Fund Manager Summary
The fund managers believe that the outlook for Vault Minerals Ltd presents a compelling opportunity for investors. In their opinion, the recent 18.2% rise in share price is indicative of the company's strong fundamentals, particularly with solid production of 97koz and strong cash flow generation reported in the December quarterly. The merger of Red 5 and Silver Lake Resources has resulted in a well-capitalized, diversified producer with a capacity of ~400koz p.a. in a Tier 1 jurisdiction. The fund managers highlight that the new balance sheet supports exploration drilling and a fully funded 20% expansion of the KOTH plant. Despite this progress, they note that the company still trades at a significant discount to peers across multiple valuation metrics, presenting a potential buying opportunity.
Source: Trading View
Commentary From The Managers
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Tyndall Asset Management
10 Nov 2025
$4.88
Summary
- Tyndall Asset Management has reduced gold exposure from 15-16% to 11-12% of the portfolio.
- Despite the reduction in gold holdings, Tyndall is convicted in Vault Resources for three main reasons:
- Immaculate balance sheet of Vault Resources.
- Free cash flow growth projected to increase from 9% to 19%, driven by hedges rolling off.
- Active capital management with a 10% buyback plan, ensuring shareholder returns as cash flow grows.
- Tyndall believes that the cash flow will more than double in 18 months with minimal operational risk.
- Vault's approach contrasts with typical resource companies that often do not return cash flow to shareholders.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Tyndall Asset Management
10 Nov 2025
$4.88
- Tyndall Asset Management has reduced gold exposure from 15-16% to 11-12% of the portfolio.
- Despite the reduction in gold holdings, Tyndall is convicted in Vault Resources for three main reasons:
- Immaculate balance sheet of Vault Resources.
- Free cash flow growth projected to increase from 9% to 19%, driven by hedges rolling off.
- Active capital management with a 10% buyback plan, ensuring shareholder returns as cash flow grows.
- Tyndall believes that the cash flow will more than double in 18 months with minimal operational risk.
- Vault's approach contrasts with typical resource companies that often do not return cash flow to shareholders.
Summary
Infinity Asset Management
30 Sept 2025
$4.29
- Infinity Asset Management has reduced their position in VAULT MINERALS LTD (VAU) but remains overweight.
- VAU experienced a 23.4% gain in September, following a 47% rally in August after its 4Q & FY25 trading update.
- The company's FY25 numbers were broadly in-line with market expectations.
- The market reacted positively to VAU's strong balance sheet, noting it has no debt, which offers significant strategic optionality.
- Sentiment improved with the approval of an on-market buyback of up to 10% of ordinary shares over the next 12 months.
- There is a roll-off of its hedge book over the next 18 months.
- VAU has a robust FY26 production outlook.
- Gold prices reached an all-time high of USD$3859/oz, marking a 12% increase month-on-month, with expectations of breaking the USD$4,000 mark soon.
Summary
Perpetual Asset Management
31 Aug 2025
$3.71
- Vault Minerals contributed to performance in August (+46.6%) as sentiment improved following the release of its FY25 results.
- New on-market share buy-back program was announced, signaling management’s confidence in the business.
- Production for the year was marginally below guidance, but costs were well managed.
- Company delivered strong operating cash flow, finishing the period with over $600 million in cash and bullion and no debt.
- The buy-back was well received by investors as a clear signal of management’s confidence in returning capital to shareholders.
- Supported by infrastructure investment across Leonora, Mount Monger, and Deflector, Vault is positioned to enhance production reliability and margins over time.
- With a clean balance sheet and disciplined capital management, Vault is well placed to sustain value creation.
Summary
Tyndall Asset Management
31 Aug 2025
$0.57
- Vault Minerals outperformed following a strong FY25 result.
- The company announced plans to buy back up to 10% of its shares in the next 12 months.
- Tyndall Asset Management is attracted to Vault’s cash generation.
- The buyback signals that cash will be returned to shareholders through prudent capital management.
Summary
Infinity Asset Management
31 Aug 2025
$0.57
- Vault Minerals (VAU) is an overweight and top three active position in the portfolio.
