Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS initiated coverage on Vault Minerals Ltd (ASX:VAU) with a Buy rating and a price target of AUD0.55, citing the company as an undervalued player in the mid-cap gold space.
The research firm highlighted Vault Minerals’ attractive valuation, free cash flow upside, balance sheet flexibility, and multi-asset base that is expected to produce 381,000 ounces of gold in FY25.
UBS noted that despite relatively limited production lifespan at some assets, the company is positioned to generate elevated free cash flow yields exceeding 15% once it unwinds its hedge book, which will be completely rolled off by March 2027.
The firm’s analysis shows Vault Minerals trading at 2.7x EV/EBITDA for FY26 and 1.6x for FY27, with free cash flow yields of 10% and 16% respectively for those periods.
UBS expects Vault Minerals to close its valuation gap compared to peers as it continues building cash reserves and unveils growth plans, beginning with FY26 guidance expected in September.
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