Ora Banda Mining delivered a record 39,552 ounces of gold in the June quarter, meeting full-year guidance with 141,000 ounces produced. The company generated strong operating cash flow and unveiled a transformational growth plan targeting 300koz annual production by FY29.
- Record 39,552oz gold production in June quarter
- FY26 total production of 141koz meets guidance
- Strong $121 million operating cash flow, $267.7 million cash balance
- DRIVE to 300 plan launched with $375m new mill construction
- Mineral Resources up 75% to 3.69Moz, Ore Reserves up 159% to 610koz
Record Production and Cash Flow Propel Ora Banda
Ora Banda Mining Ltd (ASX:OBM) closed FY26 with a bang, reporting a record quarterly gold production of 39,552 ounces in the June 2026 quarter, pushing total annual production to 141,000 ounces, in line with guidance. Despite weather disruptions late in the quarter affecting haulage and processing, the company maintained strong operational momentum, ending with 7,800 ounces in stockpiles and 3,000 ounces in gold-in-circuit.
Operating cash flow for the quarter hit $121 million, underpinning a net cash flow generation of $36 million after investing $76.6 million in growth projects. Ora Banda’s cash balance swelled to $267.7 million, supported by an undrawn $200 million corporate revolving facility, bringing total liquidity to $468 million. This robust financial position sets the stage for the company’s ambitious expansion plans.
DRIVE to 300 Initiative Targets Production Doubling by FY29
Central to Ora Banda’s outlook is the newly launched 'DRIVE to 300' strategy, a multi-year plan aimed at doubling gold production to approximately 300,000 ounces per annum by FY29 while reducing unit costs. The cornerstone is the construction of a standalone 3 Mtpa processing plant at Davyhurst, budgeted at $375 million, with commissioning slated for the second half of FY28. The EPC contract has been awarded to GR Engineering Services, and site works are already underway.
Complementing the mill build, the company is advancing several growth projects including the development of the Waihi Underground mine, approved with a $90 million capital cost, targeting steady-state production by Q1 FY28. Infrastructure upgrades such as new accommodation facilities and an airstrip to reduce transit times are also progressing, reflecting a comprehensive approach to scaling operations.
Significant Resource and Reserve Growth Reinforces Expansion
Ora Banda’s exploration efforts have paid off handsomely, with Mineral Resources soaring 75% to 3.69 million ounces and Ore Reserves surging 159% to 610,000 ounces, net of mining depletion. Notably, the Round Dam Open Pit resource ballooned nearly tenfold to 1.33 million ounces, while Waihi’s combined open pit and underground resources more than doubled to 482,000 ounces. Underground assets at Sand King and Riverina also saw solid increases, supporting the company’s underground mining base.
This resource and reserve growth underpins the DRIVE to 300 plan and provides a solid foundation for sustained production increases. The company’s FY27 production guidance is set at 125,000 to 140,000 ounces at an all-in sustaining cost (AISC) of $3,400 to $3,600 per ounce, slightly below FY26’s $3,496/oz, reflecting anticipated operational efficiencies and the ramp-up of new assets.
Operational Highlights and Safety Improvements
Operationally, the quarter saw a 12% increase in mined ounces to 43,800oz, driven by strong underground performance at Sand King and Riverina, and the commencement of ore mining at Waihi open pit. Processing throughput remained robust despite a 4% decline due to weather, with 329kt milled at 2.7g/t for 26,600 ounces produced.
Safety metrics improved markedly, with the total recordable injury frequency rate (TRIFR) dropping 30% year-on-year to 7.65, despite increased operational activity. The company also launched a digital training platform and strengthened governance frameworks, signalling a commitment to sustainable growth.
Corporate Developments and Board Changes
On the corporate front, Ora Banda appointed mining veteran John Richards as Non-Executive Chair elect, with current Chair Peter Mansell set to retire at the upcoming AGM. The company also continued to manage equity incentives, with a modest number of performance rights exercised and cancelled during the quarter.
Ore sale arrangements with Paddington Gold Pty Ltd were extended to October 2026, ensuring continued third-party processing support as the company transitions to its new processing plant. This extension includes approximately 570kt of ore sales, providing operational flexibility during the mill construction phase.
Bottom Line?
Ora Banda’s record production and cash flow provide a strong platform for its ambitious DRIVE to 300 expansion, but execution risks around the new mill build and sustaining cost pressures from third-party processing and fuel prices warrant close attention.
Questions in the middle?
- How will Ora Banda manage the transition from third-party processing to its new 3 Mtpa mill without disrupting production?
- Can the company sustain or improve its AISC amid rising diesel costs and weather-related operational challenges?
- What exploration results or project milestones will be critical to achieving the aspirational 300kozpa production target by FY29?