Capricorn Metals (CMM) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of $359.8 million from 112,853 ounces of gold sold at $3,185/oz average price, with profit after tax rising to $87.1 million from $4.4 million in FY23, which was impacted by hedge closure costs.

• Underlying profit after tax was $87.1 million, in line with FY23 ($85.8 million), reflecting strong operational performance at Karlawinda Gold Project (KGP).

• Record operating cash flow of $158.2 million and EBITDA of $168.3 million, supporting significant exploration and early development spend at Mt Gibson Gold Project (MGGP).

• Net cash position increased to $69.3 million after $69.6 million spent to partially close gold hedge book and purchase put options.

Financial highlights

• Sales revenue grew 12% year-over-year to $359.8 million; EBITDA up 4% to $168.3 million; gross profit rose to $157.0 million.

• Profit before tax surged to $125.7 million (from $9.2 million), with net profit after tax at $87.1 million (up from $4.4 million), mainly due to lower hedge-related finance costs.

• Basic EPS increased to 23.13 cents (from 1.18 cents); EBITDA margin was 47% (down from 50%).

• Cash and cash equivalents at year-end were $119.9 million; net cash rose to $69.3 million.

Outlook and guidance

• FY25 gold production guidance for KGP is 110,000–120,000 ounces at an AISC of $1,370–$1,470/oz, with growth capital of $10–$20 million.

• MGGP expected to average 155,000 ounces per annum over first 9 years at forecast AISC of $1,450–$1,550/oz, pending environmental approvals.