Capricorn Metals

Capricorn Metals Ltd. (ASX: CMM) is an Australian-based gold mining company focused on building a high-margin, long-life gold business in one of the world's premier mining jurisdictions, Western Australia. With two major projects under development, the Karlawinda Gold Project (KGP) and the Mt Gibson Gold Project (MGGP), Capricorn is positioning itself as a leading, low-cost gold producer. The company’s Karlawinda project has already established Capricorn as one of Australia's lowest-cost gold producers, generating strong operational cash flows and providing a solid foundation for expansion.

Capricorn is leveraging its strong operational expertise and low-cost production profile to drive growth. The company’s recent approvals for the Karlawinda Expansion Project and significant drilling at the Mt Gibson site are set to increase Capricorn’s annual gold production in the coming years. With over 3.3 million ounces of gold reserves across its projects and extensive existing infrastructure, Capricorn Metals is poised for sustained production and growth, delivering exceptional value to its shareholders.

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Capricorn Metals offers a compelling investment opportunity driven by its robust project pipeline and strategic focus on low-cost, long-life gold production. The Karlawinda Gold Project (KGP) and the Mt Gibson Gold Project (MGGP) position Capricorn as a significant Australian gold producer, with plans to increase its annual  production capacity. With some of the lowest all-in sustaining costs (AISC) in Australia, the Karlawinda project’s steady cash flow funds expansion initiatives and ensures strong profit margins, even during fluctuating gold markets.

The recently approved Karlawinda Expansion Project, which will expand processing capacity to 6.5 million tonnes per annum, is set to increase KGP's annual gold production to 150,000 ounces by 2026. The Mt Gibson project, currently in advanced permitting stages, represents an additional high-quality development project poised to further boost Capricorn’s output and market share in the Australian gold sector. Expected to achieve one of the lowest cost-per-ounce production profiles in the country, Mt Gibson is targeted to add over 155,000 ounces of gold production per year with a mine life exceeding 11 years.

Strategically situated in Western Australia—a Tier-1 mining jurisdiction known for stable regulatory frameworks and robust infrastructure—Capricorn Metals is well-positioned to leverage favorable economic conditions and rising gold demand. The company's disciplined approach to capital management, focus on organic growth, and dedication to responsible mining make it a distinctive choice for investors seeking exposure to a reliable and sustainable growth-oriented mining operator.

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Capricorn Metals is led by a highly experienced management team with a proven track record in mining development, operational efficiency, and value creation. 

Kim Massey, Chief Executive Officer, served as CFO of Australian gold producer Regis Resources for over a decade. A Chartered Accountant by profession, he drives Capricorn’s corporate strategy, ensuring financial stability and growth across the company’s portfolio.

Paul Criddle, Chief Operating Officer, an experienced metallurgist, Mr. Criddle has held senior positions at notable mining companies, including Roxgold Inc. His extensive experience in developing and operating both open-pit and underground gold mines strengthens Capricorn’s operational capabilities and supports the company’s expansion objectives.

Will Nguyen, Chief Financial Officer, a Chartered Accountant with substantial financial management experience, Mr. Nguyen has held roles in various public companies, including ASX-listed copper developer Regis Resources. His financial acumen supports Capricorn’s strategic capital management and funding initiatives.

Capricorn’s management team is complemented by a dedicated Board of Directors with deep industry experience, providing strategic oversight and positioning the company for continued growth and operational excellence.

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Capricorn Metals is executing a focused growth strategy centered on expanding its high-margin, long-life gold production capacity and solidifying its position as a leading Australian gold producer. The company’s approach integrates operational excellence, organic expansion, and responsible mining practices to enhance long-term value for shareholders.

At the heart of Capricorn’s growth strategy is the Karlawinda Gold Project (KGP), which continues to deliver consistent cash flow and enables Capricorn to self-fund strategic expansion initiatives. The recently approved Karlawinda Expansion Project will increase processing capacity to 6.5 million tonnes per annum by 2026, boosting KGP’s annual production to 150,000 ounces. This growth path reinforces Capricorn’s commitment to low-cost production and stable cash generation.

The Mt Gibson Gold Project (MGGP), Capricorn’s second major asset, is a high-grade development project currently advancing through permitting. Once in operation, MGGP will add over 155,000 ounces per year, taking Capricorn’s annual output to over 300,000 ounces and establishing it as a substantial player in the Australian gold sector. The company is investing in extensive drilling at MGGP to expand its resource base, exploring opportunities for both open-pit and underground mining.

Capricorn’s growth strategy is underpinned by a commitment to sustainability and operational efficiency. The company aims to achieve first-quartile cost-per-ounce production across both projects by leveraging its strong in-house technical expertise and optimizing existing infrastructure. Capricorn also emphasizes ESG principles, integrating environmental stewardship and community engagement into its operational plans.

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Capricorn Metals is financially well-positioned to drive its growth initiatives, supported by strong cash flow from its Karlawinda Gold Project (KGP) and a robust capital structure. The company’s low all-in sustaining costs (AISC) of approximately A$1,250 per ounce have enabled it to generate significant free cash flow, providing a stable foundation for funding expansions and reducing reliance on external debt.

As of the most recent quarter, Capricorn reported a cash balance of A$145 million, alongside a modest debt of A$50 million, highlighting its disciplined approach to capital management. With approvals in place for the Karlawinda Expansion Project, Capricorn is investing A$120 million in expanding processing capacity, targeting payback within 20 months at a gold price of A$3,300 per ounce. The expansion, fully funded by operational cash flow, will further strengthen Capricorn’s cash-generating capacity.

The development of the Mt Gibson Gold Project (MGGP) represents a major growth opportunity. Capricorn has earmarked A$300 million in total project costs, with much of this expected to be covered by KGP cash flow and proceeds from the recent A$200 million capital raising. MGGP is expected to produce at a targeted AISC of A$1,450–A$1,550 per ounce, making it one of the lowest-cost production profiles in Australia.

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Capricorn Metals is on a transformative path to becoming one of Australia’s leading gold producers, with a foundation built on low-cost production, disciplined growth, and responsible mining practices. Anchored by the Karlawinda Gold Project and the advancing Mt Gibson Gold Project, Capricorn is set to achieve annual production of over 300,000 ounces, driven by a robust operational strategy and a strong commitment to delivering sustainable value.

With one of the lowest-cost production profiles in the country, Capricorn’s projects are positioned to generate significant cash flow, funding further expansion and reducing reliance on external capital. The company’s proactive approach to risk management, focus on environmental stewardship, and dedication to community engagement underscore its commitment to responsible, long-term growth.

For investors seeking exposure to a high-margin, growth-oriented gold company in a premier mining jurisdiction, Capricorn Metals represents a compelling opportunity. Led by a seasoned management team with deep expertise in mining operations and development, Capricorn is well-positioned to continue its upward trajectory, offering substantial returns and enduring value in the evolving global gold market.

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