Ora Banda Mining Shares Up 40% In 3 Months: Reclaim Key Moving Average

Ora Banda Mining shares (ASX: OBM) have reclaimed the 200-day SMA for the first time in months, supported by record financial results and an expanding resource base that are beginning to shift market sentiment in favour of the bulls.

The Ora Banda share price added 6.44% on Friday to close at A$1.405, firmly up and over the 200-day SMA at A$1.34. The session’s gain built on what is now a 40% bounce from the lows struck three months ago, reversing what had been a painful trend that still leaves holders down 8.77% YTD.

Driving Ora Banda Shares Higher

The technical improvement arrives following a transformational period operationally and financially for the company, as its two-mine underground strategy at the Davyhurst Gold Project in Western Australia begins to deliver at scale.

OBM’s full-year FY26 results were a step-change in the company’s financial profile. Revenue doubled to A$807.5 million from A$404.3 million in the prior year, while EBITDA surged 134% to A$431.1 million. Net profit after tax rose 16% to A$216.2 million, a figure that absorbed a A$97.7 million non-cash tax expense. Gold sales climbed 51% to 140,641 ounces at an average realised price of A$5,742 per ounce, reflecting both the volume uplift from the second underground mine and the tailwind of elevated Australian-dollar gold prices.

The engine behind that production growth was the commercial ramp-up of Sand King Underground, which joined the established Riverina Underground operation to form the company’s twin-mine production platform. Notably, Sand King achieved full capital payback within 12 months of portal establishment, mirroring the rapid payback timeline that Riverina had previously demonstrated. That consistency of capital efficiency across two separate underground developments speaks to a repeatable operational model rather than a one-off outcome.

Free cash flow generation reached A$214.5 million for the period, and the balance sheet has been materially strengthened as a result. Total available liquidity now stands at A$468 million, comprising a cash balance of A$267.7 million and an undrawn A$200 million revolving credit facility.

The cost picture raises a few eyebrows however, with AISC rising to A$3,496 per ounce from A$2,693 per ounce in the prior year, a 30% increase that reflects the broader inflationary pressures running through the Australian gold mining sector. Labour, consumables and energy costs have all moved higher across the industry, and OBM has not been immune. While the company’s AISC remains well below its realised gold price, the widening cost base will be watched closely as production scales further.

What Lay Ahead?

From a technical standpoint, crossing above the 200-day SMA sets up a clearer path toward the next meaningful resistance level at A$1.50, with bulls no doubt eyeing the 52-week high at A$1.72. A sustained hold above A$1.34 on any near-term pullback would reinforce the view that the lows are in and that the stock is in the early stages of rebuilding its longer-term uptrend. Failure to hold could raise questions about whether Friday’s move was a genuine trend change or simply an overextension within a broader consolidation.

The bear case centres on cost inflation that has already compressed margins relative to the prior year, the capital intensity of the next phase of processing and underground development, and the residual technical overhead between current levels and the 52-week high. The hedging programme, while prudent, does mean that a portion of future production is capped in terms of price upside, which could limit earnings leverage in a strongly rising gold price environment.

With the gold price remaining elevated in Australian-dollar terms and the company’s operational momentum clearly building, OBM moves through the final quarter of the year with a strengthening fundamental and technical backdrop. The key test will be whether the company can continue to grow production and reserves while keeping a lid on the cost trajectory that has begun to attract scrutiny.