Key Highlights

  • Record underlying net profit after tax reached $327.2 million, up 59% on FY25, with Underlying Profit before tax up 71% to $467.5 million.
  • Record sales Revenue of $769.3 million was generated from 123,096 ounces sold at an average price of $6,241 per ounce.
  • Net cash increased by $149.1 million during the year to $504.8 million, supported by record Operating Cash Flow of $470.2 million from Karlawinda.
  • A fully franked final Dividend of 5 cents per share was declared, bringing total FY26 dividends to 10 cents per share.

Capricorn Metals Limited (ASX:CMM) reported record full-year results for FY26, with gold production at its Karlawinda Gold Project (KGP) of 123,589 ounces at an all-in-sustaining cost of $1,629 per ounce, up from $1,468 per ounce in FY25. Record sales revenue of $769.3 million was generated from the sale of 123,096 ounces at an average price of $6,241 per ounce, an increase of 46% on FY25's $528.2 million.

Record underlying profit before tax rose 71% to $467.5 million, up from $273.9 million in FY25. Record underlying net profit after tax increased 59% to $327.2 million, from $206.4 million a year earlier, while record underlying EBITDA rose 63% to $483.6 million, representing an EBITDA Margin of 63%, up from 56% in the prior year. Underlying Earnings Per Share increased 44% to 73.37 cents.

Cash Position Strengthens Materially

Net cash increased by $149.1 million during FY26 to $504.8 million, up from $355.7 million in FY25. Key cash flow movements included record operating cash flow of $470.2 million from Karlawinda, $133.4 million spent on developing the Karlawinda Expansion Project (KEP) and early works at the Mt Gibson Gold Project (MGGP), $74.0 million on exploration at both projects, and $21.0 million on feasibility studies. The company also made its maiden dividend payment of $22.8 million during the year.

Operating results at Karlawinda showed ore milled increasing to 4,625 thousand tonnes from 4,320 thousand tonnes in FY25, though ore mined declined to 5,218 thousand tonnes from 6,496 thousand tonnes. Head grade was steady at 0.92 grams per tonne, while recovery declined slightly to 91% from 92%. The increase in AISC to $1,629 per ounce from $1,468 per ounce reflected these operating dynamics alongside the elevated cost environment across the sector.

Dividends and Transition to a Tax-Paying Position

The Board declared a fully franked final dividend of 5 cents per share, totalling $22.8 million. Combined with the maiden interim dividend, total dividends declared for FY26 reached 10 cents per share, or $45.7 million. The company said the commencement of fully Franked Dividend payments reflects the franking credits generated as it transitions to a tax-paying position.

Capricorn noted that a single and final income tax payment relating to FY26, expected in the range of $90 million to $100 million, will be made in FY27, reflecting the previously low instalment payment rate as carried-forward deductions were utilised. From FY27 onward, the company expects to pay income tax under the normal estimates-based regime. Management said the strong cash generation and high gold price environment allowed the company to build its cash position to a level supporting continued dividend payments while retaining capacity to fund growth projects at both KEP and MGGP.

FY27 Guidance and Growth Projects

Capricorn issued FY27 annual gold production guidance of 137,000 to 147,000 ounces, an 18.3% increase at the midpoint compared with FY26, at an AISC of $1,900 to $2,100 per ounce, reflecting continued cost Inflation and the completion of the Karlawinda Expansion Project. The production rate is forecast to increase from around 120,000 ounces per annum to around 150,000 ounces per annum following completion of KEP commissioning, currently focused on close-out of electrical scopes in the crushing circuit ahead of progressing to ore commissioning.

The company said it retains a robust growth outlook, with commissioning of KEP underway and development at MGGP targeted to commence in the second quarter of FY27, subject to permitting. Management described the year's operational and financial results, development progress and Capital returns as important steps toward its stated goal of becoming a multi-mine mid-tier Australian gold producer.

Conclusion

Capricorn Metals delivered a record financial year across nearly all key metrics, with higher gold prices and continued production from Karlawinda driving substantial growth in revenue, underlying profit and cash generation. The maiden and final dividend payments mark the beginning of a new phase for the company as it transitions to a tax-paying position, while FY27 guidance points to a step-up in production alongside higher costs as the Karlawinda Expansion Project moves through commissioning and development progresses at Mt Gibson.