Rainfall to impact Capricorn guidance

Shares in Capricorn Metals and West African Resources dipped slightly on Friday after both companies provided production updates for the March 2024 quarter.

Capricorn closed trade at $5.19 per share, down 5 per cent, following news that it was likely to meet the bottom end of its annual production guidance for the 2024 financial year, due to substantial rain over the past month at its flagship Karlawinda gold project, located in the Pilbara. 

Capricorn told the market it had produced 26,017 ounces for the quarter, down from 30,399oz during its December 2023 quarter. 

The West Perth-based company said it now expected to produce 112,000-115,000oz for the financial year, which is down from its original annual production guidance target of 115,000-125,000oz.

Despite the lost ounces due to rain, Capricorn executive chair Mark Clark was heartened by the company's cash and gold build throughout the quarter.

"It was pleasing that despite these impacts the operation delivered a cash and gold build of $27.6 million for the quarter before the discretionary capital spend at Mt Gibson," Mr Clark said.

"The residual effects on mining productivity are still being felt and will be our key operational focus in the June quarter to set the project up for a strong operational performance in FY25.”

Over the past few months, Capricorn also reported a $54.3 million net profit after tax up until December 31 2023, which rose from $40.1 million during the prior corresponding period - while it also paid $9.9 million for the installation and supply of expanded accommodation at its Mt Gibson gold project, located 280 kilometres north-east of Perth. 

West African shares closed trade at $1.31 per share, down 1 per cent, after announcing it had produced 56,595oz during its first quarter of the 2024 calendar year at its Sanbrado gold operation in Burkina Faso, down from 58,047 during its final December 2023 quarter.

The Richard Hyde-led company said it was on course to meet its 2024 calendar year annual production guidance of 190,000-210,000oz, after producing 226,823 throughout 2023. 

"Sanbrado delivered another solid quarter of gold production, with our process plant continuing its steady performance and the high grade of ore from the M1 South underground reconciling well to the reserve model," Mr Hyde said.