The Capricorn Metals Ltd (ASX: CMM) share price is charging higher on Tuesday.
In morning trade, the ASX 200 gold share is up 6% to $4.30.
Why is this ASX 200 gold share charging higher?
Investors have been buying Capricorn Metals shares this morning after the company released an update on its production during FY 2023.
As you might have guessed from the share price reaction, the update was a good one. In fact, the company revealed that the Karlawinda Gold Project (KGP) achieved record gold production for the year.
According to the release, Capricorn Metals delivered annual production of 120,014 ounces at KGP for FY 2023. This is within its production guidance range of 115,000 ounces to 125,000 ounces.
This was underpinned by another strong three months at KGP during the fourth quarter, which led to the company producing 28,859 ounces of gold for the period.
A total of 30,036 ounces of gold was sold during the quarter at an average gold price of A$2,894 per ounce. This implies gold sales of approximately A$86.9 million for the three months.
Balance sheet getting stronger
Another positive is the strength of the ASX 200 gold share's balance sheet. The release reveals that Capricorn Metals finished the period with cash and gold on hand of $110.3 million. This takes into account the recent payment of $36.8 million to partially close out its hedge book last month.
Excluding this payment, Capricorn Metals' cash balance would have been up $27.6 million quarter on quarter.
Following today's gain, this ASX 200 gold share is now up an impressive 40% over the last 12 months. This can be seen on the chart above.
