Capricorn Metals reported solid December quarter gold production at Karlawinda, advanced its Mt Gibson exploration and development, and completed the Warriedar acquisition, positioning itself for growth in FY26.
- Karlawinda Gold Project produced 30,476 ounces at AISC of $1,627/oz in Q2
- Mt Gibson’s Orion South Underground resource increased 31% to 895,000 ounces
- Successful acquisition of Warriedar Resources expands Capricorn’s resource base
- Karlawinda Expansion Project construction over 70% complete with commissioning on track
- Record quarterly operating cash flow of $122.4 million and strong cash position
Robust Production Maintains Momentum at Karlawinda
Capricorn Metals Ltd delivered a steady performance in the December 2025 quarter, producing 30,476 ounces of gold at its Karlawinda Gold Project (KGP) in Western Australia. Despite a slight dip from the previous quarter’s 32,318 ounces, the all-in sustaining cost (AISC) remained stable at $1,627 per ounce, aligning with the company’s FY26 guidance range of 115,000 to 125,000 ounces at an AISC between $1,530 and $1,630. The consistent mill throughput of 1.16 million tonnes and mining operations meeting expansion requirements underpin this solid output.
Advancing the Karlawinda Expansion Project
Significant progress was made on the Karlawinda Expansion Project (KEP), with over 70% of concrete works completed and structural steel erection underway in the milling area. Critical components such as rolled and structural steel for the carbon-in-leach (CIL) tanks have been delivered, and welding is more than 60% complete. The project remains on schedule for commissioning in the first quarter of FY27, promising to boost processing capacity to 6.5 million tonnes per annum and increase average annual gold production to approximately 150,000 ounces.
Mt Gibson Gold Project Exploration and Resource Growth
The Mt Gibson Gold Project (MGGP) continues to be a focal point for exploration and development. The company reported a 31% increase in the Orion South Underground Mineral Resource Estimate (MRE) to 9.5 million tonnes at 2.9 grams per tonne, equating to 895,000 ounces of gold. This resource upgrade, supported by extensive drilling, highlights the potential for underground mining to complement existing open pit operations. Early mine design and planning activities have commenced, with process plant design nearing completion and environmental permitting advancing through public review phases.
Strategic Acquisition Expands Capricorn’s Footprint
In a strategic move, Capricorn successfully completed the acquisition of Warriedar Resources Limited in November 2025. This transaction adds the Golden Range Project and Fields Find Gold Project to Capricorn’s portfolio, expanding its resource base and tenure package by approximately 788 square kilometres. The integration of Warriedar’s assets and cash balance has bolstered Capricorn’s financial position, with cash and gold on hand rising to $457.4 million by the end of the quarter.
Financial Strength and Outlook
Capricorn generated a record operating cash flow of $122.4 million in the quarter, up from $106.9 million in the previous quarter, reflecting strong operational performance and gold sales averaging $6,333 per ounce. Capital expenditure focused on the KEP and MGGP totaled $39 million, supporting ongoing development. With mining production rates stabilised and expansion projects progressing, Capricorn is well positioned to meet or exceed its FY26 production and cost guidance.
Bottom Line?
Capricorn Metals’ disciplined execution across production, exploration, and acquisitions sets the stage for a transformative year ahead.
Questions in the middle?
- How will the Karlawinda Expansion Project commissioning impact production costs and volumes in FY27?
- What are the timelines and key risks associated with environmental approvals for the Mt Gibson Gold Project?
- How will the integration of Warriedar’s assets influence Capricorn’s exploration and development priorities?