Key Highlights

• Q1 FY27 gold production of 31,218 ounces at AISC of A$2,005/oz, with FY27 guidance of 137,000–147,000 ounces maintained

• Karlawinda Expansion Project (KEP) completed on schedule and within budget, achieving steady-state throughput of 6.5Mtpa

• Cash and gold on hand reached A$535 million, with record FY26 Underlying Profit before tax of A$467.5 million reported

• Range 500 aspiration initiated, targeting a 500,000 oz per annum production run rate within five years through a second processing hub at Golden Range

Capricorn Metals Ltd (ASX:CMM) closed at AUD 14.50 on 05 November 2026, surging 14.08% during the session. The S&P/ASX 200 (XJO) advanced 2.61% (+230.60 points) to 9,065.10, while the S&P/ASX 300 Metal & Mining index (XMM) gained 7.90% (+580.50 points) to 7,930.90. Overnight Wall Street gains, following a decisive Democratic victory in the U.S. midterm elections, provided a tailwind for global Equity markets. Gold gained 1.77% to USD 4,145.70. Capricorn Metals is a Western Australian gold producer operating the Karlawinda Gold Project in the Pilbara and developing the Mt Gibson Gold Project in the Mid-West region.

Q1 FY27 Operational Results

Capricorn released its September 2026 quarterly activities report on 29 October 2026. The Karlawinda Gold Project delivered Q1 gold production of 31,218 ounces at an AISC of A$2,005 per ounce, in line with the FY27 mine plan. Mill throughput remained consistent at 1.13 million tonnes, predominantly processing fresh ore. Total material movement reached 4.4 million BCM during the quarter, up from 4.2 million BCM in Q4 FY26.

Gold sales of 27,516 ounces at an average realised price of A$6,115 per ounce generated A$168.3 million in revenue. A further 4,442 ounces of gold were held on hand at quarter-end, valued at A$26.8 million. Quarterly Cash Flow from operations was A$113.1 million. FY27 production guidance of 137,000 to 147,000 ounces at an AISC of A$1,900 to A$2,100 per ounce remains unchanged.

Karlawinda Expansion Completed

Construction of the KEP was completed on schedule and within budget during the quarter. Commissioning activities were finished in September, with continuous ore processed through the new parallel crushing, milling, and CIL circuits. The expanded project achieved its targeted steady-state throughput rate of 6.5Mtpa, with the new plant initially processing low-grade ore before transitioning to run-of-mine grade in Q2. The expanded KGP is expected to increase production to approximately 150,000 ounces per annum, underpinned by a mine life of more than 10 years on existing reserves.

Mt Gibson Gold Project and Range 500

The Mt Gibson Gold Project received federal environmental approval from the Minister's delegate under the EPBC Act during the quarter. Detailed engineering is complete and all major contracts have been finalised, subject to remaining state-level permits. An updated PFS confirmed a 19.25-year project with average steady-state production of 260,900 ounces per annum and life-of-mine AISC of A$1,870 per ounce, generating A$6.1 billion of pre-tax NPV at an A$5,500 per ounce gold price assumption.

Capricorn also initiated its Range 500 aspiration, targeting a 500,000 ounce per annum gold production run rate within five years. Studies have commenced on a second processing hub at Golden Range to unlock further growth from the company's expanding resource base. The group Mineral Resource Estimate was updated to 348.9 million tonnes at 0.8g/t for 8.66 million ounces, including a 32% increase in the KGP Ore Reserve after depletion.

Exploration drilling at MGGP during the quarter continued to intersect high-grade gold mineralisation, including 6.0 metres at 57.38 g/t gold from 616 metres and 7.0 metres at 40.01 g/t gold from 401 metres at the Lexington-Hornet underground prospects.

About Capricorn Metals

Capricorn Metals is an ASX-listed gold mining and development company headquartered in Perth. The company operates the Karlawinda Gold Project in the Pilbara and is developing the Mt Gibson Gold Project in the Mid-West. With a combined resource base of 8.66 million ounces and a stated ambition to reach 500,000 ounces annually, Capricorn is positioning itself as one of Australia's emerging mid-tier gold producers.

Sector Context

The gold sector on the ASX saw significant gains on 05 November 2026, with multiple producers gaining more than 10%. Gold prices above USD 4,100 per ounce and Australian dollar gold prices above AUD 6,000 per ounce are generating elevated margins for domestic producers. Capricorn's AISC of approximately A$2,000 per ounce against a realised price of A$6,115 illustrates the Margin environment.

Risks

Key risks include execution risk on the Mt Gibson development and the Range 500 expansion strategy, the dependency on remaining state-level environmental approvals for MGGP, potential cost Inflation during the expansion phase, grade variability at Karlawinda, and the Capital intensity of constructing a second processing hub at Golden Range. An expected income tax payment of A$90-100 million in Q2 will also impact near-term cash balances.

Catalysts on Watch

Key catalysts include the transition of KEP to run-of-mine grade ore in Q2 FY27, receipt of Part V secondary approvals for MGGP, a maiden underground MRE at Lexington expected in Q2, further exploration results from MGGP underground prospects, progress on the Range 500 study, and quarterly production and cost performance relative to FY27 guidance.

The Takeaway

Capricorn Metals has delivered on its Karlawinda expansion while advancing a pipeline that could see its production profile grow from approximately 150,000 ounces to 500,000 ounces within five years. With cash and gold on hand of A$535 million, an 8.66 million ounce resource base, and high-grade exploration results at Mt Gibson, the company has laid out an ambitious but resource-backed growth trajectory in a favourable gold price environment.