Vault Minerals Surges to A$237M Profit, Accelerates King of the Hills Expansion
Vault Minerals reports a robust FY25 with A$1.43 billion revenue and a net profit of A$237 million, driven by full-year integration of Silver Lake Resources and operational advances. The company outlines a strategic two-stage expansion at King of the Hills and maintains a strong cash position post debt repayment.
- FY25 revenue jumps 131% to A$1.43 billion
- Net profit after tax of A$237 million versus prior year loss
- 385,232 ounces of gold sold at A$3,684/oz average price
- King of the Hills Ore Reserves increase by 33%
- Debt fully repaid, cash balance rises to A$674 million
A Year of Transformation and Growth
Vault Minerals Limited has delivered a landmark financial year for the period ending 30 June 2025, marking its first full year post-merger with Silver Lake Resources Limited. The company reported a striking turnaround from a loss of A$5.4 million in FY24 to a net profit after tax of A$237 million in FY25, underpinned by a 131% surge in revenue to A$1.43 billion. This performance reflects not only the benefits of the merger but also operational efficiencies and favourable commodity prices.
Gold sales reached 385,232 ounces at an average realised price of A$3,684 per ounce, with an all-in sustaining cost (AISC) of A$2,422 per ounce. The company’s diversified portfolio, spanning Western Australia and Ontario, Canada, contributed to this robust output, with key operations including Leonora’s King of the Hills and Darlot mines, Mount Monger, and Deflector.
Operational Highlights and Strategic Investments
Vault’s operational strategy centered on integrating Silver Lake’s assets and unlocking value through targeted expansions and resource optimisations. Notably, the King of the Hills open pit Ore Reserve increased by 33% compared to FY24, supporting a two-stage processing plant expansion program aimed at boosting throughput to 7.5 million tonnes per annum by mid-FY27. This $172 million investment is expected to enhance gold recovery and reduce unit costs, with peak production anticipated to rise by approximately 20% post-expansion.
Other operational milestones include the repayment and termination of the Red 5 project finance facility, simplifying the company’s capital structure and reducing financial risk. The company also completed a process plant re-engineering study at King of the Hills to improve reliability and efficiency.
Production across the portfolio was solid, with 380,985 ounces produced during the year. Deflector outperformed guidance with gold sales exceeding expectations, while Mount Monger’s mining activities transitioned towards longer-life centres feeding the Randalls Mill. In Canada, the Sugar Zone project advanced with updated Ore Reserves and ongoing exploration drilling targeting high-grade extensions.
Financial Strength and Capital Management
Vault’s balance sheet strengthened considerably, with total assets rising to A$2.44 billion and cash and cash equivalents increasing to A$674 million. The company is now debt-free following the full repayment of its syndicate loan facility in July 2024. Strong operating cash flows of A$570.9 million supported capital expenditure of A$300.8 million, primarily directed towards development activities and the processing plant expansion.
Despite the strong earnings and cash flow, Vault Minerals did not declare a dividend for FY25, opting to reinvest in growth and operational improvements. The company maintains a hedging position covering 132,504 ounces of future gold production at an average price of A$2,876 per ounce, providing some price certainty amid market volatility.
Governance and Remuneration Aligned with Performance
Executive remuneration outcomes reflected the company’s strong performance and strategic priorities. The Board approved a 60% short-term incentive payout based on a balanced scorecard including safety, production, cost management, and shareholder returns. Long-term incentives were granted in the form of performance and retention rights, aligning management’s interests with shareholder value over multi-year horizons.
Key leadership changes included the appointment of Steve Harvey as Chief Operating Officer and the resignation of Non-Executive Director Andrea Sutton. The Board continues to emphasize strong governance, sustainability, and community engagement as integral to Vault’s long-term success.
Looking Ahead
Vault Minerals is positioned for continued growth, leveraging its expanded asset base and infrastructure to pursue organic and exploration-driven opportunities. The company’s focus on operational excellence, cost control, and capital discipline aims to deliver top quartile shareholder returns in the evolving gold market landscape.
Bottom Line?
Vault Minerals’ FY25 results set a strong foundation, but execution of its expansion and exploration plans will be critical to sustaining momentum.
Questions in the middle?
- How will the King of the Hills expansion impact production costs and timelines?
- What exploration success is needed at Sugar Zone and other assets to extend mine life?
- How will gold price volatility and hedging strategies influence future earnings?