Ora Banda Mining (ASX:OBM) is "executing well" and is on track to achieve steady-state production levels as its new underground mines ramp up, according to a Monday note by Euroz Harlteys.

The Australian gold miner is also benefiting from growing unhedged gold production, Euroz Harlteys said.

Euroz Hartleys noted that OBM's exploration budget of AU$25 million for fiscal year 2025 is expected to increase mine life and support higher sustainable production.

The firm believes that fresh organic growth opportunities continue to emerge, further strengthening the company's outlook.

Euroz Hartleys adds that the company's gold production for the December 2024 quarter of 22,973 ounces, down from the 24,327 ounces it produced in the previous quarter, is also largely "within expectations".

The an all-in sustaining cost of AU$2,536 per ounce is expected to lower significantly in the coming quarters, once the company's Sand King mine reaches steady-state production levels.

Eurzo Hartleys maintained the company's buy rating and price target of AU$0.90.