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Highlights
Ora Banda Mining Ltd (ASX:OBM) shares drop following FY25 guidance revision
Production estimates lowered due to extended mill commissioning delays
Higher processing costs reported alongside completed plant upgrades
Ora Banda Mining Ltd (ASX:OBM), listed on the ASX 300 and operating within the gold sector, recorded a notable decline following the release of its updated forecast for the financial year. The company, though not part of the ASX 100, plays a role in the broader mining landscape and is actively tracked by commodity-focused market segments.
Revised Output Estimates for FY25
The gold-focused company reported that its recent output across two consecutive months did not meet expectations, leading to a reduction in its full-year production outlook. The updated figure now falls below the previously set range, although it remains an improvement over its prior year’s performance. This has raised concerns about delivery against operational benchmarks.
Processing Plant Commissioning Causes Disruption
A key factor in the reduced output was the extended commissioning of upgrades at the Davyhurst Project’s processing plant. The installation of new components within the primary mill delayed the facility’s ability to reach intended processing volumes. The process of ramping up to standard throughput rates took more time than initially planned, contributing to lower-than-expected gold recovery.
Increased Cost Metrics Reported
In addition to production impacts, the company disclosed a rise in its processing costs for the fiscal year. The revised figures now exceed previous cost projections, mainly due to extended plant downtime and underutilised capacity during the commissioning period. The increase in costs has added financial strain despite the operational improvements now underway.
Plant Performance Now Aligned with Targets
The company confirmed that the commissioning process has concluded and the plant is currently meeting throughput expectations. With daily processing rates now aligned with internal goals, the production outlook for the remainder of the year appears improved. This change supports projected monthly performance targets that correspond to the company’s longer-term production framework.
Mining Operations Continue as Scheduled
Mining activity at key sites, including Riverina and Sand King, has continued without major interruption. Current monthly output projections are being met, and additional ore has been stockpiled due to earlier processing delays. This reserve includes both medium and lower-grade material, which is expected to support processing operations in upcoming months.
