Ora Banda Mining's (ASX:OBM) plan to double its production profile over the next 3 years strengthens its medium-term outlook and operational leverage to gold prices, Euroz Hartleys said in a note on Monday.

The gold producer's board has approved construction of a new 3.0 million tonnes per annum processing plant at Davyhurst for AU$375 million with commissioning aimed for the third quarter of fiscal 2028.

Combined milling capacity is projected to rise to 4.2 million tonnes per annum by fiscal 2029. The new plan is also expected to reduce unit costs via increased scale, elimination of third-party milling reliance and improved operational flexibility, the investment firm said.

The company has also secured approval for development of Waihi underground mine as its third underground operation for AU$90 million.

Euroz Hartleys views this as strategically important, with development focused on the high-grade Golden Pole lode recently identified through drilling.

The brokerage maintained its buy rating and price target of AU$1.92.