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 phase, with significant improvements in operational performance, culture, and employee engagement (85% positive engagement, retention at record highs).

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

Financial highlights

• Revenue rose 58% to $214.2 million, driven by higher gold sales (67,255oz, up 35%) and a 17% increase in average realised gold price to A$3,185/oz.

• All-in sustaining cost (AISC) reduced 10% to A$2,767/oz year-over-year.

• EBITDA of $53.8 million (up from -$24.0 million), EBIT of $31.1 million (up from -$41.7 million), and net profit after tax of $27.6 million (vs. $44.1 million loss in FY23).

• Cash at bank increased to $26.8 million, with debt reduced from $11.0 million to $4.0 million.

• Operating cash flow improved to $36.2 million (from -$23.5 million), offset by $39.5 million in investing outflows and $69.1 million in growth capital.

Outlook and guidance

• FY25 production guidance: 100-110koz gold at AISC of A$1,975–2,125/oz, a 49% production increase and 25% AISC reduction from FY24.

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

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