Capricorn Metals (ASX:CMM) delivered "robust and consistent" performance in the June quarter with gold production of around 30,000 ounces, and enters fiscal 2027 with strong operating momentum, Jarden said in a late Tuesday note.
The investment firm raised its financial forecasts for Capricorn and now expects the company to report a fiscal 2026 net profit after tax of AU$286 million on revenue of AU$769 million.
The company guided for fiscal 2027 production of 137,000 to 147,000 ounces, but that outlook appears conservative, Jarden said. The equity research firm maintained its forecast at 150,000 ounces on an expectation that the expanded Karlawinda mill will outperform rated capacity.
Capricorn Metals is a high growth gold producer with more than AU$500 million of net cash on its balance sheet and "immense potential upside from exploration and development activities," Jarden said.
The company "remains our preferred gold exposure for absolute and relative valuation appeal, sector-leading growth, and strong management," it added.
Jarden maintained a buy rating on Capricorn Metals with a target price of AU$16.50.
The company's shares gained nearly 6% in recent Wednesday trade.