Vault Minerals delivered a robust December quarter with 76,520 ounces of gold produced and significant progress on its King of the Hills processing plant expansion, positioning the company for higher throughput and full exposure to gold prices after closing its hedge book.
- Q2 gold production of 76,520 ounces at AISC of A$3,160/oz
- Year-to-date production reaches 168,607 ounces with steady sales
- KoTH processing plant expansion on track for 50% throughput increase by Q2 FY27
- Deflector region transitions to owner-operator mining with steady ramp-up expected
- Vault materially unhedged following early settlement of H2 FY26 gold hedges
Strong Quarterly Performance Across Portfolio
Vault Minerals Limited (ASX, VAU) has reported a solid December 2025 quarter, producing 76,520 ounces of gold and selling 77,798 ounces at an average realised price of A$4,582 per ounce. The company’s all-in sustaining cost (AISC) stood at A$3,160 per ounce for the quarter, reflecting operational discipline amid ongoing investments. Year-to-date production totals 168,607 ounces, with sales slightly ahead at 169,274 ounces, underscoring consistent delivery across Vault’s diversified asset base.
Operations at Mount Monger, Deflector, and Leonora each contributed meaningfully, with Mount Monger producing 17,865 ounces and Leonora leading with 40,889 ounces. Deflector’s output of 17,766 ounces came during a transitional phase as Vault assumed owner-operator mining control in November 2025, a move expected to improve operational efficiency over time.
King of the Hills Expansion to Drive Future Growth
The King of the Hills (KoTH) processing plant expansion remains on schedule and budget, with Stage 1 commissioning targeted for the end of March 2026. This upgrade will increase crushing capacity and reliability, enabling throughput to ramp up progressively to 6.0 million tonnes per annum (mtpa) in Q4 FY26. Stage 2 is advancing well, aiming for commissioning in Q2 FY27 and delivering a further ~50% increase in throughput capacity to between 7.5 and 8.0 mtpa.
This expansion is pivotal to Vault’s medium-term growth strategy, expected to underpin an approximate 11% increase in gold production by FY28. The enhanced processing capacity will allow Vault to better leverage its substantial ore reserves and improve margins as capital investments mature.
Strategic Transition and Exploration Initiatives
At Deflector, the transition to owner-operator mining is progressing steadily, with most of the new mining fleet commissioned and crews established. While production dipped slightly during the transition, Vault anticipates steady-state production rates by Q4 FY26. Exploration efforts are intensifying, particularly near-mine drilling at Deflector targeting extensions along the Gullewa trend, which could extend mine life beyond current reserves.
Similarly, ongoing underground drilling at the Daisy Complex in Mount Monger has intersected promising mineralisation down plunge, potentially extending production into FY27 and improving mill feed grades. At Leonora, exploration drilling results from the first phase are being compiled, with updates expected soon. Preparations are also underway at Sugar Zone for underground operations to resume in Q1 FY27, pending regulatory approval for a new tailings management facility.
Financial Strength and Hedge Book Closure
Vault’s financial position remains robust, with cash and bullion holdings of A$537 million at quarter-end and no debt. The company generated underlying free cash flow of A$12 million for the quarter despite investing A$82 million in growth capital, including the KoTH expansion and Deflector fleet acquisition. Notably, Vault completed an early settlement of its H2 FY26 gold hedge book, delivering 40,545 ounces into contracts at an average price of A$2,926 per ounce and cash-settling an additional 47,319 ounces. This strategic move leaves Vault materially unhedged for the first time since mid-2024, positioning it to fully benefit from prevailing gold prices.
Share buy-back activity continued with A$5 million deployed to repurchase 1.02 million shares during the quarter, reflecting management’s confidence in the company’s outlook and capital allocation strategy.
Bottom Line?
With its processing capacity set to surge and hedge book closed, Vault Minerals is poised for a new phase of growth and market exposure.
Questions in the middle?
- How will the transition to owner-operator mining at Deflector impact costs and production in the longer term?
- What are the prospects and timelines for regulatory approval at Sugar Zone’s tailings management facility?
- Can ongoing exploration at Daisy Complex and the Gullewa trend deliver meaningful mine life extensions?