Highlights

  • Capricorn says Karlawinda’s expanded plant reached its 6.5-million-tonne annual steady-state rate after September commissioning finished on schedule and within budget.
  • Karlawinda produced 31,218 gold ounces, while all-in sustaining costs rose to A$2,005 per ounce as earthmoving increased during ramp-up.
  • The company retained full-year production guidance of 137,000 to 147,000 ounces and cost guidance of A$1,900 to A$2,100 per ounce.
  • Capricorn held A$535 million in cash and gold without debt, while Mt Gibson still required outstanding state and secondary approvals.

Karlawinda’s expanded plant has reached its planned processing rate, according to Capricorn Metals (ASX:CMM), but its growth programme still has approvals and commissioning milestones ahead. The September 2026 report records 31,218 gold ounces at Karlawinda and A$535 million in cash and gold. Mt Gibson’s federal approval is in place subject to conditions, with other approvals still progressing.

Karlawinda Ramps Up with Higher Unit Costs

Karlawinda gold output increased from 30,437 ounces in the June quarter to 31,218 ounces. All-in sustaining costs rose from A$1,648 to A$2,005 per ounce, reflecting higher earthmoving during the expansion ramp-up.

The company sold 27,516 ounces at an average A$6,115 per ounce, generating A$168.3 million of revenue. Full-year guidance remains 137,000 to 147,000 ounces at AISC of A$1,900 to A$2,100 per ounce.

Expansion construction finished on schedule and within budget, with commissioning completed in September. The plant initially processed low-grade feed and is expected to move to run-of-mine grade in the December quarter.

Management expects approximately 150,000 ounces a year from the expanded operation, with more than ten years of mine life on existing reserves.

Mt Gibson Studies Remain Conditional

The state environmental review document has been submitted and public consultation has closed. Secondary approvals have been lodged and remain in progress.

Detailed engineering is complete, and major contracts are finalised subject to approvals. Mt Gibson commissioning is planned for November 2026, dependent on the outstanding state approvals.

The pre-feasibility study outlines a 19.25-year life and 3.51 million ounces of gold, with 96% sourced from Ore Reserves. Study estimates include steady-state annual output of approximately 260,900 ounces and life-of-mine AISC of A$1,870 per ounce.

Pre-production capital estimates comprise A$345 million for plant and infrastructure plus A$129 million for mining. A stated pre-tax net present value of A$6.1 billion assumes gold at A$5,500 per ounce. These are study outputs, not realised project results.

Cash and Exploration Support Further Work

Cash and gold on hand totalled A$535 million, including A$26.8 million of gold. Capricorn reports no debt and remains unhedged. Group operating cash flow in the Appendix 5B was A$84.5 million.

A FY26 tax payment of A$90 million to A$100 million is expected in the December quarter. Fully franked FY26 dividends of ten cents per share were previously declared.

Across Karlawinda and Mt Gibson, Mineral Resources total 8.66 million ounces and Ore Reserves 5.24 million ounces. Lexington-Hornet drilling included six metres at 57.38 grams per tonne from 616 metres, while Orion South returned 21.83 metres at 9.54 grams per tonne; both are downhole intervals.

A maiden Lexington-Hornet Inferred underground resource is expected in the December quarter. Further growth-plan study work and an investment decision are targeted for calendar 2027.