Ora Banda Mining Limited has updated its production guidance for its Davyhurst Project in FY25. The company reported that gold production reached 82.5 thousand ounces year-to-date through May, with April and May combining for 12.1 thousand ounces. For June, the company expects production of up to 12.5 thousand ounces, a level that would support a target monthly rate designed to achieve annual production of 150 thousand ounces. However, current performance and ore stockpiles suggest an FY25 total production of around 95 thousand ounces, slightly below the previously indicated guidance lower threshold of 100 thousand ounces. The announcement explains that recent lower production levels were primarily due to extended downtime from the processing plant. This was a result of installing lifter and lining upgrades to the primary mill, coupled with a longer-than-expected commissioning and ramp-up period to reach a daily throughput of 3,700 to 4,000 tons. With these works now complete, the processing plant has demonstrated its capability, and the mining operations themselves are performing well. In June, production from the Riverina and Sand King operations is forecast to deliver approximately 14.5 thousand ounces, as Riverina continues operations and Sand King ramps up to steady state. Additionally, ore stockpiles increased at the end of May, with around 83 kilotonnes at 2.8 g/t and 114 kilotonnes at 1.2 g/t, contributing to the overall production profile. While the annual production estimate of approximately 95 thousand ounces marks a 35% increase from FY24’s 70 thousand ounces, the results fall just short of the lower guidance limit. Furthermore, the company now expects an all-in sustaining cost (AISC) of about US$2,600 per ounce, which is 4% above the previously anticipated cost benchmark of US$2,500 per ounce, posing a potential challenge for maintaining margins. From a bullish perspective, the successful upgrade and commissioning of the processing plant, alongside strong mining performance from key operations, indicate that Ora Banda Mining Limited is poised for increased output compared to the previous fiscal year. The significant 35% jump in production and the demonstration of the plant’s capacity to process at target throughput levels suggest that operational improvements could drive future gains once temporary setbacks are resolved. Conversely, the bearish outlook centers on the shortfall in achieving the lower end of prior guidance, as well as the higher-than-anticipated AISC which could pressure profit margins. The delays and extended downtime experienced during the mill upgrades continue to represent near-term operational challenges, potentially impacting investor sentiment as the company works to align performance with initial production targets.