Ora Banda Mining Ltd (ASX: OBM) shares are having a day to forget on Thursday.
In afternoon trade, the ASX 200 gold stock is down 15% to $1.42.
Why is this ASX 200 gold stock crashing?
This gold miner's shares have come under significant pressure following the release of its quarterly update.
According to the release, Ora Banda delivered record gold production for the quarter totalling 32,036 ounces. This is a 5% increase on the September quarter.
This supported gold sales of 31,247 ounces with an average realised price of A$6,049 per ounce, leading to the ASX 200 gold stock reporting quarterly revenue of $189 million.
At the end of the quarter, Ora Banda had a cash balance of $155.4 million. This is up $32.8 million from the end of September despite spending $57.9 million on capital, resource development, and exploration, as well as $8.3 million for put option premiums.
So, why the selling?
On paper this looks like a good update, so why is this ASX 200 gold stock being sold off?
Well, the reason for that is its outlook. Management revealed that based on the expected ramp up in Sand King and Riverina production, FY 2026 gold production is now expected to be at the lower end of its 140k ounces to 155k ounces guidance range.
In addition, its FY 2026 all-in sustaining cost (AISC) is now expected to be $3,250 per ounce to $3,350 per ounce. This is up from $2,800 to $2,900 per ounce. Management advised that this reflects increased tonnage through third party processing at a higher cost linked to the rising gold price.
Finally, growth capital is now expected to be $143 million (from $86 million), incorporating key growth initiatives.
The ASX 200 gold stock's managing director, Luke Creagh, said:
The Company continues to deliver its organic growth strategy, with production expected to increase in the second half of FY26 as mining volumes increase at both operations. Importantly, the $73 million investment in exploration and resource development drilling across the Project in FY26 continues to yield strong results, underpinning the recent decision to approve a number of additional capital growth projects.
Despite today's weakness, the Ora Banda share price is still smashing the market on a 12-month basis. Since this time last year, the company's shares have risen by an impressive 80%.
