Capricorn Metals Ltd (ASX: CMM) has delivered another solid quarter of gold production. The Company announced preliminary results for the December 2025 quarter, showing strong operational performance at the Karlawinda Gold Project. Production figures align with expectations as expansion activities gain momentum.
Figure 1: Capricorn Metals employees. [source: Capricorn Metals]
The Capricorn Metals December 2025 quarterly update reveals 30,476 ounces of gold produced during the three-month period. Year-to-date production now stands at 62,794 ounces, positioning the Company to reach the upper end of its FY26 guidance range. The Capricorn Metals ASX update December 2025 shows that the mining operation continues to balance production requirements with expansion project development.
Capricorn Metals December 2025 Quarterly: Production Performance at Karlawinda
Capricorn Metals operates the Karlawinda Gold Project located in Western Australia. As per the Capricorn Metals ASX update, December 2025 operation delivered 30,476 ounces of gold during the December 2025 quarter, maintaining consistent output levels. This follows the September quarter production of 32,318 ounces, demonstrating operational stability.
The Company processed 1,159,000 tonnes of ore through the mill during the quarter. Head grade averaged 0.91 grams per tonne, matching the previous quarter’s grade. Recovery rates reached 89.9 per cent, slightly below the September quarter’s 90.3 per cent but within normal operational parameters.
Figure 2: Key operating metrics from Capricorn Metals. [source: MarketIndex]
Mining activities extracted 4,366,000 bank cubic metres of material during the December period. This represents a slight decrease from the September quarter’s 4,512,000 bank cubic metres. The mining fleet achieved planned pit face positions while simultaneously delivering pre-stripping requirements for the expansion project.
Capricorn Metals’ investor update confirms the operation remains on track for FY26 guidance of 115,000 to 125,000 ounces at an all-in sustaining cost of $1,530 to $1,630 per ounce. With 62,794 ounces produced in the first half, the Company targets the upper end of this range. Full operational and cost details will appear in the Quarterly Report due later in January 2026.
Financial Performance and Capital Allocation
Capricorn Metals ASX update December 2025 reported cash and gold on hand totalling $444.2 million at the end of December 2025. This marks an increase from $394.4 million at the end of September 2025. The quarterly cash build reached $88.8 million before capital expenditure, compared to $71.8 million in the previous quarter.
Capital expenditure during the December quarter totalled $39.0 million across two major projects. The Karlawinda Expansion Project accounted for $36.1 million of this spend. The Mt Gibson Gold Project absorbed $2.9 million in development activities during the period.
The Company’s strong cash generation supports ongoing expansion activities while maintaining financial flexibility. Capricorn Metals continues funding construction activities from operational cash flow without requiring additional financing. This approach demonstrates the strength of the underlying gold production business.
Karlawinda Expansion Project: Construction Advances on Schedule
Capricorn Metals advanced the Karlawinda Expansion Project significantly during the December 2025 quarter. Capital expenditure of $36.1 million covered engineering, equipment procurement, civil works, concrete installation, piping and tank construction. Pre-production mining activities also progressed according to plan.
Bulk earthworks across the plant site reached completion during the quarter. Earthworks for ROM Pad 2 and TSF 2 embankments advanced substantially. Concrete works progressed across multiple areas, with major pours completed in the milling, crushing and CIL sections. Over 70 per cent of plant site concrete is now in place.
Figure 3: Aerial view of the Karlawinda open pit mine in Western Australia, Capricorn Metals’ flagship gold operation. [source: MarketIndex]
Critical path materials, including rolled and structural steel for CIL tanks, arrived largely as scheduled. CIL tank welding and erection reached 50 per cent completion by quarter end. Structural, mechanical and piping contractors mobilised to the site, with handovers from concrete contractors enabling work to commence in January 2026.
Mining activities continued in the Berwick pit, prioritising materials needed for TSF2 civil works. Excavation of the boxcut into the Bibra pit was completed during the quarter. This work facilitates multiple direct access points to the pit for future operations. The process plant design scope reached 95 per cent completion.
Equipment deliveries progressed during the December period. The jaw crusher and several other packages arrived on site. The ball mill delivery is scheduled for early Q4 FY26, ahead of commissioning activities planned for Q1 FY27. The Karlawinda Expansion Project remains on schedule for completion.
