Vault Minerals Hits FY26 Gold Target Amid Sugar Zone Underground Restart
Vault Minerals met its FY26 gold production guidance with 336,540 ounces and has kicked off underground development at Sugar Zone, setting the stage for a plant restart in early FY28.
- FY26 gold production of 336,540 ounces achieved
- King of the Hills processing upgrade progressing ahead of schedule
- Sugar Zone underground development recommenced July 1
- Generated $219 million free cash flow and returned $74.3 million to shareholders
- Ended FY26 with $842 million cash and bullion, no debt, fully unhedged
Strong Q4 Propels FY26 Production to Guidance
Vault Minerals (ASX:VAU) closed FY26 with a bang, delivering 89,338 ounces of gold in the June quarter to hit its full-year production target of 336,540 ounces. This 14% quarter-on-quarter production increase was underpinned by solid output across its key operations: Leonora (179,666 ounces), Mount Monger (79,225 ounces), and Deflector (77,649 ounces). Gold sales closely tracked production at 334,901 ounces for the year.
The company’s operational momentum was fuelled by ongoing upgrades at the King of the Hills (KoTH) processing plant. Stage 1 of the expansion was commissioned on time and on budget in March 2026, with the new crushing circuit consistently outperforming its 8 million tonnes per annum (Mtpa) target. Stage 2 is now 71% complete, running ahead of schedule and expected to finish by September 2026, promising a 50% boost in processing capacity that will cement KoTH’s status as the region’s leading facility.
Sugar Zone Underground Development Resumes
After regulatory clearance with a fully certified Closure Plan Amendment submitted in June, Vault restarted underground development at Sugar Zone on 1 July 2026. The ramp-up of development activities will supply waste rock for the southern tailings facility construction and build ore stockpiles ahead of a planned processing plant restart in Q1 FY28. This marks a significant milestone in unlocking Sugar Zone’s value after a period of dormancy.
Robust Cash Flow and Clean Balance Sheet
Vault’s financial discipline shone through in FY26, generating an impressive $219 million in underlying free cash flow. The company returned $74.3 million to shareholders via its maiden dividend and share buyback programs, while also settling all remaining hedge positions at a cost of $31.2 million. This leaves Vault fully unhedged and exposed to gold price upside, with a strong cash and bullion position of $842 million and zero debt as it heads into FY27.
The combination of operational delivery, project execution, and financial strength positions Vault well to pursue its growth ambitions. The KoTH expansion and Sugar Zone restart are key pillars of this strategy, with the potential to drive production and cash flow higher over the coming years.
Bottom Line?
Vault’s FY26 production and cash flow results set a robust platform for growth, but investors will be watching how underground development at Sugar Zone translates into production gains from FY28 onwards.
Questions in the middle?
- How will the completion of King of the Hills Stage 2 impact FY27 production and costs?
- What are the key operational risks associated with the Sugar Zone underground ramp-up?
- How might being fully unhedged affect Vault’s financial performance amid gold price volatility?
