Fund Manager Summary
The fund managers believe that the outlook for Capricorn Metals Ltd presents both challenges and opportunities. In their opinion, while Capricorn is a quality gold producer with attractive assets, they have decided to exit their position after a strong run in the share price of approximately $8.08. They express concern that Capricorn will soon enter a period of negative cash flow to fund development capital expenditures, which may limit its appeal compared to other investment options in the gold sector. Thus, they believe there are better opportunities available within the market at this time.
Source: Trading View
Commentary From The Managers
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Pendal Group
3 Oct 2025
$13.48
Summary
- Pendal Group emphasizes the simplicity of Capricorn Metals Ltd's operations, highlighting their expertise in Western Australia.
- They are recognized as one of the lowest-cost producers in Australia, supported by a strong management team.
- The company demonstrates significant growth potential, particularly through the Mt Gibson acquisition, funded organically.
- Cash generation capabilities are robust, allowing for potential business doubling without market fundraising.
- The current environment of high AUD gold prices serves as a favorable tailwind for their operations.
- There is a strong alignment between employees, executives, and shareholders, with incentives tied to stock performance.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Pendal Group
3 Oct 2025
$13.48
- Pendal Group emphasizes the simplicity of Capricorn Metals Ltd's operations, highlighting their expertise in Western Australia.
- They are recognized as one of the lowest-cost producers in Australia, supported by a strong management team.
- The company demonstrates significant growth potential, particularly through the Mt Gibson acquisition, funded organically.
- Cash generation capabilities are robust, allowing for potential business doubling without market fundraising.
- The current environment of high AUD gold prices serves as a favorable tailwind for their operations.
- There is a strong alignment between employees, executives, and shareholders, with incentives tied to stock performance.
Summary
Blackwattle Investment Partners
3 Oct 2025
$13.48
- Blackwattle Investment Partners initiated a position in Capricorn Metals Ltd due to the quality of the management team.
- The core team has over 20 years of experience, having worked together across three companies.
- The team operates with a focus on consistency and strong cash flow, producing steady output quarterly.
- Capricorn currently operates one mine and is developing a second, with potential for near tripling of production within two years.
- The expandable nature of their assets is considered very attractive by the fund manager.
- Capricorn is conservative in capital deployment, exemplified by their acquisition of Mount Gibson for approximately $40 million.
- This asset could potentially be valued at close to $2 billion, highlighting the fund manager's confidence in the team's asset management.
- While acknowledging the influence of gold market trends, Blackwattle believes the team's conservative and consistent approach to asset management justifies their investment.
Summary
Akambo
30 Sept 2025
$13.23
- Akambo has added Capricorn Metals (CMM) to its portfolio as a new gold producer.
- Capricorn operates two open pit gold mines in Western Australia: Karlawinda and Mt Gibson.
- Karlawinda is currently in production, yielding 120koz of gold.
- Mt Gibson is expected to restart operations in late 2026, with a production target of 300koz.
- Akambo views Capricorn as a low-cost producer in the gold sector.
Summary
Tyndall Asset Management
31 Mar 2025
$8.08
- Tyndall Asset Management sold their investment in Capricorn Metals after a strong run in the share price.
- Capricorn is considered a quality gold producer with attractive assets.
- Despite its quality, Tyndall believes there are better opportunities in the gold space.
- Capricorn is expected to enter a period of negative cash flow due to funding development capex.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"It appears that while Capricorn Metals boasts quality assets, the looming negative cash flow amid development costs suggests a potential shift in investor focus towards more promising gold opportunities."
Last Updated: 03 Oct 2025
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Frequently Asked Questions
Who is investing in Capricorn Metals Ltd (ASX:CMM)?
Fund managers including Tyndall Asset Management, Blackwattle Investment Partners, Pendal Group and Akambo have invested in Capricorn Metals Ltd (ASX:CMM).
Why do fund managers invest in Capricorn Metals Ltd?
Fund managers have invested in Capricorn Metals Ltd due to its status as a quality gold producer with attractive assets. However, some fund managers, like Tyndall Asset Management, have exited their positions after a strong share price increase, citing concerns over an upcoming period of negative cash flow as the company funds development capital expenditures. This indicates a cautious approach to investment in light of potential financial challenges.
What happened to Capricorn Metals Ltd (ASX:CMM)?
Fund managers are investing in Capricorn Metals Ltd due to its strong management team, low-cost production capabilities, and significant growth potential. The company's focus on operational consistency and cash flow, alongside its strategic assets like the Mt Gibson acquisition, positions it for a near tripling of production within two years. Additionally, Capricorn's alignment with shareholders through stock incentives and its conservative capital deployment further enhance its appeal as a solid investment in the mining sector.