Ora Banda Mining's (ASX:OBM) quarterly production was broadly in line, although costs came in 10% higher than forecast, Euroz Hartleys said in a note on Thursday.
The investment firm trimmed its fiscal year 2027 production estimates by 2% to 134,500 ounces, bringing it closer to the midpoint of Ora Banda Mining's guidance range. It also increased all-in sustaining costs forecast by 16% to AU$3,508 per ounce.
Construction of the new 3 million tonnes per annum Davyhurst processing plant is progressing and is seen to bolster the combined processing capacity to 4.2 million tonnes per annum. The project also provides a window to improve earnings and cash flow by increasing production to more than 300,000 ounces per year from fiscal year 2029.
Euroz Hartleys maintained a buy rating on Ora Banda Mining and cut its price target to AU$2.00 from AU$2.05.