Image: Capricorn Metals
Capricorn Metals (ASX: CMM) is rapidly scaling up operations at its flagship Karlawinda gold project in Western Australia, backed by a newly secured contract with MACA Limited to construct a plant expansion that will elevate processing throughput to 6.5 million tonnes per annum. This development kicks the company’s combined gold production—including Mt Gibson—over the 300,000-ounce-a-year milestone.
Key Highlights
Mining Expansion and Plant Upgrade
MACA awarded the earthworks, civil and concrete scope for the Karlawinda Expansion Project (KEP)
A$120 million capital investment will upgrade processing capacity from ~4.5 Mtpa to 6.5 Mtpa by mid-2026
Production Forecasts and Volumes
- FY2025 projected output: ~113,000 ounces from Karlawinda
- Post-expansion target: Once the expansion is complete, Karlawinda is expected to deliver around 150,000 ounces of gold annually, significantly increasing its contribution to Capricorn’s total output.
- With Mt Gibson coming online, Capricorn’s combined gold production is forecast to exceed 300,000 ounces per year, positioning it among the top mid-tier producers in Australia.
Contractor & Project Status
MACA’s Role in Project Delivery: MACA, with a strong track record in delivering gold infrastructure across Western Australia, has been tasked with civil and concrete works at Karlawinda’s expansion site.
Project Timeline and Alignment: Construction activities are scheduled to wrap up by the second quarter of 2026, in line with key milestones outlined in Capricorn’s pre-feasibility study.
Reserve Growth and Resource Base
- August 2024 Ore Reserve uplift: +330,000 ounces post depletion; total ~1.43 Moz remaining
- Karlawinda’s life-of-mine extends to 13 years, with further resource upside at Berwick, Vedas, Mumbakine Well and Carpark targets
Financing & Capital Structure
Institutional placement of A$200 million at A$6.00/share in November 2024 secured funding for KEP and Mt Gibson development
Funds allocation: A$55 million to Karlawinda, A$85 million to Mt Gibson, rest for working capital and engineering procurement
Operational Metrics & Costs
Recent quarterly production (March 2024): 26,017 oz at an AISC of A$1,515/oz
FY24 guidance (Karlawinda) remains within 115–125 koz range, with ~A$160 million in cash and bullion on hand
Project Overview Map
Karlawinda Exploration & Expansion – showing processing plant location, proposed MACA expansion zone, key drill targets like Berwick & Vedas, alongside Mt Gibson proximity. Source: Capricorn Metals
Strategic Rationale & Market Impact
Capricorn’s expansion strategy hits several sweet spots. By scaling its processing plant to 6.5 Mtpa, the company taps into economies of scale, driving down unit costs while elevating gold output and free cash flow. Capricorn’s choice to engage MACA reflects confidence in a contractor known for reliably delivering large-scale civil works across Western Australia’s gold sector. The infusion of A$200 million equity ensures funding stability without raising debt, enabling the simultaneous development of Mt Gibson through existing cash flow.
Industry analysts note Capricorn’s position is unique: with planned combined production exceeding 300,000 ounces per year and a reserve base totalling 3.3 Moz, it is among the highest growth-rate pure-play Australian gold producers . Executive Chairman Mark Clark has underscored the low-cost, long-life nature of both projects as central to delivering industry-leading returns.
Also Read: The Battle for Mount Isa: Can Australia Save Its Copper Backbone?
What Comes Next
MACA Engineering and Construction: Progressive site mobilization in late 2025, with full plant ramp-up by mid-2026
Resource Conversion: Targeted drilling at high-return zones to upgrade Inferred resources and extend mine life beyond 13 years
Mt Gibson Advancement: Permitting and Pre-Feasibility Studies are underway—with initial outputs expected to contribute by FY27
Cost Control: Maintain AISC in the low A$1,xxx/oz range, leveraging scale and optimizing life-of-mine plans
Conclusion
Capricorn Metals’ contract with MACA for civil works at the Karlawinda project marks a pivotal step in its transformation into a regional gold powerhouse. With clear expansion targets, well-funded growth, and disciplined execution, CMM is laying the groundwork for a sustained production increase and margin lift. As gold prices hold steady and global demand remains robust, Capricorn appears well placed to translate scale into long-term shareholder value—anchored by its commitment to both operational excellence and regional development.
