Capricorn Metals Limited (ASX: CMM) has released a preliminary production update for the March 2026 quarter at its Karlawinda Gold Project in Western Australia. The announcement, released on 7 Apr 2026, confirms the Company produced 30,358 ounces of gold in Q3, in line with the FY26 mine plan.
The Capricorn Metals production update places year-to-date gold production at 93,152 ounces. The Company is on track to achieve the upper end of its FY26 guidance range of 115,000 to 125,000 ounces at an All-in Sustaining Cost of A$1,530 to A$1,630 per ounce.
Karlawinda Gold Project Delivers Another Consistent Quarter
Capricorn Metals maintained strong operational performance at the Karlawinda Gold Project across the March 2026 quarter. The result reflects continuity at the expanded project run rate while simultaneously progressing the Karlawinda Expansion Project.
Q3 FY26 Operating Statistics at a Glance
The following figures reflect Karlawinda Gold Project performance for the March 2026 quarter:
Mine Operations Balanced Production with Expansion Requirements
Capricorn Metals advanced pit face positions to deliver budgeted gold production during the quarter. The operations team simultaneously delivered pre-stripping and infrastructure materials required for the Karlawinda Expansion Project, including the first ore delivered to ROM 2. Mining production rates have continued at the expanded project run rate for the full financial year.
Karlawinda Expansion Project Reaches Peak Construction Activity
On-site construction at the Karlawinda Expansion Project reached peak activity levels during the March 2026 quarter. Capital spend at the Project totalled A$47.3 million for the period, covering equipment procurement, civil works, structural steel, piping, and tank construction.
Figure 1: Primary, secondary and tertiary crusher building and ROM 2 tie-in at the Karlawinda Gold Project [Courtesy: Capricorn Metals]
Construction Milestones Achieved in the March 2026 Quarter
Progress across the Karlawinda Expansion Project during Q3 included:
- Over 90 per cent of plant site concrete works completed, with only the surge bin and ROM slab remaining
- A majority of the plant structural steel and platework was delivered to the site
- All major plant pipework packages delivered
- CIL tank welding and erection completed
- Structural, Mechanical and Piping packages significantly advanced in crushing, milling, and CIL areas
- ROM Pad 2 earthworks are largely completed, with the first ore placed for commissioning
- TSF 2 embankments advanced to start-up level, with only piping remaining
- Process plant design scope completed in full
- Ball mill delivered slightly ahead of schedule, with commissioning commencing in Q1 FY27
Figure 2: CIL circuit extension with top of tank steel sections being lifted into place at the Karlawinda Expansion Project [Courtesy: Capricorn Metals]
Mt Gibson Gold Project Advances Ahead of Permit Receipt
The Mt Gibson Gold Project recorded capital expenditure of A$2.7 million during the March 2026 quarter. Capricorn Metals directed this spend toward finalising detailed design, early procurement, and contract preparations.
Early Capital Deployment Positions the Company for a Faster Build
Capricorn Metals confirmed that the early deployment of capital at the Mt Gibson Gold Project is a deliberate strategic decision. The Company aims to be in a strong position to expedite construction once the required environmental permits are received.
Figure 3: Mill and crusher areas with mill sections being placed at the Karlawinda Expansion Project [Courtesy: Capricorn Metals]
Key activities advanced during the quarter included the award of preferred contractor status for mining services to MACA, commencement of early works mine design and mobilisation planning, and completion of the process plant design scope.
The final Public Environment Report submitted to the Federal Department of Climate Change, Energy, the Environment, and Water is now in final assessment. The Environmental Review Document for the Western Australian Government assessment is also advancing ahead of public review.
Cash Position Strengthens as Expansion Spend Continues
Capricorn Metals reported cash and gold on hand of A$507.6 million as at the end of the March 2026 quarter, up from A$457.4 million at the end of the December 2025 quarter. The cash build for the quarter was A$100.2 million before total capital expenditure of A$50.0 million across the Karlawinda Expansion Project and Mt Gibson Gold Project.
The Capricorn Metals production update noted that the Company is not currently impacted by any diesel fuel supply issues. However, the Company acknowledged this remains a key risk for the broader Australian mining industry and will update the market if material developments arise. Full operational and cost details will follow in the Quarterly Report, expected later in April 2026.
CMM ASX Share Price
Capricorn Metals Limited (ASX: CMM) is currently trading at A$11.070 per share, with a market capitalisation of A$4.99 billion. The 52-week range stands at A$7.730 to A$16.480 per share.
Figure 4: Capricorn Metals Limited (ASX: CMM) share price performance over the past year [Courtesy: ASX]
Industry Outlook
The Australian gold mining sector continues to benefit from elevated bullion prices, supporting strong cash generation at established operations. The Pilbara and broader Western Australian gold belt remain one of the most active development corridors globally.
It is attracting significant capital for expansion and new project development. Demand for long-life, low-cost Australian gold assets continues to grow among both institutional and retail investors.
Regulators and governments across the Asia-Pacific region are increasingly supportive of mining investment. Streamlined approval pathways being considered to accelerate project timelines and bolster domestic production capabilities.
Future Direction and Impact on CMM Investors
For those considering whether to buy Capricorn Metals shares, the March 2026 quarter reinforces the Company’s consistent operational delivery. The CMM ASX share price impact of this update is underpinned by a strengthening cash position, peak-level construction activity at the Karlawinda Expansion Project, and a clear pathway to the upper end of FY26 guidance.
The Capricorn Metals production update also highlights that two growth assets are being advanced simultaneously. The Karlawinda Expansion Project is approaching commissioning readiness for Q1 FY27, while the Mt Gibson Gold Project is being deliberately de-risked ahead of permit receipt.
Investors tracking the CMM ASX share price impact over the coming quarters will be watching the full Quarterly Report, due later in April 2026, for cost and operational detail to accompany today’s preliminary figures.
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Frequently Asked Questions
Q1. What did Capricorn Metals produce in Q3 FY26?
Ans. Capricorn Metals produced 30,358 ounces of gold at the Karlawinda Gold Project in the March 2026 quarter.
Q2. Is Capricorn Metals on track for its FY26 guidance?
Ans. Yes. Year-to-date production of 93,152 ounces positions the Company to achieve the upper end of its FY26 guidance range of 115,000 to 125,000 ounces.
Q3. What is the AISC guidance for FY26?
Ans. The Company’s FY26 AISC guidance range is A$1,530 to A$1,630 per ounce.
Q4. How much cash does Capricorn Metals hold?
Ans. Cash and gold on hand stood at A$507.6 million as at the end of the March 2026 quarter.
Q5. What is the status of the Karlawinda Expansion Project?
Ans. Construction is at peak activity levels. The ball mill has been delivered ahead of schedule, with commissioning expected to commence in Q1 FY27.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on the ASX announcement released by Capricorn Metals Limited on 7 Apr 2026. Share price and market capitalisation data reflect figures provided at the time of publication. Investing in securities involves risk. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
Sources
https://www.asx.com.au/markets/company/CMM
Last modified: April 8, 2026
