Primary ticker: ASX:OBM Stage of development: Exploration, Production Primary minerals: Gold Project to promote: The Davyhurst Gold Project Project location: Australia Website: www.orabandamining.com.au
Ora Banda Mining (ASX: OBM) is a growth company positioned to deliver substantial value to all stakeholders by focusing on fundamentals and operational excellence to drive organic production growth from disciplined and focused exploration. Cash: AUD$45M Debt: AUD$11M Major Shareholders: Hawkes Point – 44.59% HSBC custody Nominees (Australia) Limited – 13.36% Luke Creagh – 3.51% Mr Hendricus Indrisie – 3.34% NPS Mining Alliance Pty Ltd – 2.85% Management Ownership – 4.23%
Management Profile Luke Creagh – Managing Director Mr Creagh is a mining engineer with 20 years’ experience working for both contracting and mining companies at projects throughout Australia and overseas. He most recently served as Chief Operating Officer of Northern Star Resources Limited. Prior to becoming COO in 2018, Mr Creagh held various senior positions within Northern Star, including GM Business Development, GM Strategy & Growth and Operations Manager. Prior to working at Northern Star he was Operations Manager at Barminco Limited. Mr Creagh has a Bachelor of Engineering (Mining) from University of Queensland and holds a Western Australian first class mine manager’s certificate.
Andrew Czerw – Chief Development Officer Mr Czerw is a highly experienced geoscience professional with over 25 years of significant senior management experience in Australia and overseas. He has extensive exploration, project development, surface and underground operational experience with a strong bias towards team building. His previous roles include General Manager for Tanami Gold NL, Director of Operations for Tectonic Resources Ltd and Chief Geologist for Emperor Gold Mining Company Ltd.
What is your rationale for taking part in 121 Mining Investment?
To raise the company’s profile with sophisticated, specialist gold and institutional investors.
What recent news would you like to highlight to investors attending?
27 March 23 – OBM raises up to A$30M to fund Riverina Underground 23 March 23 – Riverina Underground Approved 21 March 23 – Tenement Sale and HP Funding Variation totalling A$4.2M 16 March 23 – Agreement for Sale of Non-Core Lady Ida Tenements for A$10M All current announcements are on the OBM website: www.orabandamining.com.au
What are your key goals in 3 months, 6 months, 12 months?
3 Months: – Start of the Riverina Underground – Improved operating performance and cost reductions – Exploration updates on additional targets
6 Months: – Continued advancement of the Riverina Underground, approaching first ore – Further improvements in operations and processing throughputs – Advanced targeting of 2nd underground mine and lithium targets on the tenement package
12 Months: – Riverina Underground into steady state production: – Production rate ~600,000ktpa – Reserve grade of 4.3gpt – AISC at less than $1,650/oz – This will take OBM’s headline production to 100,000kozpa (or more) in FY25 and AISC below A$1,750 per ounce – With free cash flow increasing, exploration programs will be expanded to target and develop a second underground mine, with potential to bring the Company’s total production above 150,000ozpa off using the current processing infrastructure of 1.2Mpta
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Labour shortages, cost escalation
What do you think makes your company such a compelling investment?
OBM represents one of the best production growth profiles for gold companies on the ASX. We are growing from ~60koz pa in FY23 to over 100koz pa in FY25 which improves cashflow, enabling commitment to substantial exploration on what is a highly prospective yet underexplored tenement package of over 1,200 km2.
What are the top 3 key investor takeaways?
1. With a new strategy and team in FY23, OBM is transforming from a ~60kozpa gold producer to more than 100kozpa within 2 years, underpinned by progressing high-grade underground opportunities and a strong focus on operational delivery. 2. Riverina Underground is fully funded into production and commencing in the June quarter of FY23, which is the key catalyst to improve production as well as reducing AISC costs to below A$1,750/oz in FY25, substantially improving free cash flow for the Company 3. Located north of Kalgoorlie, we are only just getting started on our exploration strategy, with more than 100km of contiguous tenements along two major regional structures in the Zuleika Shear and the Ida Fault. This translates to outstanding organic growth opportunities along a belt that has only been historically explored for open-pits, with numerous advanced high-grade underground targets as well as other opportunities such as Lithium and Nickel.
OBM Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
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