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Deccan Gold Mines Limited — Q1 FY27 earnings call

Call held 12 Aug 2026

Company page: Deccan Gold Mines share price, financials & guidance record

Management summary

Deccan Gold Mines has successfully transitioned into a gold producer with operations at Jonnagiri and initial dore bar production from Kyrgyzstan. The company is strategically focusing on two verticals: gold and critical minerals, with significant exploration and development underway across projects in Finland, Spain, and Mozambique. A recent fundraise of Rs. 137 Crores is earmarked to accelerate these projects, although Q1 financials reflect initial production stages and lower sales volumes.

Highlights

  • Jonnagiri gold production established the company as a producer, contributing Rs. 6.35 Crores PAT to Deccan Gold.

  • Successful fundraise of Rs. 137 Crores through CCDs, equity shares, and warrants.

  • Kyrgyzstan (Altyn Tor) project is nearing full-scale production, with dore bar production already started.

  • Clear definition of two verticals: Gold and Critical Minerals, with significant progress in both (drilling started for critical minerals).

  • Strategic Board changes, including Mr. Elango as Chairman and Ms. Jade Devenish as Non-Executive, Non-Independent Director.

Concerns

  • Jonnagiri's Q1 financial results are still in initial stages, with only 59 kilos of gold sold, leading to lower-than-expected revenue and profit contribution.

  • Dividend from Geomysore (Jonnagiri) is unlikely in FY27 due to ongoing expansion and land acquisition needs.

  • Ganajur gold project remains stuck in court, awaiting a decision after two years of delays.

Key financials

  1. Jonnagiri Revenue ₹87 Cr
  2. Jonnagiri PAT (Total) ₹25 Cr
  3. Jonnagiri PAT (Deccan's Share) ₹6.35 Cr
  4. Jonnagiri Gold Sold 59 kilos
  5. Jonnagiri Dore Bar Produced 112 kilos
  6. Jonnagiri Bullion Produced 90 kilos
  7. Jonnagiri Gold in Stock 80 kilos

What they filed

Q1 FY27: revenue up 57.9%, net profit up 69.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4 1 0 0 3 −16%1 +32%9 +1885%1 +58%
EBITDA-21 -22 -21 -24 -9 +56%-10 +55%-1 +94%-12 +52%
Net profit-68 -25 12 -28 -20 +71%-22 +10%6 −52%-9 +69%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Kyrgyzstan (Altyn Tor) project investment ₹300 Cr
    • Finland (Kuikka) project 51% stake acquisition $1 Mn
    • Altyn Tor underground mining development ₹150 Cr
    • Jonnagiri underground mining development ₹400 Cr
    • Critical minerals (Bhalukona) processing facility ₹650 Cr
    • Critical minerals (Mozambique) processing facility ₹400 Cr
    I think we have invested more than Rs.300 Crores into this project as of now... (Page 8) ...investment of about $1 to $2 million, actually $1 million will take us to 51%... (Page 10) ...if you set up a 1000 ton processing plant, which we are planning to do in many of the projects other than the Bhalukona project, which requires around 3000 ton processing facility, the capital would be in the range of 400 to 500 Crores like what we have spent in Jonnagiri. That is the kind of capital required for these projects. Whereas for Bhalukona, because it is going to be around 3000 ton processing facility, we may be looking around 650 to 700 Crores of capital requirement because when the processing facility is big, not only the facility but the tailings dam size has to be big, the waste rock dump size has to be big. So there is a lot of land that is required. So around 650 to 700 Crores is probably required for this. Now, yes, we may require around 2,000 Crores. (Page 22-23) I think this query is particularly with regard to the Altyn Tor, I suppose and its project. Now the existing open pit is almost up to a depth of 170 meters. But the ore body continues downwards and we are going to start through a decline... So, that would require a capital at that point around Rs.150 Crores of the capital down the line in the next after 3 to 4 years that is when that kind of capital is required. Initially, our estimate is around 150 to a maximum of Rs.200 Crores. That is the kind of capital and we strongly believe that from the internal accruals, we will be able to fund it because it is not a one time putting the money, we will doing that in mining part. Already our mining teams are there. So they will be doing it slowly as we move forward. That is the kind of capital required. And when we are on this, I also would like to say in the Jonnagiri, currently we are operating in an open pit mine and that next block is going to be an underground operation. There we will be sinking the shafts and those shafts could go slightly deeper, like almost like 600 to 500 meter deep shafts that we are going to build. So that may require slightly larger capital. It could be upwards of 400 Crores, I believe another 4-5 years. Again that will also be funded to the internal accruals. (Page 28)
  • Debt Debt disclosed
    But that will be a combination of debt and equity because once in the next two, three quarters, we have good numbers coming in, I think banks and other lending institutions would look at giving us debt. (Page 24)
  • M&A Finland project Acquisition · Closed · Consideration ₹[object Object] (cash)

    Acquired to develop high-grade gold resources.

    We acquired this project in the year 2023. (Page 9) ...investment of about $1 to $2 million, actually $1 million will take us to 51%... (Page 10)
  • M&A 3 new gold projects Acquisition · Pending regulatory

    To expand gold portfolio and fill production gap by 2028.

    So, we have been carrying your due diligence on three new gold projects. (Page 11)
  • M&A Another gold project in Kyrgyzstan Acquisition · Announced

    Offered by government due to successful Altyn Tor project, estimated 10 tons of gold.

