Highlights

  • Ora Banda Mining (ASX:OBM) produced 33,305 ounces of gold in the September quarter, broadly reiterating FY27 guidance of 125,000–140,000 oz at A$3,400–3,600/oz AISC.
  • All-in sustaining cost rose 9% to A$4,214 per ounce, above guidance, as throughput fell 17% to 271.9 kilotonnes at Davyhurst.
  • The revolving credit facility was increased from A$200 million to A$300 million, providing total liquidity of approximately A$507 million.
  • A A$425 million growth program includes a A$240 million plant expansion targeting 3.0 million tonnes per annum by early 2028.

Softer Quarter, Guidance Retained

Ora Banda Mining produced 33,305 ounces of gold in the September quarter, of which 21,696 ounces came from its Davyhurst plant and 11,609 ounces from third-party processing. While independent analysis noted output was approximately 17% below analyst consensus, the company reiterated its FY27 guidance of 125,000 to 140,000 ounces at an all-in sustaining cost of A$3,400 to A$3,600 per ounce. Meeting guidance will require stronger production over the remaining three quarters.

Costs and Throughput Pressured

Davyhurst throughput fell 17% to 271.9 kilotonnes from 328.8 kilotonnes in the June quarter, driving AISC higher by 9% to A$4,214 per ounce. Gold sales of 33,939 ounces at an average A$5,915 per ounce supported operating cash flow of A$83.3 million, though capital infrastructure spending of A$81.1 million and total growth spending of A$133.7 million resulted in cash declining to A$207.0 million from A$267.7 million.

Funding the Expansion

Ora Banda increased its revolving credit facility from A$200 million to A$300 million with ANZ, Commonwealth Bank and Westpac, running to June 2029 with no mandatory hedging and undrawn at quarter end. This brings total liquidity to approximately A$507 million. The company also holds put options on approximately 166,700 ounces at a A$6,000 per ounce floor through June 2028.

DRIVE to 300 Strategy

The A$425 million program targets approximately 300,000 ounces per annum by FY29. The largest component is a A$240 million plant expansion to 3.0 million tonnes per annum, expected in early 2028. Supporting components include A$70 million for infrastructure, A$40 million for Waihi underground development and A$75 million for exploration at Round Dam, Little Gem, Riverina and Sand King. Waihi underground development has started ahead of schedule.

Risks and Outlook

Third-party processing arrangements beyond October 2026 remain under discussion, affecting near-term production capacity. Around 380 kilotonnes of low-grade stockpiles are earmarked as commissioning feed for the new plant. The December quarter results will show whether production and cost trends are improving toward guidance.