- Ora Banda’s record production helps lift EBITDA 134% to $431.1m
- Gold production rises 53% to a record 140,949oz
- Operating cash flow jumps 124% to $426.7m, with cash reaching $267.7m
Special Report: WA goldie Ora Banda enters FY27 with its biggest-ever pile of cash after record production, rapid payback at Sand King, and full exposure to the rising gold price.
Ora Banda (ASX:OBM), which is targeting a production profile above 300,000ozpa, almost doubled revenue to a record $807.5 million for FY26 and posted a 134% rise in EBITDA to $431.1m.
Cash flow from operations skyrocketed 124% to $426.7m and the closing cash position jumped $183.5m to $267.7m, while net profit came in up 16% at $216.2m.
Record gold production of 140,949oz (including 34.3koz attributable equivalent ounces) represented a 53% increase on a year earlier, giving Ora Banda greater exposure to surging gold prices.
Managing director Luke Creagh said full exposure to the rising gold price converted record production into materially stronger earnings and cash flow, leaving the group with its strongest ever balance sheet.
“FY26 marked a step-change for Ora Banda, with the successful transition to a two-mine underground operating model driving record production, cash generation and profitability.”
Rapid payback
“Sand King’s rapid payback, achieved within 12 months of portal establishment and consistent with Riverina Underground’s payback in FY25, confirms the strength and repeatability of our underground mining model,” Creagh said.
The group’s second mine, Sand King Underground, reached commercial production in January 2026.
“Financial strength, together with a significantly expanded resource and reserve base, with increases of 75% in Mineral Resources and 159% in Ore Reserves, and more than $468 million in available liquidity, positions the group to continue unlocking the potential of this highly prospective belt,” Creagh said.
“Importantly, the put options we have in place provide price protection out to June 2028, locking in margin certainty well into FY27 and underwriting our ability to keep investing through the cycle.”
The company has put options and partial collars covering 167,000oz at an exercise price of $6000/oz from November 2026 to June 2028.
Increased production was attributed to the ramp-up of Sand King, with capital payback achieved within 12 months of the portal being established.
Because of mill constraints, 625kt of ore at a grade of 2.0g/t was also hauled to Norton Gold Fields’ Paddington Mill for 34.3koz attributable production.
What’s next
Ora Banda said it was confident in building on its two-mine platform heading into FY27.
“We enter FY27 well capitalised, well-resourced and with a clear runway of growth ahead of us,” Creagh said.
A further 340,000m of drilling is planned in FY27, excluding grade control.
Key focus areas include extensions to known mineralisation at Round Dam, Little Gem and Sand King.
Ora Banda is also advancing towards a maiden mineral resource estimate for Little Gem in the first half of FY27.
This article was developed in collaboration with Ora Banda, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
