Understand more about the companies that you invest in through the portfolio.
Capricorn Metals (ASX:CMM)
A portfolio stock in focus for Solaris is Capricorn Metals. Leading Western Australia gold producer with a very strong balance sheet, low costs and founder led, which helps ensure strong capital allocation. Importantly, Capricorn Metals has a strong history of operational excellence hitting their production and costs guidance, which is a real differentiator compared to their gold mining peers.
Solaris expects Capricorn Metals to benefit from:
• Strong growth profile in the coming years as their Mt Gibson growth project in WA comes into commissioning.
• Mt Gibson is a large open pit operation with low costs and expandable. The market is missing the underground opportunity which is still being drilled out and understood from a geology perspective. We believe this will drive earnings upgrades over the coming 12 months.
• The current operating mine, Karlawinda, is performing strongly and is also expanding production. When brownfields operations such as Karlawinda identify expansion opportunities, it’s one of the most accretive opportunities for mining companies to create value because of the low-risk nature of the capex spend.
• Management are very experienced operators and one of the best capital allocators in the sector. The Chairman owns 4% of the company, which we believe gives strong alignment.
Source: Solaris Investment Management, June 2025
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