How Ora Banda’s Sand King Mine Fueled a 39% Gold Production Surge

Record Production and Cash Flow

Ora Banda Mining Ltd (ASX – OBM) has reported a standout September 2025 quarter, delivering record gold production of 30,595 ounces; a 39% increase compared to the previous quarter. This surge was largely driven by the ramp-up of the Sand King underground mine and enhanced processing efficiencies at the Davyhurst plant. Despite challenging weather conditions causing road closures and power outages, the company achieved a 37% increase in gold sold, reaching 31,336 ounces, including attributable ounces from third-party milling.

Financially, Ora Banda strengthened its position with closing cash of $122.7 million, up $38.5 million quarter-on-quarter. This was achieved while investing $49.5 million in capital projects, resource development, and exploration, reflecting a robust cash flow generation capability amid ongoing growth initiatives.

Operational Highlights and Cost Improvements

The Sand King underground mine continues to be a key growth driver, with ore mined increasing 52% to 16,000 ounces and mined grade exceeding reserve expectations by 22%. The mine achieved full capital payback just 12 months after portal establishment, underscoring operational efficiency. Meanwhile, the Riverina underground mine maintained steady production aligned with reserve grades, although development focus on extending ore drives caused some delays in stoping.

Processing throughput at Davyhurst improved by 15% to 293,700 tonnes at 3.1 grams per tonne, with recovery rates increasing to 91%. These enhancements contributed to a 20% reduction in all-in sustaining costs (AISC) to A$2,872 per ounce sold, a significant margin improvement that bodes well for profitability as gold prices remain elevated.

Exploration Success Fuels Growth Pipeline

Exploration drilling delivered promising results across multiple prospects. At Round Dam, drilling revealed a potential large-scale gold system with six subparallel lode trends, indicating both open pit and underground potential. The Waihi project’s ongoing 45-hole campaign intercepted high-grade gold lodes, including 13.5 meters at 6.1 grams per tonne and 8 meters at 8.7 grams per tonne, expanding the mineralised envelope significantly.

Sand King’s exploration extended mineralisation 300 meters north of the current life-of-mine plan with high-grade intercepts, supporting plans for an independent southern decline. At Little Gem, drilling confirmed a multi-lode system with a strike length exceeding 1,000 meters and depths of at least 400 meters, reinforcing the prospect’s potential to become a third underground mine.

Corporate and Sustainability Initiatives

Ora Banda remains financially disciplined, with a $50 million revolving credit facility secured but undrawn, providing flexibility for future growth. The company also completed key agreements related to mineral royalties and repaid loans through royalty sales, strengthening its balance sheet.

On the sustainability front, safety metrics remain strong with a Lost Time Injury Frequency Rate (LTIFR) of 0.7, well below industry averages. Environmental rehabilitation at Sand King is progressing, and community engagement with the Marlinyu Ghoorlie Group continues constructively. The company is also advancing climate reporting preparations and water reuse initiatives.

Managing Director Luke Creagh highlighted the quarter as a testament to Ora Banda’s operational capabilities and organic growth strategy, emphasizing the momentum gained from exploration success and the benefits of a second underground mine in the production profile.