Ora Banda Mining Delivers Record Financial Performance Amid Underground Ramp-Up
Ora Banda Mining has announced a standout half-yearly result, with record revenues, earnings, and cash generation driven by stronger gold prices and increased sales volumes. The successful ramp-up of its second underground mine, Sand King, played a crucial role in boosting the company's financial metrics compared to the previous corresponding period.
Financial Highlights and Operational Success
Revenue for the six months surged 80 per cent to $336.3 million, up from $186.4 million, supported by gold sales of 62,583 ounces, which increased 31 per cent year-on-year. The average realised gold price climbed 45 per cent to $5652 per ounce, contributing significantly to the revenue growth.
This stronger pricing environment and higher sold ounces led to a 106 per cent lift in EBITDA to $173.2 million and an 89 per cent increase in net profit after tax to $96.3 million, despite the inclusion of a non-cash tax expense in the current period.
Cash Flow and Balance Sheet Strengthening
Operating cash flow more than doubled year-on-year to $184 million, lifting the cash balance to $155.4 million at the end of December, compared to $84.2 million in July. Net cash inflows of over $71 million during the half supported higher capital and exploration spending, as the company continued to invest heavily in underground development, infrastructure, and drilling.
The half year demonstrated the group's operational strength, with Sand King achieving capital payback within 12 months of portal establishment, following Riverina Underground, which achieved payback in 18 months during FY25. These outcomes contributed to the generation of more than $71 million in free cash flows.
Production and Processing Performance
Production performance strengthened materially over the year, with total gold produced, including attributable third-party ounces, rising 32 per cent to approximately 62,600 ounces. Processing at the Davyhurst plant remained robust, with milled tonnes increasing 9 per cent and recoveries improving to 92 per cent, offsetting a modest decline in head grade.
Third-party processing campaigns at Norton Gold Fields' Paddington mill also made a meaningful contribution, delivering over 10,000 ounces and adding further flexibility to the operating platform.
Underground Mining Growth and Cost Management
Underground mining has continued to drive the company's growth profile. Riverina produced fewer ounces year-on-year as it progressed through a lower-grade sequence, but development rates have since improved, and the operation is starting to deliver stronger output as mining sequences normalise.
Sand King, which was in early development a year ago, has now emerged as a major contributor, producing more than 32,000 ounces in the half and achieving full capital payback within 12 months of portal establishment. This underscores the effectiveness of Ora Banda's revised underground strategy.
All-in sustaining costs increased to $3188 per ounce compared to the prior year, reflecting the ongoing ramp-up of Sand King, higher third-party processing, haulage costs, and increased royalties associated with stronger gold prices. Management expects cost performance to improve as underground production rates lift, one-off development costs subside, and mining sequences move back into higher-grade zones.
Exploration and Future Expansion Plans
Exploration momentum accelerated over the year, with $36.5 million spent during the half as part of a $73 million full-year program focused on extending the mine life at Riverina and Sand King. Funds have also been deployed to drill out a pipeline of nearby high-grade growth targets, including Little Gem, Waihi, and Round Dam.
Subsequent to the period end, the company approved additional capital for studies that could see capacity at its 1.2-million-tonne-per-annum Davyhurst plant more than double to three million tonnes per annum.
Financial Health and Strategic Outlook
With record earnings, continued exposure to the gold price, a strengthened balance sheet, and over $200 million in available liquidity, including an undrawn $50 million revolving credit facility, Ora Banda heads into the second half in robust financial health. The strengthened balance sheet leaves the company well-funded to push deeper into its multi-mine underground growth strategy.
