The Vault Minerals Ltd (ASX: VAU) share price is in focus after the company posted its June quarter results, capped by full-year gold production within guidance and significant growth initiatives.
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What did Vault Minerals report?
- Quarterly gold production: 89,338 ounces, sales of 87,922 ounces at an average realised sales price of A$6,311/oz and AISC of A$2,968/oz
- FY26 gold production: 336,540 ounces, sales of 334,901 ounces, average realised price A$5,557/oz, AISC of A$2,924/oz
- Underlying free cash flow: $219.2 million for the quarter
- Closing FY26 cash and bullion: $841.6 million, no debt or hedge exposure
- Shareholder returns: $74.3 million via maiden dividend and buybacks
- FY27 guidance: 355,000–375,000 ounces at AISC of A$3,150–A$3,350/oz
What else do investors need to know?
The quarter was a transformational one for Vault, highlighted by the announced merger with Genesis Minerals Ltd (ASX: GMD), which aims to consolidate Leonora operations and create a top 20 global gold producer, pending customary approvals.
Operationally, Vault closed FY26 on a strong note, achieving production guidance despite AISC finishing marginally above the guided range. Major growth capital was directed towards the ongoing KoTH plant upgrade, waste stripping, new mining fleet, and explorations, signalling management's commitment to expanding production capacity.
The KoTH Stage 2 processing plant upgrade is ahead of schedule and due for commissioning in September 2026, anticipated to deliver a significant lift in gold output from Leonora. The company also advanced regulatory and development milestones at the Sugar Zone project, clearing the path for future production ramp-up.
What did Vault Minerals management say?
Managing Director Luke Tonkin said:
This result represents a strong operational and financial finish to the year. The upcoming merger with Genesis positions Vault as a key player in the global gold sector, while our investments in growth ensure we're set up for further success.
What's next for Vault Minerals?
Vault has outlined standalone FY27 guidance for 355,000 to 375,000 ounces of gold at an AISC between A$3,150 and A$3,350 per ounce, with mid-point guidance implying 8% year-on-year growth. FY28 standalone guidance anticipates further uplift, targeting 380,000 to 400,000 ounces.
The upcoming KoTH upgrade is set to increase Leonora output and reduce costs. Development activity at Sugar Zone is expected to ramp up in FY27 ahead of targeted gold production commencement in Q1 FY28. Exploration and targeted capital expenditure remain core to Vault's growth strategy.
Vault Minerals share price snapshot
Over the past 12 months, Vault Minerals shares have risen 103%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
