Capricorn Metals Limited (ASX:CMM) set a series of company records in FY26, delivering underlying EBITDA of $483.6 million (up 63%), underlying NPAT of $327.2 million (up 59%), and Cash Flow from operations of $470.2 million from the Karlawinda Gold Project. The company ended the year with $504.8 million in net cash — a formidable Balance Sheet for a gold producer of its scale — and declared a final fully Franked Dividend of 5 cents per share, bringing total FY26 dividends to 10 cents per share.

About the Company

Capricorn Metals Limited (ASX:CMM) is a Western Australian gold producer and developer operating the Karlawinda Gold Project (KGP) near Nullagine in the Pilbara region. Karlawinda is a large-scale, open-pit gold mine that commenced production in 2021 and has grown to become one of Australia's more efficient mid-tier gold operations. The company is also advancing the Mt Gibson Gold Project (MGGP) as its next major development, with feasibility studies ongoing. Capricorn's Investment thesis rests on a combination of low-cost, high-throughput open-pit Mining at KGP and a pipeline of growth at MGGP.

Recent Development

On 27 August 2026, Capricorn Metals released its FY26 full year results. Gold production at KGP was 123,589 ounces at an all-in-sustaining-cost (AISC) of $1,629 per ounce. Record sales Revenue was $769.3 million from the sale of 123,096 ounces at an average price of $6,241 per ounce. Record Underlying Profit before tax was $467.5 million, up 71% (FY25: $273.9 million). Record underlying EBITDA was $483.6 million, up 63%, with a 63% EBITDA margin. Record underlying NPAT was $327.2 million, up 59% (FY25: $206.4 million). Cash flow from Operating Activities was $470.2 million. Capital Expenditure included $133.4 million on the Karlawinda Expansion Project (KEP) and early works at MGGP, and $74.0 million on exploration, and $21.0 million on feasibility studies. Net cash grew by $149.1 million to $504.8 million. The Board declared a fully franked final dividend of 5 cents per share ($22.8 million), bringing total FY26 dividends to 10 cents per share ($45.7 million). A final income tax payment for FY26 of $90–100 million is expected, reflecting the company's transition to a tax-paying position following the absorption of tax losses.

Sector Context

Capricorn Metals has benefited from a sustained elevation in the Australian dollar gold price, which averaged $6,241 per ounce for the company in FY26 — a level that delivers exceptional margins for a low-cost producer with AISC of $1,629 per ounce. The AISC to realised price Margin of approximately $4,612 per ounce is among the highest in the Australian mid-tier gold sector, and the 63% EBITDA margin reflects this efficiency. The company's KGP expansion project and MGGP development pipeline position it to grow production significantly from current levels.

Risks and Uncertainty

Gold price risk is the primary Earnings variable — while margins are exceptional at current AUD gold prices, any significant gold price decline or AUD appreciation would compress profitability materially. MGGP development represents a major capital commitment whose feasibility outcomes will determine the future growth trajectory. AISC at $1,629 per ounce is competitive but is subject to inflationary pressures in mining costs, diesel, labour and consumables that are hard to predict over a long planning horizon. The transition to a tax-paying position reduces future cash flow compared with the tax-loss period.

Catalysts Investors Can Watch

The Mt Gibson Gold Project feasibility study outcomes will be the most significant medium-term catalyst, potentially confirming a production growth pathway that would re-rate the company. Any guidance on production targets for FY27 and the ongoing KEP expansion will provide visibility on operational trajectory. Gold price and AISC trajectories — which determine margin compression or expansion — should be monitored quarterly through production reports.