Fund Manager Summary on Ora Banda Mining Ltd (ASX:OBM)
In December 2025, Paradice Investment Management commented that Ora Banda Mining Ltd (ASX:OBM) is benefiting from strong gold prices and an aggressive c$70m p.a. exploration program that is delivering resource extensions and could materially reduce perceived mine-life risk at the next resource/reserve update. Fund managers overall view OBM as an improving gold producer with credible operational execution and substantial exploration upside but with near-term operational and guidance risks: recent commentary highlights successful underground progress at Riverina and Sand King, deep extensions at Riverina (strike 500–750m, extensions ~800m below current workings and ~1,000m below surface) and a new discovery at Little Gem ~2,500m to the south that may connect with further drilling (an additional $20m approved to test this), supporting potential production upside from current ~90koz p.a. toward a 120–150koz p.a. profile and a targeted ~150koz run-rate by FY26, while several managers flagged FY25 downgrades to ~95koz and higher cost guidance (A$2,600/oz reported) caused by mill downtime and commissioning delays now reported complete; strengths cited include strong free cash flow, a A$120m cash balance and self-funding capacity, a highly credentialed management team led by Luke Creagh and large prospective tenements, while key risks and strategic considerations are the short current reserve-backed mine life on existing resources (one manager noted ~two years), the need to convert exploration success into reserve-backed mine life (likely requiring milling investment), managing ramp and commissioning risks and cost inflation, and the timing of upcoming resource/reserve announcements (likely Mar/Apr 2026) which will be pivotal for valuation and the path to closing the FCF multiple gap with peers.
Commentary From The Managers
There are 21 insights from 10 fund managers regarding their investment in Ora Banda Mining Ltd (ASX:OBM) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Paradice Investment Management
31 Dec 2025
$1.53
Summary
- Paradice Investment Management believes Ora Banda Mining is a core gold holding and continues to hold because it benefits from ongoing commodity price strength, an aggressive exploration program and clear potential to materially extend mine life.
- Core exposure: OBM remains a key position in the Fund's gold exposure.
- Commodity tailwind: The company continues to benefit from the ongoing strength in the underlying gold price.
- Heavy exploration investment: Management is investing approximately c$70m per annum into exploration.
- Positive exploration outcomes: Work has delivered extension of resources at existing underground mines and uncovered new, more prospective areas.
- Near-term upside potential: Significant additions to the company's resources and reserves are possible at the next announcement (likely March/April 2026).
- Risk reduction: Resource and reserve growth would lower the market's perceived risk around the previously limited mine life.
Tyndall Asset Management
14 Nov 2025
$1.20
Summary
- Tyndall Asset Management views Ora Banda Mining Ltd as a potential investment opportunity.
- Currently trading at a 13% free cash flow yield.
- However, there is a caution regarding the two-year mine life on its current resource.
- Key attraction includes the executive team, particularly Luke Creagh, known for delivering projects effectively.
- Ora Banda has a strong balance sheet with $120 million cash, supporting its exploration initiatives.
- The company boasts one of the largest exploration programs in Australia.
- Investing in Ora Banda is considered riskier due to its exploration focus.
- Important factors for investment include backing the right team, having a strong balance sheet, and right-sizing positions to match risk levels.
Seneca Financial Solutions
17 Oct 2025
$1.35
Summary
- Seneca Financial Solutions initiated a position in Ora Banda Mining Ltd due to a strong management team.
- The company has valuable assets and significant growth optionality.
- Recent production issues led to a market overreaction, presenting a buying opportunity.
- Seneca Financial Solutions acknowledges that mining businesses experience short-term fluctuations.
- Despite previous high valuations, the current levels represent an attractive entry point.
- Recent record cash flow further supports the investment thesis.
Paradice Investment Management
30 Sept 2025
$1.18
Summary
- Ora Banda Mining was one of the Fund’s stronger contributors this quarter.
- Rebounded sharply after a significant de-rate in the previous quarter.
- Paradice Investment Management remains supportive of management’s disciplined operational turnaround.
- The company’s exploration pipeline is viewed as a key medium-term value driver.
- Potential for significantly higher production anticipated, which may require milling investment.
- Longer mine life is also a consideration in the investment thesis.
