30 Jul 2025 FY25 Fourth Quarter Activities and Cashflow Report

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# 30 Jul 2025 FY25 Fourth Quarter Activities and Cashflow Report

Source: https://capmetals.com.au/wp-content/uploads/2025/07/2921956.pdf
Published: 2025-07-30T00:00:00+00:00
Fetched: 2026-05-12T13:20:37.825+00:00
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# 30 Jul 2025 FY25 Fourth Quarter Activities and Cashflow Report
30 July 2025
ASX:CMM
ACTIVITIES REPORT
JUNE 2025 QUARTER
KGP OPERATIONS
• Karlawinda Gold Project (KGP) June 2025 quarter (Q4) gold production was 32,216 ounces (Q3: 30,599oz)
at an all-in-sustaining cost (AISC) of $1,381 per ounce (Q3: $1,390 per ounce).
• Year to date gold production of 117,076 ounces at AISC of $1,468 per ounce was within the FY25 guidance
of 110,000 – 120,000 ounces at an AISC of $1,370 - $1,470 per ounce.
• FY26 gold production guidance of 115,000 – 125,000 ounces (a 4.3% increase at midpoint on FY25
guidance) at AISC of A$1,530 - $1,630 per ounce with growth capital of $30 - $40 million as mining transitions
to the Karlawinda Expansion Project (KEP).
• Record quarterly cash flow from operations of $85.7 million generated in Q4 (Q3: $80.8m).
• Total material movement increased by 18% from Q3, reflecting the ongoing mining productivity efforts that
delivered the increase in mining volumes throughout FY25. The performance of the mining fleet enabled
achievement of planned pit face positions and advance pre-stripping ahead of the expansion project.
Importantly, mining production rates met the requirement of the KEP ahead of schedule, reducing risks
associated with the transition to the expanded project.
CORPORATE
• Closure of final remaining gold hedging instrument, a 16,700-ounce call option, and repayment of its residual
$50 million corporate debt to Macquarie Bank Limited leaving the Company unhedged and debt free.
• Cash and gold on hand at the end of Q4 was $356.4 million (Q3: $404.6m). The cash build for the quarter
was $62.5 million (Q3: $57.6m) before total capital expenditure of $10.8 million at the MGGP ($1.7m) and
the KEP ($9.1m), $50 million associated with the final hedge book closure and $50 million debt repayment.
• Gold sales of 35,821 ounces at an average price of $5,137 per ounce generated $184.0 million in revenue
with a further 121 ounces of gold on hand at the end of Q3 valued at $0.6 million (Q3: 3,913oz).
MGGP DEVELOPMENT
• Installation of the 400-room accommodation village for the operation was completed and handed over for the
upcoming construction phase. Total spend to date of $36.2 million on construction works is an early spend
of the MGGP capital budget and a strategic decision to compress the ultimate construction timeframe.
• Evaluation work for the mining services agreement was completed with current KGP contractor MACA
selected as preferred MGGP contractor.
• Power supply contract evaluation continued and is nearing completion.
• The process plant design scope was advanced to approximately 55% completion, with site layouts finalised
and long lead items such as the ball mill, crushers and screens committed.
• Capricorn submitted the final Public Environmental Report (PER) to the Department of Climate Change,
Energy, the Environment and Water (DEECCW). This follows previous receipt of guidelines for the PER and
ongoing feedback on the document from DCCEEW. This submission commences the public exposure and
final assessment process.
KEP DEVELOPMENT
• As announced to ASX on 29 July 2025, the Department of Energy, Mines, Industry Regulation and Safety
(DEMIRS) recently approved Capricorn’s Mining Proposal and Mine Closure Plan (MPMCP) covering
changes to permit the development of the Karlawinda Expansion Project (KEP). This approval allows full
development of the KEP and accordingly full procurement and early site works will commence in Q2.
• An optimised project schedule and updated construction and development capital cost estimate are expected
to be completed early in Q2.
• The mining services agreement with MACA was extended for a further five-year term, with a Capricorn option
for further extension.
