Capricorn clears Karlawinda expansion hurdle as production holds firm

Karlawinda expansion moves into operations

Capricorn Metals Limited (ASX:CMM) has crossed the most visible hurdle in its Karlawinda growth plan, completing the Karlawinda Expansion Project on schedule and within budget. The expanded facilities were commissioned on low-grade feed before transitioning to run-of-mine grade in the December quarter, according to the company’s preliminary September update.

The project is now incorporated into the wider Karlawinda Gold Project, lifting processing capacity to 6.5 million tonnes a year. Capricorn expects the enlarged operation to produce 150,000 ounces annually, up from its current FY27 guidance of 137,000 to 147,000 ounces, with all-in sustaining costs guided at $1,900 to $2,100 an ounce. The 150,000-ounce figure is an expectation rather than a revised formal guidance range in this announcement.

September production stays aligned with plan

Karlawinda produced 31,218 ounces in the September quarter, ahead of the 30,437 ounces recorded in the June quarter and in line with the FY27 mine plan. Ore milled was broadly steady at 1.133 million tonnes, while the head grade rose to 0.94 grams per tonne and recovery improved to 91.7%, compared with 91.2% and 91.0% in the two preceding quarters respectively.

Mining continued at the expanded project rate, supplying both production and the development material required to commission the new facilities. That makes the coming quarters more informative than the headline completion itself: the plant has demonstrated commissioning on low-grade feed, but the filing provides no full-quarter cost or operating data for the expanded configuration yet.

Cash rises while Mt Gibson approvals advance

Capricorn reported $535.0 million of cash and gold on hand at quarter-end, up from $507.0 million in June. The company said its underlying cash build was $62.2 million before $42.7 million of capital expenditure at Karlawinda and the Mt Gibson Gold Project, alongside an $8.5 million cash component from the Big Springs divestment.

Mt Gibson remains the longer-dated development question. Capricorn spent $2.1 million there during the quarter, mainly on early procurement and contract preparation, while detailed engineering was completed and major contracts finalised. Federal environmental approval has been received, the Western Australian environmental review document has passed its public review phase, and secondary Part V approvals are progressing. The forthcoming quarterly report, due later in October, should provide the first fuller read on costs, ramp-up performance and capital deployment after the expansion milestone.