Vault Minerals Posts 98,459 Ounces Gold in Q4, Boosts Cash Flow by A$92 Million

Strong Quarterly Performance Amid Strategic Growth

Vault Minerals Limited (ASX, VAU) has reported a solid finish to FY25 with a June quarter gold production of 98,459 ounces, marking a 13% increase quarter-on-quarter. The company achieved sales of 95,976 ounces at an average realised price of A$4,219 per ounce, despite delivering 37,085 ounces into its hedge book at a lower average price of A$2,780 per ounce. This performance contributed to an underlying free cash flow of A$92.3 million for the quarter, bolstering the company’s cash and bullion reserves to nearly A$686 million, all while maintaining a debt-free balance sheet.

For the full fiscal year, Vault produced 380,985 ounces of gold, with sales slightly exceeding production at 385,232 ounces. The all-in sustaining cost (AISC) for FY25 was A$2,422 per ounce, reflecting operational efficiencies across its key assets, Mount Monger, Deflector Region, and Leonora.

Operational Highlights and Cost Dynamics

Mount Monger saw a 36% increase in quarterly production to 24,529 ounces, supported by improved ore grades and reduced strip ratios at the Santa Open Pit Complex. The AISC here was A$2,522 per ounce, benefiting from higher gold sales and stable processing costs.

Conversely, the Deflector Region experienced a rise in unit costs to A$2,931 per ounce, driven by a new mining services agreement with higher contract rates and the drawdown of stockpiles. Production was 24,732 ounces of gold and 141 tonnes of copper, with ongoing capital development at the Spanish Galleon mining front setting the stage for increased output in FY27.

Leonora maintained its strong output with 49,198 ounces produced in the quarter. The region’s AISC rose to A$2,591 per ounce, partly due to a revaluation of long-term stockpiles and elevated strip ratios. Notably, the King of the Hills (KoTH) open pit Ore Reserve grew by 33% to 2.2 million ounces, supporting an accelerated Stage 2 plant upgrade that will increase throughput capacity by 50% to 7.5 million tonnes per annum by late FY27.

Growth Initiatives and Exploration Momentum

Vault is actively investing in growth, with A$46.5 million spent in the quarter on capital projects including the KoTH plant upgrades and elevated waste stripping. The Stage 1 upgrade is progressing on schedule, with major civil works and tank erection underway, while long-lead equipment for Stage 2 has been ordered.

Exploration drilling has intensified, particularly underground at Leonora, with four rigs now operational and a planned doubling of resource definition drilling metres in FY26. Surface drilling at Sugar South targets extensions of high-grade mineralisation, complementing ongoing efforts to expand the mine corridor and prepare for the Southern Tailings Management Facility construction starting in mid-2027.

Financial Position and Hedging Outlook

The company’s hedge book stands at 132,504 ounces, set for delivery over the next 15 months at an average price of A$2,876 per ounce. Scheduled deliveries will taper off in the second half of FY26, positioning Vault to exit FY26 with minimal hedging and greater exposure to spot gold prices. The interim stamp duty payment of A$30.9 million related to the Silver Lake Resources merger was settled during the quarter, aligning with prior provisions.

FY26 production and cost guidance are expected to be announced in the September quarter, with market watchers keen to see how the accelerated plant upgrades and exploration results translate into operational performance and cost management.