Capricorn Metals reports record Q2 cash flow and resource growth

Capricorn Metals delivered record cash flow and lifted its gold resource base in Q2 FY26 while progressing major projects and acquisitions.

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The Capricorn Metals Ltd (ASX: CMM) share price is in focus after the company posted another strong quarter, delivering $200.5 million in gold sales and record operating cash flow of $122.4 million for the December 2025 quarter.

What did Capricorn Metals report?

  • Gold production of 30,476 ounces for Q2 FY26, with a year-to-date total of 62,794 ounces.
  • All-in sustaining cost (AISC) sustained at $1,627 per ounce for the quarter, in line with FY26 guidance of $1,530 to $1,630 per ounce.
  • Record quarterly operating cash flow of $122.4 million, up from $106.9 million in Q1.
  • Gold sales of 31,652 ounces achieved at an average price of $6,333 per ounce, generating $200.5 million in revenue.
  • Cash and gold on hand rose to $457.4 million, including balances from the recent Warriedar Resources acquisition.
  • Group Mineral Resource Estimate increased to 8.1 million ounces of gold.

What else do investors need to know?

Capricorn Metals successfully completed its acquisition of Warriedar Resources Limited during the quarter, consolidating a 788km² tenure package and bringing new projects like Golden Range and Fields Find into the fold. This transaction supports continued growth in resources and exploration potential across the portfolio.

On the development front, key approvals have been secured for the Karlawinda Expansion Project, with site works tracking to schedule and major infrastructure now in advanced stages. The Mt Gibson Gold Project also progressed, with environmental assessments underway and significant drilling results achieved, pointing to growth in both open-pit and underground resources.

What did Capricorn Metals management say?

Executive Chairman Mark Clark said:

Strong operational performance and prudent financial management have positioned Capricorn well to achieve the upper end of gold production guidance while supporting growth through our expansion projects.

What's next for Capricorn Metals?

The company remains on track for the upper end of its FY26 gold production guidance, supported by consistent operational performance at Karlawinda. The parallel expansion project will boost processing capacity to 6.5 million tonnes per year, targeting annual production of around 150,000 ounces when commissioned.

Looking ahead, Capricorn will continue advancing expansion works and exploration activities across its key projects, aiming to unlock further value as new approvals, construction milestones, and exploration results are delivered into FY27.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 114%, 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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