Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has delivered a record performance in the 2025 financial year (FY), achieving more than 30% growth in gold production compared with the previous year. With strong cash flow and a robust exploration budget, the company is targeting a 60% increase in gold production for FY26.
On Friday, Ora Banda released its FY25 production results and provided guidance for FY26, ahead of the full quarterly results expected later this month. The company is positioning itself for a strong year ahead, with ambitious production targets, a healthy cash position, and a significant exploration investment focused on expanding its operations.
Strong FY25 performance
Ora Banda produced a total of 92,400 ounces of gold in FY25, marking a 32% increase from FY24. This result reflects the company's continued organic growth and its successful ramp-up of operations, including the introduction of the Sand King Underground mine and the extension of the Riverina Underground mine.
Produced ounces by financial year including FY26 Guidance.
Despite a slower-than-expected ramp-up at company’s processing plant and delays in mining at Riverina Underground, the company’s gold production in the June quarter reached 21,900 ounces including the equivalent production of 1,400 ounces from third-party processing at Norton Gold Fields’ Paddington Mill.
The company ended the year with a strong cash position of $84.2M, supported by $57.4M in free cash flow generated during FY25. Additionally, the company reported an inventory of 165,000 tonnes of stockpiled ore at an average grade of 1.9 grams per tonne (g/t) for 10,000 ounces, which sets up a strong foundation for the start of the new financial year.
FY26 guidance and growth drivers
Looking ahead, Ora Banda has set a gold production target of 140,000–155,000 ounces for FY26, a 60% increase compared with FY25. This growth will be driven by the full-year contribution from the Sand King Underground mine, which will supplement the Riverina Underground operations.
Mined ounces and grade by financial year including FY26 Guidance.
The company also anticipates further production from its non-binding ore sale agreement with Norton Gold Fields, which could see up to 400,000 tonnes of ore processed in FY26 and is expected to result in a binding deal.
The anticipated increase in production comes alongside a planned investment of $86 million in growth capital, aimed at expanding underground development, upgrading infrastructure and enhancing processing plant capacity. This includes $37 million for ongoing underground mine development and $6 million for process plant upgrades.
The company is also looking to invest $43 million in infrastructure projects such as on-site airstrips, camps, haul roads, and workshops, which will help drive cost efficiencies and enhance operational capacity.
Exploration and resource development
A key focus for Ora Banda in FY26 is its $73 million exploration and resource development budget, with the company targeting 329 kilometres of drilling — almost double what it has drilled over the past three years combined, which saw the discovery and development of the Riverina and Sand King underground mines.
This drilling campaign is aimed at extending the life of these projects, testing the down-dip potential of its Waihi project as a third underground mine, and advancing other promising prospects including Little Gem, Round Dam, and Mulline.
Ora Banda's managing director, Luke Creagh, expressed confidence in the company’s ability to continue its growth trajectory.
"FY25 as a whole was a very successful year for Ora Banda,” he said. “We achieved record production with over 30% improvement on the previous year, commenced and ramped up Sand King as our second underground mine, extended Riverina mineralisation by over 500 metres to 1 kilometre in depth, and advanced numerous potential underground mining targets with exploration drilling.
“This has set a strong platform as FY26 commences our next phase of growth, with production anticipated to increase over 60% to between 140,000 and 155,000 ounces, and strong cash flow underpinning capital investment to right-size our infrastructure, including a feasibility study to increase processing capacity to approximately 3 million tonnes per annum (Mtpa).”