Stage-one of Ora Banda’s operational reset plan (ORP) at the Davyhurst processing plant in WA’s Goldfields region is underway, delivering part of a step change for the company.

Ora Banda (ASX:OBM) is seeking to consolidate its operations, cut costs and focus on cash generation over the next 24 months.

The ORP is focused on two central pillars – firstly, achieving process plant stability at the 1.2 million tonne per annum nameplate capacity, and secondly, streamlining its open pit mining operations through the rationalisation of earth moving equipment.

This will be done by concentrating on mining at the Missouri open pit before moving on to stage-two which will revolve around resource development and sustainable mine production beyond the 24-month period.

New general manager

To help guide OBM’s change in direction, the company recently appointed experienced mining professional Simon Hillyard as the new General Manager- Operations for the Davyhurst project.

Hillyard has worked at mining projects throughout Australia and overseas including more recently at Saracen’s Thunderbox Mine and the Higginsville Gold Operations.

Prior to this appointment, he was Group Open Pits Manager for Northern Star/Saracen Minerals.

Moving to a stronger cash accretive position

OBM CEO Andrew Czerw said the company has seen an overwhelmingly positive response from the OBM team to the ORP.

“These changes are all about simplifying Davyhurst so it has less working parts, a more affordable cost base and to give ourselves the ability to properly resource those parts of the business that need it most,” he said.

“We’re confident that in the months ahead, these changes will move Ora Banda into a much stronger, cash accretive position.”

Looking ahead

After announcing on April 14 that work at the Riverina open pit mine would cease while focus shifts to the Missouri open pit mine, work officially came to a halt on May 3.

The switch to single mine production has been a positive for Missouri as manning strength (which has been a challenge because of the general industry-wide shortage of skilled labour) has increased from as low as 80% to over 100% of baseline for the first time in the project life.

In the month of April, the Davyhurst process plant treated 92,784 tonnes at 1.82g/t for 5,427 ounces (5,019 ounces recovered).

This was a 5% through-put improvement on the previous month and reflects the high-priority this area of the business is being afforded.

 

 

This article was developed in collaboration with Ora Banda Mining, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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