1
• Construction of the 164-room camp expansion (to accommodate construction personnel) continued with
$4.1 million spent during the quarter. Construction was largely complete in Q4.
• The process plant design scope progressed to approximately 60% complete and procurement works of critical
path items continued. Construction equipment, conveyors and pump packages were committed, with a spend
of $4.2 million incurred. Early clearing and bulk earthworks associated with the project commenced.
EXPLORATION
• Capricorn released the Quarterly Exploration Update on 29 July 2025, outlining encouraging results from
exploration at both projects during Q4.
Mt Gibson Gold Project (MGGP)
• Ongoing drilling at the MGGP increased the MRE by 507 Koz (13%) to 4.5 Moz.
• A total of 11,105 metres (35 holes) of diamond drilling at the Orion Deposit was completed as part of an
expanded 40,000-metre deep drilling programme, targeting mineralisation below the reserve pit designs. This
contributed to a maiden Orion South underground MRE of 6.84 mt at 3.1g/t Au for 684 Koz of gold. Importantly
this represents only a portion of the confirmed mineralised envelope under the Orion open pit ORE.
• Encouragingly, mineralisation continues to be extended over significant strike and depths, remaining open in
all directions. The best results for the quarter included:
• 13.5m @ 5.29g/t from 450.5 to 464m* • 20.64m @ 2.61 g/t from 334.4 to 355m*
• 6m @ 8.37 g/t from 512 to 518m* • 12.5m @ 3.32 g/t from 554.5 to 567m*
• 6.35m @ 6.48 g/t from 440 to 446.3m • 7.91m @ 4.61 g/t from 400.7 to 408.65m*
• 2.29m @ 12.82 g/t from 357.7 to 360m • 6.1m @ 4.76 g/t from 469.4 to 475.5m*
* Intercept is outside of current resource pit shell.
** Above intercepts for underground include a minimum of 1g/t Au value over a minimum length of 1m with a maximum 2m length of
consecutive internal waste. No upper cuts have been applied
• The Orion South underground programme continued with broad, high-grade gold intercepts demonstrating
that mineralisation extends significantly at depth. The diamond drill programme will continue with a minimum
of two diamond drill rigs in Q1 targeting the further increase and upgrade of classification of the Orion
underground MRE, with updates expected Q2FY26.
• A total of 2,348 metres (7 holes) of diamond drilling at the Lexington deposit was completed. Drilling targeted
north plunging mineralisation of previous high grade intercepts. Encouragingly current results significantly
extend strike lengths and depths of mineralisation, highlighting the potential for further underground mining
operations outside of the Orion deposit. The best results for the quarter included:
• 7.31m @ 15.66g/t from 374.19 to 381.50m* • 8.00m @ 5.65 g/t from 584 to 592m*
• 2.36 metres @ 25.49g/t from 305.2 to 307.5m* • 8.80 metres @ 5.21g/t from 277 to 285m*
• 7.93 metres @ 3.94g/t from 639.3 to 647.2m* • 7.52 metres @ 3.81g/t from 416.1 to 423.6m*
• Further gold intercepts south of the Highway deposit confirmed widespread mineralisation underscoring the
high prospectivity of the area. Mineralisation has been intersected in oxide zones, with new parallel lodes
being identified extending into fresh rock. The maiden open pit MRE of 3.93 million tonnes at 0.9g/t Au for
110,000 ounces of gold remains open at both depth and along strike. Additional extensional and infill drilling
is planned in Q1 and will form the basis of a maiden ORE.
• Capricorn completed an agreement to acquire the prospective Ninghan Gold Project (refer ASX
announcement dated 24 April 2025). The acquisition adds approximately 273 square kilometres of tenure
located contiguous to the north of Capricorn’s MGGP tenure in the Murchison region of WA.
Karlawinda Gold Project (KGP)
• An extensive regional drilling programme, comprising 30,000 metres of AC and 18,000 metres of RC
drilling continued.
• 25,030m (451 holes) of broad spaced AC drilling was completed at Badlands, Mission Road, Carnoustie
East and Central Zone Shear prospects, all less than 30km from the KGP, majority of assays pending.
