What were the key highlights of the Ora Banda Mining (ASX:OBM) March quarter?

Ora Banda Mining achieved record gold production of 38,766 ounces, a 21% increase over the previous quarter. This operational surge generated $76.3 million in free cash flow, significantly strengthening the balance sheet.

Why did production increase so significantly at the Davyhurst Gold Project?

The production jump was driven by higher volumes and grades at the Riverina and Sand King underground mines. Riverina saw a 36% increase in mined ounces, while Sand King boosted output by 25% after transitioning to commercial production in January.

How much free cash flow did Ora Banda Mining (ASX:OBM) generate this quarter?

Ora Banda generated $76.3 million in free cash flow during the March quarter. This is a significant result for a mid-tier miner, as it was achieved even after the company made substantial reinvestments into its growth pipeline.

Why are the all-in sustaining costs for OBM currently so high?

The company’s AISC rose to $3,612 per ounce this quarter, which is relatively high compared to industry peers. This increase was primarily due to the use of third-party processing facilities to handle excess ore, which carries higher logistical and toll-treatment costs.

What is the significance of the resource update at Round Dam?

Ora Banda reported a tenfold increase in the Round Dam mineral resource, which now stands at 1.33 million ounces. This discovery was the primary driver behind a 57% increase in the company’s total resource base, which now totals 3.3 million ounces.

What is management’s plan to lower long-term operating costs?

To reduce reliance on expensive third-party processing, Ora Banda is evaluating the development of a new 3Mtpa (million tonnes per annum) standalone processing plant. A final development decision on this facility is expected in the June quarter.

Is Ora Banda Mining (ASX:OBM) currently profitable?

While the report focuses on record production and $76.3 million in free cash flow, it does not explicitly state net profit after tax.

What are the main bull and bear points for OBM after this news?

The bull case is built on record production, massive cash reserves, and a rapidly expanding resource base that secures the company's future. The bear case centers on high operating costs (AISC of $3,612/oz) and the capital expenditure required for the new 3Mtpa plant.

Ora Banda Mining posts record gold production, cash flow

Written by Isaac FrancisPublished Apr. 16 2026

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.