Ora Banda Mining delivered record FY26 results with a 53% jump in gold production and doubled revenue to $807.5 million, underpinning its DRIVE to 300 growth strategy targeting 300,000 ounces annually by FY29.
- Gold production up 53% to 141koz
- Revenue doubles to $807.5 million
- Ore Reserves surge 159% to 610koz
- New 3 Mtpa mill construction underway
- FY27 guidance: 125-140koz production, $425m capex
Record Production and Revenue Fuel Ambitious Growth Plan
Ora Banda Mining Ltd (ASX:OBM) has posted a landmark FY26, doubling revenue to $807.5 million and lifting gold production by 53% to 141,000 ounces. This surge was powered by the ramp-up of its second underground mine, Sand King, which achieved capital payback within just 12 months of portal establishment, joining Riverina Underground as a cornerstone of the company’s expanding footprint.
The company’s EBITDA soared 134% to $431.1 million, reflecting operational leverage and a gold price that averaged $5,742 per ounce, up 32% year-on-year. Despite a 30% rise in all-in sustaining costs (AISC) to $3,496 per ounce, driven by third-party milling expenses, diesel price inflation, and weather disruptions, Ora Banda generated record operating cash flow of $426.7 million, bolstering its cash reserves to $267.7 million by June 2026.
DRIVE to 300: Scaling Up Processing and Mining Capacity
With a robust balance sheet and liquidity of $468 million, including an upsized $200 million revolving credit facility, Ora Banda is accelerating its DRIVE to 300 strategy, an aspirational plan to double production and materially reduce unit costs by FY29. Central to this is the construction of a new standalone 3 Mtpa processing plant adjacent to the existing Davyhurst mill, with commissioning targeted for March 2028.
The company is also advancing mining fronts at Waihi Underground and the Round Dam Open Pit, with the latter’s final investment decision expected in the second half of FY27. These developments aim to supplement existing operations at Riverina and Sand King, collectively expanding nameplate mill capacity to 4.2 Mtpa and mitigating single asset risk.
Substantial Resource and Reserve Growth Supports Long-Term Outlook
Exploration success underpinned a 75% increase in Mineral Resources to 3.69 million ounces and a 159% jump in Ore Reserves to 610,000 ounces as at April 2026. Highlights include a tenfold resource increase at Round Dam to 1.33 million ounces and maiden reserves for Waihi Underground and Round Dam Open Pit. The company invested approximately $75 million in exploration during FY26, expanding drilling programs at Round Dam, Little Gem, and Waihi, with a maiden resource estimate for Little Gem anticipated in the first half of FY27.
This strong resource base underwrites the company’s growth ambitions and provides a runway for extending mine life beyond the current six years at a 150koz annual run rate.
FY27 Guidance and Investment Priorities
For FY27, Ora Banda targets production of 125,000 to 140,000 ounces at an AISC of $3,400 to $3,600 per ounce. Capital expenditure is forecast at $425 million, including $240 million for the new mill, $70 million for infrastructure upgrades, $40 million for Waihi Underground development, and $75 million for exploration and resource growth.
Production is expected to be weighted towards the first half of FY27, with ongoing third-party processing at Norton Gold Fields’ Paddington Mill until October 2026, after which ore stockpiling will commence ahead of the new plant’s commissioning.
Safety and Sustainability Progress
Safety performance improved markedly with a 30% reduction in total recordable injury frequency rate (TRIFR) to 7.65 and a lost time injury frequency rate (LTIFR) of 0.5. The company continues to embed sustainability into its operations, progressing climate-related financial disclosures for the first time and preparing its inaugural ESG Report due in September 2026.
Ora Banda also maintains a gold price protection program, holding put options covering 167,000 ounces at a floor price of $6,000 per ounce from November 2026 to June 2028, providing downside protection while retaining upside exposure.
Leadership Transition and Remuneration Framework Update
Non-Executive Chairman Peter Mansell announced his retirement at the upcoming AGM, with John Richards, a seasoned mining executive with over 40 years’ experience, slated to take over the role. The company also unveiled a revamped remuneration framework designed to support its DRIVE to 300 ambitions, including increased fixed pay, enhanced short-term and long-term incentives, and a new company-wide equity grant tied to the three-year growth plan.
This framework aims to attract and retain talent critical to delivering the company’s transformation, aligning employee rewards with shareholder value creation.
Climate-Related Risks and Resilience
Ora Banda disclosed climate-related financial risks for the first time, identifying transition risks from potential energy cost increases and physical risks such as water availability constraints and extreme heat. The company’s operations source water from a non-stressed underground aquifer and recycle over 80% of water onsite, mitigating long-term water scarcity risks.
Physical risks like bushfires and extreme heat are actively managed through established safety protocols and infrastructure safeguards. Climate scenario analysis indicates the company’s strategy and assets are resilient across a range of plausible future climate conditions, with no immediate need for asset repurposing or additional investment.
What to Watch Next
Investors should monitor the progress of the new 3 Mtpa mill construction and the Final Investment Decision for Round Dam Open Pit, as these will be pivotal to scaling production. Exploration results at Little Gem and ongoing drilling programs will also be key indicators of resource growth potential. The company’s ability to manage rising costs and deliver on its ambitious DRIVE to 300 targets amid market volatility will remain a critical focus.
Finally, the leadership transition and implementation of the new remuneration framework will be watched closely for their impact on corporate governance and talent retention during this transformative phase.
Amid these developments, the question remains: can Ora Banda translate its aspirational DRIVE to 300 into operational reality within the planned timeframe, or will unforeseen challenges temper its growth trajectory?
Bottom Line?
Ora Banda’s record FY26 results and robust balance sheet set a strong foundation for ambitious growth, but execution risks around new mill commissioning and cost control will test the DRIVE to 300 strategy.
Questions in the middle?
- Will the new 3 Mtpa processing plant commission on schedule and deliver expected cost savings?
- How will rising input costs and inflationary pressures affect the company’s AISC and margins going forward?
- Can exploration success at Little Gem and Round Dam sustain the resource growth needed to support 300koz production?