Ora Banda Mining Achieves Record 39,552oz Gold Output in June Quarter, Boosts Cash to $267.7M, and Unveils 'DRIVE to 300' Expansion Plan

June Quarter Gold Output of 39,552 Ounces Secures FY26 Target Despite Weather Challenges

During the quarter ending 30 June 2026, Ora Banda Mining delivered its highest-ever quarterly gold production of 39,552 ounces, which included 13,000 attributable equivalent ounces from third-party processing. Despite disruptions caused by wet weather affecting operations at Davyhurst and third-party haulage late in the quarter, the company met its FY26 production guidance of 141,000 ounces with a total of 140,949 ounces produced.

Wet conditions led to an accumulation of stockpiled material, with 90,200 tonnes grading 2.7 g/t gold (equating to 7,800 ounces) held at quarter-end, alongside 3,000 ounces in gold-in-circuit. Record mined ounces of 43,800 during the quarter marked a 12% increase from the prior quarter, driven by a 42% rise in ore mined at the Sand King underground mine through bulk stoping. Sand King produced 310,000 tonnes at 2.6 g/t for 26,400 ounces—a 37% increase in ounces quarter-on-quarter.

June Quarter AISC of A$3,870 Per Ounce Reflects Third-Party Processing and Fuel Cost Pressures

The all-in sustaining cost (AISC) for gold sold in the June 2026 quarter was A$3,870 per ounce, elevated due to third-party processing fees, increased diesel prices, and weather-related operational impacts. The full FY26 AISC was A$3,496 per ounce, including third-party processing costs expected through October 2026.

Gold sales totaled 39,421 ounces in the quarter and 140,600 ounces for FY26. The variability in quarterly costs stems from the use of third-party toll milling versus owner-operated processing. With the new 3 Mtpa processing plant commissioning anticipated in H2 FY28, management expects a significant reduction in unit costs. The wind-down of third-party processing post-October 2026 will be a key indicator for cost normalization.

Operating Cash Flow of $121 Million Supports $76.6 Million Growth Investment; Cash Balances Rise to $267.7 Million

Ora Banda generated $121 million in operating cash flow during the June quarter, enabling $76.6 million in growth capital investment and producing a net cash inflow of $36 million. This strong internal cash generation highlights the operational leverage at Davyhurst and supports the company’s goal to self-fund its 'DRIVE to 300' expansion without equity dilution or debt drawdowns.

Cash on hand at 30 June 2026 stood at $267.7 million, bolstered by robust gold revenues and disciplined capital management. Total liquidity reached $468 million, including an undrawn $200 million corporate revolving credit facility increased during the quarter. This liquidity positions Ora Banda to fund its most capital-intensive growth phase, with FY27 growth capital expenditure guidance at A$425 million. Managing Director Luke Creagh emphasized the company’s "more than $468 million of liquidity to fund capital projects" as it pursues production doubling and cost reductions by FY29.

'DRIVE to 300' Strategy Launches Construction of 3 Mtpa Processing Plant and A$425 Million FY27 Capital Program

Ora Banda formally launched its 'DRIVE to 300' multi-year growth plan in the June 2026 quarter, centered on building a new 3 million tonne per annum processing facility. The EPC contract is signed, long-lead items ordered, and construction schedule finalized. The capital cost remains A$375 million over FY27 and FY28, consistent with the May 18, 2026 announcement. Commissioning is expected in H2 FY28.

Capital expenditure phasing has been updated to reflect construction certainty, with A$240 million expected in FY27 and A$135 million in FY28. The FY27 capital program also includes A$70 million for infrastructure upgrades, A$40 million for Waihi underground mine development, and A$75 million for resource growth and exploration. This investment underpins the target of approximately 300,000 ounces annual production by FY29.

FY27 Production Guidance of 125,000–140,000 Ounces Includes Planned Stockpile Build Ahead of New Mill

Ora Banda’s FY27 production forecast ranges from 125,000 to 140,000 ounces at an AISC of A$3,400 to A$3,600 per ounce, incorporating attributable equivalent ounces sold. Production is expected to be weighted toward the first half of FY27, supplemented by third-party processing through October 2026. Post-October, the company plans to build ore stockpiles in preparation for the new processing plant’s commissioning.

