Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Ora Banda’s gold production for FY25 rose 32% year-on-year to 92.4koz, despite operational delays in the June quarter.

  • The Company forecasts FY26 gold production between 140–155koz, marking a projected ~60% increase from FY25.

  • Shares fell nearly 13% to AUD 0.652 on 11 July after the update, as investors reacted to the production shortfall and higher cost guidance.

Ora Banda Mining Ltd (ASX:OBM) saw its share price fall by nearly 13% to AUD 0.652 on 11 July following the release of its preliminary production results for FY25 and updated guidance for FY26. The Company reported a 32% year-on-year increase in gold production, achieving 92.4koz, including 1.4koz from ore sold to Norton Gold Fields (NGF). However, delays in ramping up the Mill1 plant and mining issues at the Riverina Underground resulted in 3koz of high-grade stopes being deferred into July.

During the June 2025 quarter, Ora Banda produced 21.9koz of gold, which included the 1.4koz equivalent attributed to third-party ore processing. Gold sales for the quarter stood at 20.2koz through the Company’s Davyhurst processing facility. OBM ended the financial year with AUD 84.2 million in cash, having generated AUD 57.4 million in free cash flow for FY25. The Company also reported closing ore stockpiles of 165kt at 1.9g/t for 10koz and gold-in-circuit (GIC) of 2.8koz at the quarter's end.

Looking ahead, OBM has set its FY26 production guidance between 140–155koz, which includes approximately 21koz of attributable production under a proposed ore sale agreement with NGF. This represents an approximate 60% increase over FY25 output. The production uplift is expected to be driven by a full-year contribution from the Sand King Underground Mine and the continuation of third-party ore sale arrangements.

OBM signed a non-binding Memorandum of Understanding (MoU) with NGF on 10 July 2025, which outlines plans for NGF to purchase and process up to 400kt of ore in FY26. A binding agreement is anticipated to follow, formalising this arrangement.

The FY26 All-In Sustaining Cost (AISC) is projected between AUD 2,800 and AUD 2,900 per ounce. This increase reflects higher third-party crushing and processing expenses, full-year mining costs associated with the Sand King operation, expanded sustaining development requirements, and higher royalty payments linked to elevated gold prices.

The Company also outlined a capital allocation of AUD 159 million for FY26. Of this, AUD 73 million will be directed towards exploration and resource development, and AUD 86 million will be invested in growth initiatives. These include AUD 37 million for underground development and infrastructure, AUD 6 million for process plant upgrades, and AUD 43 million for other projects such as camp expansion and airstrip development.

Full quarterly results are expected to be released later in July.