Ora Banda’s share price punished as FY25 production to fall -5%

Ora Banda Mining (ASX:OBM) has fallen to the tune of around -10% as Australian shareholders punish the company on a guidance downgrade.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

“Based on the current performance and stockpile levels, FY25 total production is expected to be ~95koz, which is 5% below the lower end of guidance of 100koz,” the gold mining company wrote on Friday.

“AISC is expected to be ~2,600/oz, which is 4% above the top end of previous guidance of $2,500/oz.” (AISC, in pub terms, is what it costs per ounce to mine it.)

So, slightly higher costs to produce each gold ounce, coupled with a forecast 5% decline in total gold produced across the twelve months to July – that’s how you get a -10% decline on Friday.

Presumably, investors are profit-taking while they can. But it’s worth noting Friday share turnover volumes were actually less than the 4Wavg at 4.15M vs. 7.36M respectively.

So why the decline?

Ora Banda pointed to extended downtime stemming from works on a key processing plant, which are now complete, but the damage has already been done.

More market news

Forget U.S. tariff talk: Aussies just got a worrying signal from the ABS

Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst

“In addition, the commissioning and ramp-up of the mill has taken longer than expected to achieve targeted daily throughput rates of 3,700-4,000tpd,” Ora Banda added in its market release shared on Friday.

Still, with gold prices where they are, it’s unlikely the company will be punished too harshly. So long as it can nip any future plant problems in the bud.

OBM last traded at $1.16/sh.

Join the discussion: See what HotCopper users are saying about Ora Banda Mining and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.