Vault Minerals Reports Q1 FY26 Gold Sales of 91,477 Ounces, Aligning with Guidance
Vault Minerals kicks off FY26 with robust gold sales and a fortified balance sheet, positioning itself for ambitious growth by FY28.
- Preliminary Q1 FY26 gold sales total 91,477 ounces
- Sales align with FY26 guidance of 332,000 to 360,000 ounces
- Strong balance sheet with $703.3 million in cash and bullion, zero debt
- Share buy-back initiated alongside growth projects targeting 370,000–400,000 ounces by FY28
- Hedge book deliveries to significantly reduce in H2 FY26, boosting free cash flow
Robust Start to FY26
Vault Minerals Limited has reported a promising start to its fiscal year 2026, with preliminary gold sales reaching 91,477 ounces in the first quarter. This performance is well within the company’s full-year guidance range of 332,000 to 360,000 ounces, underscoring operational consistency across its key assets.
The sales breakdown reveals a balanced contribution from Vault’s three main operations – Leonora delivered 46,476 ounces, Mount Monger contributed 22,338 ounces, and Deflector added 22,663 ounces of gold alongside 110 tonnes of copper. This diversified output base provides a solid foundation for the company’s ongoing production targets.
Financial Strength and Strategic Moves
Vault’s financial position remains robust, closing the quarter with $703.3 million in cash and bullion and no debt. The company generated an underlying free cash flow of $28.1 million, highlighting its capacity to self-fund growth initiatives. Notably, this cash generation occurred despite delivering 34,417 ounces into its hedge book at an average price of A$2,949 per ounce, a factor that has historically limited upside but also provided price certainty.
In a strategic move to enhance shareholder value, Vault has commenced an on-market share buy-back program. This initiative signals confidence in the company’s valuation and future prospects, while also optimizing capital structure.
Growth Ambitions and Hedge Book Outlook
Looking ahead, Vault is investing in internally funded growth projects aimed at increasing production to between 370,000 and 400,000 ounces by FY28. These projects, including upgrades at the KoTH process plant, are expected to drive operational efficiencies and output expansion.
Crucially, the company is approaching a pivotal phase with its hedge book. Deliveries against the hedge book are set to materially decrease in the second half of FY26, which will free Vault from previous price constraints and enable stronger free cash flow growth as it enters FY27 largely unhedged. This transition could unlock significant upside potential for investors as the company capitalizes on prevailing gold prices.
Final details on all-in sustaining costs and comprehensive operational results are awaited in the upcoming September 2025 Quarterly Report, which will provide further clarity on profitability and cost management.
Bottom Line?
Vault Minerals is poised for a transformative phase of growth and cash flow expansion as hedge constraints ease and production scales.
Questions in the middle?
- How will the final all-in sustaining costs impact Vault’s profitability outlook for FY26?
- What is the expected timeline and scale of production growth from current development projects?
- How will the reduction in hedge book deliveries influence Vault’s exposure to gold price volatility?
