Vault Minerals to transition to owner-operator model at KoTH mine from 2027

Core Viewpoint - Vault Minerals will transition to an owner-operator model for load-and-haul operations at its King of the Hills mine starting January 1, 2027, following the expiration of its current mining services contract [1] Group 1: Operational Efficiency - The owner-operator model is expected to provide superior cost efficiency and enhanced cost control, allowing for direct management of operating costs and improved optimization [2] - Operational agility will be enhanced, enabling the company to dynamically adjust mine plans, schedules, and priorities in response to changing conditions and strategic goals [2] Group 2: Workforce and Equipment - The new model will promote workforce stability through a dedicated site-based team, fostering continuity, productivity, and strong safety behaviors [3] - Ownership of mining equipment will yield capital investment benefits, providing enduring value with potential for resale or redeployment [3] Group 3: Continuous Improvement and Innovation - Owner-operated mining is anticipated to facilitate continuous improvement and the integration of innovation, technology, and operational efficiencies throughout the mining value chain [4] - The transition follows a significant increase in KoTH open-pit ore reserves, extending the mine's life to 13 years, with stockpiles supporting mill feed for an additional five years [4] Group 4: Fleet and Production Capacity - To accommodate a projected 35% increase in mining activity, the company plans to deploy a larger and more productive fleet, including one 260 tonne and two 360 tonne excavators, along with 190 tonne haul trucks and ancillary equipment [5] - Average material movements are expected to reach around 14 million bank cubic meters per year over the life of the ore reserve [5] Group 5: Transition Plan and Financials - A transition plan will be executed throughout the 2026 financial year and the first half of the 2027 financial year to ensure a smooth start to owner-operated mining [6] - The company plans to retain contract drill and blast services at KoTH, with a preferred contractor selected for a five-year term starting January 1, 2027, pending final agreements [6] - Deposits of approximately A$2 million (US$1.3 million) for long-lead fleet items are expected to be paid in Q2 2026, with equipment financing and hybrid funding options under evaluation [7] - Earlier in February, the company announced an A$80 million expansion of its KoTH processing facility [7]