OBM - Ora Banda Mining

[houtman]

Some high grade intercepts seem to have Ora Banda on the move again.

Highlights
• Phase 1 Sand King drill program nearing completion with 30 of the 33 holes complete
• Assays for the first 17 holes have returned outstanding intercepts that demonstrate widths
and grades conducive to underground mining and have further expanded the mineralisation
area including: (see Figures 2, 3 and 4)
o 2.4m @ 35.8 g/t Sand King 060 Lode (including 1.5m @ 58.8 g/t)
o 11.5m @ 6.1 g/t Sand King 060 Lode
o 4.3m @ 11.8 g/t Sand King 060 Lode (including 3.9m @ 12.9 g/t)
o 8.0m @ 6.6 g/t Sand King 060 Lode (including 7.0m @ 7.4 g/t)
o 9.0m @ 3.1 g/t Sand King 060 Lode (including 6.3m @ 4.1 g/t)
o 3.5m @ 7.6 g/t Sand King 010 Shear
o 6.1m @ 4.3 g/t Sand King 060 Lode
o 3.6m @ 6.6 g/t Sand King 060 Lode (including 2.7m @ 8.6 g/t)
o 5.7m @ 3.6 g/t Sand King 060 Lode (including 5.1m @ 3.7 g/t)
o 2.0m @ 9.2 g/t Sand King 060 Lode
o 2.6m @ 6.6 g/t Sand King 010 Shear
• The system has been extended to 1km of strike and 300 metres below surface and remains
open in all directions
• The geological knowledge, structural framework and overall understanding of Sand King
mineralisation has increased substantially, resulting in better definition of lode continuity
and grade potential as well as enhanced drill targeting
• Phase 2 drill program of $2 million will continue uninterrupted over the next two months

I've been looking at these for a while and finally bought in yesterday.

Today's Riverina and Sand King results were good.

Luke, the MD, was previously the Senior Underground Mine Manager at NST.

OBM recently did a deal with a WES company (WESCEF), selling the non-gold rights for $26m + 2% royalty on any future production.
WESCEF will be spending $15m exploration over 3 years and drill results are shared, so OBM get $'s and data.

OBM have been struggling with AISC as they transition from open pit to underground.
As the higher grade comes on line AISC should fall, and this along with the gold price movements will hopefully give good upside leverage.

It has execution risk of course.

 

[brerwallabi]

I've been looking at these for a while and finally bought in yesterday.

Today's Riverina and Sand King results were good.

Luke, the MD, was previously the Senior Underground Mine Manager at NST.

OBM recently did a deal with a WES company (WESCEF), selling the non-gold rights for $26m + 2% royalty on any future production.
WESCEF will be spending $15m exploration over 3 years and drill results are shared, so OBM get $'s and data.

OBM have been struggling with AISC as they transition from open pit to underground.
As the higher grade comes on line AISC should fall, and this along with the gold price movements will hopefully give good upside leverage.

It has execution risk of course.

To my regret I did not buy back into OBA and have the past months watched it slowly climb up.

 

[houtman]

To my regret I did not buy back into OBA and have the past months watched it slowly climb up.

Who knows, might be the right call.

I had another look at their diggers and Dealers presentation from 7 months ago.

They are making good progress and have a solid plan.

 

[finicky]

Interesting chart. Big cup and handle bottom is how I see it. Will be looking into it; the name's familiar.
Only a small chance I'll be buying a developer but salient that an ex NST mine manager is running things.
Risk of a short term pullback in the chart soon but it's looking sound to me.

Not Held

WEEKLY

 

[finicky]

Announcement from yesterday, covered by Proactive.
Likely significant money coming OBM's way from WES but at upfront cost to OBM of $3.4m cash and dilutionary share issuance to third party litigants.

Ora Banda Mining Ltd (ASX:OBM) has resolved its court issue with Riverina Resources Pty Ltd and Greenstone Resources Limited, ending a complex chapter for the companies with a combination of cash and share payments amounting to around $6.4 million.

The settlement comprises a $3.4 million cash payment and the issuance of 10,630,935 ordinary shares valued at $3.0 million, to be completed within five business days.

Just good business​

Managing director Luke Creagh said: “The resolution of this matter, out of court and to the mutual satisfaction of all parties, is just good business.

“Importantly for Ora Banda, it helps clear the way for our joint venture with WesCEF to proceed in a timely manner which would provide further funds to accelerate the development opportunities within our gold business.”

This agreement concludes the long-standing 2007 joint venture arrangement, transferring all nickel rights to Ora Banda and eliminating the previous requirement to obtain Riverina Resources and Greenstone Resources' consent in Ora Banda’s farm-in deal with Wesfarmers Chemicals, Energy and Fertilisers Division’s subsidiary, Davyston Exploration Pty Ltd (DEPL).

This paves the way for the DEPL transaction to proceed as planned, with Ora Banda expecting to receive a significant $16 million payment upon satisfying the remaining conditions.

The historical disputes, dating back to actions initiated by Riverina Resources and Greenstone against Carnegie Gold Pty Ltd in 2022, and subsequent counterclaims by Ora Banda in February 2024, have now been fully resolved.

