Capricorn’s Expansion Spend Rises Amid Production Pressure and Regulatory Hurdles

Steady Gold Production Keeps Capricorn on Track

Capricorn Metals Limited has delivered another robust quarter at its Karlawinda Gold Project (KGP), producing 30,476 ounces of gold in Q2 FY26. This performance is consistent with the company’s mine plan and keeps it firmly on course to reach the upper end of its full-year guidance of 115,000 to 125,000 ounces. Year-to-date production now stands at 62,794 ounces, underscoring steady operational execution.

The all-in sustaining cost (AISC) guidance remains between $1,530 and $1,630 per ounce, reflecting disciplined cost management amid ongoing production. Mining rates have sustained the expanded run rate for three consecutive quarters, demonstrating operational stability following the recent expansion.

Karlawinda Expansion Project Advances with Momentum

Capital expenditure at the Karlawinda Expansion Project (KEP) reached $36.1 million during the quarter, supporting significant construction progress. Key milestones include the completion of bulk earthworks at the plant site, over 70% of concrete pours finalized, and 50% completion of CIL tank welding and erection. Structural, mechanical, and piping contractors have mobilised, with major equipment deliveries underway, including the jaw crusher and scheduled arrival of the ball mill ahead of commissioning in early FY27.

Mining activities continue to support expansion needs, with prioritised materials for tailings storage facility construction and excavation works facilitating improved pit access. The process plant design is nearing completion at 95%, positioning Capricorn well for the next phase of development.

Progress at Mt Gibson Gold Project and Regulatory Advances

Development at the Mt Gibson Gold Project (MGGP) also gathered pace, with $2.9 million invested in detailed design, procurement, and contract preparations. Awarding of preferred contractor status for mining services has enabled early mine planning activities. The process plant design is 98% complete, with tendering underway for key construction scopes.

On the regulatory front, Capricorn submitted the final Public Environment Report to the federal Department of Climate Change, Energy, the Environment and Water, which has entered public review. The company is also advancing the Environmental Review Document for Western Australia’s assessment process, integrating federal outcomes to streamline approvals.

Financial Position Strengthened

Capricorn’s cash and gold holdings increased to $444.2 million by the end of December 2025, up from $394.4 million in the previous quarter. The company generated $88.8 million in cash before capital expenditure, reflecting strong operational cash flow despite significant investment in growth projects.

With construction fully underway at KEP and strategic early spending at MGGP to compress timelines, Capricorn is positioning itself for sustained production growth. The forthcoming Quarterly Report will provide a comprehensive update on operational and financial metrics.