Ora Banda Mining's December 2024 Quarterly Activities Report
OBM (OBM) Share Update January 2025 Wednesday 15th
Ora Banda Mining Reports Strong December Quarter with Increased Cash Flow
Ora Banda Mining Limited (ASX: OBM) has released its quarterly activities report for December 2024, highlighting significant achievements in its underground mining operations and financial growth.
Instant Summary:
- Cash balance increased to $57.8 million.
- Riverina Underground achieved full payback within 18 months.
- Sand King Underground on track for steady production in FY25.
- Gold production reached 22,973oz for the quarter.
- Davyhurst mill throughput increased by 9%.
Quarterly Achievements
Ora Banda Mining Limited has reported a successful quarter with a cash increase of $9.1 million, bringing the total cash reserves to $57.8 million. This growth comes despite significant investments in development and exploration projects.
The Riverina Underground operation has been a standout performer, achieving full payback of its capital investment within just 18 months. This operation continues to exceed expectations, delivering a mined grade above the forecast.
Operational Highlights
The Sand King Underground mine has also made substantial progress, reaching its first ore within four months of portal establishment. It is on schedule to begin stoping ore by March 2025, contributing to a stronger production profile for the company.
Meanwhile, the Davyhurst mill processed 280kt of ore, marking a 9% increase from the previous quarter. This improvement is attributed to recent upgrades, with further enhancements planned for the remainder of FY25.
Financial Performance
The company sold 22,288oz of gold during the quarter, with an average price of A$4,123/oz. The All-In Sustaining Cost (AISC) was reported at A$2,536/oz, reflecting the inclusion of non-cash share-based payments and costs related to higher-cost open pit stockpiles.
The positive cash flow and operational milestones at Riverina and Sand King are likely to bolster investor confidence. The strategic focus on underground mining is proving effective, positioning Ora Banda for continued growth.
Investor Reaction:
Analysts are likely to view the report favorably, given the successful payback of Riverina Underground and the on-schedule progress at Sand King. The increase in cash reserves provides a solid foundation for future investments.
Conclusion:
Ora Banda Mining's strategic focus on underground operations is yielding positive results. Investors should watch for continued progress at Sand King and further cash flow improvements as the company advances towards its FY26 production goals.