- Ora Banda Mining (OBM) is planning to ramp up production at its Davyhurst mines in FY22, after ending FY21 having produced 14,726 ounces gold
- The mining stock posted its June quarterly report on Wednesday, revealing it sold 10,665 ounces over Q4 at an average price of $2,352 per ounce
- It explained plant stability issues and lower than forecast grades affected production, but it aimed to produce 80,866 ounces in FY22
- Financially, OBM ended June with $24.22 million worth of cash in the bank and 857 ounces of unsold gold bullions
- Company shares are trading 11.5 per cent in the green following today’s update, at 14.5 cents each
Ora Banda Mining (OBM) is planning to ramp up production at its Davyhurst mines in FY22, after ending FY21 with 14,726 ounces gold produced.
The mining stock posted its June quarterly report on Wednesday, revealing it sold 10,665 ounces over the quarter at an average price of $2352 per ounce.
OBM only commenced mining at the Missouri open pit within Davyhurst during the period, joining Golden Eagle and Riverina which are also operational.
Commenting on the performance over Q4, the company said production was impacted by plant stability issues and lower than forecast grade into the plant.
OBM said improvement initiatives were underway in both these areas and it was still committed to producing 80,866 ounces in FY22.
Financially, Ora Banda ended June with $24.22 million worth of cash in the bank and had 857 ounces of unsold gold bullions.
The business spent $6.7 million on operating activities over the same period, meaning it had enough cash to keep running for another 3.61 quarters.
Additionally, OBM said it invested $3.3 million in exploration over Q4, with more than 13,000 metres of drilling carried out across Davyhurst.
Assays were outstanding for much of the drilling, however, the company noted positive results from phase one of its drilling at the Iguana Prospect.
Following today’s update, shares in Ora Banda Mining have jumped 11.5 per cent and were trading at 14.5 cents each at 1:59 pm AEST.