Ora Banda appoints former Northern Star chief operating officer as new chief executive to drive Davyhurst plan

Ora Banda Mining has appointed a new chief executive as it continues on its path of cutting costs and getting more cash out of its Davyhurst mine 120km north-west of Kalgoorlie-Boulder. Ora Banda told the ASX on Monday it had appointed former Northern Star Resources chief operating officer Luke Creagh as chief executive. Chairman Peter Mansell said the mining engineer of 20 years experience in Australia and overseas was “highly qualified” to guide Ora Banda through its current operational reset plan. Mr Creagh’s appointment comes three months after the departure of previous managing director and chief executive Peter Nicholson and the subsequent announcement of a new company strategy for Davyhurst. Ora Banda in May said it was embarking on a “step change” to consolidate operations, cut costs and focus on cash generation during the next 24 months. This followed production shortfalls, a lower-than-anticipated recovered grade at the Missouri open pit, and less-than-nameplate throughput in the processing plant reducing total ounces output in the March quarter. The company in its May operation update statement said stage one of its operational reset plan had begun and was 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 (and associated labour requirements) by concentrating on mining at the Missouri open pit,” the company said. In February, Ora Banda indicated 2021-22 production guidance of 62,000oz-68,000oz of gold, a downgrade on its previous guidance of the lower end of a range of 70,000oz-75,000oz. Ora Banda in its March quarterly activities report said it moved in the March quarter to shore up its balance sheet by raising $20 million in new equity, which would be used with the company’s existing cash balance, for exploration, drilling to progress resource development targets, operational improvements and working capital. The company had $28.2 million in cash, 1657oz of bullion on hand and no debt at March 31.