How Did Ora Banda Mining Achieve a $186M Profit Surge in FY25?

Strong Financial Performance

Ora Banda Mining Ltd has reported a remarkable financial year ended 30 June 2025, with revenue climbing 89% to $404.3 million and net profit after tax soaring 575% to $186.1 million. This surge reflects the company’s successful transition to underground mining and a favourable gold price environment, underpinning a robust operational and financial performance.

Operational Highlights and Production Growth

The company achieved record gold sales of 91,687 ounces from its Davyhurst processing plant, a 36% increase over the prior year. This was driven by the Riverina Underground mine reaching commercial production in August 2024 and the ramp-up of Sand King, Ora Banda’s second underground mine, which commenced stoping in early 2025. Despite some ramp-up challenges at the processing plant, the company managed to maintain strong output and entered into an ore sale agreement with Norton Gold Fields to process excess ore, further optimizing production capacity.

Exploration Success Extends Mine Life

Exploration and resource development spending reached $28 million in FY25, more than doubling drilling metres compared to the previous year. Key discoveries include the Little Gem greenfields prospect and high-grade extensions at Riverina and Waihi, with mineralisation confirmed to depths exceeding 1,000 vertical metres. These results underpin a multi-year mine life extension and support the company’s growth strategy.

Capital Investment and Financial Position

Ora Banda invested $124 million in capital projects, including underground mine development, processing plant upgrades, and infrastructure enhancements such as new camps and an on-site airstrip. The company’s cash position strengthened by $57.4 million to $84.2 million despite heavy investment, supported by strong operating cash flows. Additionally, Ora Banda secured a $50 million revolving credit facility with ANZ and Commonwealth Bank, and prudently purchased gold put options covering 100,000 ounces at A$4,400/oz to hedge FY26 production, balancing downside protection with upside exposure.

Outlook and FY26 Guidance

Looking ahead, Ora Banda targets a 60% increase in gold production to 140-155koz in FY26, driven by a full year of Sand King underground operations and third-party ore processing agreements. All-in sustaining costs (AISC) are forecast between A$2,800 and A$2,900 per ounce, reflecting increased development and processing costs. The company plans to nearly triple its exploration drilling to 329 kilometres, aiming to further extend mine life and develop new projects. Capital expenditure guidance totals $86 million, including $37 million for underground development and $43 million for new infrastructure projects.

Governance and Remuneration

Ora Banda’s board and management team remain focused on aligning remuneration with performance, with key management personnel awarded incentives tied to operational and financial targets. The company continues to uphold strong governance standards, with audited financial statements provided by KPMG and no dividends declared for FY25, prioritizing reinvestment into growth.