Vault’s FY25 Gold Sales Surge 72% to 385,232 Ounces with $237M Profit
Vault Minerals reports a robust FY25 with soaring gold production and profits, underpinned by operational upgrades and a strategic share buy-back.
- 385,232 ounces of gold sold generating $1.43 billion revenue
- Net profit after tax surges to $237 million
- EBITDA margin reaches 43% with $619.4 million underlying EBITDA
- On-market share buy-back announced for up to 10% of shares
- Optimized Leonora strategy and King of the Hills plant expansion underway
Strong Financial Performance Post-Merger
Vault Minerals Limited has delivered a standout full-year financial performance for FY25, marking its first full reporting period following the June 2024 merger of Silver Lake Resources and Red 5 Limited. The company reported gold sales of 385,232 ounces, generating $1.43 billion in revenue at an average realised price of A$3,684 per ounce. This translated into a net profit after tax of $237 million, a remarkable turnaround from the previous year’s loss, and an underlying EBITDA of $619.4 million, reflecting a 221% increase and a robust 43% margin.
Operational Enhancements Drive Growth
The strong results were supported by Vault’s strategic operational reset, particularly at the Leonora operation. The company has implemented an optimised operating strategy targeting a 20% increase in peak output, supported by an expanded King of the Hills processing plant and open pit operations. Other assets, including Mount Monger and Deflector, also contributed healthy EBITDA margins, underscoring the diversified strength of Vault’s portfolio.
Hedge Book Management and Market Exposure
During FY25, Vault delivered 54% of its gold sales into forward sales contracts at an average price of A$2,680 per ounce, progressively reducing its hedge book. The company anticipates full extinguishment of the hedge book by Q1 FY27, positioning Vault to benefit increasingly from spot gold price movements. This shift could enhance earnings volatility but also unlock upside potential as spot prices currently exceed forward contract prices.
Strong Balance Sheet and Capital Return
Vault ended the year with a strong balance sheet, holding $685.9 million in cash and bullion and maintaining zero debt. The company also paid a one-off $30.9 million stamp duty related to the merger. Reflecting confidence in its cash flow generation and outlook, Vault announced an on-market share buy-back program for up to 10% of shares on issue. This move signals management’s commitment to disciplined capital management and shareholder value enhancement.
Looking Ahead
With significant investments made in underground development and processing capacity upgrades, Vault is well positioned to sustain growth. The extinguishment of the hedge book and exposure to spot prices will be key factors to watch in FY26 and beyond. Meanwhile, the company’s tax position, influenced by deferred tax assets and potential tax payments in late 2026, adds an additional layer of financial complexity.
Bottom Line?
Vault’s FY25 results and share buy-back set the stage for a more market-responsive and growth-focused phase.
Questions in the middle?
- How will the full hedge book extinguishment impact Vault’s earnings volatility and investor sentiment?
- What are the expected production gains from the King of the Hills processing plant expansion in FY26?
- How might potential tax payments in December 2026 affect Vault’s cash flow and capital allocation?
