Highlights

  • Ora Banda now expects FY26 gold production to track toward the lower end of 140–155koz guidance.
  • FY26 AISC guidance was lifted to AUD 3,250–AUD 3,350 per ounce, driven by higher third-party processing costs.
  • FY26 growth capital guidance increased to AUD 143 million, reflecting expanded investment in processing, mining, and infrastructure projects.

Ora Banda Mining Ltd (ASX:OBM) fell more than 13% on Thursday, even as the broader mining sector traded higher. The decline came after the gold producer updated its FY26 outlook, indicating production is now expected toward the lower end of guidance while cost estimates have been revised upward. The move occurred while the S&P/ASX 300 Metals & Mining Index (ASX:XMM) rose 0.98% to 8,316.10, highlighting a stock-specific reaction following recent operational updates.

Production Guidance Moves to Lower End

In its December 2025 Quarterly Activities Report, Ora Banda confirmed FY26 gold production guidance remains 140,000 to 155,000 ounces, but management now expects output to track toward the lower end of that range. The update followed a period of increased mining activity at the Sand King and Riverina underground operations, where ore tonnes rose quarter on quarter.

Gold production for the December quarter totalled 32,036 ounces, including attributable equivalent production, marking a 5% increase from the September quarter. Year-to-date FY26 production reached 62,631 ounces, with gold sales of 62,583 ounces.

Cost Guidance Revised Higher

Alongside the production update, Ora Banda revised its FY26 all-in sustaining cost (AISC) guidance to AUD 3,250–AUD 3,350 per ounce, up from the previous AUD 2,800–AUD 2,900 per ounce range. The company cited increased reliance on third-party processing as a key driver of higher costs, linked to throughput constraints at the Davyhurst processing facility.

For the December quarter, AISC rose to AUD 3,505 per ounce sold, representing a 22% increase on the prior quarter. Third-party processing volumes climbed sharply, with 135.6kt hauled, a 145% increase compared with the September quarter.

Capital Spending Lifted for Growth Projects

Ora Banda also updated its FY26 capital guidance, lifting growth capital to AUD 143 million, up from AUD 86 million previously. The increase incorporates internally funded investment aimed at advancing multiple growth initiatives during the second half of FY26.

Approved capital includes AUD 10 million to progress a proposed ~3Mtpa processing plant from definitive feasibility study to front-end engineering design, AUD 30 million in pre-production capital for the Waihi open pit, and funding for accommodation upgrades across the Davyhurst project area.

Despite elevated spending, the company closed the December quarter with cash of AUD 155.4 million, up AUD 32.8 million from the previous quarter, after AUD 57.9 million in capital, resource development, and exploration expenditure.

Market Context

Ora Banda’s share price movement contrasted with gains across the broader mining sector on the day. Investors appeared focused on the revised outlook, with attention on higher unit costs and guidance positioning for the remainder of FY26.