Vault Minerals has fully settled its remaining gold hedge positions, paying $31.2 million from cash reserves with no shareholder dilution. This move leaves the company entirely unhedged, maximizing its exposure to current gold prices.
- Settled 10,233 ounces of gold hedges at A$2,797/oz
- Paid $31.2 million from $728 million cash reserves
- No dilution to shareholders from settlement
- Now fully unhedged to gold price fluctuations
- Previous hedge settlements generated $13.8 million incremental revenue
Complete Hedge Exit Positions Vault for Full Gold Price Upside
Vault Minerals Limited (ASX:VAU) has taken a decisive step to maximize its exposure to gold price movements by extinguishing all remaining gold hedges. The company settled 10,233 ounces scheduled for delivery in the first quarter of FY27 at an average contracted price of A$2,797 per ounce, paying $31.2 million out of its substantial cash reserves without issuing new shares or diluting existing shareholders.
This final tranche of hedge settlements follows an earlier move in November 2025 when Vault settled 47,319 ounces ahead of schedule, enabling full participation in gold price gains during the current half (H2 FY26). That earlier initiative contributed to an incremental $13.8 million in revenue net of settlement costs, underscoring the financial benefit of reducing hedge obligations.
Strong Cash Position Supports Capital Discipline
Vault’s cash reserves stood at $728 million as of 31 March 2026, providing ample liquidity to fund this accelerated hedge settlement without resorting to capital raising. This reflects the company’s disciplined capital management approach, balancing risk exposure with shareholder value preservation.
By fully exiting its hedge book, Vault now holds no gold price hedges, positioning itself to benefit directly from prevailing and future gold price increases. This strategic shift aligns with the company’s broader goal to enhance leverage to gold prices, a move that could introduce greater earnings volatility but also upside potential.
Strategic Timing Amid Expansion and Merger Plans
The hedge clearance comes at a pivotal time for Vault, which is progressing a merger with Regis Resources to form a 700,000-ounce annual gold producer and advancing expansion projects such as the King of the Hills plant upgrade. The company’s recent operational momentum, including strong production and cash flow growth, provides a sturdy platform for this unhedged stance.
Investors will be watching how Vault navigates the increased exposure to gold price swings, especially given the broader industry dynamics and ongoing capital projects. The company has not disclosed any plans to reintroduce hedges, leaving open questions about its risk management approach in a volatile market.
Bottom Line?
Vault’s full exit from gold hedges signals a bold bet on rising gold prices, trading some earnings stability for greater upside potential.
Questions in the middle?
- Will Vault maintain an unhedged position amid gold price volatility?
- How will the hedge exit impact earnings volatility in upcoming quarters?
- Could the merger with Regis Resources influence future hedging strategies?