- The stock rallied 46.6% in August following its 4Q trading update and FY25 results.
- FY25 numbers were broadly in-line with market expectations.
- The market reacted positively to the company’s strong balance sheet with no debt, which provides significant strategic optionality.
- Sentiment improved further with the approval of an on-market buyback of up to 10% of ordinary shares over the next 12 months.
- The roll-off of its hedge book over the next 18 months is expected to enhance financial flexibility.
- Infinity Asset Management notes a robust FY26 production outlook for Vault Minerals.
Summary
Acorn Capital
31 Aug 2025
$0.57
- Acorn Capital notes a significant increase in Vault Minerals' share price (+47%).
- Vault Minerals has announced plans to utilize its net cash balance of A$674m.
- The company will initiate an on-market buy-back of up to 10% of its issued capital.
- Acorn Capital continues to hold its position in Vault Minerals due to this strategic move.
- The buy-back is expected to enhance shareholder value.
Summary
Seneca Financial Solutions
31 Aug 2025
$0.57
- Vault Minerals (VAU) rose 46% following its FY25 result.
- Vault is a West Australian gold miner producing approximately 380koz annually.
- The company has a hedge book, selling gold at a discount to the rising spot price.
- As a result, VAU's share price has lagged behind peers.
- With the hedge book rolling off over the next 12 months, VAU's cheap valuation will become apparent.
- Management's implementation of a buyback is expected to highlight this valuation.
- Seneca Financial Solutions continues to hold because of these factors.
Summary
SG Hiscock & Company
17 July 2025
$0.40
- Vault Minerals is a recent addition and is considered among the more undervalued names in the gold sector.
- The merger between Red 5 and Silver Lake Resources has created a more diversified and resilient producer.
- This merger is underpinned by high-quality assets such as King of the Hills and Mount Monger.
- While the management team may not be the most promotional, their track record of operational delivery, cost discipline, and integration execution is noteworthy.
- The combined group’s operational depth is viewed as a core strength in a market rewarding quality and consistency.
- A near-term catalyst is the roll-off of Vault’s hedge book, allowing full exposure to the spot gold price.
- The unwinding of the hedge occurs at a time when the gold commodity remains well-supported.
- With improved free cash flow and potential upside to earnings, increased investor interest and a re-rating may occur in the months ahead.
Summary
Oracle Advisory Group
30 June 2025
$0.42
- Oracle Advisory Group updates their investment thesis on Vault Minerals Ltd.
- Investment outlook is positive, similar to Genesis.
- Vault Minerals benefits from a positive gold price outlook.
- Currently trading at a discount due to its hedge book.
- Hedge book is set to expire by 2026.
- Strong management team enhances the company’s attractiveness.
- Potential for significant cash flow supports the investment case.
- Valuation gap is expected to narrow, making it an appealing holding.
Summary
Perpetual Asset Management
30 June 2025
$0.42
- Vault Minerals Limited detracted from portfolio performance over the quarter (-5.6%) following the company’s first full financial year post-merger.
- Gold production was broadly solid but fell marginally short of guidance, impacting market sentiment.
- Despite this, the business continues to demonstrate operational and financial strength.
- All-in sustaining costs have been maintained within expectations.
- The company has a strong balance sheet supported by a net cash position (including bullion) and no debt.
- Ongoing investment in infrastructure upgrades across Leonora, Mount Monger, and Deflector is expected to improve production reliability and margins over time.
- While near-term uncertainty remains, Perpetual Asset Management continues to hold because Vault’s scale, disciplined capital management, and diversified production base position it well to deliver shareholder value as operational momentum builds.
Summary
Oracle Advisory Group
31 Mar 2025
$0.45
- Oracle Advisory Group has initiated a position in Vault Minerals Ltd.
- The merger between Silver Lake and Red 5 has resulted in a strong financial standing.
- The company successfully paid off Red 5’s debt.
- Vault Minerals boasts a balance sheet with half a billion dollars in cash and gold bullion.
- The company recorded profits in the first half of the year and is expected to continue this trend in the second half.
- One key asset, King of the Hill, has just commenced production with forecasts of over 200,000 ounces of gold production annually.
