Ora Banda Raises AISC Guidance Amid Plant Upgrade Downtime and Cost Pressures

Strong Operational Momentum

Ora Banda Mining Limited (ASX: OBM) reported a solid March 2025 quarter, underscoring steady operational progress at its flagship Davyhurst Gold Project. Gold production edged up 1% quarter-on-quarter to 23,150 ounces, while gold sales rose 6% to 23,643 ounces, driven by higher-grade ore from the Riverina Underground and the ramp-up of the Sand King Underground mine.

The Riverina Underground operation continued to outperform reserve grade expectations, mining 127,000 tonnes at 4.6 g/t for 18,800 ounces, with a third jumbo added late in the quarter to support anticipated production growth in FY26. Sand King achieved its first stoping ore in March, delivering 744 ounces from 5,474 tonnes at 4.2 g/t, and remains on track for steady-state production in the June quarter.

Exploration Breakthroughs Bolster Growth Prospects

Exploration success was a highlight, with deep drilling at Riverina confirming high-grade mineralisation continuity extending over 300 metres below the current mine plan, including exceptional intercepts such as 2.9m at 36.0 g/t and 1.5m at 66.6 g/t. Meanwhile, the greenfields Little Gem prospect, located 2.5 km south of Riverina, yielded outstanding results from initial drilling, including wide, high-grade lodes like 22.7m at 5.0 g/t and 10.9m at 6.4 g/t. These discoveries have prompted a 16-hole follow-up diamond drilling program to test prospective carbonate horizons over 4.7 kilometres and down to 400 metres depth.

Financial Position and Guidance Update

Despite investing $28.6 million in capital, resource development, and exploration, Ora Banda’s cash position strengthened by $22.9 million to $80.7 million. The company secured a $50 million revolving credit facility with ANZ and Commonwealth Bank, providing financial flexibility for ongoing growth initiatives. To mitigate gold price risk, Ora Banda purchased put options covering 100,000 ounces for FY26 at a strike price of A$4,400 per ounce.

Reflecting the impact of processing plant upgrades and higher operating costs, the company revised its FY25 production guidance downward to 100,000–105,000 ounces (from 100,000–110,000 ounces) and increased all-in sustaining cost (AISC) guidance to A$2,350–A$2,500 per ounce (previously A$1,975–A$2,125). The temporary downtime associated with mill upgrades is expected to enhance throughput to 1.4 million tonnes per annum in FY26.

Corporate Developments

Corporate updates included the appointment of Julie Athanasoff as Joint Company Secretary, replacing Doug Warden who remains as CFO. The company also extended the repayment date for a $4 million loan from Hawke’s Point Holdings L.P. to 30 June 2025 or upon completion of a royalty on-sale agreement, which remains subject to finalisation.

Managing Director Luke Creagh highlighted the team’s strong execution across mining, processing, and exploration, emphasizing the strategic positioning of Riverina as a baseload feed source and the promising ramp-up of Sand King. He described the exploration results as the most exciting development, setting the stage for future growth.