Mt Gibson Gold Project: Development Activities Progress
Capricorn Metals investor update reveals that the Company spent $2.9 million on Mt Gibson Gold Project development during the December quarter. This expenditure focused on finalising detailed design, early procurement activities and contract preparations. The Company strategically chose to advance these activities ahead of main construction to compress the ultimate timeline.
Following the award of preferred contractor status to MACA for mining services, early works mine design and planning activities commenced. Power supply contract evaluation continued throughout the quarter. The process plant design scope advanced to 98 per cent completion, with focus shifting toward tendering key construction packages.
Figure 4: View of the Mt Gibson Gold Project, Capricorn Metals. [source: NS Energy]
Capricorn Metals submitted the final Public Environment Report to the Department of Climate Change, Energy, the Environment and Water in late Q1 FY2026. The document entered public review during the December quarter, with final updates and assessment to follow. The Company is also advancing the Environmental Review Document for Western Australian Government assessment through EPA Services.
The Mt Gibson Gold Project represents Capricorn Metals’ next growth opportunity following the Karlawinda Expansion Project. Early development activities position the Company to move quickly once environmental approvals are secured. Further project details will feature in the upcoming Quarterly Report.
Production Growth Supports Regional Development
The Capricorn Metals investor update reveals that Western Australia’s gold sector continues to attract investment as producers expand existing operations and develop new projects. Established operations like Capricorn Metals demonstrate the region’s potential for low-cost gold production. Infrastructure availability and regulatory frameworks support project development timelines.
Gold prices remain supportive of expansion decisions across the sector. Producers with established operations and strong cash generation can fund growth internally. This approach reduces project risk and maintains financial flexibility during construction phases. Capricorn Metals’ strategy aligns with broader industry trends toward organic growth.
The Capricorn Metals investor update reflects confidence in both near-term production and longer-term expansion objectives. As the Company advances multiple projects simultaneously, it positions itself for material production growth over the coming years. Successful execution could establish Capricorn Metals as a mid-tier gold producer.
Share Price Performance and Market Positioning
Capricorn Metals shares last traded at $14.965 per share. The stock has moved within a 52-week range of $6.420 to $15.160 per share. The Company’s market capitalisation stands at $6.64 billion, reflecting strong investor support for the growth strategy.
Figure 5: Capricorn Metals share price performance on the Australian Securities Exchange over the past six months. [source: ASX]
About Capricorn Metals Ltd
Capricorn Metals Ltd is an Australian gold producer operating the Karlawinda Gold Project in Western Australia. The Company is listed on the Australian Securities Exchange under the ticker code CMM. Capricorn focuses on developing and operating gold assets in Western Australia’s established mining regions.
The Karlawinda Gold Project is located approximately 70 kilometres south of Leinster. The operation includes open-pit mining and conventional processing facilities. Capricorn Metals is currently expanding production capacity through the Karlawinda Expansion Project. The Company is also developing the Mt Gibson Gold Project as its next growth asset.
Final Thoughts: Execution Drives Value Creation
The Capricorn Metals December 2025 quarterly update demonstrates continued operational excellence at Karlawinda. Consistent production performance combined with strong cash generation provides the foundation for growth. The Capricorn Metals ASX update December 2025 shows the Company’s ability to advance expansion projects while maintaining production targets, which reflects effective planning and execution.
Figure 6: Processing infrastructure and expansion works underway at the Karlawinda Gold Project site. [source: MarketIndex]
Investors should watch for the full Quarterly Report to assess cost performance and detailed project updates. The upper-end guidance target depends on maintaining production momentum through the second half of FY26. Capital expenditure timing and project milestones will influence near-term cash flow expectations.
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FAQs
Q1. How much gold did Capricorn Metals produce in the December 2025 quarter?
Ans. Capricorn Metals produced 30,476 ounces of gold during the December 2025 quarter at the Karlawinda Gold Project, maintaining strong operational performance.
Q2. What is Capricorn Metals’ FY26 production guidance?
Ans. Capricorn Metals December 2025 quarterly results position the Company to achieve the upper end of FY26 guidance of 115,000 to 125,000 ounces at an AISC of $1,530 to $1,630 per ounce.
Q3. How much cash does Capricorn Metals have on hand?
Ans. Capricorn Metals investor update reported cash and gold on hand totalling $444.2 million at the end of the December 2025 quarter, up from $394.4 million in September 2025.
Q4. What is Capricorn Metals’ current share price and market capitalisation?
Ans. Capricorn Metals shares last traded at AUD 14.965 per share with a market capitalisation of AUD 6.64 billion as of the latest available data.
