Capricorn Metals Delivers Strong Q3FY23 result and Outstanding Cash Generation

Highlights:

• Capricorn Metals Limited has released an update on the Karlawinda Gold Project's Q3FY23 operations.
• The Q3FY23 performance shows a significant improvement from the Dec22Q and Sep22Q results.
• Capricorn remains confident in its ability to achieve its FY23 guidance

Capricorn Metals Limited has released an early report on the Karlawinda Gold Project's (KGP) Q3FY23 operations, showing another excellent quarter of operations. The Company reported producing 30,841 ounces of gold, with a year-to-date gold production of 91,156 ounces. The Q3FY23 performance puts Capricorn on track to achieve the mid-point of FY23 guidance of 115,000 – 125,000 ounces.

About Karlawinda Gold Project:

Capricorn Metals Limited has released an update on the Karlawinda Gold Project's Q3FY23 operations, located in the Pilbara region of Western Australia, about 65 km southeast of Newman. The project is underlain by a mostly unexplored belt of Archaean-aged greenstone rocks, which were discovered in 2005, and the bedrock geology at the KGP is usually obscured by a thin cover of sandy soil up to 2m thick.

The Bibra deposit, which is part of a large-scale Archaean gold mineralising system, is developed on four main parallel, shallow dipping structures. Oxide gold mineralisation has been developed over the structures from surface to a depth of approximately 60m. The KGP processing plant, whose construction began in December 2019 and was completed in June 2021, has a throughput capacity of 4.5 – 5.0 mtpa in the oxide/fresh ore blend in the first 3 years and 4.0 – 4.5 mtpa in solely fresh rock ore in years 4 and beyond.

Despite the significant operating challenges late in Q3, including a major weather event that disrupted mining operations in the Bibra open pit for seven days and an unscheduled two-day mill shutdown to repair a plant electrical fault, the KGP delivered another excellent quarter of operations, producing 30,841 ounces of gold.

KGP’s Q3FY23 Operations Performance

The KGP's Q3FY23 operations delivered a strong performance despite significant operating challenges, including a major weather event that disrupted mining operations in the Bibra open pit for seven days and an unscheduled two-day mill shutdown to repair a plant electrical fault. The following operational highlights demonstrate the KGP's strong performance:

• Ore milled t (‘000): 1,022
• Head Grade g/t: 1.02
• Recovery %: 91.6
• Gold production Oz: 30,841

The Q3FY23 performance shows a significant improvement from the Dec22Q and Sep22Q results, indicating the KGP's continued operational strength.

Outstanding Cash Generation

Capricorn's strong cash generation is also worth noting. The Company's cash and gold on hand at the end of March 2023 was AU$ 119.5 million, representing an increase of AU$ 27.8 million from the prior quarter. The net cash position at 31 March 2023 was $69.5 million, which is a significant improvement from the previous quarter's AU$ 41.7 million.

This robust cash build reflects the KGP's continued strong operational margins, highlighting the Company's ability to generate cash and increase its net cash position.

Future Outlook

Capricorn remains confident in its ability to achieve its FY23 guidance of 115,000 – 125,000 ounces of gold. Despite the significant operating challenges faced in Q3FY23, the Company expects no significant impact on production in Q4.

Full operational and cost details will be provided in the Quarterly Report, which is scheduled to be released later in April 2023.

Conclusion

The strong performance achieved despite significant operating challenges highlights the KGP's robustness and positions Capricorn to achieve its FY23 guidance of 115,000 – 125,000 ounces of gold. The Company's continued cash build reflects the KGP's strong operational margins, highlighting Capricorn's ability to generate cash and increase its net cash position.

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