Ophir Asset Management
31 July 2025
$0.65
Summary
- Ora Banda Mining Ltd (ASX: OBM) was a significant detractor from performance, falling -16.8% over the month.
- The decline was attributed to a reduction in full year gold production guidance.
- This adjustment was mainly due to unplanned downtime at the Davyhurst processing plant for equipment upgrades.
- Despite the short-term challenges, Ophir Asset Management remains convicted in the stock.
- Ora Banda has been recognized as one of Ophir's top performers over the longer term.
Paradice Investment Management
30 June 2025
$0.77
Summary
- Paradice Investment Management has revised its investment thesis on Ora Banda Mining (OBM) to an Overweight position.
- During the quarter, OBM revised its production and cost guidance twice, indicating adjustments in expectations.
- As of April 30, the March Quarterly Activities Report revealed a slight downward revision in production guidance for FY25 to 100-105koz from 100-110koz.
- All in Sustaining Costs (AISC) guidance was increased to A$2,350 – A$2,500/oz, up from A$1,975 - A$2,125/oz.
- On June 6, OBM cut production guidance again by 5% to 95koz and increased cost guidance by 4% to A$2,600/oz.
- Paradice believes these guidance changes are short-term related and do not detract from the medium-term investment opportunity.
- OBM possesses excellent exploration potential and near sector-leading production growth in a desirable mining jurisdiction.
- The company is led by a capable management team, which adds confidence to the investment thesis.
- Paradice has utilized the recent share price weakness to increase its position in OBM.
Tyndall Asset Management
30 June 2025
$0.77
Summary
- Tyndall Asset Management continues to hold its position in Ora Banda Mining Ltd.
- The gold sector has been subdued during the month.
- Ora Banda Mining underperformed its peers due to a disappointing quarterly update.
- Production was lower than expected due to an extended pause in processing.
- This pause was caused by a plant upgrade involving a lifter and new mill linings.
- The plant has been successfully upgraded and is now running to guidance levels.
- Tyndall Asset Management took the opportunity of the weak share price to top up their position.
Pendal Group
30 June 2025
$0.77
Summary
- Pendal Group maintains an overweight position in Ora Banda Mining Ltd (OBM, -33.2%).
- OBM has updated its FY25 guidance for the Davyhurst Project, reducing projected production to 95k ounces from the prior estimate of 100k-105k ounces.
- Management attributes the downgrade to downtime at the processing plant due to necessary improvements.
- The commissioning and ramp-up of the mill has taken longer than initially expected.
- Cost guidance has increased, now projected to be 4% above the previous top end of the range.
- Despite these challenges, management reports that processing plant works and commissioning are now complete and are on track to achieve nameplate capacity.
Ausbil Investment Management
30 June 2025
$0.77
Summary
- Ora Banda Mining (OBM) experienced a significant decline of -29.9% in June.
- Production guidance for FY25 was narrowed from 100-110koz to 100-105koz in April.
- In June, production estimates were further cut by 5%, now expected to be approximately 95koz for the quarter.
- Costs for FY25 are anticipated to be marginally higher due to decreased throughput at the mill.
- Management has reaffirmed production targets for June 2025, indicating the mill's capability to achieve the required 150koz run rate for FY26.
- Ausbil continues to hold its position in OBM, reflecting a cautious but optimistic outlook based on management's assurances.
Ausbil Investment Management
31 Mar 2025
$0.43
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Clime Investment Management
31 Mar 2025
$1.09
Summary
- OBM is an improving, high-quality gold miner managed by an experienced and capable leadership team.
- Investor confidence continues to grow in the miner’s ability to scale production and expand its resource base through successful exploration drilling.
- The transition to underground mining at Riverina and Sand King has established a clear path toward steady-state output of ~150koz from FY26.
- This growth is underpinned by strong cash flow generation and supportive gold prices.
- Clime continues to hold its position in OBM as it shows promising developments.
Paragon Funds
28 Feb 2025
$0.93
Summary
- Paragon Funds notes impressive execution in Ora Banda Mining Ltd's (OBM) underground mining operations and exploration efforts.
- OBM's share price has quickly recovered from a correction in late 2024.
- Current length of Riverina UG is 500-750m with significant depth extensions discovered.
