Ora Banda Mining (OBM) H2 2024 earnings summary

Executive summary

• Achieved record gold production of 69,932oz in FY24, a 46% increase year-over-year, with zero Lost Time Injuries and within guidance of 67-73koz.

• Transitioned from open pit to high-grade underground mining, with Riverina Underground reaching steady state and Sand King Underground approved for development.

• FY24 marked a major expansion, with significant improvements in culture, safety, and operational performance.

• Entered a lithium-focused JV with WesCEF, generating $26 million in cash and advancing non-gold exploration.

• Launched the DRIVE to 150 plan, targeting 140-160koz gold production in FY26 at lower AISC.

Financial highlights

• Revenue rose 58% to $214.2 million, driven by higher gold sales volume and a 17% increase in average realised price.

• Net profit after tax was $27.6 million, reversing a $44.1 million loss in FY23, aided by $25 million in one-off JV and asset sale proceeds.

• EBITDA reached $53.8 million, up from a $24.0 million loss in FY23.

• AISC reduced 10% to A$2,767/oz; cash at bank increased to $26.8 million, and debt reduced to $4.0 million.

• Operating cash flow improved to $36.2 million, with investing outflows of $39.5 million mainly for mine development.

Outlook and guidance

• FY25 gold production guidance: 100-110koz at AISC of A$1,975–2,125/oz, a 49% production increase and ~25% AISC reduction.

• FY26 target: 140-160koz at AISC of A$1,740–1,890/oz, underpinned by Riverina and Sand King Underground mines.

• FY25 exploration budget set at $25 million, with growth capital of $58 million; FY26 exploration and growth capital forecast at $60–80 million.