Ora Banda Mining Ltd has reported a record quarterly gold production of 32,036 ounces, alongside significant exploration successes and a $63 million investment in growth projects, while revising its FY26 cost guidance upward due to increased third-party milling expenses.
- Record quarterly gold production of 32,036 ounces, up 5% quarter-on-quarter
- 39% increase in gold production compared to second half of FY25
- Cash balance rises to $155.4 million despite $57.9 million capital and exploration spend
- FY26 production guidance maintained at 140-155koz, expected at lower end
- All-in sustaining costs (AISC) guidance revised up to $3,250-$3,350/oz due to higher third-party milling costs
Record Production and Cash Growth
Ora Banda Mining Ltd (ASX – OBM) has delivered a standout December 2025 quarter, producing a record 32,036 ounces of gold; a 5% increase from the previous quarter and a striking 39% rise compared to the second half of FY25. This production momentum has been driven by ramped-up mining volumes at the Riverina and Sand King underground operations within the Davyhurst Gold Project.
Despite investing nearly $58 million in capital projects, resource development, and exploration, the company’s cash reserves grew by $32.8 million to $155.4 million. This robust cash position underpins Ora Banda’s confidence in its organic growth strategy and ability to fund key projects internally.
Exploration Success Fuels Growth Pipeline
Exploration drilling continues to yield promising results across multiple sites, including Waihi, Little Gem, Riverina, and Sand King. Notably, drilling at Sand King’s northern corridor has confirmed significant mineralisation extensions, expanding the potential mine life beyond current plans. These discoveries are critical as Ora Banda prepares to advance new mining developments and infrastructure.
Capital Investment and Project Advancements
The company has approved $63 million in internally funded capital for FY26 growth initiatives. This includes $10 million to progress a new 3 million tonnes per annum processing plant, expected to move from definitive feasibility study to front-end engineering design by mid-2026. Additionally, $30 million is earmarked for open pit mining works at Waihi, and $23 million for expanding accommodation facilities to support operational growth.
Revised Cost Guidance Amid Operational Changes
While production guidance for FY26 remains steady at 140,000 to 155,000 ounces, Ora Banda now expects output toward the lower end of this range. The company has revised its all-in sustaining cost (AISC) guidance upward to $3,250–$3,350 per ounce, reflecting increased third-party milling volumes and higher processing costs linked to the elevated gold price environment. The December quarter’s AISC rose 22% to $3,505 per ounce, influenced by a low-grade mining sequence at Sand King and greater reliance on third-party milling.
Hedging and Sustainability Initiatives
To manage cash flow volatility amid growth investments, Ora Banda executed put options covering 150,000 ounces at a strike price of $6,000 per ounce for the period January 2026 through to October 2027. On the sustainability front, the company maintained stable safety metrics and advanced environmental approvals, rehabilitation planning, and water management programs. Engagement with the Marlinyu Ghoorlie people progressed following a Federal Court recognition of their traditional rights, highlighting Ora Banda’s commitment to community collaboration.
Leadership and Corporate Updates
Corporate developments included the exercise and cancellation of unlisted performance rights and the appointment of John Sanders as General Counsel and Joint Company Secretary, effective January 20, 2026. These moves aim to strengthen governance as the company scales operations and navigates regulatory requirements.
Bottom Line?
Ora Banda’s record production and aggressive growth investments set the stage for a transformative second half of FY26, though rising costs and operational challenges warrant close market attention.
Questions in the middle?
- How will the new 3Mtpa processing plant impact production costs and capacity once operational?
- What are the implications of the low-grade sequence at Sand King for future quarterly outputs?
- How might evolving gold price dynamics affect Ora Banda’s hedging strategy and profitability?