29 Jan 2026 Quarterly Activities/Appendices 5B Cash Flow Report

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# 29 Jan 2026 Quarterly Activities/Appendices 5B Cash Flow Report

Source: https://capmetals.com.au/wp-content/uploads/2026/02/03049940.pdf
Published: 2026-01-29T00:00:00+00:00
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# 29 Jan 2026 Quarterly Activities/Appendices 5B Cash Flow Report
29 January 2026
ASX:CMM
ACTIVITIES REPORT
DECEMBER 2025 QUARTER
KGP OPERATIONS
For personal use only
• Karlawinda Gold Project (KGP) delivered December 2025 quarter (Q2) gold production of 30,476 ounces
(Q1: 32,318oz) at an all-in-sustaining cost (AISC) of $1,627 per ounce (Q1: $1,625 per ounce).
• Year to date gold production of 62,794 ounces at AISC of $1,626 per ounce puts KGP on track to achieve
the upper end of FY26 guidance of 115,000 – 125,000 ounces at an AISC of $1,530 - $1,630 per ounce.
• Record quarterly cash flow from operations of $122.4 million generated in Q2 (Q1: $106.9m).
• Total material movement continues to meet the production and construction requirements for the Karlawinda
Expansion Project (KEP) with 4.4 million BCM mined in the quarter.
• Consistent mill performance continued with throughput of 1.16mt (Q1: 1.23mt).
CORPORATE
• The acquisition of Warriedar Resources Limited (ASX: WA8, Warriedar) by way of a Court-approved share
scheme of arrangement and option scheme of arrangement was successfully implemented on 25 November
2025, following approval by Warriedar shareholders on 6 November 2025.
• Cash and gold on hand at the end of Q2, inclusive of the integration of Warriedar balances, was $457.4 million
(Q1: $394.4m). The cash build for the quarter was $88.8 million (Q1: $71.8m) before total capital expenditure
of $39.0 million at the KEP ($36.1m) and MGGP ($2.9m), and the closing Warriedar cash balance of $13.2m
following integration during the period.
• Gold sales of 31,652 ounces at an average price of $6,333 per ounce generated $200.5 million in revenue
with a further 2,542 ounces of gold on hand at the end of Q2 valued at $16.6 million (Q1: $23.5m).
KEP DEVELOPMENT
• Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) approved Capricorn’s Mining
Proposal and Mine Closure Plan (MPMCP) in July 2025, allowing full development of the KEP and
subsequent to those approvals the project has been advanced substantially.
• Bulk earthworks in the plant site and ROM Pad 2 were completed. Earthworks required for the TSF 2
embankments were advanced on schedule.
• Concrete works in the plant site were progressed, with over 70% of the scope completed. This has facilitated
several areas being handed over to the structural, mechanical and piping contractor and erection of structural
steel has commenced in the milling area.
• Delivery of critical path rolled and structural steel for CIL tanks was completed.
• CIL tank welding and erection is over 60% completed.
• Mining activities have continued in the Berwick pit, with materials required for TSF 2 civil works being
prioritised.
• Excavation of the boxcut into the Bibra pit was completed in the quarter, facilitating multiple direct accesses
to the pit going forward.
• The jaw crusher and several other equipment packages were delivered to site in the quarter. The ball mill is
scheduled to arrive at site in early Q4 FY26, ahead of commissioning commencing in Q1 FY27.
MGGP DEVELOPMENT
• Following MACA being awarded the preferred contractor status for the mining services agreement, early
works mine design and planning activities have commenced.
• The process plant design scope was advanced to 98% complete, with the focus shifting to tendering of key
construction scopes. Power supply contract evaluation continued.
• Capricorn submitted the final Public Environmental Report (PER) to the Department of Climate Change,
Energy, the Environment and Water (DCCEEW) in late Q1 FY26. The document was advertised for public
review during the quarter with final updates and assessment now to follow.
