Vault Minerals' (ASX:VAU) merger with Regis Resources (ASX:RRL) is seen as likely to complete, with the stock trading broadly in-line with the implied deal value since the May announcement, Euroz Hartleys said in a note on Thursday.
Vault Minerals shareholders are expected to vote on the scheme in August or Sept, and the company continues to unanimously recommend the proposal.
The gold miner has also closed out its remaining gold hedge position, increasing its exposure to gold price movements and opening doors for potential upside if gold prices remain elevated.
The investment firm expects the company to post June quarter group production of 89,000 ounces at an all-in sustaining cost of AU$2,937 per ounce, potentially generating about AU$146 million in earnings.
Euroz Hartleys maintained its buy rating but lowered price target to AU$6.80 from AU$7.25, citing a lower spot gold price assumption.
