Ora Banda Mining (ASX: $OBM) approves Sand King Underground mine development

Ora Banda Mining (ASX: $OBM) has approved the development of the Sand King Underground mine at its Davyhurst Gold Project in Western Australia. The decision aligns with the company's strategic objective of owning and operating at least two high-grade mines and achieving mid-tier status by 30 June 2025. The mine is expected to hit a steady state production level of approximately 60,000ozpa in the June 2025 quarter, with an estimated cost of $39 million funded by cash flows from the existing Riverina Underground mine and existing cash.

Executive Commentary

Ora Banda Mining Limited's Managing Director, Luke Creagh, expressed excitement about the company's achievements, highlighting the successful development of two underground mines in less than two years. He emphasized the potential of the Riverina Underground and the expected support from Sand King Underground, projecting a 40% year-on-year production growth and a ~34% reduction in AISC/OZ over the same period. Creagh also outlined the company's 'DRIVE to 150' plan, targeting 150,000 ounces in FY26, positioning Ora Banda on the pathway to becoming a mid-tier gold producer.

Summary

Ora Banda Mining's approval of the Sand King Underground mine marks a significant step towards achieving its strategic objective of owning and operating at least two high-grade mines. The company anticipates a steady state production level of approximately 60,000ozpa in the June 2025 quarter, with an estimated cost of $39 million. The 'DRIVE to 150' plan aims to target 150,000 ounces in FY26, representing a 40% year-on-year production growth and a ~34% reduction in AISC/OZ over the same period. Ora Banda also plans to invest in exploration to expand resources at both Riverina and Sand King, with a budget of approximately $25 million in FY25 and up to $40 million in FY26. The company's outlook includes inferred resources and a focus on unlocking the potential of its highly prospective and under-explored tenement package.