S&P/ASX 200 Index (ASX: XJO) gold stock Capricorn Metals Ltd (ASX: CMM) is off to the races today.
Capricorn Metals shares closed on Friday trading for $11.90. In morning trade on Monday, shares are changing hands for $13.70 apiece, up 15.1%.
For some context, the ASX 200 is up 0.9% at this same time.
Here's what's piquing investor interest.
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ASX 200 gold stock surges on growth outlook
Capricorn Metals shares are leaping higher following several growth-oriented announcements this morning.
The ASX 200 gold stock is catching significant tailwinds after revealing a 33% increase in its group ore reserves to 5.24 million ounces of gold.
Capricorn's group ore reserves include its two wholly owned projects, the operating Karlawinda Gold Project (KGP), and the near-term development Mt Gibson Gold Project (MGGP), both located in Western Australia.
The miner's group mineral resources increased by 29% to 8.66 million ounces.
The ASX 200 gold stock also released an updated pre-feasibility study (PFS) for Mt Gibson.
The PFS forecasts gold production to average 260,000 ounces a year from underground and open pit mining for the four full years of underground mining at Mt Gibson. Over the projected 19.25 year mine life, gold production is forecast to average 190,000 ounces per years for 18 years. That equates to 3.5 million ounces of gold at an all-in sustaining cost (AISC) of $1,870 per ounce.
Capricorn expects $19.3 billion in revenue from Mt Gibson over this time, with pre-tax free cash flow of $12 billion.
Separately, Capricorn also highlighted its Range 500 aspiration to boost gold production to 500,000 ounces per year over the longer term.
What did Capricorn Metals management say?
Commenting on the updated PFS sending the ASX 200 stock rocketing today, Capricorn executive chairman Mark Clark said:
The strong growth in Capricorn gold reserves to over 5 million ounces underpins long mine lives at both Karlawinda and Mt Gibson along with compelling and deliverable growth in our gold production profile to over 400,000 ounces per annum within 2.5 years of commencement of operations at Mt Gibson.
As for the Range 500 ambitions, he said, "Range 500 is an exciting opportunity for Capricorn to pursue given the significant growth already underway at Karlawinda and development ready at Mt Gibson."
Clark added:
With the current medium-term gold production outlook for the combined business now over 400,000 ounces per annum, pursuing growth to 500,000 ounces per annum by optimising Mt Gibson and Golden Range is a significant value creation goal to pursue.
Achieving this goal has the potential to lift Capricorn into a uniquely attractive position in the Australian mid-tier gold mining space.
