Ora Banda Mining (ASX:OBM) achieved a milestone March quarter, posting record gold production and a substantial surge in cash flow as the Davyhurst Gold Project accelerates towards full operational scale.
The company reported a 21% quarter-on-quarter increase in production, yielding 38,766 ounces and generating a robust $76.3 million in free cash flow.
The operational momentum has bolstered the balance sheet, with cash reserves climbing to $231.7 million.
The performance was underpinned by significant gains at the Riverina and Sand King underground mines.
Riverina saw a 36% jump in mined ounces due to higher grades, while Sand King increased output by 25% following its transition to commercial production in January.
The Davyhurst processing plant achieved record throughput of 343,182 tonnes with an impressive 93% recovery rate.
Managing Director Luke Creagh described the period as a "step-change" for the company, noting that the strong cash generation occurred despite heavy reinvestment into future growth.
While all-in sustaining costs rose to $3,612 per ounce due to the use of higher-cost third-party processing, Ora Banda expects costs to moderate as it eyes a development decision on a new 3Mtpa standalone processing plant this June.
Furthering its long-term outlook, the company’s resource base grew 57% to 3.3 million ounces, driven by a tenfold resource increase at Round Dam.