivered record quarterly Operating Cash Flow of $143.1 million in Q3 FY26, with cash and gold on hand reaching $507.6 million.

•       The Karlawinda Expansion Project (KEP) is on track for commissioning in Q1 FY27, while exceptional drilling results at the Lexington underground prospect at Mt Gibson signal further resource growth potential.

Capricorn Metals Limited (ASX:CMM) posted a modest but constructive 0.61% gain during the April 29, 2026 session, with the stock advancing $0.07 to trade at $11.56. The bid-offer spread was tight at $11.550 to $11.570, suggesting normal market conditions with no unusual selling pressure. Trading Volume came in at 199,542 shares, modest relative to some peers but consistent with the stock's typical Liquidity profile. The company's Market Capitalisation stands at approximately $5.24 billion, reflecting the premium that the market has assigned to a well-run, low-cost Australian gold producer with a credible growth pipeline.

Operational Performance: Karlawinda Fires on All Cylinders

Capricorn's March 2026 quarterly activities report, released in conjunction with the share price performance, delivered a set of results that reinforced the company's standing as one of Australia's most efficient gold producers. The Karlawinda Gold Project (KGP), located 65 kilometres south-east of Newman in Western Australia's Pilbara region, produced 30,358 ounces of gold during the March 2026 quarter — virtually unchanged from the preceding quarter's 30,476 ounces. Crucially, this production was achieved at an all-in-sustaining cost (AISC) of $1,617 per ounce, again marginally improved from $1,627 per ounce in Q2.

The consistency of these results — both in output and cost management — is a hallmark of Karlawinda's operational Maturity. Year-to-date production of 93,152 ounces at an AISC of $1,623 per ounce places KGP firmly on track to achieve the upper end of full-year FY26 guidance of 115,000 to 125,000 ounces at an AISC of $1,530 to $1,630 per ounce. Against a backdrop of elevated gold prices, this cost position is generating highly attractive margins.

Record Cash Flow: The Financial Engine Running at Full Capacity

Perhaps the most striking figure in the Quarterly Report was the record Operating Cash Flow from KGP operations: $143.1 million for the quarter, up from $122.4 million in Q2. This performance was underpinned by gold sales of 29,009 ounces at an average realised price of $7,034 per ounce, generating $204.0 million in Revenue. An additional 4,112 ounces were held as gold on hand at the end of the quarter, valued at $27.8 million.

The cumulative effect of these strong cash flows is reflected in the company's Balance Sheet. Cash and gold on hand at the end of Q3 FY26 reached $507.6 million — up from $457.4 million in Q2 — after absorbing $50 million in total Capital Expenditure across the Karlawinda Expansion Project and the Mt Gibson Gold Project. The underlying cash build for the quarter, before Capital Expenditure, was $100.2 million. This financial strength is also manifested in the company's maiden fully franked Interim Dividend of 5 cents per share, totalling $22.8 million — a milestone that signals Capricorn's transition to a cash-return-oriented phase of its corporate lifecycle.

Karlawinda Expansion Project: On Track for Q1 FY27

The Karlawinda Expansion Project (KEP) continued to advance materially during the quarter. Concrete works at the plant site are now largely completed, the majority of structural steel and platework is on site, all major plant pipework packages have been delivered, and CIL tank welding and erection is complete. The ball mill — a critical piece of Capital equipment — was delivered during the quarter and is now in place, slightly ahead of schedule. Commissioning is targeted for Q1 FY27, a timeline that management has reiterated with confidence.

The KEP represents a significant capacity uplift for Karlawinda and is a primary driver of the market's ongoing re-rating interest in CMM. Once commissioned, the expansion is expected to increase throughput materially, building on the existing processing infrastructure that has already demonstrated strong reliability. ROM Pad 2 earthworks were largely completed during the quarter, and Tailings Storage Facility 2 embankments were advanced to start-up level, with only piping remaining to be installed. These operational details indicate that the project is proceeding in a structured and well-sequenced manner.

Mt Gibson Gold Project: Lexington Discovery Adds a New Dimension

While Karlawinda continues to be the core Earnings driver, Capricorn's Mt Gibson Gold Project (MGGP) — located 65 kilometres north-east of Wubin in Western Australia's Mid-West region — is attracting growing attention on the back of exceptional exploration results. As announced to the ASX on 28 April 2026, drilling at the Lexington underground prospect at MGGP returned exceptional gold intercepts, with the first seven holes of an ongoing programme (3,333 metres in total) delivering results including 13.1 metres at 13.93 g/t gold, 28.6 metres at 5.35 g/t gold, and 15.9 metres at 5.22 g/t gold.

These early results have extended high-grade underground gold mineralisation at MGGP to over 900 metres of strike and to depths of more than 500 metres below current reserve pit designs, with the zone remaining open in all directions. The combined 2.1-kilometre drill-tested strike length between the Orion and Lexington prospects is beginning to suggest the potential for a significant-scale, long-life underground Mining operation. Given that the broader MGGP resource base spans an 8-kilometre strike, the current drill-tested zones represent only a fraction of the prospective ground. Infill drilling at the Orion South underground resource is expected to underpin a Mineral Resource Estimate update and a prefeasibility study for a maiden Ore Reserve in the current quarter.

Conclusion

Capricorn Metals' steady 0.61% share price gain on April 29, 2026 reflected investor confidence in a company that is simultaneously executing on multiple fronts: delivering record cash flows from an established, low-cost operation; advancing a major expansion that is on track for commissioning within months; and generating high-grade exploration results that point to meaningful resource growth at its development-stage asset. The combination of operational consistency, financial strength, and near-term expansion catalysts positions Capricorn as a standout in the Australian mid-tier gold space.