Ora Banda Mining Ltd (ASX: OBM) has presented a very good performance in its Quarterly Activities Report for September 2025. The gold production of the company was 30,595 ounces, comprising 3,564 ounces of third-party milling. This sizable output has exceeded the June quarter’s production by 39 per cent, thus creating a new record.
The main reason for this improved output is the production from the Sand King gold mine, which provided the Davyhurst processing hub with higher-grade ore. On top of that, the mine consistently improved operations, controlled costs well, and had high plant availability, all contributing to the good performance in the mine’s gold production. Underground expansion and recovery optimisation, which the company has been focusing on, are now yielding results.
ASX: OBM showed strong performance in its financial report
How Did Sand King Gold Mine Drive Performance?
At this time, Sand King is still the main asset of the Ora Banda company and has been transitioning from open-pit mining to underground operations. The ore from the Sand King mine has been of better quality on average than in the previous quarters. This resulted in higher gold production and better recoveries at Davyhurst.
The mining productivity went up; as a result, the ore delivery became more consistent, and the downtime was less. The underground ramp-up plan at the Sand King site is still on schedule, with the stopping activities moving deeper into the high-quality zones. The ever-increasing input of the mine is reshaping the production profile of the Ora Banda company.
According to the management, the performance of Sand King has confirmed its status as the pillar mine of the company’s operations for FY 26. The place is still overperforming in all aspects, especially in ore quality and throughput stability.
Sand King Underground Ramp up- quarterly lateral development metres
What Progress Has Been Made At the Davyhurst Gold Project?
The recent update of the Davyhurst gold project has revealed a lot of improvements in the processing and cost categories. The Davyhurst plant, which has a capacity of 1.2 Mtpa, was able to recover more gold as it processed a bigger share of high-grade ore.
There was an increase in the total ore milled as a result of the strong material movement from Sand King and Riverina. Processing efficiency was also raised by better maintenance scheduling and optimised circuit performance.
In addition, Ora Banda is progressing with a feasibility study to increase the Davyhurst capacity to 3 Mtpa. Such a move would result in lower costs, higher margins, and assured long-term production.
Davyhurst milled tonnes & head grade
Why Does This Matter For Investors Globally?
The report of the mining of gold at Ora Banda indicates a great deal of strength for the Australian gold producers, even though there is global cost inflation. The company managed to produce A$38.5 million in free cash flow during the period and ended up with A$122.7 million in cash and cash equivalents.
This strong financial position allows Ora Banda to completely and without major debt, finance the exploration and the growth capital, as well as the possible expansions. The international investors looking for exposure to the efficient mid-tier gold producers are very much focused on the gold mining sector of Australia, and they are going to watch the progress of Ora Banda closely.
The gold sector in Australia is still very attractive to foreign capital, and the progress of Ora Banda is an indicator of its increasing importance. The more international funds eye the ASX as a stable source of gold, the more the consistent performers like Ora Banda might benefit in terms of their valuations.
Can Ora Banda Sustain This Growth Momentum?
Management was confident in their production estimate for FY 2026, which was set between 140,000 and 155,000 ounces of gold. The company is anticipating more gold every quarter as the Sand King mine is expected to bring full production soon.
However, the growth will be sustained only if the ore’s quality remains good and the company maintains its low-cost approach. A decrease in quality or an increase in input price could hurt the company’s profit margins. Ora Banda has a plan in place to deal with such risks, and that is through applying ‘process’ technology and conducting ‘exploration’ drilling.
Moreover, the company is exploring the possibility of acquiring and/or developing mines in Missouri and Callion as a way to have a steady supply of ore from different sources. These satellite mines may provide the mill with a consistent supply of ore while Sand King is being developed.
Key Takeaway For Stakeholders
The quarter of September 2025 confirms the position of Ora Banda Mining as a potent mid-tier gold producer in Australia. The mine of Sand King has taken the output to the highest, while the Davyhurst project indicates both efficiency and less output to grow.
Ora Banda comes across as the best gold mining company with its financials, less debt, and a continuously improving resource base; hence, the investors will get more value. The company has given a huge boost to the Australian mining industry with its report, which indicates that Australia is a competitive mining sector globally.
Also Read: Ora Banda Mining Reports Strong FY25 Performance Despite June Quarter Challenges
FAQs
Q1: What were the key production figures of Ora Banda for the month of September 2025?
A1: A total of 30,595 ounces of gold was produced by the company, which was a 39 per cent rise compared to the last quarter.
Q2: How important is the gold mine production of Sand King to the company?
A2: Sand King is now the chief ore supplier and the main contributor to the growth of record output.
Q3: What was the result of the Davyhurst project update?
A3: The update revealed that more throughput, better recoveries, and more plans to increase the processing capacity threefold have been achieved.
Q4: What is the strength of Ora Banda’s financial position?
A4: At the end of the quarter, the company had A$122.7 million cash in hand and A$38.5 million as free cash flow.
