Ora Banda Mining Ltd has secured a Syndicated Facility Agreement (SFA) with Australia and New Zealand Banking Group (ANZ) and Commonwealth Bank of Australia (CBA) for a A$50 million revolving credit facility (RCF) over an initial two-year term.
In addition, the company has acquired Australian dollar-denominated gold put options for 100,000 ounces in the 2026 financial year (FY26) at an exercise price of A$4,400 per ounce, costing A$14.2 million.
These measures strengthen Ora Banda’s balance sheet. As of December 31, 2024, Ora Banda held A$57.8 million in cash, bringing its total liquidity to over A$100 million when combined with the revolving credit facility as it advances production growth towards 150,000 ounces in FY26 while retaining full exposure to potential gold price increases.
“We are very pleased to enter into this facility with CBA and ANZ. While Ora Banda has a strong balance sheet and we have been generating strong operating cash flows, we feel it is important to have the added financial flexibility which this low-cost revolving debt facility provides us,” OBM managing director, Luke Creagh said.
“In addition, we consider it a prudent move to take advantage of the record high gold price and purchased 100,000oz put options at a floor price of A$4,400/oz for a significant portion of FY26 production. We believe this insurance on the gold price will underpin strong cash flows to fund future growth, whilst still retaining full exposure to the upside in gold price for FY26 production.”
Strong gold yields from Sand King Underground exceed expectations
Last week, OBM reported stronger-than-expected gold yields from the first development ore processed from the Sand King Underground Mine at the Davyhurst plant. The reconciled grade came in 4.3% above expectations, at 2.4 grams per tonne (g/t) of gold compared to the anticipated 2.3 g/t.
Metallurgical recovery also outperformed projections, reaching 88.2%, a 1.2% improvement over the expected 87%.
Early grade control drilling has indicated a 19% increase in gold ounce endowment, with additional gold sourced from discrete ore lodes. This has resulted in grade control estimates of 21,000 ounces, surpassing the mineral resource estimate of 17,000 ounces.
The company also reported significant financial and operational growth for the first half of FY25, ending 31 December 2024.
The company’s revenue increased by 93% to A$186.422 million, while net profit after tax (NPAT) rose 337% to A$50.8 million. EBITDA grew 254% to A$84.2 million, and cash flow from operations surged 765% to A$91.2 million.
