Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Canaccord assigns a “Buy” rating to Vault Minerals.

  • Target price set at AUD 0.75 per share, reflecting 13.64% upside from current levels.

  • The comapny expects consolidated gold production to rise in FY27 and FY28

Vault Minerals Limited (ASX:VAU) has been reaffirmed with a Buy recommendation by Canaccord Genuity, reflecting investor confidence in the company. The brokerage has set a target price of AUD 0.75 per share, representing a 13.64% potential upside from Vault Minerals’ current trading price of AUD 0.645 as of the latest session.

Vault Minerals operates within the gold sector on the Australian Stock Exchange, and the company’s strategic focus is on expanding production capacity and optimising operations

Three-Year Production Outlook

Recently, Vault Minerals has released its production guidance for FY26 through FY28, highlighting a structured increase in gold output over the next three years. For FY26, total gold production is projected at 332,000 to 360,000 ounces, with operations spanning Leonora, Mount Monger, and the Deflector Region. Production in FY26 is slightly lower year-on-year due to the transition at Deflector to an owner-operator model and the shift of mining activity to Deflector South West and Spanish Galleon.

Looking forward, consolidated gold production is expected to rise in FY27 and FY28, largely driven by increased capacity at the Leonora operations and the restart of the Sugar Zone mine in FY28. The FY28 production outlook anticipates 370,000 to 400,000 ounces, comprising approximately 86% Ore Reserves and 14% Inferred Resources.

The transition out of the hedge book in Q1 FY27 is anticipated to provide significant leverage to gold prices, supporting free cash flow growth in the latter half of FY26. 

Resource and Reserve Base

The Company’s recent Resource and Reserve Statement underscores significant growth, with a 31% increase in Group Ore Reserves to 4.0 million ounces post FY25 mine depletion, alongside a 3% increase in Group Mineral Resources to 12.2 million ounces. Notable growth was recorded in the Leonora Ore Reserves, up 39% post FY25, and a 20% increase at Sugar Zone, de-risking future production and supporting additional shallow, high-grade outputs.

Drilling at KoTH underground has extended mineralisation along strike and down dip, providing strong potential for further resource expansion. Mount Monger Ore Reserves also increased by 28% net of FY25 depletion. FY26 exploration investment is set at AUD 30 million, with expanded drilling at Leonora, enabling follow-up exploration based on results.

Capital and Operational Updates

Vault Minerals continues to progress capacity upgrades at the King of the Hills processing plant, expected to be completed by Q2 FY27. All operations, capital projects, and exploration programs are internally funded.