Capricorn Metals Sets Record Annual Gold Output as Karlawinda Expansion Nears Commissioning

Karlawinda Delivers Record Production Amid Expansion Ramp-Up

Capricorn Metals Ltd (ASX:CMM) closed out FY26 with a banner year at its Karlawinda Gold Project (KGP), producing 123,589 ounces of gold, a new annual record that hit the upper end of guidance. The June 2026 quarter alone contributed 30,437 ounces, maintaining steady output despite ongoing expansion work.

The company’s all-in sustaining cost (AISC) for the year was $1,629 per ounce, rising slightly to $1,648/oz in the quarter, reflecting higher royalty payments linked to a stronger gold price environment. Operational cash flow remained robust at $115.8 million for Q4, supporting a healthy balance sheet with cash and bullion on hand totaling $507 million.

Expansion Project Nears Commissioning, Driving FY27 Guidance Upgrade

The Karlawinda Expansion Project (KEP) is advancing on schedule, with commissioning activities underway in the current quarter. Key milestones include completion of concrete works, delivery of all structural steel and mechanical equipment, and significant progress in structural, mechanical, and piping installations across crushing, milling, and CIL circuits.

With ore stockpiled on ROM 2 ahead of commissioning, Capricorn expects KGP to ramp up production to a steady-state run rate of approximately 150,000 ounces per annum for the last three quarters of FY27. This underpins FY27 guidance of 137,000 to 147,000 ounces at an increased AISC range of $1,900 to $2,100 per ounce, reflecting a strategic inclusion of lower-grade but economically viable ore based on a higher gold price assumption of $2,600/oz versus $2,200/oz previously.

Capital expenditure for growth is forecast between $70 million and $85 million, primarily supporting accelerated pre-stripping and commissioning activities at KEP. The expansion’s parallel processing stream is designed to enhance flexibility and maximise existing infrastructure downstream of the CIL tanks.

Mt Gibson Project Advances with Federal Approval and High-Grade Drilling

Meanwhile, Capricorn’s Mt Gibson Gold Project (MGGP) continues to build momentum. The company secured critical federal environmental approval under the EPBC Act for MGGP’s expansion, clearing a major regulatory hurdle and enabling the submission of the Environmental Review Document for state-level assessment.

With permits in hand, Capricorn has executed a mining services agreement with MACA and awarded the main plant construction scope to MACA Interquip. The company targets development commencement in the December 2026 quarter, aiming for an efficient ramp-up thanks to detailed project design and contract execution already underway.

Exploration drilling at Mt Gibson returned a series of high-grade intercepts, particularly at the Lexington-Hornet and Orion South underground systems, confirming depth and strike extensions. Notable results include 13.1 meters at 13.93 g/t and 27.5 meters at 3.24 g/t gold at Lexington-Hornet, and 9.1 meters at 5.05 g/t and 14.5 meters at 3.45 g/t at Orion South. These findings support ongoing resource upgrades and mine optimisation.

Exploration Success at Golden Range and Regional Targets

Exploration at the Golden Range project, acquired via Warriedar Resources Limited, also delivered promising results. Drilling at Ricciardo returned broad gold-antimony mineralisation, with intercepts such as 24 meters at 5.24 g/t gold and 0.34% antimony (5.96 g/t AuEq). Rothschild drilling confirmed high-grade extensions along a 10 km prospective corridor, with intercepts up to 19 meters at 4.48 g/t gold.

Regional exploration at Karlawinda targeted gravity highs and IOCG vectors, yielding encouraging first-pass results including 4 meters at 7.24 g/t and 4 meters at 4.18 g/t gold, highlighting potential for further discoveries near the Bibra mine.

Financial Position and Corporate Highlights

Capricorn’s financial footing remains strong, with cash and gold on hand steady at $507 million despite capital investments and a maiden dividend payment of $22.8 million during the quarter. Gold sales totalled 34,271 ounces at an average price of $6,267 per ounce, generating $214.8 million in revenue.

Operating cash flow for the year to date stands at $459 million, supporting ongoing exploration, development, and shareholder returns. Payments to related parties, including directors, amounted to $489,000 for the quarter, reflecting standard remuneration.

Looking ahead, Capricorn’s focus will be on the successful commissioning of KEP in Q1 FY27, advancing MGGP development post-permitting, and continuing to delineate resources through aggressive drilling programs across its portfolio.