Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has closed FY2026 with record quarterly gold production, strong cash flow and a larger resource base.
The company produced 39,552 ounces in the June quarter. Full-year output reached 140,949 ounces, meeting guidance despite wet weather late in the period.
Ora Banda ended June with A$267.7 million in cash. Total available liquidity stood at A$468 million, including an undrawn A$200 million corporate facility.
Half yearly ounce production (including attributable ounces).
Record production and sales
Gold sales reached a record 39,421 ounces for the quarter.
This included 26,468 ounces from the Davyhurst plant and 12,953 attributable equivalent ounces from third-party processing at Paddington.
The Paddington ore sale agreement has been extended to October 20, 2026. It gives Ora Banda added processing capacity while its new plant is built.
Davyhurst processed 328,808 tonnes at 2.7 g/t gold. It produced 26,599 ounces at a recovery rate of 92%.
Full-year production from the Davyhurst plant was 106,670 ounces. Third-party processing added 34,279 attributable equivalent ounces.
First ore reached at Waihi OP in the quarter.
Costs rise in June quarter
All-in sustaining costs rose to A$3,870 per ounce.
The increase reflected third-party processing, higher diesel prices and weather disruptions. Road closures also affected production late in the quarter.
Full-year AISC was A$3,496 per ounce. This was 4% above the top of guidance.
Ora Banda realised an average gold price of A$6,243 per ounce in the quarter. Net gold revenue was A$246.1 million.
Full-year net gold revenue reached A$867.2 million.
Cash flow supports growth
Operating cash flow reached A$121 million in the quarter.
Ora Banda generated A$36 million in net cash after investing A$76.6 million in development and growth projects.
Full-year net cash generation was A$183.5 million.
Managing director Luke Creagh said the result strengthened the company’s growth platform.
“The business has more than A$468 million of liquidity to fund capital projects as we target a doubling of production and a step-change down in unit costs by FY29,” he said.
Quarterly Cash Movement.
Underground mines lift output
Sand King underground delivered 310,617 tonnes at 2.6 g/t gold for 26,410 ounces.
That represented a 42% rise in ore mined and a 37% increase in ounces from the previous quarter.
Riverina underground produced 180,748 tonnes at 2.9 g/t for 17,056 ounces.
At Waihi, open-pit mining ramped up. First ore was reached near quarter-end. The operation produced 8,300 tonnes at 1.2 g/t for 328 ounces.
Quarterly mined ounces by source (including Low Grade).
Resources and reserves expand
Group mineral resources increased by 75% to 3.69 million ounces.
Ore reserves rose by 159% to 610,000 ounces.
Round Dam was the main driver. Its resource increased to 1.33 million ounces.
Waihi resources rose to 482,000 ounces. Riverina increased to 689,000 ounces. Sand King reached 363,000 ounces.
The reserve base now includes maiden reserves of 101,000 ounces at Waihi underground and 223,000 ounces at Round Dam.
Sand King reserves increased to 125,000 ounces. Riverina reserves reached 100,000 ounces.
‘DRIVE to 300’ advances
Ora Banda’s ‘DRIVE to 300’ plan aims to roughly double production by FY2029.
The centrepiece is a new 3 million-tonne-per-year processing plant at Davyhurst. The plant is expected to cost A$375 million.
GR Engineering Services holds the A$233 million EPC contract. Site works are underway. Commissioning is planned for the March quarter of FY2028.
Waihi underground development has also been approved. The project has a capital cost of A$90 million.
The portal is due to be established in the December quarter of FY2027. Steady-state production is expected by the September quarter of FY2028.
What’s ahead
Ora Banda has guided to FY2027 production of 125,000 to 140,000 ounces.
AISC is expected to range from A$3,400 to A$3,600 per ounce.
Growth capital spending is forecast at A$425 million. This includes A$240 million for the new plant, A$70 million for infrastructure, A$40 million for Waihi underground and A$75 million for exploration.
Exploration will continue at Waihi, Round Dam, Riverina, Sand King and Little Gem.
A maiden resource for Little Gem is expected in the first half of FY2027. A final investment decision on Round Dam is targeted for late FY2027.