Vault Minerals (ASX:VAU) has reported preliminary gold sales of 91,477 ounces for the first quarter of FY26, providing a “solid start to the year” in line with guidance.
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The sales breakdown included 46,476 ounces from Leonora, 22,338 ounces from Mount Monger, and 22,663 ounces of gold, along with 110 tonnes of copper from the Deflector operation. The company confirmed Q1 results remain consistent with its FY26 production guidance of 332,000 to 360,000 ounces.
Group all-in sustaining costs (AISC) are yet to be finalised and will be detailed in Vault’s September 2025 Quarterly Report, expected later this month.
Vault ended the quarter with a strong balance sheet, holding cash and bullion worth $703.3 million and no debt. The company reported underlying free cash flow generation of $28.1 million during the period, excluding $9.3 million allocated to its share buy-back program and a $1.4 million payment to settle a historical stamp duty obligation related to the 2017 acquisition of the Darlot gold mine.
Despite delivering 34,417 ounces into its hedge book at an average price of A$2,949 per ounce, Vault highlighted the portfolio’s ability to generate free cash. The company emphasised that its hedge book deliveries will materially step down in the second half of FY26, with extinguishment rapidly approaching. This transition is expected to position the company for stronger free cash flow momentum heading into FY27, when production will be materially unhedged.
Alongside capital management initiatives, Vault continued to fund growth projects from internal resources. These initiatives are targeting a production uplift to between 370,000 and 400,000 ounces from FY28. The company also noted progress on operational upgrades, including the installation of a new primary crusher and additional CIL tanks at its King of the Hills (KoTH) processing plant.
With preliminary first-quarter results aligning with the explorer’s guidance and the hedge book nearing completion, Vault Minerals signalled it is entering a period of “transformational free cash flow growth.”
Into Friday trade, VAU shares are selling at 68.5c each.
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