1
• Capricorn is also advancing the Environmental Review Document (ERD) for the Part 4, Western Australian
Government assessment process with EPA Services, ahead of the upcoming public review phase. This
process includes incorporating outcomes from the Federal DCCEEW assessment.
EXPLORATION
Significant results from resource and exploration drilling across the MGGP for the quarter include:
For personal use only
• Orion South:
o 6 metres @ 16.89g/t from 525 to 531m
o 14.5 metres @ 7.51g/t from 378 to 392m
• Lexington:
o 7.18 metres @ 5.78g/t from 420 to 427.1m
o 1.30 metres @ 18.03g/t from 415.7 to 417m
• Highway:
o 20 metres @ 2.46g/t from 82 to 102m
o 30 metres @ 1.59g/t from 222 to 252m
RESOURCE AND RESERVE UPDATE
• Mineral Resource Estimate (MRE) for Orion South Underground increased to 9.5Mt at 2.9g/t Au for 895,000
ounces of gold, reflecting a compelling 5,400 ounces per vertical metre for the 100 vertical metres
immediately below the pit design, where data density exists across the MRE strike extent.
• The updated Orion South Underground MRE was used as the basis for a Mining Conceptual Study presenting
an early assessment of the potential for underground mining at the MGGP (refer announcement dated 11
November 2025) including the following key study outcomes;
o Mine plan stopes (and associated lower grade development) comprising 6.1Mt at 2.6g/t for 513koz
of gold within updated resource using a 1.75g/t cut-off grade;
o Access to the MRE beneath the Orion South open pit design could be achieved with two separate
declines (5.8m x 5.5m) from the Aries pit allowing underground mining to occur contemporaneously
with open pit mining;
o A development period of 9 months is expected after commencing a portal and a sustained mining
production rate may be achieved from 18 months post portal establishment with pillared long hole
open stoping (LHOS) selected as the preferred underground mining method;
o This development and mining approach has been benchmarked as capable of achieving a
constrained haulage rate of 1.0 - 1.2mtpa.
• Capricorn Metals' group Mineral Resource Estimate (MRE) has now increased to 8.1 million ounces of gold.
o This figure excludes gold-equivalent (AuEq) resources associated with Stibnite mineralisation, which
remain subject to ongoing studies, and also excludes the Big Springs Project in Nevada, which has
been classified as non-core and will be progressed through a formal divestment/sales process.
o MGGP MRE 151.9 million tonnes at 1.0 g/t Au for 4.7 million ounces
o KGP MRE 94.4 million tonnes at 0.7g/t Au for 2.1 million ounces
o Golden Range MRE 22.9 million tonnes at 1.75g/t Au for 1.3 million ounces
• Capricorn group Ore Reserve Estimate (ORE) at 30 June 2025 was maintained at 4.0 million ounces of gold
after another strong year of production.
o MGGP ORE 95 million tonnes at 0.9g/t Au for 2.74 million ounces
o KGP ORE 53.6 million tonnes at 0.8g/t Au for 1.30 million ounces
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DECEMBER 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
For personal use only
The KGP delivered another strong quarter of operations, producing 30,476 ounces of gold. This result brings half-
year production to 62,794 ounces, placing Capricorn in a strong position to achieve the upper end of FY26
guidance of 115,000 – 125,000 ounces.
The continued achievement of the post expansion mining run rate allowed Capricorn to deliver concurrently the
planned quarterly gold production and the development requirements of the Karlawinda Expansion Project (KEP).
Mining production rates have stabilised at the expanded run rate for the KEP for the last three quarters. Also
contributing was consistent mill performance with throughput of 1,159kt of predominantly fresh ore.
Cash costs before royalties for the quarter were $1,262 per ounce, with an AISC of $1,627 per ounce, reflecting
the increased earthmoving volumes. The FY26 AISC cost guidance of $1,530 - $1,630 per ounce remains
unchanged.
