Ora Banda Mining (ASX: OBM)
Reported on its activities for the December 2024 quarter – a period during which the Company demonstrated the robustness of its underground strategy with cashflow increasing over $9 million despite spending over $30 million on growth.
.
.
.
| Ora Banda | ASX: OBM | |
| Stage | Production + development | |
| Metals | Gold | |
| Market cap | A$1.3 Billion @ 70c | |
| Location | Western Australia | |
| Website | www.orabandamining.com.au |
.
December 2024 – ORA BANDA MINING QUARTERLY ACTIVITIES REPORT
Ora Banda Mining Limited (ASX: OBM) (“Ora Banda”, “Company”) is pleased to report on its activities for the December 2024 quarter – a period during which the Company demonstrated the robustness of its underground strategy with cashflow increasing over $9 million despite spending over $30 million on growth.
.
Highlights
Cash builds to $57.8 million with Riverina Underground fully paid back
Investment of $30.8 million into growth projects and exploration continues ramp up to
150koz in FY26
Sand King Underground on target to deliver additional higher-grade feed as it advances
to steady state production in FY25
• No Lost Time Injuries
• Gold sold of 22,288oz, taking total first half FY25 gold sold to 47,824oz
• Gold production of 22,973oz with first half FY25 gold produced at 47,300oz
• Sand King Underground ramp up on track to deliver up to 21koz in a stronger second half of FY25
• Riverina Underground achieved payback in the quarter generating positive cash flows only 18 months after commencement. Riverina Underground mined grade continues to reconcile above forecast
• Davyhurst mill throughput increased 9% from the prior quarter to 280kt as upgrades take effect, more improvements are planned for the remainder of FY25
• AISC for the quarter was A$2,536/oz sold, inclusive of $116/oz of non-cash share-based payments and $183/oz relating to the treatment of higher-cost open pit stockpiles mined in prior periods which are now depleted
• Closing cash lifts to $57.8 million, a $9.1 million increase from the prior quarter, after incurring total capital, resource development and exploration expenditure of $30.8 million as follows:
o $20.8 million on Riverina & Sand King Underground development;
o $4.5 million on growth infrastructure; and
o $5.5 million on resource development & exploration activities.
• Available inventory on hand at quarter end totalled 7.5koz, including 3.3koz in GIC
Riverina Underground operation achieved payback of its capital investment within 18 months of the portal being established and the Sand King Underground operations intersected first ore just four months after the portal was established.
Riverina Underground operation continued to deliver physicals which are in line with the required run-rate to achieve FY25 production guidance. As development progresses, the establishment of more levels open will provide additional mining fronts and mining options as the year progresses.
Total ounces mined for the quarter were 22,187oz at 4.4g/t including low grade material. Overall mined grade of 5.3g/t continues to reconcile above the Ore Reserve grade of 4.2g/t with the highergrade lodes extending more than modelled.
The Sand King Underground mine achieved first development ore in December 2024 and remains on track to achieve first stoping ore in March 2025. The development ore will be batched through the Davyhurst mill commencing in February 2025.
This will be achieved 14 months after the first drill hole targeting underground mineralisation was completed.
The Davyhurst mill had a strong quarter, processing 280kt of ore at a head grade of 2.9g/t. Riverina medium and high grade (average 4.9g/t) comprised only 41% of the feed, with the low-grade open pit legacy stockpiles and low-grade Riverina ore (together averaging: 1.5g/t) filling the remainder of the mill capacity.
These low-grade feed sources are expected to be progressively replaced by
higher grade Sand King material in H2 FY25 and FY26.
——-
.
Ora Banda’s Managing Director, Luke Creagh, said:
“It is a testament to the quality of Riverina Underground that it has paid itself back in just 18 months and is now delivering strong cash flows which will self-fund Ora Banda’s production outlook towards 150koz in FY26.
“With Sand King Underground progressing on schedule, we have also reached an inflection point whereby the higher-grade feed from Sand King will progressively fill the Davyhurst mill, paving the way for production and cashflow to increase and costs to reduce.
“As the business strengthens and the results start to come through on our exploration programs, we will be in a position to rapidly advance any additional opportunities that exist in our portfolio”.
.
To read the full news release, please click HERE
.
.
The live gold price can be found HERE
.
=======
.
City Investors Circle is based in the financial district in the City of London
We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.
Our audience is selected and invited individually to ensure interest and relevance for the presenting company.
Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.
We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.
If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com
.
=======
,
This website is not sponsored, we are truly independent, and will always remain so
Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.
All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.
These articles are for awareness and informational purposes only, and are not recommendations in any form. Always consult an investment professional.
.
Disclosure
At the time of writing the author holds shares in Ora Banda MIning.
.