- If gold prices sustain current levels as of early April, Vault Minerals is deemed highly undervalued.
Summary
Tyndall Asset Management
31 Jan 2025
$0.39
- Vault Minerals operates 3 mines in WA and is in an advanced restart project in Canada.
- The stock has lagged its gold sector peers post the merger of Red 5 and Silver Lake, forming Vault Minerals.
- Some of the underperformance has closed post the latest quarterly update.
- Management has demonstrated a strong track record of operating and executing on time and on budget.
- Tyndall Asset Management believes that continued strong execution will further close this valuation gap.
Summary
Blackwattle Investment Partners
31 Jan 2025
$0.39
- Vault Minerals rose 18.2% in January on continued strength in the gold price.
- Solid production of 97koz and strong cash flow generation reported in the December quarterly.
- Vault was formed by the merger of Red 5 (RED) and Silver Lake Resources (SLR) in June 2024.
- The combination of RED’s King of the Hill (KOTH) operation and SLR’s strong balance sheet has created a well-capitalised producer.
- New combined operations yield a diversified ~400koz p.a. with established infrastructure in a Tier 1 jurisdiction (Western Australia).
- The new balance sheet is enabling exploration drilling and a fully funded 20% expansion to the KOTH plant.
- Despite the rally, the company trades at a significant discount to peers on multiple measures including EV/Resource, EV/Reserve, EV/Production, and EV/EBITDA.
- Blackwattle Investment Partners continues to hold due to the potential for growth and value realisation.
Summary
Blackwattle Investment Partners
31 Oct 2024
$0.40
- Vault Minerals Ltd is a gold producer formed from the merger of Red 5 (RED) and Silver Lake Resources (SLR).
- This merger combines RED’s King of the Hill operation with SLR’s strong balance sheet, creating a well-capitalised producer.
- The company has established infrastructure in a Tier 1 jurisdiction, Western Australia, facilitating future growth.
- Post-merger, VAU’s share price experienced a decline of ~30%, despite a ~10% increase in gold prices.
- This price drop provided an opportunity for Blackwattle Investment Partners to build a position at a significant discount to peers.
- Key valuation measures showing this discount include EV/Resource, EV/Reserve, EV/Production, and EV/EBITDA.
- In October, Vault was one of the best performing gold companies on the ASX, with a 22% increase in share price.
- Blackwattle Investment Partners continues to hold its position based on these favorable developments.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With Vault Minerals showing robust production and cash flow, the recent surge may just be the tip of the iceberg. Trading at a discount to peers, it seems poised for a potential breakout that investors should keep a close eye on."
Last Updated: 10 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Vault Minerals Ltd (ASX:VAU)?
Fund managers including Blackwattle Investment Partners, Oracle Advisory Group, SG Hiscock & Company, Perpetual Asset Management, Infinity Asset Management, Tyndall Asset Management, Seneca Financial Solutions and Acorn Capital have invested in Vault Minerals Ltd (ASX:VAU).
Why do fund managers invest in Vault Minerals Ltd?
Fund managers are investing in Vault Minerals Ltd due to its strong production performance, evidenced by a solid quarterly output of 97koz and robust cash flow generation. The merger of Red 5 and Silver Lake Resources has created a well-capitalized, diversified gold producer with established infrastructure in Western Australia. This strategic combination positions the company for future growth, including exploration drilling and a fully funded expansion of the King of the Hill operation. Additionally, Vault Minerals trades at a significant discount compared to industry peers, highlighting potential for value appreciation.
What happened to Vault Minerals Ltd (ASX:VAU)?
Fund managers have invested in Vault Minerals Ltd due to its strong financial performance and strategic initiatives. The company's FY25 results met market expectations, showcasing a robust balance sheet with no debt and significant cash reserves, which enhances its strategic options. The planned buyback of up to 10% of ordinary shares signals prudent capital management and a commitment to returning value to shareholders. Additionally, as the hedge book rolls off, Vault is expected to benefit from improved pricing, making its current valuation attractive. Overall, Vault's disciplined approach to capital management and positive production outlook have garnered strong interest from fund managers.