Regis and Vault Announce Merger of Equals
First major Australian gold consolidation of 2026
Regis Resources (ASX: RRL) and Vault Minerals (ASX: VAU) have agreed to a merger of equals to create a A$10.7 billion Western Australia-focused gold producer.
Regis is a 365,000 ounce per annum producer via its Duketon operations and 30% stake in AngloGold Ashanti’s (NYSE: AU) Tropicana gold mine.
Vault is a 346,000ozpa producer from its Leonora, Mount Monger and Deflector operations.
As well as the WA assets, Regis holds the McPhillamys gold development in New South Wales, which has been stalled by permitting issues, while Vault owns the Sugar Zone project in Ontario, Canada.
The combined company will have 6 million ounces of reserves and 20.5Moz of resources and own 22.3 million tonnes per annum of milling capacity across nine plants, increasing to around 24.3Mtpa following the completion of the mill expansion at King of the Hills by the end of this year.
The merged company will become the third-largest primary ASX-listed gold producer behind Northern Star Resources (ASX: NST) and Evolution Mining (ASX: EVN).
Regis will acquire Vault via a scheme of arrangement with Vault shareholders to receive 0.6947 of a new Regis share for each Vault share held.
Regis shareholders will own roughly 51% of the company with Vault shareholders owning the remainder.
“The combined business becomes a globally relevant gold company of greater scale, with a high-quality portfolio of assets, exceptional cash generation capacity and the financial strength to create long-term value for shareholders,” Regis managing director Jim Beyer said on a conference call.
“There’s much more to it than just increasing in size. Our expanded portfolio of five producing assets plus two near-term growth options gives us genuine diversification and flexibility.
“It’s the type of portfolio, in terms of the number and type of assets, which we’ve been looking at for some time now.”
‘Significant’ cash generation
The enlarged company will be debt-free with A$1.9 billion in pro forma cash and bullion and available debt facilities of A$300 million.
Vault recently reached a cashflow inflection point with the close-out of its hedge book.
Regis and Vault forecast combined annualised free cashflow of A$1.7 billion.
“This level of cash generation is significantly higher than most of our peers and will enable the funding of growth initiatives, without the reliance on external capital, while also maintaining an attractive capital return policy for our shareholders,” Beyer said.
The merger is expected to realise over A$500 million of corporate tax benefits and lower the cost of capital for the combined company.
The companies see the scope to unlock cost efficiencies, via procurement savings and the reduction of corporate costs.
Beyer said the company would also look at applying Vault’s owner-operator model to the Regis assets.
Beyer added that good people were the core of a company.
“With the difficulty and challenges in the market now with the availability of good quality people, it would be crazy to think that there would be any sense in doing anything that would mean we’ve lost that skill and that capability,” he said.
“That’s one of the great strengths of this. We’re putting together two teams and creating, I think, what’ll be a bit of a powerhouse of technical and operating skills that I’m not sure will exist [elsewhere].”
Beyer will lead the enlarged company with Regis’ Anthony Rechichi and Michael Holmes to continue as chief financial officer and chief operating officer, respectively.
Vault managing director Luke Tonkin had previously announced his retirement.
Vault chair Russell Clark will become chair, with long-time Regis chair James Mactier to retire.
The combined company’s board will be comprised of four directors from each of the current Regis and Vault boards.
The deal will require approval from Vault shareholders and is expected to close by August or September.