Key Highlights

  • Lexington intercepts include 6.0 metres at 57.38 grams per tonne gold from 616.0 metres and 29.5 metres at 6.65 grams per tonne from 760.5 metres.
  • A maiden underground mineral resource estimate for Lexington is expected later in the December 2026 quarter.
  • Karlawinda produced 31,218 ounces in the September 2026 quarter, with cash and gold on hand of A$535.0 million.

Capricorn Metals Ltd (ASX:CMM) released further high-grade drilling results from the Lexington prospect at its Mt Gibson Gold Project on 26 October 2026, reporting intercepts including 6.0 metres at 57.38 grams per tonne gold from 616.0 metres and 29.5 metres at 6.65 grams per tonne from 760.5 metres. The company said the mineralisation sits below current reserve pit designs and outside planned underground stope designs, and remains open along strike and at depth. A maiden underground mineral resource estimate for Lexington is expected later in the quarter. The announcement followed a September 2026 quarterly update and the completion of the Karlawinda expansion.

What the company actually does

Capricorn Metals is a Western Australian gold producer and developer. Its producing asset is the Karlawinda Gold Project in the Pilbara, which delivered 31,218 ounces in the September 2026 quarter. Its development asset is the Mt Gibson Gold Project in the Murchison, where an updated pre-feasibility study contemplates a ramp-up to about 260,000 ounces a year by the third year of operation across a nineteen-year mine life. Lexington is an underground prospect within Mt Gibson, paired with the adjacent Hornet target. Market Index records that the company was formerly named Malagasy Minerals Limited and adopted its present name in February 2016. It balances its accounts on 30 June.

Latest verified developments

Beyond the Lexington results, Capricorn announced in late September 2026 that the Karlawinda Expansion Project had been completed on schedule. Its September 2026 quarterly production update, lodged on 5 October 2026, recorded 31,218 ounces from Karlawinda and cash and gold on hand of A$535.0 million at 30 September 2026, up from A$507.0 million at 30 June 2026. At Mt Gibson, detailed engineering and major contracts are complete, federal approval under the Environment Protection and Biodiversity Conservation Act has been received, the Part IV environmental review document has been lodged and its public review period has closed.

Financial and operational evidence

For the financial year ended 30 June 2026, Capricorn reported statutory net profit after tax of A$282.2 million on sales revenue of A$769.3 million. Group gold production was 123,589 ounces at an all-in sustaining cost of A$1,629 an ounce. Net cash stood at A$504.8 million at 30 June 2026, an increase of A$149.1 million on the prior year. Spending of A$133.4 million in FY26 covered the Karlawinda Expansion Project and early works at Mt Gibson. Guidance for FY27 is 137,000 to 147,000 ounces at an all-in sustaining cost of A$1,900 to A$2,100 an ounce. A maiden fully franked dividend totalling 10.0 cents a share, worth A$45.7 million, was declared for FY26.

Risks and pressure points

Capricorn remains a single-mine producer until Mt Gibson is built, so group output depends on Karlawinda. FY27 guidance implies a materially higher unit cost than FY26 delivered, and the company remains exposed to movements in the Australian dollar gold price and to mining and processing costs. Mt Gibson still requires the Part IV environmental determination and Part V secondary approvals before development begins. The Lexington intercepts support only a maiden underground resource estimate at this stage, not an ore reserve. The Range 500 aspiration of 500,000 ounces a year within five years is a stated goal rather than guidance.

Milestones to watch

The maiden underground mineral resource estimate for Lexington is expected later in the December 2026 quarter. The start of development activities at Mt Gibson is targeted for the same quarter, subject to the outstanding approvals. The December 2026 quarterly report will show whether Karlawinda is tracking to FY27 guidance of 137,000 to 147,000 ounces. The annual general meeting follows the notice lodged on 23 October 2026, and whether the maiden dividend is followed by an FY27 interim payment is one development to monitor.