Capricorn Metals Ltd.

Capricorn Metals Ltd. is a mid-tier gold producer headquartered in West Perth, Australia, operating primarily in Australia. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 development project. Key assets include Karlawinda and Mt Gibson. The organization's business model is centered on being a low-cost producer, supported by a sophisticated hedging strategy to manage commodity price volatility. This risk management approach involves the selective close-out of forward contracts and the concurrent purchase of put options, a strategy designed to safeguard against downside price risk while retaining full exposure to potential upside. Operational efficiency is pursued through continuous technical optimization, including enhancements to the processing circuit and trials of new reagents to improve recoveries from various ore types. The enterprise also focuses on proactive infrastructure maintenance and upgrades, such as enhancements to dust suppression systems, to ensure operational integrity and compliance. A forward-looking study is underway to evaluate a significant expansion of plant processing capacity, reflecting a commitment to scalable and efficient long-term production.

Strategic direction is focused on evolving into a multi-mine business through a combination of organic growth and the advancement of a key development project. A core element of this strategy involves progressing the development asset by expediting project design and securing long-lead items in parallel with receiving environmental and development permits, aiming to optimize the ultimate construction schedule and costs. Organic growth is driven by systematic and extensive exploration programs across the company's tenement packages, including reserve conversion drilling and regional drilling targeting specific geological settings. Capital allocation is disciplined, with significant investment directed towards exploration and feasibility studies to underpin future growth. The company also actively pursues inorganic growth opportunities that align with its objective of building a high-quality, multi-asset portfolio that delivers long-term stakeholder value.

Executive leadership is spearheaded by an Executive Chairman with over 30 years of corporate advisory and public company management experience, including a track record of successfully developing and operating multiple mines with previous entities. The board of directors is composed of 5 members, 4 of whom are independent, ensuring robust oversight. In fiscal year 2024, the board's governance structure was enhanced by restructuring the Audit and Risk Management Committee into two separate bodies: an Audit Committee and a Risk Management and Sustainability Committee, alongside the existing Remuneration, Nomination and Diversity Committee. This structure provides specialized oversight of financial reporting, non-financial and sustainability risks, and human capital strategy. Board members possess extensive experience in geology, metallurgy, finance, and corporate law within the resources sector.

The sustainability framework is guided by management systems for environment and safety aligned with international standards ISO14001 and ISO45001, respectively. A key governance development in fiscal year 2024 was the establishment of a dedicated Risk Management & Sustainability Committee to provide board-level oversight. Environmental stewardship initiatives include a comprehensive water operating strategy, biannual groundwater-dependent vegetation assessments, and a topsoil rehabilitation inspection program. The company completed 13 cultural heritage surveys in collaboration with Traditional Owners during the year. In workplace health and safety, the organization achieved zero lost-time injuries, and 84% of supervisors completed a specialized safety leadership training program. Future development studies are incorporating assessments of renewable energy sources like solar and wind to reduce reliance on fossil fuels.

A material change to the corporate structure occurred in July 2021 with the acquisition of a significant development project. The group operates through several wholly-owned subsidiaries, including Greenmount Resources Pty Ltd and Crimson Metals Pty Ltd, which hold the primary operational and exploration tenements. A deed of cross guarantee is in place between the parent entity and its key subsidiaries, under which each company guarantees the debts of the others. As of September 2024, substantial shareholders with holdings above 5% include Van Eck Associates Corporation, Paradice Investment Management Pty Ltd, and T. Rowe Price Associates, Inc., indicating a strong institutional investor base. The company has no joint ventures and maintains full ownership and operational control of its assets.