Ora Banda Mining delivered a record 38,800 ounces of gold in the March quarter, generating $76.3 million in free cash flow and boosting cash reserves to $231.7 million. The company also reported a tenfold increase in its Round Dam Mineral Resource to 1.33 million ounces, underpinning its aggressive growth strategy.
- Record quarterly gold production up 21% to 38.8koz
- Free cash flow surges to $76.3 million lifting cash to $231.7 million
- Round Dam Mineral Resource expands 964% to 1.33 million ounces
- Open pit mining commences at Waihi, Sand King underground hits commercial production
- AISC rises slightly to $3,612/oz driven by third-party processing costs
Record Production and Cash Flow Boost
Ora Banda Mining Ltd (ASX:OBM) smashed previous records in the March 2026 quarter with gold production hitting 38,766 ounces, a 21% increase over the December quarter. This surge translated into $76.3 million of free cash flow, pushing the company’s cash reserves to a robust $231.7 million. The uplift came despite investing $52.5 million in capital projects, resource development, and exploration, alongside $4 million in put option premiums.
The company’s all-in sustaining cost (AISC) per ounce rose modestly to $3,612, primarily due to increased volumes processed through third-party mills, which contributed 10,907 ounces during the quarter. Ora Banda is advancing a standalone 3Mtpa processing plant, with a final investment decision expected in the June quarter, aiming to reduce reliance on external processing and potentially improve margins.
Exploration Success Drives Resource Growth
Exploration remained a cornerstone of Ora Banda’s strategy, with the standout being a tenfold jump in the Round Dam Mineral Resource to 1.33 million ounces, marking a 964% increase from the previous 125,000 ounces. This update, detailed in an announcement earlier in March, lifts the company’s total global resources by 57% to 3.3 million ounces. The Round Dam resource is fully open pit mineable with positive cash flow assumptions at A$5,000 per ounce gold price, and drilling continues to extend the mineralised envelope along an 18-kilometre trend.
Additionally, the company expanded the Little Gem gold prospect, discovering a new Sapphire Trend 200 metres east of the original Little Gem Trend. This new lode system adds further growth potential to the Davyhurst Project’s exploration pipeline. High-grade intercepts from Golden Pole and ongoing drilling at Waihi and Sand King underground mines also underpin the company’s resource upside. These developments build on the recent expansion of Little Gem gold prospect and the Round Dam resource surge reported earlier this quarter.
Operational Advances Across Multiple Fronts
Sand King underground mine declared commercial production in January 2026, with mined ounces increasing 25% quarter-on-quarter to 19,261 ounces. The Riverina underground operation also delivered a 36% increase in ounces mined, supported by a 31% rise in total mined tonnes and a slight bump in grade. Open pit mining commenced at Waihi, located just 3 kilometres from the Davyhurst processing plant, adding a third mining operation to the portfolio. The company awarded the open pit contract to Mineral Mining Services, with mobilization, grade control drilling, and infrastructure establishment underway.
Processing throughput at the Davyhurst plant reached a quarterly record of 343,182 tonnes milled at 2.7 grams per tonne, producing 27,859 ounces of gold. This 17% increase in throughput from the prior quarter reflects operational improvements and a 1% uplift in recovery rates to 93%. Third-party milling at the Paddington Mill contributed an additional 10,907 ounces, although at a higher cost, influencing the elevated AISC.
Capital Projects and Sustainability Initiatives
The board approved $63 million in capital investments to advance growth projects, including $10 million to progress the new 3Mtpa processing plant from definitive feasibility study (DFS) to front-end engineering design (FEED), expected to complete in the June quarter. Another $30 million is earmarked for pre-production capital at Waihi open pit, and $23 million will expand accommodation capacity by adding approximately 250 rooms across the Davyhurst Project to support operational growth.
Safety performance improved materially with the Total Recordable Injury Frequency Rate (TRIFR) dropping 26.5% to 9.15 and the Lost Time Injury Frequency Rate (LTIFR) falling to 0.54. The company also advanced its climate risk and sustainability framework, completing a Climate Risk and Opportunity Workshop to prepare for upcoming regulatory reporting requirements.
Outlook and Guidance
Ora Banda maintained its FY26 production guidance at 140,000 to 155,000 ounces, but increased AISC guidance to $3,250–$3,350 per ounce, reflecting higher third-party processing volumes linked to the rising gold price. Exploration expenditure guidance remains at $73 million for FY26, supporting ongoing drilling and resource development programs across the Davyhurst tenements.
With cash reserves swelling and multiple growth projects advancing, Ora Banda is well-positioned to capitalise on its expanding resource base and operational momentum. The company’s upcoming June quarter milestones include the processing plant FEED completion and an updated mineral resource estimate for Waihi, which will be critical in shaping its medium-term growth trajectory.
Bottom Line?
Ora Banda’s record production and cash flow underpin its aggressive expansion, but rising processing costs and the timing of the new plant decision will be key to watch.
Questions in the middle?
- Will the new 3Mtpa processing plant deliver the cost efficiencies needed to offset rising third-party milling expenses?
- How will the expanded Round Dam resource impact the company’s mine planning and production profile in FY27 and beyond?
- What are the implications of the newly discovered Sapphire Trend for future resource growth at Little Gem?