Capricorn Metals Reports 30,358 Ounces Gold Production in March Quarter
Capricorn Metals delivered 30,358 ounces of gold in Q3 FY26 at the Karlawinda Gold Project, aligning with its mine plan and progressing the Karlawinda Expansion Project with peak construction activity.
- Q3 gold production of 30,358 ounces at Karlawinda Gold Project
- Year-to-date production at 93,152 ounces, on track for upper FY26 guidance
- Capital expenditure of $47.3 million on Karlawinda Expansion Project
- Development activities advancing at Mt Gibson Gold Project
- Cash and gold holdings increased to $507.6 million
Q3 Production Aligns with FY26 Guidance
Capricorn Metals Limited (ASX:CMM) has reported a solid production update for the March 2026 quarter (Q3) from its Karlawinda Gold Project (KGP), delivering 30,358 ounces of gold. This output is consistent with the FY26 mine plan and contributes to a year-to-date total of 93,152 ounces. The company remains on track to meet the upper end of its full-year guidance range of 115,000 to 125,000 ounces, with an all-in sustaining cost (AISC) forecast between $1,530 and $1,630 per ounce.
Operational metrics for the quarter showed stable performance, with ore milled at 1.09 million tonnes and a head grade of 0.95 grams per tonne. Recovery rates improved slightly to 91.0%, supporting steady gold production levels comparable to previous quarters.
Progress on Karlawinda Expansion Project
The Karlawinda Expansion Project (KEP) advanced significantly during the quarter, with capital expenditure reaching $47.3 million amid peak on-site construction activities. Key milestones included over 90% completion of concrete works at the plant site, delivery of major structural steel and pipework, and completion of the carbon-in-leach (CIL) tank welding and erection. The first ore was placed on ROM Pad 2, marking progress towards commissioning.
Additional infrastructure developments included advancing tailings storage facility (TSF) embankments to start-up levels and ongoing mining in the Berwick pit to supply materials for civil works. Mechanical equipment deliveries were largely completed, with the ball mill arriving ahead of schedule, positioning the project for commissioning in the first quarter of FY27.
Advancement at Mt Gibson Gold Project
Development activities at Capricorn’s Mt Gibson Gold Project (MGGP) also progressed, with $2.7 million spent on early design, procurement, and contract preparations. The company awarded preferred contractor status for mining services to MACA and commenced early works planning and mobilisation. The process plant design scope was completed, and key construction scopes were tendered during the quarter.
Regulatory progress included submission of the final Public Environment Report (PER) to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), with public review completed and final assessment underway. Capricorn is also advancing the Environmental Review Document (ERD) for Western Australian government assessment, incorporating federal outcomes.
Financial Position and Operational Risks
Capricorn’s cash and gold holdings increased to $507.6 million at quarter-end, up from $457.4 million in December 2025. The company generated $100.2 million in cash during the quarter before capital expenditure. Total capital spend included $50 million across KEP and MGGP development activities.
The company noted that it is not currently affected by diesel fuel supply issues, although it recognises this as a material risk for the Australian mining sector and continues to monitor the situation closely.
Full operational and cost details are expected in Capricorn’s Quarterly Report due later in April 2026.
Bottom Line?
Capricorn Metals maintains steady production and expansion progress, with key milestones achieved but ongoing monitoring of supply risks and regulatory approvals necessary.
Questions in the middle?
- How will the completion of the Karlawinda Expansion Project impact Capricorn’s production profile in FY27?
- What are the potential implications of diesel fuel supply risks on Capricorn’s operational continuity?
- How might the regulatory assessment outcomes for the Mt Gibson Gold Project influence its development timeline?
