Capricorn Metals Targets 500,000 Ounces Annual Gold Output with Mt Gibson and Karlawinda Projects Fueling Mid-Tier Expansion

Karlawinda Gold Project Expansion Approaches Completion, Marking New Growth Phase

Capricorn’s Karlawinda Gold Project in Western Australia has matured into a reliable, high-quality operation and is poised for a significant production increase. The project delivered 123,589 ounces of gold in FY26, showcasing operational consistency. The ongoing KGP expansion will boost processing capacity from 4 million to 6.5 million tonnes per annum, with commissioning planned for Q1FY27, representing a substantial capacity enhancement.

Post-expansion, KGP’s gold output is projected to reach about 150,000 ounces per year, forming a solid base for Capricorn’s medium-term growth ambitions. The mine life at KGP extends beyond 10 years at this production level, ensuring sustained cash flow from this asset. Announced on 29 October 2024, this expansion is a cornerstone of Capricorn’s combined production forecast exceeding 400,000 ounces annually, reinforcing investor confidence in near-term delivery.

Mt Gibson Gold Project Prefeasibility Study Highlights 260,000 Ounces Annual Steady Production

The Mt Gibson Gold Project’s prefeasibility study, released on 27 July 2026, confirms MGGP as a strong development prospect for Capricorn, providing detailed financial and operational insights. The study projects steady-state gold production averaging 260,000 ounces annually from integrated underground and open pit mining during the four full years of underground operations. The design leverages dual mining methods to optimise ore extraction and milling feed consistency. The 19.25-year mine life averages 190,000 ounces annually over 18 years, offering a lengthy production horizon for an Australian gold development.

Financial analysis within the PFS indicates robust economics assuming a gold price of A$5,500 per ounce. MGGP is forecasted to generate A$19.3 billion in revenue over its life, with pre-tax free cash flow estimated at A$12 billion. The all-in sustaining cost (AISC) is projected at A$1,870 per ounce, placing MGGP competitively on the global cost curve. A rapid pre-tax payback period of 14 months underscores strong early cash flow upon production start. On an after-tax basis with a 7.5% discount rate, MGGP’s net present value is A$6.1 billion, signaling significant value potential for Capricorn shareholders.

Group Gold Ore Reserves Rise to 5.24 Million Ounces Reflecting Resource Expansion

Capricorn reported notable increases in ore reserves and mineral resources following comprehensive assessments. Group gold ore reserves now total 5.24 million ounces, with mineral resources at 8.66 million ounces, evidencing substantial growth in the company’s mineral inventory. These reserve estimates are based on conservative gold price assumptions ranging from A$2,200 to A$2,600 per ounce, supporting prudent forward planning. Details are provided in the company’s update titled "Capricorn Gold Reserves Increase To 5.2 Million Ounces" dated 27 July 2026.

The reserve and resource growth stems from ongoing exploration and definition drilling successes at both KGP and MGGP. Underground resource definition at MGGP has notably expanded the mine plan and reserve life. These increases underpin the Range 500 aspiration and demonstrate Capricorn’s capability to enhance reserves through operational exploration. Such reserve growth is significant within the Australian gold mining sector and reduces long-term production risk.

Golden Range Project Acquisition and Second Processing Hub Study Enhance Production Potential

In 2025, Capricorn acquired the Golden Range Project assets from Warriedar, adding 1.38 million ounces of measured and indicated gold resources. Located 65 to 100 kilometres north of Mt Gibson, Golden Range’s proximity to MGGP supports operational synergies while maintaining project identity. Geological and spatial factors have prompted evaluation of optimising production and mine life by potentially transporting higher-grade material from Golden Range northward instead of lower-grade material southward within MGGP’s mine plan.

Capricorn has commenced technical and economic feasibility studies for a second processing hub at Golden Range, covering plant and infrastructure installation, permitting, regulatory compliance, and financial modelling of capital and operating costs. Preliminary results are expected in Q2FY27, allowing detailed analysis before advancing to prefeasibility and final investment decisions targeted for 2027. Concurrently, aggressive resource definition and extension drilling at Golden Range’s open pit targets and MGGP’s underground zones will support these development efforts.

