Ora Banda Mining reported a 36% rise in FY25 gold sales and a strong cash position, despite some operational delays. The company’s FY26 guidance targets a 60% production increase, backed by significant exploration successes.
- FY25 gold sold up 36% to 91,687oz
- Sand King mine reaches steady state production of 60kozpa
- Ore sale agreement with Norton Gold Fields generates 1,389oz attributable production
- FY26 production guidance set at 140–155koz with AISC of A$2,800–2,900/oz
- Exploration drilling confirms high-grade mineralisation at Riverina Deeps, Waihi, and Little Gem
Record Production and Cash Growth
Ora Banda Mining Limited (ASX, OBM) has delivered a standout FY25 performance, reporting a 36% increase in gold sold to 91,687 ounces and a 32% rise in gold produced to 92,399 ounces. This growth was achieved despite some operational setbacks, including slower-than-expected ramp-up of processing plant upgrades and mining delays at the Riverina underground mine.
The company’s cash position strengthened to $84.2 million by the end of June 2025, up $3.5 million from the prior quarter, even after investing $40.9 million in capital, resource development, and exploration activities. This robust financial footing provides a solid platform for Ora Banda’s ambitious growth plans.
Operational Highlights and Challenges
The Sand King underground mine, Ora Banda’s second underground operation, achieved its targeted steady state production run-rate of 60,000 ounces per annum in June 2025. This milestone underscores the mine’s critical role in the company’s production profile moving forward.
Meanwhile, the Riverina underground mine experienced delays due to the late arrival of a raisebore rig, which postponed access to high-grade stopes and deferred approximately 3,000 ounces of production into July. Additionally, the Davyhurst processing plant’s upgrade ramp-up was slower than anticipated, impacting throughput and contributing to increased stockpiles at quarter-end.
Strategic Ore Sale and Third-Party Processing
To manage excess ore beyond the Davyhurst plant’s capacity, Ora Banda entered into an ore sale agreement with Norton Gold Fields (NGF). Approximately 19,000 tonnes of ore were processed at NGF’s Paddington mill during the quarter, generating 1,389 attributable equivalent ounces. This partnership is expected to continue into FY26, with a non-binding memorandum of understanding in place to potentially expand the arrangement.
Exploration Success Fuels Growth Outlook
Exploration drilling delivered promising results across multiple prospects. At Riverina Deeps, infill drilling between 500 and 1,000 metres depth returned numerous high-grade intersections exceeding 20 gram-metres, confirming a continuous mineralised system extending to 1,000 vertical metres. The Waihi prospect revealed a new mineralised zone at 330 metres depth, including an 8.7-metre intercept grading 9.3 grams per tonne. Meanwhile, the Little Gem prospect’s drilling confirmed a regionally significant continuous strike trend exceeding 5 kilometres.
FY26 Guidance and Capital Investment
Looking ahead, Ora Banda projects a substantial production increase of over 60% to between 140,000 and 155,000 ounces for FY26, with all-in sustaining costs (AISC) expected between A$2,800 and A$2,900 per ounce. The company plans to invest $73 million in exploration and resource development and $86 million in growth capital, including infrastructure upgrades and a feasibility study aimed at doubling processing capacity to approximately 3 million tonnes per annum.
Managing Director Luke Creagh highlighted the company’s strong position, "Our next phase of growth is underpinned by robust cash flow and exciting exploration targets that could extend mine life and unlock new value."
Bottom Line?
Ora Banda’s FY26 ambitions hinge on successful processing upgrades and exploration outcomes that could redefine its production trajectory.
Questions in the middle?
- Will the ore sale agreement with Norton Gold Fields be formalised into a binding contract?
- How quickly can the Davyhurst processing plant upgrades be fully commissioned to support higher throughput?
- What impact will the new high-grade discoveries have on extending mine life and production volumes?