Vault Minerals is advancing an $80 million expansion of the King of the Hills (KOTH) processing facility in the Leonora region of Western Australia.
The KOTH expansion, which aims to increase throughput by 20 per cent to six million tonnes per annum (Mtpa), commenced in December 2024 and is expected to enhance operating efficiencies and set the stage for further capacity increases.
Vault has also invested $68 million into waste stripping, ensuring greater ore access at KOTH and Mount Monger in the second half of the 2024–25 financial year (H2 FY25) and FY26.
At the Sugar Zone operation in Ontario, Canada, the company has updated its ore reserve to 1.9 million tonnes at 5.2 grams per tonne (g/t) for 325,000 ounces (oz), supporting a low-cost restart strategy.
“The Leonora operations will remain mill-constrained post the stage one upgrade, with three established feed sources and a 7.3 million-tonne stockpile containing 108,000 ounces adjacent to the mill,” Vault said.
“Given the potential for in-mine and near-mine exploration success following a period of exploration underinvestment, the pursuit of regional exploration targets, and the additional expansion capacity included in the stage one design, may provide the catalyst to increase KOTH’s processing capacity further.”
Vault delivered a robust financial performance for the six months ending December 31, underpinned by strong gold production and a solid balance sheet.
It marks the first full reporting period for Vault following its creation from the merger between Red 5 and Silver Lake Resources in June 2024.
The company produced 195,417oz and sold 199,428oz, generating $678.8 million in revenue at an average realised price of $3369/oz.
Vault’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $267.4 million, representing an EBITDA margin of 39 per cent, while its net profit after tax (NPAT) surged to $119.3 million, reflecting a 311 per cent increase from the prior corresponding period.
Vault ended H1 FY25 with $575.6 million in cash and bullion and no debt, reinforcing its financial strength. The company’s FY25 guidance for gold sales stands at 390,000–410,000oz.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
