A strong operational performance at the Karlawinda gold project (KGP) in the Pilbara drove Capricorn Metals to achieve a record half-year profit before tax.

The gold miner’s profit before tax increased by 35 per cent to $78.8 million and its gold sales increased by seven per cent to 60,341 ounces.

The company’s gold revenue also increased by 25 per cent, with the 60,341 gold ounces being sold at an average price of $3010 per ounce.

“A further 1033 ounces of gold bullion on hand was subsequently sold in January 2024 for $3.1 million,” Capricorn said.

Capricorn mined 2.9 million tonnes (Mt) of ore at 1.01 grams per tonne gold at KGP during the half-year, with a little over 2Mt of ore milled.

The company’s gold production of 60,099 ounces at an all-in sustaining cost (AISC) of $1324 per ounce positions the company to achieve its 2023­–24 financial year (FY24) production guidance of 115,000–125,000 ounces at AISC of $1270–$1370 per ounce.

“The KGP had a strong first half of operations producing 60,099 ounces at an AISC of $1324 per ounce, consolidating its reputation as one of Australia’s lowest cost gold mines,” Capricorn said.

“(KGP) is on target to achieve the annual production guidance range of 115,000–125,000 ounces. The AISC production for the half-year was … at the midpoint of the AISC guidance range for the year of $1270–$1370 per ounce.”

Capricorn’s gross operating profit of $1521 per ounce translated to $50.5 million in cash build for the half year, with about $15.9 million spent on exploration and feasibility activities at Mount Gibson and Karlawinda.

Capricorn closed out the half-year with strong cashflow of $80.3 million, $160.1 million in cash and bullion, and a net cash position of $110.1 million, with $50 million in bank debt.

The gold company also delivered a strong financial performance for the December 2023 quarter, despite some production setbacks.