Range 500 Aspiration Sets Five-Year Growth Goal in Australian Mid-Tier Gold Sector

Range 500 represents Capricorn’s goal to increase gold production to 500,000 ounces annually within five years. The company clarified that this is an aspirational target, not a production forecast, and currently lacks reasonable grounds to confirm its feasibility. The aspiration is based on KGP expansion delivering 150,000 ounces annually, MGGP’s steady production of 260,000 ounces, and potential growth at Golden Range pending study outcomes.

Executive Chairman Mark Clark highlighted that the medium-term combined production outlook already exceeds 400,000 ounces annually. He described the pursuit of 500,000 ounces through optimising Mt Gibson and Golden Range as a major value creation opportunity, potentially positioning Capricorn uniquely within Australia’s mid-tier gold mining industry. The five-year aspiration provides a framework for stakeholder engagement and strategic planning, with transparent acknowledgment of execution risks and commodity price uncertainties.

Mt Gibson Gold Project Capital and Development Timeline Support Growth Ambitions

MGGP’s prefeasibility study estimates development capital at A$345 million for plant and infrastructure, plus A$129 million for pre-production activities, totaling approximately A$474 million. These figures underpin the life-of-mine financial modelling and are subject to refinement during ongoing feasibility phases. Investors will assess capital intensity relative to projected economic returns and production profiles.

MGGP’s capital deployment and production commencement mark critical milestones in Capricorn’s growth. The combined group production is expected to exceed 400,000 ounces annually within 2.5 years of MGGP start, anticipated in FY27 to FY28. This timeline allows KGP to reach its expanded 150,000-ounce run rate while MGGP production ramps up. Capital deployment sequencing and production build-out will be refined as MGGP advances through feasibility and construction stages. Investors are likely to monitor quarterly updates on project progress and capital expenditure closely.

Conservative Gold Price Assumptions Underpin Ore Reserve Estimates Amid Commodity Price Exposure

Capricorn’s ore reserve estimates use conservative gold prices of A$2,200 to A$2,600 per ounce, providing a cautious basis for reserve definition under current accounting standards. This contrasts with the A$5,500 per ounce assumption used in MGGP’s prefeasibility financial modelling, distinguishing reserve estimation from project economic analysis. This pricing gap ensures reserves remain robust even if gold prices decline, while project economics benefit from higher price assumptions.

The company’s exposure to gold price fluctuations affects both reserve revisions and project economics. The PFS’s A$5,500 per ounce assumption significantly influences financial outcomes; downside price scenarios would reduce free cash flow and net present value, whereas price increases could enhance economics and support accelerated expansion. Medium-term commodity prices and Australian dollar exchange rates remain key factors in achieving production and value creation goals within the Range 500 framework.

Execution and Development Risks Integral to Range 500 Growth Strategy

Capricorn acknowledges significant execution risks and uncertainties linked to the Range 500 aspiration and related project developments. The company transparently states it lacks reasonable grounds to believe the target is achievable, reflecting prudent risk disclosure. Technical challenges include expanding KGP processing capacity and initiating MGGP underground and open pit mining, with risks around mine planning, plant performance, and supply chain reliability. Permitting and regulatory hurdles may arise for the Golden Range second processing hub, necessitating additional environmental assessments and approvals.

Financial risks extend beyond commodity price volatility to include capital cost inflation, mining cost increases, and metallurgical recovery variations. The MGGP prefeasibility study’s risk disclosures, detailed in the "Compelling Mt Gibson PFS Update" dated 27 July 2026, provide further project-specific analysis. Financing risks may emerge if capital markets weaken or external funding is required for MGGP development. Investors should carefully consider all risk factors and disclosures when evaluating the aspirational Range 500 target.

Investor Conference Call and Webcast Facilitate Market Engagement

Executive Chairman Mark Clark hosted an investor conference call at 8:30am AWST on 27 July 2026 to discuss FY26 ore reserve updates, MGGP prefeasibility study results, and the Range 500 aspiration. A webcast link was provided for those unable to attend live, ensuring broad access to management insights and presentation materials. Institutional investors and analysts use such events to clarify project timelines, capital plans, and management confidence in forward-looking statements.

This dedicated investor engagement underscores Capricorn’s commitment to transparent communication with financial markets and shareholders. Stakeholders tracking progress toward Range 500 and development milestones can consult quarterly operational updates, annual reports, and project announcements. Ongoing investor relations disclosures and regulatory filings offer continuous access to relevant project and financial information, aiding assessment of Capricorn’s strategic execution and value creation.