Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has delivered a record September quarter, with gold production, sales, and cash flow all rising sharply as its second underground mine at Sand King ramped up to full scale.
Sand King Underground long section showing actual development and underground mine design.
Record production and sales
Total gold production reached 30,595 ounces, up 39% on the prior quarter, despite multiple weather events that disrupted haulage and power supply.
Quarterly ounce production (including attributable ounces) and head grade.
Sales from the company’s Davyhurst processing plant also hit a new record at 27,772 ounces, a 37% quarterly increase, while an additional 3,564 ounces were attributed from third-party milling at the Paddington mill — taking total equivalent gold sold to 31,336 ounces.
All-in sustaining costs (AISC) fell 20% to A$2,872 per ounce sold, reflecting operational improvements and stronger throughput.
Gold Sold, AISC & Realised AUD Gold Price (including attributed ounces).
Cash up 46% to $122.7 million
Ora Banda closed the quarter with $122.7 million in cash, a $38.5 million increase over the June quarter — achieved despite $49.5 million invested in capital, resource development, and exploration.
The company paid $7.4 million in gold price put option premiums, securing downside protection on 33,300 ounces through to October 2026 at an average exercise price of A$5,013 per ounce.
Sand King and Riverina driving growth
Sand King Underground continued to perform strongly, mining 126,900 tonnes at 3.9 g/t for 16,000 ounces — a 52% increase in ounces mined from the previous quarter and 22% above the reserve grade. Importantly, Sand King achieved full payback of its capital investment just 12 months after development began.
Sand King Underground Ramp up – quarterly lateral development metres.
At Riverina Underground, 116,900 tonnes at 3.5 g/t were mined for 13,000 ounces, broadly in line with reserve grade. Development metres rose 24% to 1,297 as the company extended ore drives to open up future stoping areas, with stronger grades and tonnes expected in coming quarters.
The Davyhurst processing plant milled 293,700 tonnes at 3.1 g/t for 27,000 ounces produced, up 15% quarter-on-quarter, with gold recoveries improving to 91% following circuit upgrades and improved grind size.
Davyhurst milled tonnes & head grade.
Exploration highlights
Exploration spending totalled $13.6 million, targeting extensions at Round Dam, Waihi, Sand King and Little Gem.
- Round Dam: drilling identified six subparallel gold lode trends and returned standout results including 8 metres at 20.6 g/t and 2 metres at 32.4 g/t, pointing to a large-scale mineralised system.
- Waihi: a 45-hole campaign expanded mineralisation at depth, with intercepts such as 6 metres at 21.1 g/t and 3.9 metres at 29.5 g/t confirming high-grade potential.
- Sand King: step-out and wedge holes 300 metres north of the current mine plan returned 14.3 metres at 5.3 g/t and 18.7 metres at 8.9 g/t, significantly expanding the mineralisation footprint.
- Little Gem: drilling defined multiple lodes over a 1-kilometre strike, with notable intercepts including 8.8 metres at 6.3 g/t from 320 metres below surface.
Strength of dual-mine strategy
Ora Banda managing director Luke Creagh said the record quarter underscored the benefits of having two underground mines in production.
“This record quarter, driven by the ramp-up of our second underground mine at Sand King, reflects the hard work by the team and demonstrates Ora Banda’s ability to find and develop mines, with Sand King achieving payback 12 months after establishing the portal,” Creagh said.
“These cash flows were generated despite the company investing $49.5 million in capital, resource development, and exploration, and $7.4 million in put options for downside gold price protection on future production,” he added. “Ora Banda’s strategy of organically growing production and extending mine life is gaining momentum as we continue to achieve outstanding drill results on key prospects at Waihi, Little Gem and Round Dam, all of which have significant drill programs currently under way.”
Outlook and sustainability
Ora Banda continues to progress its study for a new 3-million-tonne-per-annum processing plant and reports a strong safety record, with an LTIFR of 0.7 — significantly better than the industry average. Female participation remains steady at 23.8%, and rehabilitation at Sand King is on track for completion this quarter.
The company also achieved financial close on a $50 million syndicated facility with ANZ and CBA, which remains undrawn and provides additional funding flexibility heading into FY26.