OBM
Live News • Jun 15
Ora Banda Awards A$233 Million Contract to Build Major Process Plant at Davyhurst Ora Banda Mining has awarded GR Engineering Services an A$233 million EPC contract to build a 3.0 million tons per annum process plant at its Davyhurst Expansion Project in Western Australia.
The new plant is described as a key part of Ora Banda’s plan to expand processing capacity at Davyhurst and support a stronger long-term production profile for the gold operation.
The expansion strategy recently approved by Ora Banda includes a plan to double gold production over the next three years and develop the Waihi underground mine alongside the new plant.
This new EPC contract secures a major portion of the capital spend for Davyhurst and provides a clearer view of how Ora Banda intends to scale its processing capacity and production profile.
Key questions now include how the A$233 million spend will be funded, the timing of construction and ramp-up, and how execution or cost overruns on the expansion project could affect returns and balance sheet flexibility. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to AU$1.09, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 2x in the Metals and Mining industry in Australia. Total returns to shareholders of 707% over the past three years. OBM
Live News • May 20
Ora Banda Mining Approves A$465 Million Plan to Target 300000 Ounces Annual Gold Output Ora Banda Mining has approved its "DRIVE to 300" expansion plan, outlining A$465m of spending aimed at lifting annual gold production to around 300,000 ounces over three years, including a new 3.0 Mtpa processing plant at Davyhurst targeted for commissioning in Q3 FY28.
The company reported a record March quarter at the Davyhurst project, with gold production up 21% quarter on quarter to 38,766 ounces and 38,637 ounces sold, while internally funding A$63m of growth investments such as restarting open pit mining at Waihi and advancing a new plant study.
Ore reserves have more than doubled, with total mineral resources now at 3.57 million ounces after a 1.46 million ounce increase, and Waihi and Round Dam contributing maiden underground and open pit ore reserves respectively.
The combination of record quarterly output, a larger reserve base and a funded multi-year expansion plan points to a company that is scaling up its Davyhurst operation around a clearer production target and timeline.
You should watch execution risk on the A$375m to A$465m plant and expansion spend, as well as the company’s reliance on future cashflows and debt to fund that program. 
