Ora Banda Mining : 31 December 2021 Interim Financial Report

For personal use only

ORA BANDA MINING LIMITED

ABN 69 100 038 266

CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2021

For personal use only

ORA BANDA MINING LIMITED

CORPORATE DIRECTORY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

DIRECTORS

Peter Mansell (Non-executive Chairman)

Peter Nicholson (Managing Director)

David Quinlivan (Non-executive Director)

Keith Jones (Non-executive Director)

Mark Wheatley (Non-executive Director)

COMPANY SECRETARY

Tony Brazier

Susan Park

REGISTERED & PRINCIPAL OFFICE ADDRESS

Level 1, 2 Kings Park Road

West Perth WA 6005

Australia

Telephone:

• Within Australia: 1300 035 592
• Outside Australia: [phone]

Email: [e-mail]

Website: www.orabandamining.com.au

SHARE REGISTRY

Computershare Investor Services Pty Limited

GPO Box 2975

Melbourne VIC 3001

Telephone: [phone]

AUDITOR

KPMG

235 St Georges Terrace

Perth WA 6000

SECURITIES EXCHANGE LISTING

Listed on the Australian Securities Exchange under the trading code OBM

1

ORA BANDA MINING LIMITED

DIRECTORS' REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

The Directors submit the financial report of Ora Banda Mining Limited (the Company) and its subsidiaries (the Group) for the half-year ended 31 December 2021.

For personal use only

DIRECTORS

The Directors of the Company at any time during the half year and up to the date of this report are set out below. Directors have been in office for this entire period unless otherwise stated.

Peter Mansell (Non-executive Chairman)

Peter Nicholson (Managing Director)

David Quinlivan (Non-executive Director)

Keith Jones (Non-executive Director)

Mark Wheatly (Non-executive Director)

PRINCIPAL ACTIVITIES

The principal activities of the Group during the half year were mine operations and the sale of gold, mine development and exploration, in Western Australia.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of Ora Banda Mining Limited during the period under review.

GROUP FINANCIAL OVERVIEW

Financial Review

The Group recorded a net operating loss of $5.36 million (Half-year ended 31 December 2020: $8.74 million net loss) and a net profit of $6.61 million for the half-year ended 31 December 2021 (Half-year ended 31 December 2020: $8.78 million net loss) and incurred $24.54 million (Half-year ended 31 December 2020: $25.46 million) of mine development and capital expenditure. The profit was the result of the sale of the Mt Ida assets in September 2021.

Revenue for the period totalled $79.60 million from the sale of 32,328 ounces of gold at an average price of $2,458.40 and 3,632 ounces of silver at an average price of $32.52. There were no sales in the previous corresponding period.

During the half-year ended 31 December 2021 the Group recorded net cash outflows of $3.70 million in operating and investing activities, which was funded by existing cash of $24.22 million at 1 July 2021 and cash inflows of $0.85 million from the issue of fully paid ordinary shares (before costs). The Group's closing cash balance as at 31 December 2021 was $15.02 million.

Capital Raising

On 5 July 2021 the Company announced the results of its Share Purchase Plan offer which raised $0.75 million by the issue of 4,382,393 fully paid ordinary shares at an issue price of 17 cents per fully paid ordinary share.

On 18 August 2021 the Company issued 588,236 fully paid ordinary shares at an issue price of 17 cents per ordinary share raising $0.10 million. This completed the $21 million placement announced in June 2021.

Divestment of Mt Ida Pty Ltd

In addition to the funds raised by the issue of fully paid ordinary shares, the Company disposed of Mt Ida Gold Pty Ltd raising $11.04 million before costs.

2

For personal use only

ORA BANDA MINING LIMITED

DIRECTORS' REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

REVIEW OF OPERATIONS

Davyhurst Gold Project

Mining

Ore was mined from three mining centres during the period. Total ore mined was 742,149 tonnes at a grade of 1.85 g/t Au for 44,120 contained ounces.

Underground Mining

Golden Eagle underground mine production for the period totalled 204,415 tonnes at 2.59 g/t for 16,999 ounces. Production for the half year exceeded budget, with mining completed in December 2021. The mining contractor demobilised from site in January 2022.

Open Pit Mining

Open pit mining at Riverina totalled 328,210 tonnes at 1.54 g/t for 16,242 contained ounces.

Open pit mining at Missouri totalled 209,524 tonnes at 1.61 g/t for 10,879 contained ounces. Ore tonnages and grades are expected to progressively increase in the second half of the financial year as waste stripping reduces.

Processing

Ore milled for the period totalled 500,883 tonnes at a blended grade of 2.14 g/t Au for 34,521 contained ounces. Recovery during the period was 91.4% with 31,471 ounces being poured. Golden Eagle provided approximately 37% of the mill feed, with the balance sourced from the open pit mines. The Company continued to experience challenges associated with material handling issues during the half year.

3

For personal use only

ORA BANDA MINING LIMITED

DIRECTORS' REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

REVIEW OF OPERATIONS (continued)

Group Mining and Production Statistics

Davyhurst Gold Project

	Mining Operations		Quarter
		Units	Sep -21	Dec-21	YTD
	Open Pit
	Riverina
	Waste Mined	bcm	569,345	245,719	815,064
	Ore Mined	t	196,961	131,249	328,210
	Grade	g/t	1.63	1.41	1.54
	Contained Gold	oz	10,307	5,935	16,242
	Missouri
	Waste Mined	bcm	953,199	1,054,280	2,007,479
	Ore Mined	t	75,496	134,028	209,524
	Grade	g/t	1.36	1.76	1.61
	Contained Gold	oz	3,303	7,576	10,879
	Underground
	Golden Eagle
	Ore Mined	t	92,389	112,026	204,415
	Grade	g/t	2.23	2.88	2.59
	Contained Gold	oz	6,618	10,381	16,999
	Davyhurst Total
	Ore Mined	t	364,846	377,303	742,149
	Grade	g/t	1.72	1.97	1.85
	Contained Gold	oz	20,228	23,892	44,120

Davyhurst Gold Project

	Processing Operations		Quarter
			Units	Sep -21	Dec-21	YTD
	Ore Processed
	Ore Processed		t	230,128		270,755	500,883
	Head Grade		g/t	1.94		2.31	2.14
	Contained Gold		oz	14,383		20,138	34,521
	Recovery		%	90.4		92.2	91.4
	Gold Poured		oz	14,279		17,192	31,471
	Gold Sold		oz	13,522		18,806	32,328
	Bullion on Hand		oz	1,614		-	-

4