Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has delivered record gold production for the December 2025 quarter as underground mining volumes continued to ramp up at its Davyhurst operations, while the company strengthened its balance sheet and approved a major internally funded growth program.
Gold production for the quarter totalled 32,036 ounces on an attributable basis, up 5% on the September quarter and 39% higher than the second half of FY25, reflecting increased mining activity at the Riverina and Sand King underground mines.
Ora Banda sold 31,247oz of gold during the quarter, taking year-to-date FY26 production to 62,631oz and sales to 62,583oz. Closing cash rose by $32.8 million to $155.4 million, despite $57.9 million of capital, resource development and exploration spending during the period.
Quarterly ounce production (including attributable ounces) and head grade.
Production ramp-up continues
Production growth was underpinned by improving underground mining volumes at both operations.
At Sand King, total ore tonnes mined increased by 29% quarter-on-quarter, while Riverina recorded a 12% increase. Combined ore haulage rose sharply as third-party processing volumes increased, with 135,600 tonnes hauled during the quarter — a 145% increase on the prior period — reflecting throughput constraints at the existing Davyhurst mill as mining rates lift.
Sand King Underground Ramp up – quarterly lateral development metres.
Managing director Luke Creagh said the production momentum was expected to continue into the second half of FY26.
“The company continues to deliver its organic growth strategy, with production expected to increase in the second half of FY26 as mining volumes increase at both operations,” Creagh said.
Sand King Underground long section showing actual development and underground mine design.
Costs rise as third-party milling increases
All-in sustaining costs for the quarter rose to $3,505/oz sold, up 22% on the previous quarter, driven primarily by higher third-party processing volumes and costs, as well as Sand King moving through a lower-grade mining sequence.
For FY26 year-to-date, AISC sits at $3,188/oz.
Given the expectation of continued reliance on third-party milling and the current AUD gold price environment, Ora Banda updated its full-year cost guidance. FY26 AISC is now forecast at $3,250–$3,350/oz, compared with prior guidance of $2,800–$2,900/oz.
FY26 production guidance remains unchanged at 140,000–155,000oz, though now expected to land towards the lower end of the range.
Growth capital and mill expansion plans
The board has approved $63 million of internally funded growth capital to advance key organic growth projects in FY26.
This includes $10 million to progress the proposed ~3-million-tonne-per-annum (Mtpa) standalone processing plant from definitive feasibility study to front-end engineering design (FEED), with FEED targeted for completion in the June 2026 quarter. The new mill would sit alongside the existing 1.2Mtpa Davyhurst facility.
Ora Banda has also approved $30 million of pre-production capital to commence open-pit mining at Waihi, located about 3 kilometres from the Davyhurst plant, and $23 million to expand accommodation capacity across the project.
As a result, FY26 growth capital guidance has increased to $143 million, up from $86 million previously.
Exploration delivers high-grade results
Exploration and resource development spending totalled $22.8 million for the quarter, with drilling delivering high-grade results across multiple targets.
At Sand King’s northern corridor, drilling outside the current life-of-mine plan returned intercepts including 6.7m at 39.3 g/t gold and 16.6m at 8.3 g/t.
Little Gem drilling continued to expand mineralisation to 1.2 kilometres of strike and 700 metres vertically, with intersections such as 25.6m at 4.3 g/t and 13.8m at 5.4 g/t gold.
Riverina resource extension drilling also returned very high-grade results, including intervals of up to 1.0m at 164.6 g/t and 0.3m at 505.0 g/t gold.
Ora Banda said exploration success continued to support future mine development options as it advances its organic growth strategy.