Summary
- Ora Banda Mining has been pursuing activities to restart production at its fully owned Davyhurst Project by Q121.
- The Company has made significant progress with setting up of key infrastructural equirements in progress.
- OBM is in a strong cash position with $32.6 million of cash in hand to fund the project's production activities.
For quite some time, gold-focused exploration and development company, Ora Banda Mining Limited (ASX:OBM) had turned the corner on a tough and challenging phase in recent times. The Company has remained focused on commencing production at its 100% owned Davyhurst Gold Project.
Key Infrastructural Developments at Davyhurst
For this purpose, OBM had been undertaking major work programs to establish the required infrastructure, like road haulage, power station, bore fields, village infrastructure etc. that would help in smooth production at the project.
Interesting Read: How close is Ora Banda (ASX:OBM) for production at Davyhurst?
New Power Station with LNG facility in background pre-commissioned (Source: ASX Announcement 18 January 2021)
The Company has also initiated mining activities at its various gold deposits, including underground mining at Golden Eagle deposit and Open Pit Mining at Riverina deposit.
Riverina South and British Lion (Source: ASX Announcement 18 January 2021)
Interesting Read: ASX:OBM Going Tongs and Hammer for Production at Davyhurst
Expenditure and Cash Management
The Company was enthusiastically undertaking activities and spent around $3,692,000 in payments for exploration & evaluation, resource development, production, site costs, administration & corporate costs during the previous quarter ended December 2020.
Furthermore, OBM made payments of around $10,117,000 to invest in property, plant, and equipment and of $3,296,000 in resource development during the same period. Payments to acquire other non-current assets included $2,554,000.
During the year-to-date period of 6 months, OBM received $55,085,000 worth of proceeds from issues of equity securities and $ 1,976,000 by way of exercise of options. On the other hand, the costs for transaction concerning the issue of equity shares were $2,525,000.
At the end of the period, OBM had cash and cash equivalents of $32,591,000.
Promotional and Latest Activities
As several of the planned marketing activities had been paused earlier, and they remain on hold. The Company continues to maintain a positive approach towards promoting its activities and has continued to implement a more proactive approach towards virtual marketing due to the travel restrictions in relation to the COVID-19 pandemic.
Interesting Update: Ora Banda Mining (ASX:OBM) Nearing Production at Davyhurst, Reports Significant Preparations At Ground Zero
More lately, in early January 2021, the Company had initiated road haulage of low-grade commissioning feed in order to commence the processing operations. Notably, the Company has hauled approximately 40,000 tons of commissioning to the Davyhurst ROM pad and had scheduled commencement of the ore haulage from Riverina in the third week of January.
Road Train Heading Out Of Yard (Source: ASX Announcement 18 January 2021)
At the Golden Eagle underground mine, OBM further concluded dewatering of the mine on 16 January and initiated wet commissioning of the Davyhurst Process Plant in mid-January as was scheduled earlier. On 17 January 2021, OBM had also fed the initial parcel of low-grade commissioning ore into the primary crusher.
Related: Ora Banda Reports 46% Increase In The Underground Mineral Resource At Riverina Project
Loading commissioning ore into crusher at Davyhurst Process Plant (Source: ASX Announcement 18 January 2021)
Over the past months, OBM had been engaged in rapidly revealing the value enclosed within the Company's resource base and is now steadily moving towards starting production at the Davyhurst Project.
Did you read: Ora Banda Mining Announces underground Mineral Resource at Callion, Updates Total Mineral Resource to 2.13M ounces
In conclusion, the work programs are continuing in full swing with a view to recommencing gold production from Davyhurst, and the Company has come a long in making preparations for the production to begin. Moreover, the Company looks suitably funded with a strong cash balance and no debt in its balance sheet.
Interesting Read: Ora Banda Mining Ready to Get the Boots on the Ground; Highlights Key Validations from DFS at Davyhurst Project
On 05 February 2021, OBM stock was noted trading at $0.300 with a market capitalisation of $261.08 million.
