Highlights

  • Vault Minerals produces 76,849 ounces of gold in the September quarter, selling 79,085 ounces at A$6,023 per ounce and recording group all-in sustaining cost of A$3,529 per ounce.
  • Cash and bullion totals A$886.7 million at 30 September 2026 with no corporate debt; the King of the Hills stage 2 plant upgrade completed ahead of schedule.
  • Underlying free cash flow of A$95.7 million for the quarter is stated before a A$50.7 million break fee linked to a terminated merger arrangement.
  • The Genesis Minerals merger scheme is on track for implementation in late November 2026, with an independent expert concluding it is in shareholders' best interests.

Vault Minerals has reported a September quarter of steady gold output and a large cash balance as it progresses a merger scheme with Genesis Minerals Ltd (ASX:GMD) that would combine the two companies' Leonora operations in Western Australia. Vault (ASX:VAU) was formed through the 2024 merger of Red 5 and Silver Lake Resources, combining King of the Hills near Leonora with assets including Deflector in Western Australia and Sugar Zone in Ontario, Canada.

Quarter in Numbers

In its September quarterly report released on 22 October 2026, Vault said it produced 76,849 ounces of gold and sold 79,085 ounces at an average realised price of A$6,023 per ounce. Group all-in sustaining cost was A$3,529 per ounce — above the FY27 annual guidance range of A$3,150 to A$3,350 per ounce, meaning lower unit costs will be needed later in the year to land within guidance.

Underlying free cash flow was A$95.7 million before a A$50.7 million break fee linked to the termination of a merger arrangement. Cash and bullion totalled A$886.7 million at 30 September, and the company reported no corporate debt. Vault's FY27 guidance is 355,000 to 375,000 ounces at an all-in sustaining cost of A$3,150 to A$3,350 per ounce.

Operations

The Leonora operations produced 44,467 ounces at an all-in sustaining cost of A$2,885 per ounce, though underground output was softer than planned due to manning and equipment constraints. At King of the Hills, the stage 2 processing facility upgrade was completed ahead of schedule and on budget, with commissioning beginning in October and performance testing scheduled for late October. At Sugar Zone in Canada, underground mining is ramping up with staffing rising 87% during the quarter.

The Genesis Scheme

The merger is being implemented by scheme of arrangement, and Vault said the scheme was on track for implementation in late November 2026. A scheme booklet has been released, and an independent expert concluded the deal is in the best interests of Vault shareholders, absent a superior proposal. Combining the two companies' Leonora operations could allow ore to be directed to whichever plant is most efficient, though the size and timing of any benefits depend on post-completion integration. Shareholders will vote on the scheme ahead of the targeted late-November date.

Uncertainties

The merger still requires shareholder and court approval and could be affected by a competing proposal. Operationally, Leonora's underground constraints highlight that labour and equipment availability remain pressure points. The King of the Hills upgrade has not completed performance testing, and Sugar Zone is still ramping up. The break fee reduced reported cash generation for the quarter, though Vault presented free cash flow before that one-off payment.