Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has formalised arrangements to process additional surplus ore from its Davyhurst operation through third-party infrastructure, as the company continues to mine above its current in-house processing capacity.
During FY26, Ora Banda has used third-party processing to bring forward cashflow from excess ore volumes generated at Davyhurst.
To date, about 345,000 tonnes of Davyhurst ore has been processed through the Paddington mill under a previous non-binding memorandum of understanding with Paddington Gold Pty Ltd, which had contemplated up to 400,000 tonnes being treated during FY26.
The company has now replaced that memorandum with a binding Ore Sales Agreement between Siberia Mining Corporation Pty Ltd, Carnegie Gold Pty Ltd and Paddington Gold Pty Ltd.
Under the agreement, Ora Banda can process a further 120,000 dry metric tonnes of gold-bearing Davyhurst ore, plus or minus 10%, at Paddington during March and April 2026.
Standalone processing studies continue
After the Ore Sales Agreement expires, Ora Banda intends to build excess ore stockpiles for future treatment through its wholly owned infrastructure, which it expects will deliver material cost and recovery benefits, which will add to its record half-year revenue of $336.3 million for the six months to December 31.
The company will continue to assess third-party processing options as part of normal business operations.
Ora Banda’s FY26 production and all-in sustaining cost guidance remains unchanged from the outlook provided in its December 2025 quarterly report.
At the same time, the company is continuing studies into the construction of a standalone 3 million tonne per annum processing facility, with further updates expected in the June quarter.