Highlights

  • Ora Banda Mining shares rose 6.19% to AUD 1.41 during the morning session on 19 May 2026, placing the stock among the top ASX gainers.
  • The stock’s continued momentum follows the company’s 18 May announcement outlining its new “DRIVE to 300” three-year growth aspiration.
  • Ora Banda approved construction of a new 3.0Mtpa processing plant at Davyhurst with estimated Capital Expenditure of A$375 million.
  • The company also approved development of the Waihi Underground mine with expected capital costs of A$90 million.
  • Ora Banda reported a March 2026 cash balance of A$232 million and secured an upsized A$200 million revolving Credit Facility.
  • GR Engineering Services was selected as preferred EPC contractor for the Davyhurst expansion project under a proposed A$233 million contract.

Ora Banda Mining Ltd (ASX:OBM) shares continued higher during the morning session on 19 May 2026, rising 6.19% to AUD 1.41 and placing the company among the top ASX gainers for the day.

The continued momentum follows a major strategic update released by the gold producer on 18 May 2026, where management unveiled its new “DRIVE to 300” aspiration aimed at doubling production over the next three years through a combination of infrastructure expansion, underground mine development and enhanced Balance Sheet flexibility.

Investor interest in the stock appeared to strengthen following approval of several key growth projects, including a new standalone processing facility at Davyhurst, development of the Waihi Underground mine and an expanded funding framework designed to support future capital expenditure.

Ora Banda shares have now gained approximately 39.31% over the past year as the company continues expanding its Western Australian gold operations.

While management emphasised that the “DRIVE to 300” initiative remains aspirational rather than a formal production forecast, the scale of the announced projects attracted considerable market attention.

New Davyhurst Processing Plant Approved

A central component of Ora Banda’s expansion strategy is the approval of a new standalone 3.0 million tonnes per annum (Mtpa) processing plant at Davyhurst.

The company estimated total capital expenditure for the project at A$375 million, comprising a proposed EPC contract valued at A$233 million alongside approximately A$142 million in supporting infrastructure, owner’s costs and contingency allocations.

The new facility will sit adjacent to the existing Davyhurst plant, which currently carries a 1.2Mtpa nameplate capacity and has recently operated at throughput levels of up to 1.4Mtpa.

Once completed, the combined infrastructure is targeted to deliver total milling nameplate capacity of approximately 4.2Mtpa by FY29.

Ora Banda stated that construction activities are planned to commence in early FY27, with commissioning targeted for Q3 FY28.

The company also noted that the existing Davyhurst processing plant is expected to remain operational during construction and may continue operating thereafter depending on ore availability and economic considerations.

Management indicated that the expansion is intended to support increased production scale, reduce unit operating costs and provide greater operational flexibility through dual processing plant optionality.

GR Engineering Selected as Preferred Contractor

Supporting the Davyhurst expansion project, GR Engineering Services Ltd (ASX: GNG) separately confirmed on 18 May 2026 that it had been selected as preferred EPC contractor for the development.

The proposed contract includes engineering, procurement, construction, installation and commissioning works associated with the 3.0Mtpa processing plant.

GR Engineering stated that the estimated contract value is approximately A$233 million.

According to the company, an early works agreement has already been executed, while engineering activities and procurement of long lead items have commenced ahead of formal EPC contract execution.

The Davyhurst expansion project is located approximately 120 kilometres north-west of Kalgoorlie in Western Australia’s gold-producing region.

GR Engineering Managing Director Tony Patrizi said the appointment reflected confidence in the company’s gold sector EPC capabilities and highlighted the group’s previous experience working alongside Ora Banda.

The involvement of an established engineering contractor appeared to provide additional visibility around project development planning and execution pathways.

Waihi Underground Development Approved

Alongside the processing expansion, Ora Banda also approved development of the Waihi Underground project, which is expected to become the company’s third underground mining operation.

The project is located roughly four kilometres from the existing Davyhurst mill and is expected to support additional high-grade ore Supply.

Ora Banda estimated development capital expenditure for Waihi Underground at approximately A$90 million.

The company stated that portal development is scheduled to commence in Q1 FY27, with first ore anticipated in Q3 FY27 and steady-state production targeted for Q1 FY28.