- Estimated addition of 8+ years to mine life at current production of ~90koz p.a. gold.
- Potential increase in production to 120-150koz p.a. with strike extensions.
- New discovery at Little Gem ~2,500m south has similar characteristics to Riverina.
- Approved funding of $20m for exploration to test connection between Riverina and Little Gem.
- Riverina's resources limited by drilling; consistent operational performance noted.
- History indicates missed exploitation opportunities during previous gold bull cycles.
- Riverina appears to be an Orogenic gold system with great potential.
- Sand King, OBM's second underground mining operation, is ramping up with better than expected grades and recoveries.
- Steady-state production levels anticipated in June with a run-rate of ~60koz p.a. by July.
- Strong free cash flow (FCF) supports self-funded growth and expedited expansion plans.
- Peer companies trading at >2x OBM's FCF multiple, highlighting a valuation gap.
- Paragon Funds expects this gap to close as OBM demonstrates de-risked growth in production, FCF, and mineable resources.
Clime Investment Management
31 Jan 2025
$0.83
Summary
- OBM has achieved first ore from Sand King on schedule
- The market remains focused on operational execution
- As OBM replaces low-grade stockpiles with higher-grade Sand King ore, we expect continued improvements in cash flow
- OBM is an improving, high-quality gold miner
- Managed by an experienced and capable leadership team
Ausbil Investment Management
31 Jan 2025
$0.83
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Paradice Investment Management
31 Dec 2024
$0.65
Summary
- Paradice Investment Management maintains an overweight position in Ora Banda Mining (OBM).
- OBM has been a significant contributor for the third consecutive quarter, despite a weaker gold price.
- The fund manager reduced their holding early in the quarter due to strong share price performance.
- There is a high conviction in the medium-term outlook for the company.
- OBM reported a strong production report for September, with production, AISC, and gold sales exceeding market expectations.
- The company’s first underground operation, Riverina Underground, achieved commercial production with 24koz mined as per FY25 production guidance.
- Mining operations began at the Sand King Underground mine, with portal establishment and development underway.
- The commissioning of the two high-grade underground mines is central to OBM's growth strategy, referred to as ‘DRIVE to 150’.
- Despite the positive developments, the stock experienced a notable sell-off late in the quarter, dropping ~32% from its highs.
- This decline was influenced by the largest shareholder, Hawkes Point, selling down ~15% of their holding.
Ausbil Investment Management
30 Nov 2024
$0.68
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Paragon Funds
30 Nov 2024
$0.68
Summary
- Paragon Funds notes that Ora Banda has experienced a significant decline of -22%, affected by the recent correction in Gold prices and a sell-down by its largest shareholder, Hawkes Point.
- Hawkes Point sold 100 million shares of their 700 million holdings at 70 cents, indicating a short-term overhang.
- The decision to sell only 14% of their holding suggests that Hawkes Point, like Paragon Funds, sees considerable potential for future growth.
- Ora Banda is progressing towards becoming a mid-tier Gold market leader due to its exploration potential, strong self-funded production, and free cash flow growth outlook.
- While US$ Gold price volatility may affect short-term sentiment, the focus will be on the A$ Gold price (over A$4,000/oz) and Ora Banda's continued execution.
- Ora Banda presents an attractive risk-reward profile, trading at a modest EV/CY25F FCF of 6x at current A$ Gold prices.
Paragon Funds
31 Oct 2024
$0.94
Summary
- Ora Banda delivered an excellent 3Q24 result, exceeding expectations.
- Production, margins, and free cash flows (FCF) surprised positively.
- Commercial production started at Riverina underground mine on 1 August.
- Grade reconciliation at Riverina is well above Reserve grade.
- Sand King UG development is progressing and expected to reach commercial production in 2Q25.
- At current gold prices, Ora Banda could generate over $150m in FCF for FY25 and over $250m for FY26.
- A third underground discovery is anticipated, viewed as a matter of when, not if.
- Paragon Funds believes Ora Banda is well-led, attractively priced, and poised for organic growth.
- Small-cap gold stocks are trading at lower valuations compared to previous cycles.
- The current rally in gold stocks shows low duration and magnitude compared to historical trends.
