Capricorn Metals delivered 30,437 ounces of gold in Q4 FY26 at Karlawinda, reaching the upper limit of its annual guidance, while pushing forward with key expansion projects and securing federal environmental approval for Mt Gibson.
- Q4 gold production of 30,437 ounces aligns with FY26 top-end guidance
- Annual production totals 123,589 ounces with AISC within forecast range
- Capital expenditure of $46 million focused on Karlawinda Expansion and Mt Gibson
- Karlawinda Expansion Project moves into commissioning phase
- Federal environmental approval granted for Mt Gibson expansion
Strong Gold Production Caps FY26 at Karlawinda
Capricorn Metals (ASX:CMM) closed FY26 with a solid final quarter, producing 30,437 ounces of gold at the Karlawinda Gold Project (KGP). This quarterly output brought the full-year production to 123,589 ounces, hitting the upper end of the company’s guidance range of 115,000 to 125,000 ounces. The all-in sustaining cost (AISC) is also expected to remain within the forecast $1,530 to $1,630 per ounce, maintaining Capricorn’s disciplined cost structure.
The steady head grade of 0.91 g/t and robust recovery rate of 91.2% contributed to consistent gold output, with ore milled rising slightly to 1.146 million tonnes. These metrics underscore operational stability as Capricorn balances production with ongoing development activities.
Karlawinda Expansion Project Nears Commissioning
Capital investment at Karlawinda reached $44.8 million in the quarter, focusing on transitioning from construction to commissioning. Key milestones include completion of concrete works, delivery of all structural steel and mechanical equipment, and significant progress in Structural, Mechanical, and Piping (SMP) installations across crushing, milling, and CIL circuits. Commissioning of the CIL areas is already underway, positioning the project for ramp-up in the current quarter.
Ore placement on ROM 2 ahead of commissioning signals readiness to boost throughput once the expanded facilities are fully operational. This expansion is crucial for sustaining production levels and extending the mine life at Karlawinda.
Mt Gibson Development Advances with Federal Approval
Meanwhile, Capricorn is advancing its Mt Gibson Gold Project (MGGP) with $1.2 million spent on early procurement and contract preparations. The company secured a pivotal federal environmental approval under the EPBC Act, clearing a significant hurdle for the project’s expansion and operation. This regulatory green light follows the recent federal environmental approval and sets the stage for imminent state-level permitting.
Capricorn has awarded the main plant construction contract to MACA Interquip and executed a mining services agreement with MACA, accelerating mobilisation and detailed mine design. The company is finalising its Environmental Review Document for the Western Australian government’s Part 4 assessment, incorporating federal department outcomes ahead of a public review phase.
Financial Position and Dividend Payment
Capricorn’s cash and gold holdings remained steady at $507 million at quarter-end, despite a $22.8 million maiden dividend payment and $46 million in capital expenditure. The underlying cash build of $68.2 million reflects strong operational cash flow, albeit lower than the previous quarter’s $100.2 million, partly due to increased investment in expansion projects.
This balance sheet strength provides flexibility as Capricorn navigates commissioning at Karlawinda and prepares for construction at Mt Gibson.
Bottom Line?
Capricorn Metals’ FY26 production and project milestones position it well for growth, but the pace and success of commissioning and permitting will be critical to watch in the coming quarters.
Questions in the middle?
- How smoothly will the Karlawinda Expansion Project transition from commissioning to full production?
- What timeline can investors expect for Mt Gibson’s construction start following state-level approvals?
- Will capital expenditure remain within budget as both expansion projects advance concurrently?