The AISC guidance aligns with FY26’s full-year cost, factoring in ongoing third-party processing expenses through October. The stockpile phase may cause quarterly production and cost fluctuations in FY27’s second half. Investors should interpret second-half FY27 results in light of this operational transition.

Mineral Resource Expands 75% to 3.69 Million Ounces; Ore Reserves Surge 159% to 610,000 Ounces

Exploration success drove significant upgrades, with Group Ore Reserves increasing 159% to 610,000 ounces and Group Mineral Resources rising 75% to 3.69 million ounces. These gains stem from ongoing drilling at Davyhurst and strengthen the economic foundation for the 'DRIVE to 300' growth plan.

Achieving resource growth alongside record production highlights the geological potential of Davyhurst. The expanded Mineral Resource supports the investment case for the new 3 Mtpa processing plant. FY27 exploration expenditure is budgeted at A$75 million to continue resource and reserve expansion.

Safety Performance Improves Significantly with TRIFR Down 30% from FY25 Despite Increased Activity

Ora Banda’s safety metrics improved during the June 2026 quarter, with a 12-month Lost Time Injury Frequency Rate (LTIFR) of 0.5 and a Total Recordable Injury Frequency Rate (TRIFR) of 7.65, a 16% decrease from the prior quarter and 30% lower than FY25’s 10.96. These gains occurred amid rising operational activity.

Improved safety is critical as the company scales operations and construction under 'DRIVE to 300,' including the new processing plant and Waihi underground mine development. A strong safety culture supports managing increased workforce and contractor numbers during this complex growth phase.

John Richards Named Non-Executive Chair-Elect as Board Strengthens Leadership

Ora Banda appointed John Richards as Non-Executive Chair-elect during the June 2026 quarter. While specific prior roles and timing of chairmanship assumption were not detailed, the appointment reflects a strategic focus on enhancing board leadership amid the company’s capital-intensive expansion and governance demands.

Institutional investors often scrutinize board composition during major capital programs. Richards’ addition signals proactive governance management alongside operational transformation. Managing Director Luke Creagh credited the record FY26 performance to the "exceptional work of our teams" and positioned the 'DRIVE to 300' project as a driver of "outstanding value creation." The combination of new leadership, record results, and a clear growth plan sets the stage for Ora Banda’s next growth chapter.

Davyhurst Operations and Third-Party Processing Form Production Bridge to New Mill

Ora Banda’s Davyhurst project remains the core of its gold production, with Sand King underground mining driving a 42% increase in ore mined during the quarter to 310,000 tonnes at 2.6 g/t for 26,400 ounces, a 37% rise quarter-on-quarter. Third-party processing supplements throughput until October 2026 before transitioning to stockpile building.

The operational transition from third-party processing to the new 3 Mtpa plant is a critical execution risk. Third-party arrangements add cost and logistical complexity, which the company aims to eliminate with its own infrastructure. Managing the wind-down of third-party processing and ramping up stockpiles ahead of commissioning in H2 FY28 will be key milestones for the 'DRIVE to 300' strategy’s success.

Risks Include Processing Plant Delivery, Gold Price Volatility, and Operational Dependencies

While the June 2026 update highlights strong operational and financial progress, investors should consider risks such as timely and on-budget delivery of the A$375 million processing plant. Construction in regional Western Australia faces challenges including labour availability, materials procurement, contractor performance, and weather delays. Any overruns or commissioning delays could impact the balance sheet and FY29 production targets.

Gold price fluctuations also pose risks, as funding growth capital from operating cash flow depends on sustained Australian dollar gold prices. A prolonged price decline could pressure margins and necessitate use of the revolving credit facility or equity raises. Rising diesel fuel costs add margin volatility. Continued reliance on third-party processing through October 2026 introduces operational risk, and development of the Waihi underground mine adds complexity. The company did not disclose hedging or gold price assumptions underpinning FY27 guidance.