Vault Minerals (ASX:VAU) delivered a solid June quarter result with production in line with expectations and stronger-than-expected free cash flow, Euroz Hartleys said in a Friday note.
Euroz Hartleys said June-quarter gold production of 89,300 ounces was broadly in line with its forecast of 89,000 ounces, bringing fiscal year 2026 production to 336,500 ounces, in line with the company's full-year guidance.
The research firm said the full June quarter report, due later this month, should provide greater clarity on all-in sustaining costs (AISC) following completion of the King of the Hills processing expansion and closure of the company's hedge book, with June quarter AISC forecast at AU$2,937 per ounce.
It highlighted the start of Sugar Zone underground development as another step toward the planned first-quarter fiscal year 2028 restart, initially involving the production of waste rock for the southern tailings facility and the building of ore stockpiles ahead of plant recommissioning.
The firm noted the company's hedge exit leaves it fully exposed to spot gold despite a debt-free balance sheet, with the Regis Resources (ASX:RRL) merger on track for shareholder approval in August or September.
It added that the merger will create a mid-tier gold producer exceeding 700,000 ounces a year, with an AU$8.9 billion group set to benefit from stronger liquidity, lower capital costs, and over AU$500 million in tax and operational synergies.
Euroz Hartleys retained its buy rating and price target of AU$6.80 on Vault Minerals.
Vault Minerals' shares rose 9% in recent Friday trade.