Operating results for the KGP for Q2 were as follows:
Unit Dec25Q Sep25Q Jun25Q Mar25Q
Operations
Ore mined BCM (‘000) 454 430 522 694
Waste mined BCM (‘000) 3,076 2,866 3,137 2,154
Pre-strip mined BCM (‘000) 836 1,216 840 974
Operating stripping ratio w:o 6.8 6.7 6.0 3.1
Total stripping ratio w:o 8.6 9.5 7.6 4.5
Ore mined t (‘000) 1,239 1,214 1,479 1,911
Ore milled t (‘000) 1,159 1,228 1,111 1,013
Head Grade g/t 0.91 0.91 0.99 1.02
Recovery % 89.9 90.3 91.4 91.7
Gold production Oz 30,476 32,318 32,216 30,599
Financial
Net Cash cost A$/oz 1,262 1,353 1,090 1,126
All-in sustaining cost A$/oz 1,627 1,625 1,381 1,390
Net Cash costs and AISC calculated on a per ounce production basis.
Mining
Open pit material mined in Q2 was consistent with the previous quarter at 4.4 million BCM, delivering the required
mining production levels for the KEP. The mining fleet achieved the planned pit face positions to achieve budget
gold production while also delivering the required pre-stripping and infrastructure materials for the expansion
project. Mining production rates have stabilised at the expanded project run rate for the KEP for the last three
quarters. The total stripping ratio for the quarter was 8.6 (w:o) compared to 9.5 in Q1, while the operating stripping
ratio increased to 6.8 (w:o) compared to 6.7 in Q1 as mining of ore tonnes continues to be deferred until the KEP
ROM is established in H2 FY26.
A total of 1.2 million tonnes of ore was mined during the quarter, with ore stocks unchanged at 7.1 million tonnes.
3
For personal use only
Karlawinda Gold Project – Bibra open pit (December 2025).
Processing
Consistent performance at the KGP processing plant continued in the quarter, with 1.16 million tonnes of ore
processed at a head grade of 0.91g/t (Q1: 0.91g/t). Gold recovery remained steady at 89.9%.
Operational Outlook
Mining production rates are expected to remain at similar levels for the coming quarter with a continued emphasis
on pre stripping to expose ore feed for the KEP in the Southern Corridor and Berwick. It is expected that as ROM 2
is completed, an increase in ore delivery can be facilitated in the coming quarters ahead of the KEP
commissioning phase in Q1 FY2027.
4
Corporate
Warriedar Resources Limited Acquisition
In July 2025, Capricorn announced that it had entered into a binding Scheme Implementation Deed under which
was proposed that Capricorn would acquire 100% of the securities in Warriedar Resources Limited (ASX: WA8)
(Warriedar) by way of a Court-approved scheme of arrangement under Part 5.1 of the Corporations Act 2001
For personal use only
(Cth).
On 7 October 2025, Capricorn announced an increase in the consideration payable under the share scheme from
1 Capricorn share for every 62 Warriedar shares to 1 Capricorn share for every 52.75 Warriedar shares (Revised
Share Scheme Consideration).
The schemes were approved by the requisite majorities of Warriedar Securityholders at the share scheme and
option scheme meetings held on 6 November 2025 and were successfully implemented on 25 November 2025.
The acquisition secures Warriedar’s flagship Golden Range Project (GRP), including the Ricciardo gold-antimony
deposit and the Fields Find Gold Project, all located 90 kilometres north of the existing MGGP.
The consolidation of the approximately 788km2 tenure package provides additional resources, exploration
potential and infrastructure to the MGGP.
Cash and Bullion and Gold Sales
During the quarter, Capricorn sold a total of 31,652 ounces achieving an average gold price of $6,333 per ounce
generating revenue of $200.5 million. At the end of the quarter, the Company had 2,542 ounces (Q1: 4,048oz) of
gold on hand valued at $16.6 million.
The KGP generated a record operating ca

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