Capricorn Metals Meets Top End of FY26 Gold Guidance
Synopsis
The gold miner capped off the financial year with solid June quarter production, delivering full-year output at the upper end of its forecast range.
Capricorn Metals FY26 gold guidance was met with the Australian gold producer producing 123,589 ounces from the Karlawinda Gold Project during the financial year, at the upper end of its forecast of between 115,000 and 125,000 ounces.
Production for the June quarter was 30,437 ounces, and full-year all-in sustaining costs (AISC) are on track to be between A$1,530 and A$1,630 per ounce.
The update follows gold prices that are still moving higher towards record levels, giving Australian producers, including ASX:CMM, a good operating backdrop.
Expansion spending continues alongside production
Despite the ongoing investments in its growth pipeline, Capricorn ended FY26 with cash and gold showing on the balance sheet of A$507 million. In the June half, the company generated A$68.2 million of underlying cash, prior to capital expenditure and dividends.
It also paid its first dividend, returning A$22.8 million to shareholders, while also funding future development projects.
The Karlawinda Gold Project has entered the commissioning stage after a significant completion of the construction works. Capricorn spent A$44.8 million in the quarter on processing infrastructure, equipment installation and mine development.
The company has already spent A$1.2 million on procurement and initial contract activity at the Mt Gibson Gold Project following the environmental approval given by the Commonwealth. The project is currently in the environmental assessment process in Western Australia prior to development commencing.
Strong financial position amid resilient gold market
The operational update is based on Capricorn's first-half FY26 financial results, which saw the company's underlying net profit after tax of A$102.5 million and revenues of A$271.3 million, driven by improved realised gold prices and sales volumes.
There has also been a continued positive demand for gold across the world, which has helped to keep the entire gold sector supported. The World Gold Council's Gold Demand Trends Q1 2026 report shows global mine output climbed 2% from a year ago to 885 tonnes, the largest figure for the first-quarter of the year ever.
They cited China, India and Turkey as the top three countries for jewellery and investment demand but Australia, China, Russia, Canada and the United States were still in the top five global gold buyers.
For those investors who had been closely following Capricorn Metals FY26 gold guidance, the company's new update has confirmed it hit its annual gold production target and is maintaining its operating costs in line with expectations, while also progress on two major growth initiatives in Western Australia.
Source: Capital Brief
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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