Vault Minerals (VAU) H2 2024 earnings summary

Executive summary

• Completed merger with Silver Lake Resources on 19 June 2024, creating a leading mid-tier gold producer with a diversified portfolio and strong balance sheet positioned for growth.

• Achieved record gold production of 223,498 ounces and gold sales of $614.5 million, with most production from King of the Hills (KOTH) operations.

• Integration of Silver Lake included repayment of project loan, restructured hedge facility, and simplification of capital structure.

• No dividend declared or paid for FY24.

Financial highlights

• Revenue rose 47% to $620.0 million for FY24 (FY23: $422.7 million), including $38.4 million from Silver Lake post-merger.

• Net loss after tax improved to $5.4 million (FY23: $8.7 million loss), including $43.4 million in acquisition and stamp duty costs related to the merger.

• Underlying EBITDA doubled to $192.7 million (FY23: $96.1 million).

• Cash and cash equivalents increased to $428.8 million, mainly due to cash acquired from Silver Lake.

• Net tangible assets per share increased to $0.24 (FY23: $0.10).

Outlook and guidance

• Merger positions Red 5 as a diversified, intermediate gold producer with sector-leading financial flexibility and a pipeline of growth opportunities.

• Focus on optimising KOTH operations and pursuing life-of-mine extensions and broader portfolio growth.

• Exploration spend of $30.9 million committed for FY25 across all mining centres.