Highlights

• Capricorn Metals said its Karlawinda expansion has been commissioned, while approvals for the Mt Gibson gold project are.

• Capricorn Metals Ltd has reported gold production of 31,218 ounces at its Karlawinda project in Western Australia for.

• Capricorn sold 27,516 ounces at an average price of A$6,115 an ounce, producing revenue of A$168.

• The company said construction of the Karlawinda Expansion Project finished on schedule and within budget, with commissioning completed.

Capricorn Metals (ASX:CMM) — said its Karlawinda expansion has been commissioned, while approvals for the Mt Gibson gold project are still being worked through.

Capricorn Metals Ltd has reported gold production of 31,218 ounces at its Karlawinda project in Western Australia for the September 2026 quarter, up from 30,437 ounces in the previous quarter. In its quarterly report, the company said cash and gold on hand totalled A$535.0m, compared with A$507.0m three months earlier, and that it remains debt free and unhedged.

Production and costs

Mill throughput was 1.13 million tonnes at a head grade of 0.94 grams per tonne and recovery of 91.7 per cent. The all-in sustaining cost rose to A$2,005 an ounce from A$1,648 an ounce in the June quarter, which the company attributed to higher earthmoving volumes as the expansion ramps up. Capricorn said its guidance for FY27 is unchanged at 137,000 to 147,000 ounces at an all-in sustaining cost of A$1,900 to A$2,100 an ounce.

Capricorn sold 27,516 ounces at an average price of A$6,115 an ounce, producing revenue of A$168.3m. It held a further 4,442 ounces of gold on hand, valued at A$26.8m. The company reported an underlying cash build of A$62.2m after A$42.7m of capital expenditure. A final FY26 income tax payment of A$90m to A$100m is due in the December quarter.

Karlawinda expansion

The company said construction of the Karlawinda Expansion Project finished on schedule and within budget, with commissioning completed in September. It has reached steady-state throughput of 6.5 million tonnes a year. Capricorn expects the expansion to lift annual output to about 150,000 ounces, with more than ten years of mine life on existing reserves.

FY26 results and dividends

The report also restated record FY26 underlying profit before tax of A$467.5m and sales revenue of A$769.3m. Fully franked dividends for the year total 10 cents a share, or A$45.7m.

Mt Gibson gold project

At Mt Gibson, Capricorn said it has received federal approval under the EPBC Act. The Western Australian environmental review document has been submitted and its public review period has closed, with secondary approvals under Part V of the state environmental legislation being processed.

An updated pre-feasibility study outlines a 19.25-year mine life producing 3.51 million ounces in total, at a life-of-mine all-in sustaining cost of A$1,870 an ounce. The company reported a pre-tax net present value of A$6.1bn at a 7.5 per cent discount rate, assuming gold at A$5,500 an ounce. Pre-production capital is about A$345m for the plant and A$129m for mining. The development decision depends on outstanding state approvals.

Resources, exploration and corporate

At 31 March 2026, Capricorn reported mineral resources of 348.9 million tonnes at 0.8 grams per tonne for 8.66 million ounces, and ore reserves of 195.7 million tonnes at 0.8 grams per tonne for 5.24 million ounces, including a maiden underground reserve of 365,000 ounces at Mt Gibson.

Drilling during the quarter covered 26,668 metres at Lexington and Hornet and 10,575 metres at Orion South. Intercepts included 6.0 metres at 57.38 grams per tonne gold from 616 metres at Lexington and 21.8 metres at 9.54 grams per tonne from 371 metres at Orion South. Capricorn also sold its Big Springs project to Sentinel Metals for up to A$26m, of which A$8.5m was received in cash, A$5.0m in Sentinel shares and up to A$12.5m is contingent, and it invested A$3.0m in Sentinel's capital raising.

Next milestones

The company has set an aspiration, which it calls Range 500, of reaching 500,000 ounces a year within five years, and a study of a second processing hub at Golden Range is under way, with preliminary results due later in the December quarter and a pre-feasibility study and final investment decision targeted for calendar 2027. Other milestones include a maiden underground resource for Lexington in the second quarter of FY27 and commissioning of a core processing facility at Mt Gibson in November 2026.