Vault Minerals Posts 54% EBITDA Surge as Genesis Merger Nears Completion

Record Earnings Backed by Gold Price Leverage

Vault Minerals (ASX:VAU) flexed its financial muscle in FY26, reporting an underlying EBITDA of $953.3 million, a hefty 54% lift on the prior corresponding period. This surge was driven by a 51% rise in the average realised gold price to A$5,557 per ounce, even as gold sales volumes dipped 13% to 334,904 ounces. Underlying net profit before tax more than doubled to $619.1 million, showcasing Vault’s ability to capitalise on the gold price tailwind after clearing its hedge book.

The company’s statutory net profit after tax was more modest at $278.4 million, weighed down by the early settlement costs of outstanding gold forward contracts. Vault closed out 57,542 ounces of gold hedges internally, paying $203.9 million to eliminate future delivery obligations, a move that fully exposed the company to spot prices in the second half of FY26.

Strong Cash Flow Fuels Shareholder Returns and Growth

Vault generated $487.8 million in free cash flow, maintaining a robust balance sheet with $841.6 million in cash and bullion and zero debt. This financial strength enabled a $126.8 million return to shareholders through a combination of a maiden interim dividend (7 cents per share) and $53.9 million in share buybacks.

Capital investment remained disciplined yet ambitious, with $153.4 million spent on the King of the Hills (KoTH) processing plant upgrade, which is on budget and ahead of schedule for commissioning in September 2026. This upgrade is expected to boost throughput capacity by approximately 50%, supporting a 34% increase in Leonora gold production. Meanwhile, underground development at Sugar Zone resumed following regulatory approvals, advancing the Southern Tailings Management Facility, a critical infrastructure component for the operation.

Merger with Genesis Minerals to Create Gold Major

Amid these operational achievements, Vault is progressing its merger with Genesis Minerals, aiming to consolidate complementary assets in the Leonora district. The transaction, slated for completion in November 2026, will create a top-three Australian gold producer with pro-forma annual output estimated between 600,000 to 700,000 ounces and potential synergies of around A$2 billion over a decade.

The merger is expected to unlock operational efficiencies and scale benefits, positioning the combined entity among the world’s top 20 gold miners by market capitalisation. Vault shareholders will receive up to $0.475 per share in cash as part of the merger consideration, boosted by a final dividend declared by Genesis, reflecting a strategic shift away from standalone dividend payments due to the absence of franking credits.

Guidance Points to Continued Growth

Vault has set FY27 production guidance between 355,000 and 375,000 ounces at an all-in sustaining cost (AISC) of A$3,150 to A$3,350 per ounce, with further growth to 380,000 to 400,000 ounces forecast for FY28. The outlook incorporates the expected benefits from the KoTH plant upgrade and the ramp-up of Sugar Zone underground operations.

While the company’s AISC rose 21% to A$2,924 per ounce in FY26, this was marginally above guidance and reflects inflationary pressures and increased mining activity. Investors will be watching how the merged entity manages costs and delivers on synergy targets as it integrates operations.