A key focus of the project is accelerated development into the high-grade “Golden Pole” lode.

Ora Banda recently released a maiden ore reserve estimate for the Waihi Underground project containing 825,000 tonnes grading 3.8 grams per tonne gold for 101,000 ounces.

Within that reserve, the initial Golden Pole ore reserve was estimated at 254,000 tonnes grading 5.0 grams per tonne gold for 41,000 ounces.

The company also highlighted that underground access would provide opportunities for additional extensional drilling campaigns similar to earlier exploration programs completed at Riverina and Sand King.

Balance Sheet Strength Supports Expansion Plans

Another major focus of the announcement was Ora Banda’s funding strategy for the planned expansion program.

The company reported a cash balance of approximately A$232 million as of 31 March 2026 and confirmed that it had replaced its previous A$50 million Debt facility with an expanded A$200 million revolving credit facility arranged through ANZ and Commonwealth Bank of Australia.

The new facility carries a three-year tenor extending through to 30 June 2029.

Ora Banda stated that the combination of existing cash holdings and available debt capacity results in pro-forma Liquidity of approximately A$432 million.

Management indicated that the company expects the next stage of growth to be funded through a combination of existing liquidity, future Operating Cash Flow and available debt facilities.

The company also implemented additional gold price protection strategies to help manage balance sheet risk during the planned capital expenditure period between FY27 and FY29.

These arrangements included AUD gold put options covering 183,326 ounces at exercise prices primarily around A$6,000 per ounce across periods extending from May 2026 through June 2028.

Ora Banda also disclosed the sale of certain AUD call options over 33,128 ounces with exercise prices of A$8,400 per ounce between November 2027 and June 2028.

DRIVE to 300 Aspiration Targets Production Expansion

Ora Banda described the “DRIVE to 300” initiative as the next stage of the company’s longer-term growth strategy.

The aspiration follows earlier operational initiatives referred to as “DRIVE to 100” and “DRIVE to 150”.

Managing Director Luke Creagh said the latest phase is intended to support a potential doubling of production while positioning Ora Banda as a long-term sustainable gold Business.

However, the company also stressed throughout the announcement that the “DRIVE to 300” framework remains an aspirational target rather than a formal production forecast.

Ora Banda specifically noted that it does not yet have reasonable grounds to conclude the aspiration can be achieved.

Despite this cautionary language, investors appeared encouraged by the scale of approved infrastructure projects, funding flexibility and long-term operational expansion strategy.

Ore Sale Agreement Extended

Ora Banda also announced an extension of its Ore Sale Agreement with Paddington Gold Pty Ltd through to 30 October 2026.

Under the updated arrangement, the company expects to sell approximately 570,000 tonnes of ore, plus or minus 10%, between March and October 2026.

The agreement is expected to provide additional processing flexibility while the company advances construction planning associated with the Davyhurst expansion.

About Ora Banda Mining

Ora Banda Mining is a Western Australian gold producer focused on exploration, development and mining operations across the Davyhurst Gold Project region.

The company operates multiple underground and open pit mining Assets and has been expanding production and infrastructure capacity across its portfolio.

Ora Banda’s operations are centred around the Davyhurst processing hub located near Kalgoorlie, with ongoing development activities targeting increased scale and operational flexibility.

The company continues advancing both resource expansion and infrastructure Investment strategies aimed at supporting longer-term production growth.

What This Means for Investors?

Ora Banda’s latest update outlined one of the company’s most significant growth initiatives to date, combining processing infrastructure expansion, underground mine development and increased funding flexibility.

Investor attention appeared focused on the approval of the A$375 million Davyhurst processing plant, development of the Waihi Underground project and the company’s strengthened liquidity position.

The continued rise in the share price on 19 May 2026 suggests the market is responding favourably to Ora Banda’s broader growth aspirations and planned operational expansion.

However, the company also emphasised that the “DRIVE to 300” initiative remains aspirational and not a formal production target.

Investors are likely to continue monitoring project execution timelines, construction progress, funding requirements and future production developments as Ora Banda advances the next stage of its expansion strategy.