Ora Banda Mining (OBM) H1 2025 earnings summary

Executive summary

• Achieved commercial production and capital payback at Riverina Underground within 18 months of portal establishment.

• Sand King became the second underground mine, fully funded from Riverina cashflows, with first stoping ore expected in March 2025.

• Record gold production at Davyhurst mill, up 54% year-over-year, with gold output reaching 47,300oz.

• Significant exploration success at Riverina and Little Gem, with high-grade intercepts and $16 million additional exploration budget approved.

• Cash flow from operations surged 765% to $91.2 million, with closing cash at $57.8 million.

Financial highlights

• Revenue rose 93% year-over-year to $186.4 million, driven by higher gold sales volume and price.

• Net profit after tax increased to $50.8 million from $10.8 million, a 371% rise year-over-year.

• EBITDA grew 254% to $84.2 million; EBIT up 320% to $52.0 million.

• Operating cash flow surged to $91.2 million, up from $10.5 million, with cash in bank at $57.8 million.

• AISC reduced 12% to $2,402/oz; gold sold increased 49% to 47,824oz at an average price of A$3,898/oz.

Outlook and guidance

• Sand King ramp-up expected to deliver up to 21koz in H2 FY25, with steady-state production of ~60kozpa in FY26.

• Riverina Underground on track to meet FY25 production guidance, with strong development and grade control results.

• Higher-grade Sand King ore to replace mill feed in H2 FY25 and FY26, improving production and reducing costs.

• Management expects continued growth in operating margins and cash flow, supported by strong gold prices.