Vault Minerals Building a New Australian Gold Major

About Vault Minerals Limited

Vault Minerals Limited (ASX: VAU) is a Western Australian-headquartered gold producer operating a diversified portfolio of assets across the Leonora, Mount Monger and Deflector regions of Western Australia, and the Sugar Zone project in Ontario, Canada. The company produces gold from multiple open pit and underground operations, with processing infrastructure at the King of the Hills (KoTH) facility in Leonora, the Randalls mill at Mount Monger, and the Deflector processing plant. Vault listed on the ASX and has grown into one of Australia’s most significant mid-tier gold producers. The company has announced a proposed merger with Genesis Minerals Limited, which is expected to establish a top 20 global gold producer by market capitalisation.

A multi-decade growth platform underpinned by rising gold prices

The structural backdrop for gold producers has rarely been more favourable, and Vault is exceptionally well positioned to capitalise on it.

Gold prices have strengthened materially over recent years, driven by persistent global inflation, geopolitical uncertainty, central bank buying, and growing demand for hard assets as a store of value. For Vault, the impact of this pricing environment on its operating margin is substantial — the company achieved an average realised sales price of A$6,311 per ounce in Q4 FY26, compared to an AISC of A$2,968 per ounce, representing a margin of approximately A$3,343 per ounce. Across the full FY26 year, the average realised price of A$5,557 per ounce against an AISC of A$2,924 per ounce delivered margins that are among the strongest in the company’s history.

This pricing environment is not transitory. The structural drivers of gold demand — monetary policy uncertainty, dedollarisation trends, and the increasing role of gold in central bank reserves — are durable and long-term in nature. Vault’s positioning as a low-cost, multi-asset Australian gold producer with a growing production profile places it at the centre of this sustained demand environment.

A proven operational platform generating exceptional cash flow

Vault delivered a strong operational close to FY26, achieving full year production guidance across all three operating regions while generating underlying free cash flow of A$219 million in the June quarter alone.

Full year FY26 group production reached 336,540 ounces at an AISC of A$2,924 per ounce, with gold sales of 334,901 ounces at an average realised price of A$5,557 per ounce. The Leonora region was the standout performer, contributing 179,666 ounces for the year at an exceptionally competitive AISC of A$2,723 per ounce — a reflection of the scale and efficiency of the KoTH operation. Mount Monger contributed 79,225 ounces at an AISC of A$3,025 per ounce, while the Deflector Region added 77,649 ounces of gold and 374 tonnes of copper at an AISC of A$3,282 per ounce.

Vault closed FY26 with cash and bullion of A$842 million, no debt and no gold hedge exposure — having returned A$74.3 million to shareholders through its maiden dividend and buybacks, and settled all remaining gold hedges for A$31.2 million. The strength of the balance sheet provides significant capacity to fund the next phase of growth from internal resources. Looking to FY27, standalone production guidance of 355,000 to 375,000 ounces represents 8% year-on-year growth at the midpoint, with further growth to 380,000 to 400,000 ounces targeted for FY28.

The KoTH Stage 2 upgrade and Sugar Zone — near-term catalysts for production growth

Beyond the core operating platform, Vault has two significant near-term growth catalysts that are expected to materially increase production and cash flow generation over the coming years.

The KoTH Stage 2 processing plant upgrade at Leonora is 85% complete, remains on budget and is tracking ahead of schedule for commissioning in September 2026. The upgrade is expected to increase throughput capacity by approximately 50%, supporting a 34% uplift in Leonora gold production. In FY28 and FY29, mill throughput is forecast to exceed 7.5Mtpa following completion of the upgrade, with production expected to be approximately 15% above the midpoint of FY27 guidance. This is a transformational investment in the company’s most productive asset that will drive meaningful cost efficiencies and production growth across the outlook period.

Sugar Zone in Ontario, Canada represents Vault’s fourth growth pillar. Underground development recommenced on 1 July 2026, with the underground development fleet fully commissioned. The Southern Tailings Management Facility received its key environmental approvals in July 2026, removing the final regulatory hurdle. Construction activities are now underway, with the plant restart targeted for Q1 FY28 and production of 40,000 to 44,000 ounces contemplated from Sugar Zone in FY28.

A transformational merger and exploration upside create decade-long value

A further and often underappreciated component of Vault’s investment case is the scale of exploration upside across its existing portfolio and the transformational value creation potential of the announced merger with Genesis Minerals Limited.

The proposed merger, announced in July 2026, will consolidate the respective Leonora operations under single ownership, creating significant operational synergies through the combination of complementary assets centred on one of Australia’s most productive gold districts. The merged group is expected to rank among the top 20 global gold producers by market capitalisation, with the scheme implementation scheduled for Q2 FY27.

Across the existing Vault portfolio, exploration continues to deliver high-quality results. At the Deflector Region, resource definition drilling increased 159% year-on-year, with the Contact Lode emerging as a potential third mining front beyond the current Ore Reserve. At Leonora, 346 underground drill holes totalling 62,524 metres were completed in FY26, with exploration results materially strengthening confidence in the KoTH’s ability to sustain underground production well beyond the current outlook period. These structural tailwinds — combining rising gold prices, expanding margins, a debt-free balance sheet, near-term production growth and transformational merger value — should continue to support Vault’s earnings growth profile in the decade ahead.

Conclusion

Vault Minerals occupies a compelling position in the Australian gold sector — a cash-generative, debt-free producer with a diversified multi-asset portfolio, a balance sheet of A$842 million in cash and bullion, and a clearly funded growth pathway that extends production well into the next decade. The KoTH Stage 2 upgrade and Sugar Zone restart provide near-term production catalysts, while the merger with Genesis Minerals has the potential to create one of the most significant gold companies to emerge from Western Australia in a generation. With gold prices remaining structurally elevated and Vault’s cost position among the most competitive in the sector, the company is well positioned to deliver sustained earnings growth and compelling shareholder returns in the years ahead.