Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has reported record financial results for the 2025 fiscal year, underpinned by strong output from its Riverina Underground mine and the successful ramp-up of Sand King, its second underground operation at the Davyhurst Gold Project in Western Australia’s Eastern Goldfields.
Revenue nearly doubled to $404.3 million from $214.2 million in FY24, while underlying earnings (EBITDA) surged 243% to $184.6 million. Net profit after tax jumped 575% to $186.1 million, assisted by a $73.1 million tax benefit from recognising deferred tax assets linked to carry-forward losses.
Improved profitability since switching to the Underground strategy.
Cash on hand grew by $57.4 million to $84.2 million, despite Ora Banda spending $124.2 million on exploration, mine development and capital works. The company also bolstered its balance sheet by securing a $50 million revolving credit facility (RCF) from ANZ Banking Group and Commonwealth Bank of Australia in March, providing additional financial flexibility.
Quarterly liquidity improvement since Riverina Underground reached commercial production.
Record production and cost control
The Davyhurst mill delivered record gold sales of 91,687 ounces at an all-in sustaining cost (AISC) of A$2,693 per ounce — down from A$2,767 per ounce in FY24. Total production rose 32% to 92,399 ounces, driven by higher-grade Riverina ore and initial contributions from Sand King.
Riverina Underground, which reached commercial production in August 2024, has already paid back its capital investment within 18 months. The mine delivered 74,800 ounces at 4.6 g/t gold, exceeding its reserve grade. Sand King hit all its key milestones, reaching steady-state output of 60,000 ounces per annum by the June 2025 quarter.
“The operating margins of the business continue to improve, as reflected by the 575% increase in net profit after tax,” said managing director Luke Creagh. “Supported by the current gold price environment, we expect this trend to continue to grow in FY26 with two underground operations filling the mill with high-grade ore, targeting record production of 140,000 to 155,000 ounces.”
Exploration and growth
Exploration spending of $28 million in FY25 delivered significant results, including extending mineralisation at Riverina to depths of 1 kilometre and identifying Little Gem as a new greenfields discovery. Drilling at the Waihi prospect also intersected wide, high-grade lodes below historic pits, highlighting potential for future underground development.
The company has earmarked about $160 million for exploration, resource development and growth capital in FY26, with a $73 million drilling budget targeting about 330 kilometres. This includes testing Waihi as a potential third underground mine and advancing Little Gem and other regional prospects.
A feasibility study is also underway to expand the Davyhurst processing plant from 1.2 million tonnes per annum (Mtpa) to about 3 Mtpa, which could lower unit costs, improve recoveries, and support additional production growth.
Outlook
Ora Banda’s FY26 guidance reflects the first full year of production from both Riverina and Sand King, alongside third-party ore processing agreements with Norton Gold Fields. The company is targeting production of 140,000–155,000 ounces at an AISC of $2,800–$2,900/oz.
“The cash build of $57.4 million and execution of the $50 million RCF demonstrates the strengthening operational and financial position of the company,” Creagh said. “This newfound financial strength positions the company to rapidly advance additional opportunities in our portfolio through the ~$160 million earmarked for exploration, resource development and growth capital in FY26.”