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Highlights
- Ora Banda Mining narrows production forecast for FY25
- Upgrades impact processing plant uptime
- Cost estimates revised upward amid operational shifts
Ora Banda Mining (ASX:OBM) has revised its production guidance for the 2025 financial year, citing the impact of ongoing upgrades at its processing facility. The company has scaled back the upper end of its gold output estimate as it manages downtime associated with these enhancements.
Initially forecasting production between 100,000 and 110,000 ounces, Ora Banda has now trimmed the top of that range to 105,000 ounces. This positions the miner’s FY25 gold output expectations between 100,000 and 105,000 ounces, reflecting a more conservative stance in light of operational constraints.
The revision is primarily attributed to the scheduled enhancements at its processing plant, which have temporarily affected the plant's uptime. While these improvements are designed to drive long-term efficiency and performance, the company acknowledged that the short-term impact has necessitated a recalibration of its targets.
In tandem with the production update, Ora Banda has also revised its cost outlook. The company has raised its all-in sustaining cost (AISC) guidance to a range of US$2,350 to US$2,500 per ounce. This marks a significant increase from the previous guidance range of US$1,975 to US$2,125 per ounce.
The uplift in cost estimates is linked to several factors including inflationary pressures, supply chain challenges, and the temporary production disruption from the plant upgrades. These elements have contributed to a higher cost base, prompting the company to reflect more realistic expectations for the fiscal year.
Despite the temporary production headwinds, Ora Banda maintains a strategic focus on enhancing its long-term operational performance. The investment in processing infrastructure is expected to unlock improved throughput and reliability, setting the stage for greater resilience in future output.
This adjustment comes at a time when broader sector dynamics are being shaped by both macroeconomic conditions and commodity pricing trends. Companies like Ora Banda are actively navigating these challenges while staying committed to capital discipline and operational sustainability.
Investors and market watchers will likely be paying close attention to subsequent performance updates and the pace of completion for the current plant upgrade program. The market response in the coming months will hinge not just on output volumes, but also on Ora Banda’s ability to manage costs and maintain production momentum post-upgrade.
