Key Highlights

  • Gold production of 140,949 ounces was a record, up 53% on FY25.
  • Revenue rose 100% to A$807.5 million, and net profit after tax rose 16% to A$216.2 million.
  • FY27 production guidance of 125,000 to 140,000 ounces sits below FY26 as the company builds its own 3 million tonne per annum mill.
  • Closing cash was A$267.7 million, and no Dividend has been declared.

What does it mean when a gold miner reports record production and profit, then guides to lower output for the following year? For Ora Banda Mining Ltd (ASX:OBM), the answer lies in a deliberate trade-off. The FY26 result, released on 26 August 2026, shows a company at its highest production to date, but FY27 guidance of 125,000 to 140,000 ounces sits below the 140,949 ounces produced in FY26, because the company is shifting from a period boosted by third-party milling towards building its own 3 million tonne per annum processing plant at Davyhurst in Western Australia.

The central development: record year, then a rebuild

According to the company's FY26 results report, Revenue was A$807.5 million, up 100%, and EBITDA was A$431.1 million (non-IFRS and unaudited), up 134%. Net profit after tax was A$216.2 million, up 16%, a smaller increase than revenue because FY26 included a A$97.7 million tax expense while FY25 included a A$73.1 million tax benefit. Earnings Per Share were 10.89 cents. Closing cash was A$267.7 million, up A$183.5 million, and total Liquidity was about A$468 million including an undrawn A$200 million revolving Credit facility. No dividend has been declared.

FY26 gold production of 140,949 ounces was a record, up 53%, and included 34,279 ounces from third-party milling at Paddington. Gold sold was 140,641 ounces at an average realised price of A$5,742 per ounce. The All-In Sustaining Cost (AISC) was A$3,496 per ounce, up 30% and about 4% above the top of revised guidance of A$3,250 to A$3,350, which the company attributed mainly to third-party milling costs, diesel prices and inflation.

FY27 guidance and the new plant

FY27 guidance is for 125,000 to 140,000 ounces at an AISC of A$3,400 to A$3,600 per ounce, weighted to the first half. Growth Capital is A$425 million and exploration A$75 million. The reduced production reflects the end of third-party processing, which continues to October 2026 under the Paddington ore sale agreement, after which the company plans to build stockpiles for its own plant.

The new plant is the centrepiece of what the company calls its DRIVE to 300 plan. It is a 3 million tonne per annum mill at Davyhurst, costing A$375 million over FY27 and FY28, of which A$240 million falls in FY27, with commissioning targeted for 2028. The company's stated aspiration is about 300,000 ounces per year by FY29, but its report says this is not a production target or forecast. The documents give two slightly different commissioning descriptions (the March quarter of 2028 and the second half of FY28), so the timing should be regarded as approximate.

Operations and resources

The June 2026 quarter was a record, with 39,552 ounces produced, including about 13,000 attributable equivalent ounces from third-party processing. The quarter's AISC was A$3,870 per ounce, higher than the full-year average.

Mineral resources rose 75% to 3.69 million ounces and ore reserves rose 159% to 610,000 ounces. Reserves matter more than resources for mine planning, and the sharp increase from a low base supports the case for a larger plant. Other projects include the Waihi underground, which has been approved with capital of about A$85 million, the Waihi open pit, which reached first ore in June 2026, and the Round Dam open pit, where a final Investment decision is expected in the second half of FY27 with about A$160 million of capital across FY28 and FY29.

Sector and competitive position

Ora Banda is a smaller producer than Genesis or Perseus, but it has become a meaningful Eastern Goldfields operator. The company's position therefore depends on the gold price staying well above its costs. At FY26's realised price of A$5,742 per ounce, the Margin was healthy, but the cushion is thinner than for lower-cost producers.

Governance is also changing: Peter Mansell is retiring as chair and John Richards is expected to succeed him at the AGM in November 2026.

Material risks

Capital cost and timing. A A$375 million plant must be built on budget, and any delay to commissioning would defer the production growth.

Gold price. Margins depend on prices well above the A$3,400 to A$3,600 AISC guidance.

Cost inflation. FY26 AISC exceeded revised guidance, which raises the question of how reliably costs are forecast.

Production dip. FY27 output is guided below FY26, and the second half may be weaker than the first.

Funding. Growth spending may require cash and Facility use, even though liquidity was about A$468 million.

Reserve conversion. Further resource growth must convert to reserves to support a larger mill.

Aspirational target. The 300,000-ounce goal is explicitly not guidance.

What to watch next

The FY26 result is a clear operational and financial high point. The more important question is whether the company can maintain margins while investing heavily through a year in which production is guided lower.