Capricorn Metals hits key Q2 production targets and advances expansion projects

Capricorn Metals delivers strong Q2 gold production and updates on expansion projects in its latest earnings report.

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Key points

  • Strong Gold Production & Financial Position: Capricorn Metals reported producing 30,476 ounces of gold in Q2 FY26, boosting cash and gold on hand to $444.2 million by the end of December 2025.
  • Progress in Expansion Projects: Key milestones in the Karlawinda Expansion Project were met, with over 70% of plant site concrete poured and several major equipment already delivered.
  • Future Outlook & Stock Performance: Capricorn aims to reach the upper end of FY26 production guidance with expansions progressing, while shares have surged 124% over 12 months, outperforming the ASX 200 Index.

The Capricorn Metals Ltd (ASX: CMM) share price is on investors' watchlists today after delivering strong Q2 FY26 gold production from its Karlawinda Gold Project, with 30,476 ounces produced and cash and gold on hand rising to $444.2 million at quarter's end.

What did Capricorn Metals report?

  • Gold production: 30,476 ounces in Q2 FY26 (YTD: 62,794 ounces)
  • On track for upper end of FY26 production guidance of 115,000–125,000 ounces
  • All-in sustaining cost (AISC) guidance: $1,530–$1,630 per ounce
  • Cash and gold on hand: $444.2 million at 31 December 2025 (up from $394.4m in September)
  • Quarterly cash build: $88.8 million before $39.0 million in capex
  • Capital spend: $36.1 million at KEP; $2.9 million at Mt Gibson Gold Project

What else do investors need to know?

The Karlawinda Expansion Project remains on schedule, with key construction milestones met, including major concrete works and over 70% of the plant site concrete poured. Structural, mechanical and piping contractors are now on-site, and several major equipment deliveries have been made, with the ball mill still to arrive early in the next quarter.

At the Mt Gibson Gold Project, Capricorn has advanced process plant design to 98% completion and begun early works with preferred mining contractor MACA. The company also submitted the final Public Environment Report for regulatory review and is progressing through state and federal approval processes.

What's next for Capricorn Metals?

Capricorn Metals is aiming to hit the upper end of its FY26 production guidance as Karlawinda delivers steady operational results and expansion works progress. Management expects commissioning of new processing facilities to begin in Q1 FY27, supported by steady cash generation and continued project advancement at both Karlawinda and Mt Gibson.

Detailed operational and cost results, as well as further updates on project milestones, are due in the company's full quarterly report later in January.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 124%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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