Paradice Investment Management
30 Sept 2024
$0.63
Summary
Paragon Funds
31 July 2024
$0.44
Summary
- Ora Banda Mining has performed well for Paragon Funds, executing a successful high-grade underground gold mining strategy.
- Riverina, the first underground mine, is exceeding expectations with commercial production declared.
- Sand King, the second underground mine, has been approved for modest capex, with ramp-up expected in 1-2Q25.
- Self-funded 2-year outlook shows production CAGR of over 40% to reach 150koz in FY26 from these two mines.
- Cost guidance is better than anticipated, supporting a positive financial outlook.
- At current A$gold prices of $3,730/oz, Ora Banda is projected to generate substantial free cash flows of $80m in FY25 and $200m in FY26.
- Company maintains sector-leading organic production and free cash flow growth rates.
- Paragon Funds is encouraged by the company's commitment to an expanded exploration budget, indicating strong exploration potential.
- Riverina’s extensive strike is leading to plans for a second underground access point, potentially doubling mining rates.
- Market's appreciation of this next phase of production growth appears limited, despite a market cap of $850m.
- Currently trading at a modest 4x EV/FY26F FCF compared to peers at 2-3x these multiples.
- Exploration updates will address concerns regarding mine life, significantly enhancing market perception.
- Monetary demand for Gold is increasing with continued buying from central banks and a shift in global physical Gold ETF's to net buyers.
- Gold prices have increased +50% in this cycle, indicating room for further growth during potential rate-cutting cycles.
Paradice Investment Management
30 June 2024
$0.30
Summary
- Paradice Investment Management maintains an overweight position in Ora Banda Mining (OBM) due to strong quarterly performance driven by rising gold prices.
- The appointment of Luke Creagh as CEO and a strategic shift towards high-grade underground mining is expected to positively impact the company.
- OBM has successfully transitioned to underground mining with the commissioning of the Riverina Underground mine.
- The second underground operation, Sand King, has been sanctioned to begin development.
- Current mineral inventories may appear modest; however, this is attributed to limited drilling focused on underground resources, suggesting potential for future inventory increases.
- There is significant exploration potential in the large land holding near the mill, which could enhance the company’s upside once both underground operations are operational.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Ora Banda Mining Ltd (ASX:OBM)?
Fund managers including Clime Investment Management, Paragon Funds, Ausbil Investment Management, Pendal Group, Paradice Investment Management, Ophir Asset Management, Tyndall Asset Management and Seneca Financial Solutions have invested in Ora Banda Mining Ltd (ASX:OBM).
Why do fund managers invest in Ora Banda Mining Ltd?
Fund managers invest in Ora Banda Mining Ltd due to its high-quality assets and growth potential in the gold sector. The company has demonstrated strong operational execution, particularly in its underground mining operations, with significant exploration upside from its extensive land package. Recent leadership changes have bolstered investor confidence, and positive cash flow generation positions the company for further expansion. While there are short-term production risks, the overall outlook remains favorable, supported by a capable management team and promising exploration results.
What happened to Ora Banda Mining Ltd (ASX:OBM)?
Fund managers are investing in Ora Banda Mining Ltd due to its strong management team and growth potential, despite short-term production challenges. They emphasize a disciplined operational turnaround, a promising exploration pipeline, and solid cash reserves, which collectively support the company's medium-term value and ability to fund significant exploration initiatives. Additionally, the company demonstrates a favorable free cash flow yield, although concerns about its limited mine life remain. Overall, these factors contribute to a positive outlook among fund managers.
What is the short interest in Ora Banda Mining Ltd (ASX:OBM)?
The short interest in Ora Banda Mining Ltd (ASX:OBM) is 1.38% which makes it the 182nd most shorted stock on the ASX. Of the 1.9B shares that Ora Banda Mining Ltd has on issue, 26.4M have been sold short.
What does Ora Banda Mining Ltd (ASX:OBM) do?
Ora Banda Mining Ltd. engages in the development and exploration of gold. It holds interest in the following projects: Central Davyhurst, Mount Ida, Lady Ida, Riverina-Mulline, Callion, Walhalla, and Siberia. The company was founded on March 26, 2002 and is headquartered in West Perth, Australia.