Vault boosts gold price exposure with early FY26 hedge settlement

Tue Nov 25 2025

Vault Minerals Limited (ASX:VAU) has settled all of its gold forward sales contracts for the second half of FY26 ahead of schedule, consistent with its focus on capital management and shareholder returns.

The company has closed H2 FY26 hedges covering 47,319 ounces at an average delivery price of A$2,797 per ounce, at a cost of A$172.7 million, funded entirely from its A$703 million cash balance as at 30 September 2025. The settlement removes all gold hedging for H2 FY26 with no dilution to shareholders.

Vault will continue to deliver Q2 FY26 hedges as planned.

Closing the H2 FY26 positions brings forward its transition to a largely unhedged production profile by six months and increases its exposure to spot gold prices. The company retains 10,223 hedged ounces scheduled for delivery in Q1 FY27, representing 2.7% of FY27 production and 0.3% of Ore Reserves, and may opt to accelerate delivery of these ounces.

The hedge closure coincides with a period of organically funded production growth to 370,000–400,000 ounces per year under Vault’s three-year production outlook.

The company notes that its balance sheet strength and expected free cash flow support both reinvestment in growth projects and further capital management. Alongside the hedge settlement, ongoing initiatives include the on-market share buy-back launched in September 2025, which provides capacity to repurchase up to 10% of its ordinary shares, increasing participating shareholders’ proportional ownership in the business.

Source: https://www.proactiveinvestors.com.au/