Ann: Operational Update, page-102

Information direct from their Dec 2021, half year report....below

Somebody reviewing this data for the first time, would likely consider........ excellent grades,(higher than average for Aust gold mining) - good mill recoveries and a not at all too shabby,  $80m revenue for the half.

Indeed the figures below would suggest a likely successful gold startup - pointing to say free cash surplus of $50m annualized.

Unfortunately the figures belie a disaster for investors (up until now).  Why ?

.... 2.8 bcm of waste was mined at open pit mines Missouri and Riverina  - or $63.9 m in just 6 months, for exploration, evaluation and development (mostly development - that is certain).  

....32.3 K ounces from the mill is actually good. Efficient expenditure incurred during the 6 months on the mill, in trying to get it up to capacity, maybe can be questioned. Issues involved : Reliability of the processing plant high voltage circuit to be addressed through system upgrades which should reduce plant down time. • Custom liners may improve mill capacity above current nameplate – in discussions with supplier • Replacement of aged bore field water supply line which has required numerous repairs.

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Anyway the point is - the Dec half does prove they can produce a lot of gold.  What has changed, is that Phase 1 (deepening of central part of historical pit) and Phase 2 (pit cut-back) have been completed at Missouri - no longer do we have to endure tens of millions expense, each quarter spend on waste removal - thus the streamed project staffing can mine ore, not rock waste in future.

The great thing is - no lesser quantity of gold ore will be produced, from this 40% less mining plant....(without the need now for waste mining at Missouri)

It does not look like the $20m raised will be required.  The new manager....at least following the decision to mine only from this rich Missouri open pit mine - has been handed the project on a platter. Strange thing to stay after the last 12 months, but that is the way it looks.

It should become evident very soon, OBM can produce $50m free cash annually - (like most every other gold company their size) which even on a forward of 5, puts the SP back to 18 cents....plus $40m cash by Oct - what to do with that, I don't know.


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ORA BANDA MINING LIMITED DIRECTORS’ REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

Revenue for the period totalled $79.60 million from the sale of 32,328 ounces of gold at an average price of $2,458.40 and 3,632 ounces of silver at an average price of $32.52. There were no sales in the previous corresponding period.

Ore was mined from three mining centres during the period. Total ore mined was 742,149 tonnes at a grade of 1.85 g/t Au for 44,120 contained ounces.

Processing Ore milled for the period totalled 500,883 tonnes at a blended grade of 2.14 g/t Au for 34,521 contained ounces. Recovery during the period was 91.4% with 31,471 ounces being poured










ORA BANDA MINING LIMITED DIRECTORS’ REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021