Highlights

  • Karlawinda completed its processing expansion during the September 2026 quarter.
  • The expanded operation achieved a steady-state processing rate of 6.5Mtpa.
  • September-quarter gold production reached 31,218 ounces at an AISC of A$2,005/oz.
  • FY27 production and cost guidance remained at 137,000–147,000 ounces and A$1,900–2,100/oz.
  • Mt Gibson continued through Western Australian environmental approvals after federal clearance.

Capricorn Metals Limited operates the Karlawinda Gold Project in Western Australia’s Pilbara region and is advancing the Mt Gibson Gold Project in the state’s Mid-West. During the September 2026 quarter, Capricorn Metals Limited (ASX:CMM) completed and commissioned its Karlawinda processing expansion, while reporting quarterly production, costs and progress on Mt Gibson approvals. The transition from construction to expanded processing is central to its FY27 operating plan.

Karlawinda Expansion Moves Into Operations

Capricorn Metals Limited (ASX:CMM) reported that construction of the Karlawinda Expansion Project finished on schedule and within budget. Commissioning was completed in September 2026, with ore processed through the new parallel crushing, milling and carbon-in-leach circuits. The operation achieved the targeted steady-state processing rate of 6.5Mtpa during the quarter.

The new plant initially treated lower-grade material before transitioning towards run-of-mine grade ore in the following quarter. The expanded facilities are intended to support annual gold production of approximately 150,000 ounces. That figure describes the planned longer-term operating rate, not the gold produced in the September quarter.

Quarterly Production, Costs and Cash Position

For the September 2026 quarter, Capricorn Metals Limited (ASX:CMM) produced 31,218 ounces of gold, compared with 30,437 ounces in the June quarter. All-In Sustaining Cost (AISC) increased to A$2,005 per ounce from A$1,648 per ounce. The company attributed the cost profile partly to increased earthmoving volumes as the expansion moved towards operations.

The company maintained FY27 guidance of 137,000–147,000 ounces of gold at an AISC of A$1,900–2,100 per ounce. Guidance remains a company expectation rather than an achieved result. Processing performance, ore grades, Mining volumes and cost control will determine the reported outcome over the remaining quarters.

Capricorn Metals Limited (ASX:CMM) recorded quarterly Operating Cash Flow of A$113.1 million, compared with A$115.8 million in the preceding quarter. Gold sales of 27,516 ounces generated A$168.3 million in revenue. Cash and gold on hand totalled A$535.0 million at 30 September 2026, against A$507.0 million at the end of June. The company also reported A$42.7 million of Capital Expenditure across Karlawinda and Mt Gibson during the quarter.

Mt Gibson Permitting and Development Considerations

At Mt Gibson, Capricorn Metals Limited (ASX:CMM) had received federal environmental approval by the September quarter, but Western Australian approvals were still progressing. Its environmental review document had been submitted and the public review phase had closed. Secondary approvals were also underway. Detailed engineering was complete, and major contracts had been finalised subject to the remaining approvals.

The company’s updated 2026 resource and reserve estimates reported group Mineral Resources of 8.66 million ounces and Ore Reserves of 5.24 million ounces. These estimates are not equivalent to immediate production. Development at Mt Gibson remains dependent on permits, construction execution and the assumptions underpinning technical studies. Karlawinda’s expanded production profile likewise depends on sustained processing performance and mining schedules.

Key Insights

Completion of the Karlawinda expansion marks a change in Capricorn’s operational position, from delivering construction milestones to demonstrating sustained output at expanded capacity. The September 2026 quarter also showed higher unit costs alongside a larger cash-and-gold balance. For Capricorn Metals Limited (ASX:CMM), subsequent quarterly production and cost results, together with outstanding Mt Gibson approvals, will provide evidence of how these projects progress.