Capricorn Metals Sees Higher Gold Prices Offset by Rising Costs

Capricorn Metals, an Australian gold miner, has reported mixed results for its Karlawinda mine in Western Australia. In the quarter ending June 30th, the mine produced 30,437 ounces of gold, slightly lower than a year earlier. However, the company sold 34,271 ounces at an average price of AU$6,267 per ounce, up from AU$5,137 in the prior corresponding quarter.

The all-in sustaining cost (AISC) for Karlawinda rose to AU$1,648 per ounce from AU$1,381. Looking ahead, Capricorn expects 137,000-147,000 ounces of production next fiscal year, with costs climbing to AU$1,900-AU$2,100 per ounce.

The company's cost guide matters as much as its production target, according to investors. With higher gold prices helping every producer, the spotlight is on costs. AISC quoted per ounce means that every AU$1 increase is an AU$1 hit to cash margin on each ounce sold.