ORA BANDA MINING LIMITED (OBM)
Share Price Analysis and Chart

11/03/2025

-1

Initiation of coverage with Neutral

-5.29%

Macquarie initiates coverage of Ora Banda Mining, a WA gold miner with 100% ownership of the Davyhurst gold project, which has transitioned from open pit to underground, with a Neutral rating and a $1 target price.

The analyst expects FY25 production to increase 122% to 150kozpa from FY24 but questions the sustainability of these production levels over a decade without major drilling success across assets that have so far been "starved" of capex.

Macquarie suggests Ora Banda shareholders have significantly benefited from Creagh's appointment as MD in September 2022, which underpinned the pivot to underground mining and the uplift in production.

The share price has risen 18x since his appointment, including gains from the higher gold price. At current levels, Macquarie believes the stock is fully valued.

FORECAST
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.90 cents.
Macquarie forecasts a full year FY26 dividend of 0.00 cents and EPS of 10.70 cents.

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18/02/2025

1

Speculative Buy

$1.05

6.60%

Ora Banda Mining has reached 50% completion of its exploration program at Riverina, delivering significant results with the extension of the known structure and mineralisation.

As a result of the compelling results and increased flexibility in the budget due to higher gold prices the board has approved an additional $45m in FY25 for drill programs and infrastructure.

Canaccord Genuity extends assumed mine life for the underground by one year to eight years. Speculative Buy rating retained. Target increases to $1.05 from $0.85.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 7.00 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 11.00 cents.