Capricorn Metals has recorded strong half-yearly results with pre-tax profits of $58.3 million, up 13 per cent from the previous corresponding period.
The company’s quarterly report showed that gold production was up ten per cent to 60,315 ounces due to a strong six months of operations at the Karlawinda Gold Project, despite industry-wide inflationary pressures.
Half-yearly gold production of 60,315 ounces puts Capricorn on track to achieve financial production guidance for FY23 of 115,000–125,000 ounces.
Gold revenue reportedly increased by 16 per cent, with gold sales of 56,218 ounces at an average delivery price of $2,587 per ounce. A further 5,196 ounces of bullion on hand was subsequently sold in January 2023 for $13.9 million.
Cashflow from operations was recorded as $65.3 million, with a net cash position of $41.7 million.
The report also included operations reviews for some of the company’s ongoing projects.
Mining activities at the Karlawinda Gold Project were temporarily suspended following a tragic fatality at the Bibra open pit in October 2022. Accordingly, mining volumes were significantly lower than scheduled for the first six months of the year.
Despite this, said mining activities are expected to increase in the second half of the year as three mining fleets (six digger shifts) are fully utilised and a seventh digger shift is implemented.
The Mt Gibson Gold Project saw a total of 50,903 metres of drilling with 397 holes (including sterilisation drilling) during the half year. It takes the total drilled metres for the 12 months to 31 December 2022 to 138,246 metres and 957 holes.
