Ora Banda boosts cash and drilling success as Sand King ramps up

Ora Banda Mining Ltd delivered a solid March 2025 quarter, increasing its gold sales, advancing underground development, and confirming significant high-grade gold mineralisation at its key Western Australian assets.

Gold sold rose by 6% from the prior quarter to 23,643 ounces, bringing the financial year-to-date total to 71,467 ounces—already exceeding the full-year figure for FY24 with one quarter remaining. Production rose marginally to 23,150 ounces, while the all-in sustaining cost (AISC) fell 3% to A$2,470 per ounce sold, including A$102 per ounce in non-cash share-based payments.

The company’s cash balance rose to A$80.7 million, up A$22.9 million despite capital, resource development and exploration expenditure totalling A$28.6 million. This investment supported underground mine development at Riverina and Sand King, infrastructure upgrades, and exploration across key targets.

“This was another solid quarter from the Davyhurst team which has embraced the multiple and significant growth opportunities that are being worked up by the business.

"Our mining division has set up Riverina as a baseload feed source, as well as positioning the mine for growth into FY26. In addition to this, the continuing ramp up of Sand King, including the mined grade reconciling 6% above the reserve grade, is a credit to the team.

“The capital infrastructure upgrades continue across the project, all of which are strengthening the business and positioning the Company to continue to deliver our future growth ambitions and plans.

"However, the biggest and most exciting results for the quarter were delivered by the drill bit. This includes the significant depth extensions to the Riverina orebody, as well as the greenfields discovery of Little Gem. We are very much looking forward to the continued exploration drilling at both of these systems," Ora Banda’s managing director, Luke Creagh, said.

Quarterly ounce production & head grade.

Operating highlights

Riverina Underground delivered 127,000 tonnes of ore at 4.6 grams per tonne (g/t) for 18,800 ounces, with mined grades exceeding reserve grades by 10% during the quarter and by 21% year-to-date. Production rates are expected to rise in the June quarter with the addition of a third jumbo.

Sand King Underground delivered first stope ore in March, producing 744 ounces from 5,500 tonnes at 4.2g/t. Total mined ore stood at 32,800 tonnes at 3.4g/t, exceeding reserve grade by 6%. Steady state production is expected by the June quarter.

Processing performance was impacted by temporary downtime during major plant upgrades, reducing throughput by 7%. However, improved ore feed lifted the head grade by 7%. Stockpiles grew 18% to 5,000 ounces, with total gold inventory now at 7,600 ounces.

FY25 production and cost guidance revised following plant upgrade downtime

Ora Banda Mining has revised its financial year 2025 (FY25) production and cost guidance in light of downtime stemming from processing plant upgrades during the March quarter and into April.

The company has narrowed its gold production forecast, reducing the upper end of guidance from 110,000 ounces to 105,000 ounces. The lower end of the guidance remains unchanged at 100,000 ounces.

Amendments to the FY25 guidance.

All-in sustaining cost (AISC) guidance has been revised upwards to a range of A$2,350 to A$2,500 per ounce sold. This adjustment reflects several contributing factors:

• Higher operating costs incurred year to date;
• Deployment of a third jumbo at the Riverina underground mine in March 2025 to support growth into FY26;
• Increased royalties driven by elevated gold prices; and
• Lower production at the upper end of the revised guidance range.

OBM is focused on positioning its operations for sustainable long-term growth despite the near-term cost impacts.

Riverina and Sand King underground mines advance production and development targets

OBM’s underground operations at Riverina and Sand King continued to perform strongly during the March 2025 quarter, with both assets progressing in line with development schedules and production targets.

Riverina Underground delivers strong ore volumes and grades

At Riverina Underground, mining continued to track above the ore reserve grade.