The agreement also provides for the shares issued to Greenstone and Abbotsleigh, an associate of Riverina Resources, to be placed in escrow for periods ranging from three to nine months.

With the termination of the 2007 agreement, Ora Banda Mining now holds unencumbered nickel rights and a clear path to advancing its strategic objectives with the DEPL transaction.

 

[brerwallabi]

The one that got away, I guess you can’t own them all. I am happy with my existing gold stocks, I would have dearly loved to reinvest in ORA.

Ora Banda Mining (ASX-OBM) (Ora Banda) is pleased to announce that the Board has approved development of the Sand King Underground mine at its 100% owned Davyhurst Gold Project in the Eastern Goldfields of Western Australia. This decision aligns with the Company's strategic objective of owning and operating at least two high-grade mines and to achieve mid-tier status by 30 June 2025.

The mine, which will become the second to be developed by the Company in less than two years, is slated to hit a steady state production level of approximately 60,000ozpa in the June 2025 quarter. Contractors and long-lead items have been secured with the Sand King portal due to be cut in the September 2024 quarter.

Sand King's estimated ~$39 million cost will be funded from cash flows provided from Ora Banda's existing Riverina Underground mine and existing cash. When combined, production from the two operations will represent a step-change for the business as it grows towards a production outlook of 150,000ozpa in FY26 and reduces its AISC to below A$1,890/oz in FY26. This target growth plan has been named the Drive to 150 is a significant decision to move away from being a single mine producer. In addition, it will provide the benefit of greater operational flexibility and exposure to the potential upside of two significant mineralised systems. The AISC per ounce reduction is driven by the increased grade from the underground mines, which in turn increases the production profile over a similar tonnage processed and cost base.

Coupled with Ora Banda's rapidly accelerating production and decreasing cost profile will be a significant exploration investment in expanding resources at both Riverina and Sand King, as well as testing a number of highly prospective new underground targets. The Company has budgeted to spend approximately $25 million in FY25 and up to $40 million on exploration in FY26. This investment will be coupled with other investments to improve Davyhurst's infrastructure and processing capabilities.

 

[brerwallabi]

I cry when I look at the ever increasing share price of Ora Banda.
Once held and regrettably exited.

 

[houtman]

Some copy from OBM's annual report.

They are forecasting Ounces up and AISC down for FY2026, also capital expenditure of $63m.
The MD has extended his term to 2030.

Ora Banda produced 69,932oz of gold in FY24 at an AISC of A$2,767/oz, which was a record year for the Company and was within production guidance of 67-73koz p.a......

Riverina Underground ramped up and achieved steady state performance in the June quarter, which resulted in a record gold production
quarter for the Company..

Recognising this changing dynamic, Ora Banda’s FY25 guidance is 100-110koz with an AISC of A$1,975/oz - A$2,125/o....

The discovery of Sand King Underground represents a welcome complement to Riverina Underground as it means the business now has the secondary ore source it needs to fill the mill with high-grade ore...

In July 2024, Ora Banda released its growth plan called the DRIVE To 150. This plan, as the name suggests, lifts the Company's gold production
outlook to 140 – 160koz in FY26 at a targeted AISC of A$1,740/oz-$1,890/oz. The outlook is underpinned by approximately $25 million in exploration and $63 million in capital expenditure in FY25.

 

[rcw1]

Good evening
Looking pretty good.
Not holding

 

[houtman]

A solid 1/4ly from OBM,
headline -
Ora Banda produces record 24,327oz, lifts cash balance to $48.7 million and
commissions second high grade mine.

AISC 21% lower than last 1/4 as they transition to high grade underground.

No hedging.

Mined grade of 4.5g/t higher than reserve grade of 4.2%.

 

[rcw1]

Good afternoon
Chart update ... nice couple days

5 minute chart

Not holding
Kind regards

rcw1

 

[brerwallabi]

It’s one I held, I look at the price every day it just keeps going up.

 

[Dona Ferentes]

The one that got away, I guess you can’t own them all. I am happy with my existing gold stocks, I would have dearly loved to reinvest in ORA.

someone else did well ...

from The Australian

"The mining game, as they say, is one of great risk and reward. And those rewards are about to pay out big time for Ora Banda mining boss Luke Creagh, sitting as he is on a rights package worth $68m.
Creagh’s decision to leave his C-suite job at gold major Northern Star Resources two years ago to join struggling Ora Banda was met with raised brows at the time.

Now, with paydirt near, Creagh is the talk of the town. He signed on with Ora Banda for 50 million shares and a company-backed loan of $1.75m to buy another 50 million, if he wanted. The stock was worth about 3c at the time.

Today, Ora Banda is worth 89c and the first 25 million sign-on shares have already vested. The remaining 75 million – including the loan shares – vest in June.

Assuming Ora Banda’s share price holds, Creagh is looking at a $68m payday by 30 June

 

[houtman]

Just noticed OBM put out a presentation after hours yesterday.

It still got knocked down today like other goldies but otherwise all looks on track.

$25m to be spent on exploration in FY25.