PERTH (miningweekly.com) – ASX-listed Capricorn Metals has reported record gold production for the June quarter, following the first full year of operations at its Karlawinda gold project, in Western Australia.
Capricorn produced 32 018 oz of gold in the June quarter, with Karlawinda producing 118 432 oz for the full year ending June, which was at the upper end of the guidance of between 110 000 oz and 120 000 oz.
Capricorn reported that cash and bullion holdings increased to A$66-million at the end of the June quarter.
Based on the strength of the Karlawinda life-of-mine outlook, Macquarie has agreed to convert the A$50-million outstanding to a general-purpose corporate loan facility with a single bullet repayment in June 2025. Capricorn can elect to early repay, in part or in full, the loan at any time without penalty.
“The continued strong operational performance and outlook for the Karlawinda gold project have put Capricorn in an excellent position to create balance sheet flexibility by converting the project loan facility to a general purpose, medium-term corporate loan facility. This provides a great platform to pursue the outstanding growth opportunities at both the Karlawinda and Mt Gibson gold projects and also to continue our active assessment of external growth opportunities,” said executive chairperson Mark Clark.
Meanwhile, 30 000 oz of gold forward sale contracts with an average delivery price of A$2 247/oz have been rolled from July 22 to December 22 to between December 25 and June 26 to align with the maturity date of the new corporate loan facility.