The All Ordinaries Index (ASX: XAO) has gained 14.5% over two years, but ASX All Ords gold stock Ora Banda Mining Ltd (ASX: OBM) has left those gains in the dust.
In early September 2022 you could have picked up Ora Banda shares for just 6 cents each.
In afternoon trade today, those same shares are changing hands for 57 cents. Or a gain of 850% in only two years.
If you'd invested $6,000 in the ASX All Ords gold stock back then, you could have picked up 1,000 shares. Today, that investment would be worth a whopping $57,000. That represents a $51,000 gain on your original $6,000 investment.
Boom!
Now, if you're waiting for the part where we add in the dividends paid over two years to get to an even higher accumulated value, you'll be waiting a while.
Ora Banda doesn't pay dividends. At least, it hasn't yet. Instead, the miner funnels much of its profits back into exploration and mine development.
What's been driving the ASX All Ords gold stock through the roof?
Undoubtedly, the Ora Banda share price has benefited from a soaring gold price.
In early September 2022, gold was trading for US$1,717 per ounce. Today, that same ounce is worth US$2,498, up more than 45% in two years.
But there are reasons Ora Banda's share price gains have outpaced most every ASX All Ords gold stock. And much of that involves the miner's rapid growth profile.
Ora Banda reported on its June quarter results on 23 July.
Highlights included record quarterly gold production of 19,271 ounces, which was up 11% from the prior quarter.
As for the full year, FY 2024 saw Ora Banda produce a total of 69,932 ounces of gold, up 46% from FY 2023. The miner sold 67,255 ounces of gold, up 35% year on year.
All-in sustaining costs (AISC) for the quarter were $2,878 per ounce and totalled $2,767 per ounce over FY 2024, with costs ticking higher amid poor weather.
Commenting on the ASX All Ords gold stock's results and growth outlook, Ora Banda's managing director, Luke Creagh, said:
There is no doubt that the higher-grade ore being processed out of Riverina Underground is lifting our production profile rapidly and we expect this and improving mining and processing efficiencies, to significantly lower our costs in the next half.
The company is now fully committed to the Drive to 150 project, which aims to see Ora Banda produce approximately 150,000 ounces in FY 2026. We are actively recruiting new people to fill a variety of roles to make this happen.
