What is Ora Banda Mining’s (ASX:OBM) new growth strategy?

Ora Banda Mining has approved a $465 million expansion program dubbed the "Drive to 300" strategy, which aims to double its annual gold production. The initiative centers on building a new processing plant at Davyhurst and developing a third underground mine at the Waihi deposit in Western Australia.

How much capital expenditure is Ora Banda Mining committing to this expansion?

The total approved capex is $465 million. Ora Banda Mining will spend $375 million to construct a standalone 3-million-tonne-a-year processing facility at Davyhurst, alongside a $90 million investment to develop the Waihi underground mine.

What is the timeline for Ora Banda Mining's (ASX:OBM) Davyhurst project?

Construction on the new 3-million-tonne-a-year Davyhurst processing plant is scheduled to begin in FY27. Ora Banda Mining targets official commissioning for the third quarter of FY28, with full combined processing capacities ramping up through FY29.

How will this capital investment affect Ora Banda Mining’s production capacity?

The expansion will increase Ora Banda Mining's combined milling capacity to 4.2 million tonnes of ore per year by FY29. This expanded infrastructure is designed to double the company's total gold production output from current levels.

What are the main operational benefits of the "Drive to 300" strategy for OBM?

By building its own standalone processing plant, Ora Banda Mining expects to significantly lower its unit costs through greater economies of scale. Additionally, the move eliminates the company's current, costly reliance on third-party milling services.

By how much did Ora Banda Mining (ASX:OBM) increase its ore reserves?

Ora Banda Mining's total ore reserves surged by 136 per cent to 7.8 million tonnes grading at 2.2 grams per tonne, yielding 555,000 ounces of gold. This massive resource upgrade occurred primarily at its Round Dam and Waihi deposits in Western Australia.

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Ora Banda Mining approves $465M gold expansion plan

Written by Jon CuthbertPublished May. 18 2026Last Updated May. 18 2026

Ora Banda Mining (ASX:OBM) has greenlit a $465 million expansion programme aimed at doubling its gold production under a new "Drive to 300" growth strategy.

The centrepiece of the Western Australian miner’s initiative is a new, standalone processing plant at Davyhurst, coupled with the development of a third underground mine at Waihi.

The company has committed $375 million to construct the 3-million-tonne-a-year Davyhurst facility, with construction slated to commence in FY27 and commissioning targeted for the third quarter of FY28.

An additional $90 million has been approved for the Waihi underground development.

Together, these capital investments are projected to lift Ora Banda's combined milling capacity to 4.2 million tonnes annually by FY29.

The increased scale is expected to drive down unit costs and eliminate the company's reliance on expensive third-party milling services.

This aggressive expansion follows a spectacular exploration campaign that saw Ora Banda more than double its ore reserves.

Total mineral resources have risen to 3.57 million ounces following significant resource upgrades at its Round Dam and Waihi deposits.

The gold miner confirmed that total ore reserves surged by 136% to 7.8 million tonnes grading at 2.2 grammes per tonne, yielding 555,000 ounces.

Overall mineral resources jumped by 1.46 million ounces compared to July 2025 levels, providing the critical geological foundation required to anchor the company's long-term, high-growth mining hub in the Goldfields.