Gold Production Exceeds Guidance Range
Capricorn Metals Ltd (ASX:CMM) delivered robust operational results for the June 2025 quarter. The Company produced 32,216 ounces of gold at its Karlawinda Gold Project (KGP). This performance lifted annual production to 117,076 ounces, meeting the upper end of FY25 guidance.
The all-in-sustaining cost (AISC) reached $1,381 per ounce for the quarter. Annual AISC of $1,468 per ounce remained within the Company’s guidance range of $1,370-$1,470 per ounce.
Record Operating Cash Flow Drives Financial Strength
KGP generated record quarterly operating cash flow of $85.7 million in Q4. This represented an increase from $80.8 million in the previous quarter.
Total material movement increased by 18 percent from Q3. The mining fleet delivered improved productivity throughout FY25. Mining production rates met Karlawinda Expansion Project requirements ahead of schedule.
Company Achieves Debt-Free Status
Capricorn Metals (ASX:CMM) closed its final gold hedging instrument during the quarter. The Company repaid the 16,700-ounce call option and eliminated $50 million in corporate debt to Macquarie Bank Limited.
The hedge closure cost $50 million, paid from existing cash and bullion holdings. Capricorn purchased gold put options totalling 15,000 ounces at $5,000 per ounce strike price for downside protection.
Cash and gold on hand totalled $356.4 million at quarter end. This compared to $404.6 million in the previous quarter. The Company now operates completely unhedged and debt-free.
Strong Revenue Performance from Gold Sales
Gold sales reached 35,821 ounces during the quarter. The average selling price achieved $5,137 per ounce, generating $184.0 million in revenue.
The Company held 121 ounces of gold inventory at quarter end. This represented a decrease from 3,913 ounces in the previous quarter.
Expansion Projects Progress on Schedule
Karlawinda Expansion Project Receives Key Approval
The Department of Energy, Mines, Industry Regulation and Safety approved Capricorn’s Mining Proposal and Mine Closure Plan. This approval permits full development of the Karlawinda Expansion Project (KEP).
Construction of the 164-room camp expansion neared completion. The Company spent $4.1 million on accommodation facilities during the quarter. Process plant design reached 60 percent completion with $4.2 million committed to equipment procurement.
Karlawinda Expansion Project – Early Clearing Works
Mt Gibson Gold Project Development Continues
Installation of the 400-room accommodation village reached completion. Total expenditure of $36.2 million on early construction works stayed within budget parameters.
Capricorn selected MACA as the preferred mining contractor for Mt Gibson Gold Project. The contract includes a five-year initial term with optional five-year extension.
The Company submitted the final Public Environmental Report to federal authorities. This submission commenced the public exposure and assessment process for the project.
Mt Gibson Gold Project – accommodation village installation
Exploration Delivers Resource Growth
Mt Gibson Shows Significant Resource Increase
Ongoing drilling increased the Mineral Resource Estimate by 507,000 ounces to 4.5 million ounces. Diamond drilling at Orion Deposit contributed to a maiden underground resource of 684,000 ounces.
High-grade intercepts included 13.5 metres at 5.29g/t gold and 20.64 metres at 2.61g/t gold. Mineralisation remains open in all directions with significant potential for expansion.
Also Read: Pilbara Minerals Reports Strong June Quarter Performance Despite Price Pressures
Regional Exploration Expands Footprint
The Company completed 25,030 metres of broad-spaced aircore drilling. Programs targeted Badlands, Mission Road, Carnoustie East and Central Zone prospects within 30 kilometres of KGP.
FY26 Guidance Reflects Growth Strategy
Capricorn provided FY26 gold production guidance of 115,000-125,000 ounces. This represents a 4.3 percent increase at the midpoint compared to FY25 guidance.
AISC guidance ranges from $1,530-$1,630 per ounce with $30-40 million in growth capital expenditure. The increased costs reflect the transition to expanded mining operations.
Production will remain consistent across the four quarters of FY26. The Company expects to maintain steady operational performance during the expansion phase.
