Ora Banda Mining shares plunge on lower guidance
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The news: Ora Banda Mining’s share price plunged on Friday after it said its total gold production for the year would come in lower than previously guided, while costs would come in higher for its Davyhurst project.
The numbers: The company expects total production for FY25 to be about 5% less than the lower end of its guidance range at 95 thousand ounces. This would still be a 35% increase in production compared to FY24.
Meanwhile, the cost per producing each ounce of gold is expected to be about $2,600 or 4% greater than the top end of previous guidance.
Ora Banda's share price was down 9.2% at $1.16 at 12.44pm AEST.
The context: The reduction in production volume has been blamed on “extended downtime from the processing plant due to the installation of lifter and lining upgrades to the primary mill,” according to a statement to the exchange.
"In addition, the commissioning and ramp up of the mill has taken longer than expected to achieve targeted daily throughput rates of 3,700 to 4,000 [tonnes per day].”
The source: ASX
