Ora Banda Mining has maintained its full-year production guidance and bolstered its liquidity, despite a challenging September quarter that delivered 33,305 ounces of gold. The company has kept its foot firmly on the growth pedal at its Davyhurst operations in WA’s Eastern Goldfields, advancing key projects underpinning its ambitious ‘DRIVE to 300’ expansion strategy.
Costs for the quarter climbed to A$4214 an ounce, following a planned mill shutdown and wild weather. However, Ora Banda says its bigger play remains doubling production at the project by FY2029 through a new 3-million-tonne-per-annum plant at Davyhurst and its high-grade Waihi mine startup.
The company finished the quarter with A$207 million in cash before boosting its revolving credit facility from A$200 million to A$300 million after quarter-end, lifting its total available liquidity to a hefty A$507 million to bankroll its ambitious gold growth plans.
Promisingly, despite the weather and shutdowns, management says it will maintain its FY27 production and cost guidance of between 125,000 and 140,000 ounces of gold at an all-in sustaining cost of between A$3400 and A$3600 per ounce.
During the quarter, the company spent a whopping A$81.1 million on capital infrastructure to accelerate its transformative growth plan. Key construction at the new 3Mtpa plant is reportedly on schedule and within budget, with primary earthworks, footings and structural steel work underway.
The major operational milestone for the three months came as underground development at Waihi kicked off ahead of schedule. With the mine just three kilometres from the Davyhurst plant, it is expected to begin delivering high-grade, low-cost ore from early to mid-next year, de-risking the production profile ahead of the new plant’s commissioning in early 2028.
It is great to see our DRIVE to 300 projects all on schedule as we pursue our aspiration of doubling production to 300,000 ounces and a step-change improvement in unit costs in FY29. Operationally, we are well placed with the underlying performance of our current assets, with weather interruptions and mill downtime that affected performance expected to be limited to the September quarter.
Perhaps even more eye-catching than the recent operational advances were the company’s drill-bit discovery initiatives. Step-out drilling uncovered the new “Midnight” prospect, 500m south of the new Waihi underground portal, which returned an exceptional 11.5-metre hit grading a stellar 26g/t gold from 230m.
Ora Banda’s major growth initiative is backed by a significant expansion of the company’s inventory. The producer recently delivered a 75 per cent jump in its group mineral resources to 3.69 million ounces and an impressive159 per cent leap in its ore reserves to 610,000 ounces.
Five principal mining sources have now emerged across the project: Waihi underground, Waihi open pit, Round Dam open pit, Sand King underground and Riverina underground, which includes the promising Little Gem discovery.
With Davyhurst’s new plant taking shape, Waihi adding another underground growth engine and high-grade hits hinting at more ounces in the wings, Ora Banda is building the muscle to match its ambitions. If the DRIVE to 300 plan delivers, the Goldfields upstart could be knocking on the door of Australia’s mid-tier gold club before the decade is out.
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