Can Ora Banda Mining Sustain Its Gold-Fuelled Profit Surge?
Source: Kapitales Research
Highlights:
Record financial performance: Revenue jumped 80% to $336.3 million, EBITDA more than doubled to $173.2 million, and net profit rose 89% to $96.3 million.
Gold price and production boost cash flow: Operating cash flow surged 102% to $184 million, supported by a $1,754 per ounce rise in realised gold prices and higher underground output.
Costs move higher: All-in sustaining costs increased to $3,188 per ounce, putting focus on margin sustainability despite strong gold prices.
Ora Banda Mining Limited (ASX: ORA) has delivered a standout first-half performance, with record revenue and a sharp lift in earnings as stronger gold prices and rising underground output boosted returns.
For the six months ended 31 December, the company posted revenue of $336.3 million, an 80% jump from the previous corresponding period. At the time of writing, investors were closely watching whether this growth momentum could continue through the second half.
Earnings More Than Double on Gold Strength
Earnings momentum was equally impressive. EBITDA surged 106% to $173.2 million, while EBIT climbed 170% to $140.7 million, reflecting improved operating leverage and higher realised prices.
Net profit after tax rose 89% to $96.3 million. The result included a $43.8 million non-cash tax expense, linked to deferred tax assets from prior-year losses. Operating cash flow strengthened significantly, rising 102% to $184 million. The improvement was driven by a $1,754 per ounce increase in the average realised gold price to $5,652 per ounce, alongside an additional 14,800 ounces sold compared to a year earlier.
Production Growth Lifts Sales, But Costs Rise
Gold production increased 32% to 62,631 ounces, while gold sales climbed 31% to 62,583 ounces, underpinned by stronger underground mining activity. However, all-in sustaining costs (AISC) also rose, reaching $3,188 per ounce, up from $2,402 per ounce a year earlier. The higher cost base will likely remain an area of focus for investors assessing margin sustainability. With gold prices remaining elevated and production trending higher, Ora Banda’s first-half numbers highlight strong operational execution. The key question now is whether favourable gold market conditions and cost discipline can support continued earnings growth in the months ahead.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), aare intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Can Ora Banda Mining Sustain Its Gold-Fuelled Profit Surge?
Highlights:
Ora Banda Mining Limited (ASX: ORA) has delivered a standout first-half performance, with record revenue and a sharp lift in earnings as stronger gold prices and rising underground output boosted returns.
For the six months ended 31 December, the company posted revenue of $336.3 million, an 80% jump from the previous corresponding period. At the time of writing, investors were closely watching whether this growth momentum could continue through the second half.
Earnings More Than Double on Gold Strength
Earnings momentum was equally impressive. EBITDA surged 106% to $173.2 million, while EBIT climbed 170% to $140.7 million, reflecting improved operating leverage and higher realised prices.
Net profit after tax rose 89% to $96.3 million. The result included a $43.8 million non-cash tax expense, linked to deferred tax assets from prior-year losses. Operating cash flow strengthened significantly, rising 102% to $184 million. The improvement was driven by a $1,754 per ounce increase in the average realised gold price to $5,652 per ounce, alongside an additional 14,800 ounces sold compared to a year earlier.
Production Growth Lifts Sales, But Costs Rise
Gold production increased 32% to 62,631 ounces, while gold sales climbed 31% to 62,583 ounces, underpinned by stronger underground mining activity. However, all-in sustaining costs (AISC) also rose, reaching $3,188 per ounce, up from $2,402 per ounce a year earlier. The higher cost base will likely remain an area of focus for investors assessing margin sustainability. With gold prices remaining elevated and production trending higher, Ora Banda’s first-half numbers highlight strong operational execution. The key question now is whether favourable gold market conditions and cost discipline can support continued earnings growth in the months ahead.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), aare intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au