Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) lifted its cash balance to A$84.2 million during the June 2025 quarter, despite investing A$40.9 million in capital, resource development, and exploration. Gold sales for the period reached 20,220 ounces (oz), contributing to a full-year total of 91,687oz — up 36% on the previous year. FY25 gold production, including attributed ounces, was 92,399oz, up 32%.
Production was temporarily impacted by delays at Riverina and slower ramp-up of mill upgrades. However, the company began third-party ore sales to Norton Gold Fields (NGF), generating 1,389oz in attributable equivalent production. Full-year all-in sustaining cost (AISC) was A$2,693/oz, down from FY24, despite a spike in the June quarter AISC to A$3,583/oz.
Looking to FY26, Ora Banda has guided 140,000–155,000oz in gold production, with a capital allocation of A$73 million for exploration and A$86 million for infrastructure upgrades, including a study to expand processing capacity.
Quarterly ounce production (including attributed ounces) and head grade.
Quarterly mined ounces by source (including Low Grade (LG).
“FY25 was a very successful year for Ora Banda. We delivered 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 500m to a depth of 1km and advanced numerous potential underground targets,” Ora Banda managing director Luke Creagh said.
“In addition, after investing over $124 million in capital projects, resource development and exploration during FY25, Ora Banda increased its cash position by over $57 million, closing the year with $84.2 million in cash.
“Despite the previously announced challenges in the June quarter, the operations and Ora Banda team are well positioned going into FY26.”
Operational performance: Sand King and Riverina
Sand King Underground delivered 96,600 tonnes (t) of ore at 3.4 grams per tonne (g/t) for 10,528oz, a 195% rise in mined ounces. The operation hit its targeted 60,000oz annualised run-rate in June. Riverina Underground contributed 143,000t at 3.2g/t for 14,787oz. However, high-grade stopes containing 3,000oz were deferred to July due to a delayed raisebore rig needed for escapeway commissioning.
Overall mined ore for the quarter was 181,676t at 2.8g/t for 16,291oz. Including low-grade material, total tonnes mined were 181,676t for 16,759oz. Development activities continued at pace, with 993 metres of capital development and 1,050 metres of operating development completed at Riverina.
Sand King Underground ramp up – quarterly lateral development metres.
Processing and ore sale agreements
The Davyhurst processing plant milled 256,210t at an average grade of 2.8g/t in the June quarter, producing 20,560oz. Commissioning delays from mill upgrades carried over from March, reducing throughput and increasing closing stockpiles to 165,000t containing 10,000oz. Gold in circuit added a further 2,800oz.
Under a new ore sale agreement with Norton Gold Fields, ~19,000t of Sand King ore was processed at Paddington, generating 1,389oz of attributable equivalent gold. The remaining ~31,000t from the initial 50,000t allocation will be processed early in FY26, with a memorandum of understanding in place for up to 400,000t next year.
FY25 Davyhurst milled tonnes & head grade.
Drilling programs deliver high-grade results
Ora Banda invested A$12.7 million in exploration and resource development during the quarter. Drilling at Riverina Deeps returned standout results including 1.7 metres at 76.4g/t gold and 11.8 metres at 9.8g/t, extending mineralisation to 1,000 metres vertical depth.
At Waihi, a new zone was identified in the footwall of the main lode with intercepts including 8.7 metres at 9.3g/t, indicating a new target area. Little Gem exploration also returned encouraging results, with drilling confirming a continuous 5-kilometre strike length. Notable hits included 22.7 metres at 5.0g/t and 10.9 metres at 6.4g/t, validating the regional scale potential.
Financials and all-in sustaining costs
Gold sales totalled 21,609oz in the June quarter, inclusive of third-party processing. AISC rose 45% quarter-on-quarter to A$3,583/oz due to lower production, added costs from third-party crushing, and Sand King ramp-up expenses. Full-year AISC, however, improved 3% year-on-year to A$2,693/oz.
FY25 revenue from gold and silver sales reached A$406 million at an average realised gold price of A$4,362/oz. Operating costs for the June quarter were A$67 million, with total all-in sustaining costs reaching A$77.4 million.
Gold Sold, AISC & Realised AUD Gold Price.
Strong cash balance and FY26 outlook
Ora Banda ended FY25 with a cash position of A$84.2 million, up from A$80.7 million in March, supported by strong revenue and operating performance. FY25 saw total investment of more than A$124 million, while cash rose by A$57.4 million.
FY26 guidance includes 140,000–155,000oz gold production at AISC of A$2,800–2,900/oz. Planned investment includes A$73 million for exploration and A$86 million for growth capital, with upgrades across underground development, processing infrastructure, and support facilities.
“Our next phase of growth forecasts a production increase by over 60% to between 140 and 155 thousand ounces with strong cash flow underpinning capital investment to right-size our infrastructure, including a feasibility study to more than double processing capacity to approximately 3Mtpa,” Creagh said.
“The most exciting element of FY26 is the $73 million allocated to exploration and resource development drilling. The objective of this drilling will be to extend mine life at Riverina and Sand King and rapidly advance other key prospects including Little Gem, Waihi and the Round Dam trend.”
A feasibility study will also assess expansion of the processing plant to 3 million tonnes per annum.