Image source: © Bashta | Megapixl.com

Highlights

  • Capricorn Metals is an ASX-listed gold production, exploration and development company
  • In 1HFY24, gold sales of CMM grew by 34.22% YoY to AUD 91.79 million
  • Van Eck Associates Corporation has the highest stake in the company with a shareholding of 10.30%

Capricorn Metals Limited (ASX: CMM) engages in assessing, exploring, developing, and producing gold assets in Australia. The company owns the Karlawinda gold project, in the Pilbara region and the Mt Gibson Gold Project (MGGP) situated in the Murchison region of Western Australia.

In the first half of the financial year 2024 (1HFY24), gold sales of CMM increased by 34.22% YoY to AUD 91.79 million and gold revenue grew 25% YoY. The period saw 29.35% YoY rise in EBITDA to AUD 96.81 million and 35.36% YoY increase in profit after tax to AUD 54.36 million. At the end of half, the company had net cash of AUD 107 million.

Top 10 shareholders of CMM

The top 10 shareholders of CMM have nearly 37.71% shareholding the company, while the top four shareholders have around 25.75% of the shareholding. Van Eck Associates Corporation has the highest stakes in the company with a shareholding of 10.30%.

Recent business update

On 26 April 2024, the company released exploration update for the period ended 31 March 2024. During the quarter, the company concluded an additional 17,023m of reverse circulation definition and extensional drilling at the MGGP. Drilling of 89,543m over the previous year at the MGGP led to a 26% surge to the ore reserve estimate to 1.83 million ounces.

Outlook

In 1HFY24, the company witnessed continued growth in production and maintained consistent cashflow from operations in 1QFY24 and 2QFY24, with cashflow of AUD 38.4 million and AUD 41.8 million, respectively.

In FY24, the company expecs to record production in the range of 115,000 – 125,000 ounces at an AISC of AUD 1,270 – 1,370 per ounce. Further, the company owns two projects with long mine lives of ten years in tier one jurisdiction of Western Australia.

Share performance of CMM

CMM shares closed 0.21% higher at AUD 4.720 apiece on 15 May 2024. CMM’s share price increased by almost 9.51% in the past one year and has dropped by 9.75% in the past one month.

The 52-week high of CMM is AUD 5.55, recorded on 4 April 2024, while the 52-week low is AUD 3.90, recorded on 3 October 2023.

CMM Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 15 May 2024. The reference data in this report has been partly sourced from REFINITIV.