Company Achieves Record Annual Production While Strengthening Financial Position
Ora Banda Mining Limited, also known as OBM on the Australian Securities Exchange, has delivered record gold production for FY25 despite facing operational challenges during the June quarter. The Company sold 91,687 ounces of gold for the full year, representing a 36% increase from the previous year’s performance.
The mining Company produced 92,399 ounces of gold for FY25, marking a 32% improvement over the previous year. Gold sold during the June quarter totalled 20,220 ounces through the Davyhurst processing plant.
Financial Strength Maintained Through Operational Difficulties
Ora Banda Mining (ASX:OBM) strengthened its cash position during the quarter, closing with $84.2 million in cash. This represents a $3.5 million increase despite production delays affecting operations.
The Company invested $40.9 million in capital projects, resource development and exploration activities during the quarter. For the full year, Ora Banda increased its cash position by $57.4 million after investing over $124 million in capital projects.
All-in sustaining costs for the quarter reached $3,583 per ounce sold, representing a 45% increase from the prior quarter. The full year AISC achieved $2,693 per ounce, showing a $74 per ounce reduction compared to the previous year.
Figure 1: Quarterly ounce production and head grade
Safety Performance Shows Positive Trends
The Company maintained strong safety performance with a Lost Time Injury Frequency Rate of 0.7 and a Total Recordable Injury Frequency Rate of 10.91.
Underground Mining Operations Deliver Mixed Results
Sand King Underground continued its ramp-up trajectory, mining 96.6 thousand tonnes of ore at 3.4 grams per tonne. The mine produced 10.5 thousand ounces, representing a 195% increase from the prior quarter.
The operation achieved its expected steady-state production run rate of 60,000 ounces per annum during June 2025. Managing Director Luke Creagh noted the mine reached this milestone in line with key project metrics.
Riverina Underground mined 143 thousand tonnes of ore at 3.2 grams per tonne, producing 14.8 thousand ounces. The operation faced delays due to the late arrival of raisebore equipment for escapeway installation.
The delays resulted in approximately 3,000 ounces of high-grade stopes being deferred into July 2025.
Figure 2: Riverina Underground long section looking west
Third-Party Processing Agreement Adds Production Capacity
Ora Banda Mining Limited commenced third-party processing through Norton Gold Fields’ Paddington Mill under an ore sale agreement. The arrangement generated 1,389 ounces of attributable equivalent production during the quarter.
The Company processed approximately 19,000 tonnes of ore through the agreement, with the remaining tonnes from the initial 50,000-tonne contract scheduled for early FY26 processing.
Processing Plant Faces Ramp-Up Challenges
The Davyhurst mill processed 256,210 tonnes during the quarter, representing a 2% decrease from the previous quarter. The operation faced slower than expected ramp-up following mill upgrades.
Mill throughput challenges resulted in increased closing stockpiles totalling 165,000 tonnes at 1.9 grams per tonne. The stockpiles contain 10,000 ounces of gold, including medium-grade material of 63,000 tonnes at 2.8 grams per tonne.
Figure 3: FY25 Davyhurst milled tonnes and head grade
Exploration Programs Deliver High-Grade Results
The Company invested $12.7 million in exploration and resource development activities during the quarter. Drilling programs focused on Riverina, Waihi and Little Gem prospects.
Riverina Deeps drilling confirmed robust mineralisation extending to 1,000 vertical metres below surface. Significant results included 1.7 metres at 76.4 grams per tonne and 11.8 metres at 9.8 grams per tonne.
Waihi drilling intersected a new mineralised zone in the footwall at 330 metres below surface. The intersection returned 8.7 metres at 9.3 grams per tonne, including higher-grade zones.
Little Gem drilling successfully extended the mineralised carbonate system, confirming a continuous five-kilometre strike trend. The discovery represents regionally significant mineralisation potential.
Strong FY26 Guidance Reflects Growth Strategy
Ora Banda has issued production guidance of 140,000 to 155,000 ounces for FY26. The guidance includes approximately 21,000 ounces of attributable equivalent production from proposed ore sale agreements.
AISC guidance for FY26 ranges between $2,800 and $2,900 per ounce. The Company plans to spend $73 million on exploration and resource development activities.
Growth capital expenditure will total $86 million, including $37 million for underground development and infrastructure. Additional spending includes $6 million for process plant upgrades and $43 million for other projects.
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Management Commentary Highlights Achievement
Managing Director Luke Creagh described FY25 as “very successful” for Ora Banda. He highlighted the Company’s ability to deliver record production while commencing Sand King operations.
“FY25 was a very successful year for Ora Banda. We delivered record production with over 30% improvement on the previous year, commenced and ramped up Sand King as our second underground mine, extended Riverina mineralisation by over 500m to a depth of 1km and advanced numerous potential underground targets,” Creagh said.
The managing director emphasised the Company’s financial strength following significant capital investment.
“In addition, after investing over $124 million in capital projects, resource development and exploration during FY25, Ora Banda increased its cash position by over $57M, closing the year with $84.2M in cash,” he stated.
Future Growth Strategy Outlined
Creagh outlined the Company’s growth strategy for FY26, forecasting production increases exceeding 60% compared to current levels. The strategy includes feasibility studies to potentially double processing capacity to approximately three million tonnes per annum.
The exploration program will focus on extending mine life at Riverina and Sand King while advancing other prospects. Key targets include Little Gem, Waihi, and the Round Dam trend.
Ora Banda continues progressing conditions precedent for its $50 million syndicated facility agreement with ANZ and Commonwealth Bank. The facility remains undrawn as the Company maintains strong cash reserves.
