The Vault Minerals Ltd (ASX: VAU) share price is in focus today after the company released its September 2026 quarterly activities report. Highlights include gold production of 76,849 ounces for the quarter and a strong underlying free cash flow of $95.7 million, closing with cash and bullion of $886.7 million.
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What did Vault Minerals report?
- Gold production: 76,849 ounces for the quarter
- Gold sales: 79,085 ounces at an average realised price of A$6,023 per ounce
- All-in sustaining cost (AISC): A$3,529 per ounce
- Underlying free cash flow: $95.7 million (before $50.7 million break fee for merger termination)
- Cash and bullion at quarter end: $886.7 million; no corporate debt
- FY27 guidance: 355,000 to 375,000 ounces at AISC of A$3,150 to A$3,350 per ounce
What else do investors need to know?
During the quarter, Vault completed the stage 2 King of the Hills (KoTH) processing facility upgrade ahead of schedule and on budget. Commissioning started in October, with performance testing set for late October and full commissioning expected shortly thereafter.
The company maintained solid operations across its key regions. Leonora delivered 44,467 ounces at a notably low AISC of A$2,885 per ounce, offsetting softness in underground operations due to manning and equipment constraints. Progress continues at Sugar Zone, with underground mining ramping up and staffing increased by 87% this quarter.
The proposed merger with Genesis Minerals Limited is proceeding, with the scheme on track for late November 2026. A scheme booklet has been released, and an independent expert found the deal in the best interests of Vault shareholders, in the absence of a superior offer.
What did Vault Minerals management say?
Luke Tonkin, Managing Director, commented:
The September quarter delivered key milestones at Vault's two growth projects, with the advancement of the stage 2 KoTH processing facility upgrade and the first full quarter of underground activities at Sugar Zone. The investment in these growth projects will help ensure that the Vault operations deliver the targeted outcomes as part of the merger with Genesis.
What's next for Vault Minerals?
Vault expects to commission the upgraded KoTH facility in the coming quarter, supporting its growth ambitions and FY27 production guidance. The implementation of the merger with Genesis will consolidate Vault's and Genesis's Leonora operations under single ownership, aiming for increased scale, liquidity and market relevance.
Investors can look for progress updates in coming months as Vault continues its underground ramp-up at Sugar Zone and fully integrates recent capital upgrades across its key assets.
Vault Minerals share price snapshot
Over the past 12 months, Vault Minerals shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.
