Ora Banda Mining Limited (ASX: OBM)
Ora Banda Mining Limited (ASX: OBM) reported strong progress for the December 2024 quarter, reflecting continued growth and successful underground operations. The company increased its cash reserves to $57.8 million, up $9.1 million from the prior quarter, despite a $30.8 million investment in growth initiatives. Key highlights include the sale of 22,288 ounces of gold, bringing total sales for the first half of FY25 to 47,824 ounces. The Riverina Underground operation achieved payback in just 18 months, delivering higher-than-expected grades and strong cash flow. The Sand King Underground project is on track, with first ore mined in December 2024, and the ramp-up to steady state production is progressing as planned.
The Davyhurst mill performed well, processing 280,000 tonnes of ore at an average grade of 2.9g/t, up 9% from the previous quarter. A significant portion of the mill feed came from lower-grade legacy stockpiles, but this will shift towards higher-grade material from the Sand King mine in the second half of FY25 and FY26. As the Sand King Underground reaches full production, it will help reduce costs and improve cash flow, setting the stage for the company to achieve its production target of 150,000 ounces in FY26.
Development at both the Riverina and Sand King Underground mines remains on track. Riverina continued to deliver strong results, mining over 32,498 tonnes of development ore at a grade of 4.9g/t, and 83,748 tonnes of stoping ore at 5.5g/t. The Sand King project, which started with portal construction in the September 2024 quarter, mined over 9,000 tonnes of development ore at a grade of 2.2g/t. Stoping at Sand King is expected to begin in March 2025, with steady-state production set for June 2025, contributing around 60,000 ounces annually.
Tabcorp Holdings Limited (ASX: TAH)
Tabcorp Holdings Limited (ASX: TAH) delivered FY24 results reflecting a challenging operating landscape, with key financial metrics under pressure amid softer wagering market conditions and heightened competition. Group revenue declined 3.9% YoY to $2,338.9 million, underscoring industry-wide headwinds. EBITDA fell 18.7% to $317.7 million, while EBIT dropped 35.3% to $97.4 million. NPAT plunged 66.8% to $28.0 million, reinforcing margin compression and profitability challenges. A net loss after tax (NLAT) of $1,359.7 million was primarily driven by $1,376.4 million in non-cash impairments tied to NSW and South Australian assets, along with $11.3 million in other significant items. The Board reduced the final dividend by 43.5% to 0.3 cents per share, reflecting a prudent capital management approach amid elevated net debt of $860 million, attributable to a $600 million investment in the Victorian Wagering Licence. Despite near-term pressures, Tabcorp remains financially stable with $380 million in undrawn facilities, $314 million in cash, and no debt maturities until FY28.
While FY25 will see operational expenses rise to ~$660 million due to regulatory costs and inflation, the newly awarded 20-year Victorian Wagering Licence is a transformational catalyst. Pro forma analysis suggests the licence could have boosted FY24 EBITDA by $115 million, underscoring its potential to drive long-term earnings growth. Cost-saving initiatives and the Genesis program aim to offset rising expenses and enhance digital competitiveness, with the upgraded TAB app and high-performing retail venues driving strong customer engagement. Looking ahead, regulatory reforms in key states, such as New South Wales, present significant opportunities for structural improvement. Meanwhile, the repositioning of Gaming Services into a high-value regulatory technology business strengthens Tabcorp’s market leadership.
Despite macroeconomic challenges, Tabcorp’s omni-channel strategy, robust liquidity, and focus on operational transformation underpin its medium- to long-term growth potential. With a strategic roadmap centered on digital innovation, regulatory advocacy, and efficiency gains, Tabcorp is well-positioned to unlock shareholder value and deliver sustainable growth as market conditions stabilize.
Source: Company’s Report
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