Capricorn Metals has switched on its expanded Karlawinda gold operation in Western Australia, delivering 31,218oz in the September 2026 quarter and lifting cash and gold on hand to $535.0 million. The company said the expansion was commissioned on time and within budget, which matters in a sector where cost blowouts have punished ASX gold investors before.
Karlawinda expansion reaches steady state
Capricorn reported that the upgraded plant reached its 6.5 million tonnes per annum throughput rate during the quarter. Output edged up from 30,437oz in the June quarter, while gold sales of 27,516oz were struck at an average realised price of $6,115 per ounce, generating $168.3 million of revenue. All-in sustaining costs rose to $2,005 per ounce from $1,648, a step up the market will watch closely. FY27 guidance is 137,000oz to 147,000oz at $1,900 to $2,100 per ounce. Even at the top of that range, margins sit well above peers such as Northern Star, which reported costs of $3,217 per ounce for the same period.
Mt Gibson moves closer to a decision
The bigger long-term story is Mt Gibson. Capricorn received federal EPBC approval and has lodged its environmental review for state assessment. The prefeasibility study outlines a 19.25 year mine life, about 260,900oz a year at steady state, and a pre-tax net present value of $6.1 billion on a $5,500 gold price, according to the company’s ASX quarterly report. Capricorn also posted a record FY26 underlying pre-tax profit of $467.5 million, declared a 5 cent final dividend, and sold its Big Springs asset for up to $26.0 million.
What it means for ASX gold investors
The result shows that mid-tier producers with low-cost, long-life assets can still generate strong cash while gold trades well off its highs. Strong investor demand has helped, with World Gold Council data pointing to resilient flows, a trend we covered in our gold ETF inflows report. Key risks remain, including rising unit costs, approval timing for Mt Gibson, and exposure to the gold price. Investors comparing producers may also want to review how Ramelius handled its own quarter.
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