Vault Minerals has delivered a robust half-year result with a 44% jump in EBITDA and declared its first-ever dividend, signalling confidence in its growth and cash flow outlook.
- 44% increase in EBITDA to $384.5 million
- Maiden 7 cents per share unfranked dividend declared
- Early settlement of H2 FY26 gold hedges, leaving Vault largely unhedged
- Gold production of 168,607 ounces and sales of 169,274 ounces
- Strong cash position of $537.3 million with zero debt
Robust Financial Performance
Vault Minerals Limited (ASX: VAU) has reported a strong half-year financial performance for the six months ending 31 December 2025, marked by a 44% increase in EBITDA to $384.5 million and an underlying net profit before tax that nearly doubled to $211.7 million. This surge was driven by higher realised gold prices and operational efficiencies across its portfolio, including the King of the Hills (KoTH), Mount Monger, and Deflector operations.
Despite recording a statutory net loss of $35.2 million, this was primarily due to the accounting treatment of the early settlement of its H2 FY26 gold hedges, a strategic move that has left Vault materially unhedged and fully exposed to the gold price for the second half of the fiscal year.
Strategic Hedge Closure and Dividend Declaration
In a notable shift, Vault settled $172.7 million worth of gold forward contracts ahead of schedule, effectively closing out 47,319 ounces of hedged gold. This bold step positions the company to benefit directly from the prevailing high Australian dollar gold prices, enhancing free cash flow potential in H2 FY26.
Reflecting its confidence and commitment to shareholder returns, Vault declared its maiden dividend of 7 cents per share, albeit unfranked due to the current tax position. The company also continued its on-market share buy-back program, deploying $14.3 million to date, signalling a disciplined capital management approach aligned with its growth ambitions.
Operational Investments and Growth Outlook
Capital expenditure of $78.6 million focused on upgrading the KoTH processing facility, alongside significant underground mine development and open pit waste stripping, underpins Vault’s strategy to increase throughput and extend mine life. The Stage 1 KoTH upgrade is on schedule and budget, promising a 17% increase in mill throughput, while Stage 2 aims for a 34% production uplift by late 2026.
Vault remains on track to meet its full-year production guidance of 332,000 to 360,000 ounces, supported by a strong operating platform and a robust balance sheet with $537.3 million in cash and bullion and no debt. The company’s growing Leonora operations continue to offer embedded low capital intensity growth opportunities, bolstered by an aggressive exploration program.
Looking Ahead
With the hedge book closed and full exposure to gold prices, Vault is poised to capitalise on the current favourable market environment. The company expects to transition to a cash tax-paying position in FY27, which should enable future dividends to be franked, enhancing their attractiveness to investors.
Vault’s maiden dividend and ongoing buy-back program position it as one of the highest yielding companies in the gold sector, reflecting a maturing miner confident in its operational and financial trajectory.
Bottom Line?
Vault’s unhedged gold exposure and maiden dividend mark a new chapter, but investors will watch closely how it navigates gold price volatility ahead.
Questions in the middle?
- How will Vault manage gold price fluctuations now that it is largely unhedged?
- What impact will the KoTH processing upgrades have on full-year production and costs?
- When will Vault begin paying cash tax and start franked dividends?