Ora Banda Mining Limited (ASX: OBM)
Ora Banda Mining Limited (ASX: OBM) has delivered exceptional financial and operational results for the half-year ending December 31, 2024, showcasing strong revenue growth, improved profitability, and successful underground mining expansion. The company’s strategic investments in Riverina Underground and Sand King Underground have positioned it for sustained production increases and enhanced cash flow generation in the coming periods.
Ora Banda, one of the best gold mining stocks, reported record revenues of $186.4 million, representing a 93% increase compared to H1 FY24 ($96.4 million). This remarkable growth was driven by higher gold production and improved sales volumes, particularly from Riverina Underground, which reached commercial production and exceeded output expectations.
The company’s EBITDA surged by 254% to $84.2 million, reflecting higher gold prices, production efficiency improvements, and cost control measures. Similarly, net profit after tax (NPAT) increased by an impressive 371% to $50.8 million, highlighting the profitability and operational resilience of Ora Banda’s mining operations.
Cash flow from operations increased by 765% to $91.2 million, allowing the company to fund ongoing expansion projects without external financing. As a result, closing cash balances rose to $57.8 million, up from $26.8 million in June 2024, reinforcing Ora Banda’s financial stability and growth potential.
Ora Banda achieved a record gold production of 47,300 ounces in H1 FY25, reflecting a 54% year-over-year increase. The production boost was attributed to the successful ramp-up of Riverina Underground, which exceeded expectations with a grade of 4.5g/t. The mine achieved capital payback within just 18 months, demonstrating strong economic returns.
The Sand King Underground mine commenced production during the period, with 21,000 ounces expected in H2 FY25. The first ore was intersected in December 2024, and early grade control drilling has identified higher gold endowments than initially estimated. The site remains on track to reach steady-state production by June 2025, further boosting the company’s output and profitability.
Ora Banda successfully reduced its all-in sustaining costs (AISC) to $2,402/oz, a 12% improvement from H1 FY24 ($2,729/oz). This was achieved through:
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Lower operational costs at Riverina Underground, which is now fully self-sustaining.
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Efficiencies in processing and mining operations, particularly as higher-grade Sand King ore replaces lower-margin stockpiles.
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One-off dewatering costs at Riverina Underground, which were resolved in Q2 FY25, further supporting long-term cost reductions.
Ora Banda invested $54.2 million in growth initiatives, including:$37.1 million for underground development at Riverina and Sand King.
Ora Banda expects continued revenue and profit growth in H2 FY25 and FY26, supported by the full-scale ramp-up of Sand King Underground, with production expected to reach peak levels in mid-2025 and higher-grade ore feeds from new underground sources, reducing costs and increasing recovery rates.
Ora Banda Mining Limited has demonstrated exceptional financial and operational performance, with record revenue, increased profitability, and a strengthened balance sheet. The successful expansion of its underground mining operations at Riverina and Sand King positions the company for sustained growth in 2025 and beyond. With improving production efficiencies, disciplined cost management, and a well-funded growth strategy, Ora Banda is well on track to enhance shareholder value and maintain its strong trajectory in the gold mining sector.
(Source: Company’s Report)
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