The Capricorn Metals Ltd (ASX: CMM) share price is in focus after the company delivered several major updates, including lifting group ore reserves by 33% to 5.24 million ounces and a new production outlook of over 400,000 ounces per year.
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- Group ore reserves increased to 5.24 million ounces, up 33%.
- Group mineral resources rose to 8.66 million ounces, up 29%.
- Mt Gibson Pre-Feasibility Study (PFS) projects 260,000 ounces per year steady-state production over a 19-year mine life at A$1,870/oz AISC.
- Karlawinda expansion to 150,000 ounces per year, targeting commissioning in Q1 FY27.
- Medium-term group gold production forecast now above 400,000 ounces per year within 2.5 years of Mt Gibson project commencement.
- Range 500 aspiration set to lift production to 500,000 ounces per year in the longer term, subject to further studies and drilling.
What else do investors need to know?
Capricorn Metals has highlighted robust growth at both its Karlawinda and Mt Gibson gold projects, providing a strong foundation for long mine lives at competitive costs. The Mt Gibson PFS update marked the first inclusion of an underground mining component, confirming the project’s scale and growth prospects.
The company remains debt free, with a strong balance sheet including $507 million in cash and bullion to support upcoming growth initiatives. A study is also underway to assess the potential for a second processing hub at Golden Range, which could further boost output over the next few years.
Capricorn Metals’ outlook is underpinned by the fully funded development at Mt Gibson and the Karlawinda expansion, both expected to drive group output above 400,000 ounces per year in the medium term. The ongoing Range 500 study and aggressive drilling programs at both MGGP and Golden Range offer further growth opportunities to 500,000 ounces, though these are currently aspirational and subject to more work.
The company aims to maintain industry-leading costs and long mine lives through conservative resource assumptions and regular reserve updates, positioning itself as a leading Australian mid-tier gold producer.
It has been a strong 12 months for the Capricorn Metals share price. Since this time last year, the gold miner’s shares have outperformed the ASX 200 index with an impressive 31% gain.