• 6,249 metres of AC assays were received by the end of the quarter with mineralisation and Au pathfinder
elements returned throughout the drill areas that warrant follow-up drilling RC drilling
2
JUNE 2025 QUARTER ACTIVITIES SUMMARY
Capricorn Metals Ltd (Capricorn) wholly owns the operating Karlawinda Gold Project (KGP) located 65 kilometres
south-east of Newman in the Pilbara region of Western Australia and the Mt Gibson Gold Project (MGGP) located
65 kilometres north-east of Wubin in the Mid-West region of Western Australia.
Karlawinda Gold Project
The KGP delivered another strong quarter of operations, producing 32,216 ounces of gold. This result brings full
year production to 117,076 ounces, achieving the upper end of the FY25 guidance range of 110,000 – 120,000
ounces. Production reflected the ongoing mining productivity improvements that delivered the increase in mining
volumes throughout FY25. The performance of the mining fleet enabled achievement of planned pit face positions
while advancing pre-stripping ahead of the expansion project. Importantly, mining production rates met the
requirement of the Karlawinda Expansion Project (KEP) ahead of schedule, reducing risks associated with the
transition to the expanded project
AISC for FY25 was $1,468 per ounce which was within the FY25 cost guidance range. Cash costs before royalties
for the quarter were $1,090 per ounce, with an AISC of $1,381 per ounce.
Operating results for the KGP for Q4 were as follows:
Unit Jun25Q Mar25Q Dec24Q Sep24Q
Operations
Ore mined BCM (‘000) 522 694 584 615
Waste mined BCM (‘000) 3,137 2,154 2,539 3,083
Pre-strip mined BCM (‘000) 840 974 11 15
Operating stripping ratio w:o 6.0 3.1 4.3 5.0
Total stripping ratio w:o 7.6 4.5 4.3 5.0
Ore mined t (‘000) 1,479 1,911 1,542 1,564
Ore milled t (‘000) 1,111 1,013 1,108 1,088
Head Grade g/t 0.99 1.02 0.88 0.80
Recovery % 91.4 91.7 92.0 91.9
Gold production Oz 32,216 30,599 28,702 25,559
Financial
Net Cash cost A$/oz 1,090 1,126 1,272 1,459
All-in sustaining cost A$/oz 1,381 1,390 1,490 1,647
Net Cash costs and AISC calculated on a per ounce production basis.
Mining
Open pit material mined in Q4 was 4.5 million BCM, representing an 18% increase compared to the previous
quarter (Q3: 3.8 million BCM). The sustained focus on total material movement from the Bibra open pit continued
while also reaching the budgeted pit face positions. This out-performance in the main pit enabled the acceleration
of pre-stripping activities ahead of schedule for the KEP in the Southern Corridor extension. Accordingly, the total
stripping ratio for the quarter increased to 7.6 (w:o) compared to 4.5 in Q3, while the operating stripping ratio
increased to 6.0 (w:o) compared to 3.1 in Q3.
A total of 1.5 million tonnes of ore was mined during the quarter, with ore stocks increasing to 7.1 million tonnes.
3
Karlawinda Gold Project – Bibra open pit (June 2025)
Processing
Consistent performance at the KGP processing plant continued in the quarter, with a total of 1.1 million tonnes of
ore processed at a consistent head grade of 0.99g/t (Q3: 1.02g/t).
Gold recovery continued to be stable at 91.4% following the successful installation and commissioning of the
liquid oxygen and lead nitrate facilities.
FY26 Guidance
Gold production guidance for FY26 is 115,000 – 125,000 ounces, a 4.3% increase at the midpoint to FY25
production guidance. Production is forecast to be reasonably consistent across the four quarters of FY26.
AISC is expected to be in an industry leading guidance range of A$1,530 - $1,630 per ounce with growth capital
of $30 - $40 million as mining transitions to the Karlawinda Expansion Project. Growth capital reflects the strategy
to accelerate Karlawinda Expansion Project pre-stripping operations ahead of schedule at the Southern Corridor
and Berwick extension

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