Capricorn Metals Hits 32,318oz Gold Production, Boosts Resources by 13%

Record Production and Financial Strength

Capricorn Metals Ltd has kicked off FY26 with a record quarter at its flagship Karlawinda Gold Project (KGP), producing 32,318 ounces of gold, slightly surpassing the previous quarter’s output. This achievement comes amid a steady operating environment, with all-in sustaining costs (AISC) holding within the company’s guidance range at $1,625 per ounce. The strong operational performance translated into a record quarterly operating cash flow of $91.2 million, bolstering Capricorn’s cash and gold holdings to $394.4 million by the end of September 2025.

Karlawinda Expansion Project Accelerates

Significant progress has been made on the Karlawinda Expansion Project (KEP), with regulatory approval secured from the Department of Energy, Mines, Industry Regulation and Safety. This green light has enabled full-scale development activities, including clearing, earthworks, and mobilisation of contractors for civils, concrete, and mechanical works. The expansion aims to increase processing capacity to 6.5 million tonnes per annum, targeting an average annual gold production of approximately 150,000 ounces. Key infrastructure milestones, such as the completion of a 164-room camp expansion and ordering of a new ball mill, position Capricorn well for commissioning in early FY27.

Resource Growth at Mt Gibson

Parallel to Karlawinda’s development, Capricorn’s Mt Gibson Gold Project (MGGP) has seen a 13% uplift in its mineral resource estimate to 4.5 million ounces. This includes a maiden underground resource at Orion South, highlighting the project’s potential to evolve into a long-life operation combining open pit and underground mining. Environmental permitting is advancing, with the final Public Environmental Report submitted and public exposure underway, setting the stage for subsequent approvals.

Strategic Acquisition to Expand Footprint

In a strategic move to consolidate its position in Western Australia, Capricorn has entered into a binding scheme to acquire Warriedar Resources Limited. The acquisition, subject to a securityholders meeting scheduled for 6 November 2025, will add the Golden Range Project and Fields Find Gold Project to Capricorn’s portfolio, increasing its resource base by an additional 2.3 million ounces gold equivalent. The revised share scheme consideration reflects a premium to Warriedar’s recent trading prices, underscoring Capricorn’s commitment to growth through accretive acquisitions.

Financial Discipline and Outlook

Capricorn’s FY25 underlying profit after tax doubled to $206.4 million, driven by robust revenue and disciplined cost management. The company is now debt free and unhedged following the closure of its gold hedge book and repayment of corporate debt. Looking ahead, Capricorn remains on track to meet its FY26 production guidance of 115,000 to 125,000 ounces at KGP, with operating strip ratios expected to ease as the KEP ROM pad is established. The company’s strong balance sheet and operational momentum position it well to navigate the next phase of growth.