The company completed 1,949 metres of horizontal development, including 1,172 metres of operating development. Development ore totalled 28,229 tonnes at 3.7 grams per tonne (g/t) for 3,391 ounces of gold, down from 32,498 tonnes at 4.9g/t for 5,088 ounces in the previous quarter. Stoping within the main ore body contributed 98,455 tonnes at 4.9g/t for 15,371 ounces, an improvement on Q2 FY25’s 14,714 ounces from 83,748 tonnes at 5.5g/t.

To support future growth, a third jumbo drill rig was deployed late in the quarter to accelerate access to additional mining levels, positioning the mine for higher output in financial year 2026.

Sand King Underground ramps up with first stoping ore

The company’s second underground mine, Sand King, continued its transition to steady state production. Total development metres rose by 83% to 1,492 metres, compared to 816 metres in the December quarter. Stoping commenced as planned in March, yielding 5,474 tonnes at 4.2g/t for 744 ounces. Development ore extraction increased significantly to 27,324 tonnes at 3.2g/t for 2,831 ounces, compared to 4,923 tonnes at 2.4g/t for 382 ounces in the prior quarter.

The Sand King project remains on schedule to meet key milestones, including:

• Capital investment of approximately A$39 million, with a peak cash draw of A$32 million funded through internal cashflows – ongoing
• Portal commencement – September 2024 quarter – achieved
• First development ore – December 2024 quarter – achieved
• Stoping commencement – March 2025 quarter – achieved
• Steady state production of approximately 60,000 ounces per annum – on track for June 2025 quarter

Sand King Underground Ramp up – Quarterly lateral development metres.

Mining rates are steadily increasing as critical infrastructure works reach completion and additional development headings come online. Key mine infrastructure—including the primary ventilation and escapeway systems—has now been fully commissioned.

Initial grade control drilling has revealed a potential 19% uplift in contained gold ounces compared to the pre-mining Mineral Resource Estimate (21,000 ounces versus 17,000 ounces). This increase is largely attributed to the discovery of several discrete ore lodes not previously modelled. The program has also delineated at least three ‘blow-out’ zones, highlighting the potential for bulk stoping opportunities.

Ora Banda lifts cash reserves to $80.7 million, secures A$50 million debt facility

OBM closed the March 2025 quarter with a cash balance of A$80.7 million, marking an increase of A$22.9 million from the previous quarter.

According to the company’s quarterly cash reconciliation, cash at bank rose from A$57.8 million in the December 2024 quarter and A$48.7 million in the September 2024 quarter, driven by positive operating cash flow and corporate initiatives.

During the quarter, Ora Banda entered into a secured Syndicated Facility Agreement with Australia and New Zealand Banking Group (ANZ) and the Commonwealth Bank of Australia (CBA). The agreement provides a revolving credit facility of A$50 million over an initial two-year term, with an option for a one-year extension. The facility is competitively priced and includes standard conditions precedent, covenants, and third-party consents.

While the facility has no mandatory hedging provisions, the company purchased put options for 100,000 ounces of gold at A$4,400 per ounce to cover the period from 1 July 2025 to 30 June 2026. The total premium of A$14.2 million will be paid in monthly instalments of A$1.18 million throughout financial year 2026.

Corporate activity and capital structure

As at March 31, 2025, Ora Banda’s issued capital comprised 1,883,385,631 fully paid ordinary shares and 152,050,665 unlisted performance rights. Key changes during the quarter included the exercise of 2,566,504 rights and the issuance of 13,607,762 new rights.

The company also issued 34,300 ordinary shares to non-executive directors in lieu of fees, with the share price based on the 10-day volume weighted average price prior to quarter-end.

On April 29, 2025, OBM agreed with Hawke’s Point Holdings L.P. to extend the repayment deadline of a A$4 million loan to the earlier of June 30, 2025 or completion of a 1.5% royalty sale linked to Davyhurst Exploration Pty Ltd. Finalisation of the royalty transfer remains subject to a formal agreement.

Additionally, Julie Athanasoff was appointed Joint Company Secretary, effective February 28 2025, replacing Doug Warden, who remains Chief Financial Officer. Susan Park continues in her role as Joint Company Secretary.