Vault Minerals shares tumble as UBS downgrades stock on FY26 outlook
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The news: Gold miner Vault Minerals saw its share price dive in early trading after UBS analysts downgraded the stock on softer than expected FY26 guidance.
The numbers: At 11:50am AEST, shares in Vault Minerals had fallen 6.23% to 65 cents per share. However, over the last 12 months its shares have soared 90.29%.
UBS analysts cut their 12-month price target from 75 cents per share to 72 cents while downgrading their rating from ‘buy’ to ‘neutral’.
Macquarie analysts however reiterated their ‘outperform’ rating and maintained their 12-month price target of 65 cents per share.
The context: On Monday, Vault Minerals issued three-year production guidance that was 7% lower than UBS estimates.
Vault Minerals also issued an all-in sustained cost (AISC) guidance range of $2,650 and $2,850 as well as consolidated capital spend guidance of $278 million, which were both “slightly ahead” of expectations, according to UBS.
Macquarie analysts also flagged that FY26 guidance for production, AISC and capital spend was modestly softer than both Macquarie expectations and consensus according to Visible Alpha.
However, the analysts have not changed their recommendation on the stock because they view the “three-year outlook as a ‘reserve base case’ which we think can be beaten by incremental extensions” at the Mt Monger and Deflector gold projects.
The sources: ASX, UBS research, Macquarie research
