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Highlights

  • Canaccord Genuity assigns a BUY rating with a 54.41% price upside, targeting AUD 1.05.

  • Moelis Australia also maintains a BUY rating, expecting a 25% rise from current levels.

  • OBM reports second consecutive year of over 30% organic gold production growth in FY25.

Ora Banda Mining Ltd (ASX:OBM) has caught the attention of equity analysts, with two prominent firms issuing BUY ratings backed by significant upside projections. Following the release of its preliminary FY25 production update and FY26 guidance, Canaccord Genuity and Moelis Australia Securities reaffirmed their positive stance on the gold miner, forecasting potential price gains of up to 54% from current trading levels.

On 16 July 2025, OBM shares were trading at AUD 0.65. 

Analysts Project Up to 54% Price Upside

In its latest recommendation, Canaccord Genuity analyst Tim McCormack reiterated a BUY rating on Ora Banda with a price target of AUD 1.05, implying a 54.41% upside. The assessment likely to follow the company's FY25 performance and ambitious FY26 production goals.

Similarly, Paul Hissey from Moelis Australia issued a BUY rating with a target of AUD 0.85, representing a 25% increase over OBM's current share price. Both analysts appear encouraged by the company’s consistent production growth, positive cash generation, and planned ore sale agreements expected to boost volumes in the coming year.

Meanwhile, Macquarie Research maintained an “OUTPERFORM” rating with a price target of AUD 0.90, also implying more than 32% upside.

FY25 Production and Financial Highlights

Ora Banda produced 92.4koz of gold in FY25, including 1.4koz attributed to a third-party ore sale to Norton Gold Fields (NGF), marking a 32% year-on-year increase. This follows a similarly growth rate in FY24 and highlights the company's trend of consistent organic growth.

For the June 2025 quarter, gold output stood at 21.9koz, slightly impacted by a delayed ramp-up at the Mill1 and deferred high-grade stopes at the Riverina Underground mine. Total gold sales for the quarter reached 20.2koz, while free cash flow for FY25 totaled AUD 57.4 million, bringing the closing cash balance to AUD 84.2 million.

Additionally, Ora Banda ended the fiscal year with stockpiles of 165kt at 1.9g/t, or 10koz of contained gold, and 2.8koz in gold-in-circuit (GIC).

FY26 Outlook Points to 60% Production Growth

Looking ahead, Ora Banda has issued FY26 guidance of 140–155koz gold production, including ~21koz from ore sale agreements, a projected 60% increase over FY25. The ramp-up is expected to be driven by:

  • Full-year production from the Sand King Underground Mine, and

  • Continuation of third-party ore sales through a proposed binding agreement with NGF, following a non-binding MOU signed on 10 July 2025.

The company forecasts All-In Sustaining Costs (AISC) in the range of AUD 2,800–2,900/oz.