    ...government has clearly seen that and they have offered us another project. They wanted to be a partner with us and I mean roughly around 10 tons of gold is there in that project. (Page 10-11)
  • M&A Graphite project in Africa Acquisition · Pending regulatory

    To strengthen battery metal strategy, as graphite is critical for batteries.

    ...we are currently looking at a graphite project in Africa. (Page 16)
  • Liquidity Liquidity disclosed Rs. 137 Crores raised through CCDs, equity shares, and equity warrants to fund project acceleration.
    And the other important factor is we are able to raise Rs.137 Crores. Board has approved this particular raise through CCDs, equity shares and equity warrants. (Page 4)

Guidance & targets

Volume

  • Jonnagiri Gold Production Volume · FY27 · High confidence 500-600 kilos
    And in terms of annual production we still stick to those numbers around 500 to 600 from Jonnagiri this year and it will increase to 750 to 800 kilos next year.

    — Dr. Hanuma P Modali

  • Jonnagiri Gold Production Volume · FY28 · High confidence 750-800 kilos

    — Dr. Hanuma P Modali

  • Jonnagiri Max Gold Production Volume · around 2029-30 · Medium confidence 2 tons per annum
    that could happen somewhere around 29 or 30.

    — Dr. Hanuma P Modali

  • Ganajur Gold Production Volume · in two to three years · Medium confidence About 1 ton
    if mining lease is given to us, in two to three years we will be able to produce about a ton of gold.

    — Dr. Hanuma P Modali

Resource

  • Altyn Tor Resource Base Resource · by October · High confidence Revised estimate
    we are increasing the resource base within the mine which I think by October we will have a revised estimate of the resources within the mine.

    — Dr. Hanuma P Modali

  • Altyn Tor Underground Resources Resource · Not explicitly stated · Medium confidence More than 5 tons
    underground resources are going to be more than 5 tons.

    — Dr. Hanuma P Modali

  • Finland (Kuikka) Resource Increase Resource · Not explicitly stated · Medium confidence 4 tons
    through the drilling, we are going to increase the resource to almost 4 tons.

    — Dr. Hanuma P Modali

  • Critical Minerals (Mozambique Lithium/Tantalum) Resource Increase Resource · Not explicitly stated · Medium confidence 3 million tons
    increase the resource again to about 3 million tons

    — Dr. Hanuma P Modali

Project Milestone

  • Finland (Kuikka) Feasibility Study Project Milestone · 2027 · High confidence Completion
    can take us to a feasibility study which we plan to do in the year 2027.

    — Dr. Hanuma P Modali

  • Critical Minerals (Bhalukona) Mining Lease Application Project Milestone · Next year · High confidence Application
    by next year we plan to apply for mining lease.

    — Dr. Hanuma P Modali

  • Critical Minerals (Logrosan Tungsten) Preliminary Resource Modeling Project Milestone · Early October · High confidence Completion
    preliminary resource modeling will be completed by early October

    — Dr. Hanuma P Modali

  • Critical Minerals (Mozambique Lithium/Tantalum) Drilling Start Project Milestone · Mid-September or end of September · High confidence Commencement
    drilling will start by mid-September or end of September and the initial target would be to set up this kind of concentrate plant.

    — Dr. Hanuma P Modali

Production Start

  • Finland (Kalevala) Production Production Start · Beyond 2028-2029 · High confidence Commencement
    That is when this production will commence.

    — Dr. Hanuma P Modali

  • Critical Minerals (Mozambique Lithium/Tantalum) Concentrate Production Production Start · By 2028 · High confidence Commencement
    at least by the first quarter of 2028 we should be able to produce concentrate out of it

    — Dr. Hanuma P Modali

Capacity

  • Critical Minerals (Bhalukona) Processing Plant Capacity · Not explicitly stated · Medium confidence 3000 tons per day
    We are thinking of about 3000 tons per day processing plant

    — Dr. Hanuma P Modali

  • Critical Minerals (Mozambique Lithium/Tantalum) Processing Plant Capacity · By end of 2027 · High confidence 200 ton per day
    we aim to set up a 200 ton per day processing plant to concentrate lithium and tantalum by the end of 2027.

    — Dr. Hanuma P Modali

  • Critical Minerals (Mozambique Lithium/Tantalum) Processing Facility Expansion Capacity · Not explicitly stated · Medium confidence 1000 tons per day
    allow us to expand this processing facility to 1000 tons per day.

    — Dr. Hanuma P Modali

Drilling

  • Critical Minerals (Logrosan Tungsten) Resource Definition Drilling Drilling · Not explicitly stated · High confidence 1000 to 2000 meters
    about another resource definition drilling of 1000 to 2000 meters

    — Dr. Hanuma P Modali

Capex

  • Overall Funding Requirement Capex · Not explicitly stated · High confidence Rs. 2,000 Crores
    Now, yes, we may require around 2,000 Crores.

    — Dr. Hanuma P Modali

What to watch in Q2 FY27

Jonnagiri Gold Sales & PAT Margins

Next quarter (Q2 FY27)
Current 59 kilos sold, Rs. 6.35 Crores PAT (Deccan's share), lower than expected.
Target Stabilization to 65-70% EBITDA margins, increased sales.

Why it matters

Will indicate the operational stability and profitability ramp-up of the first producing gold mine.

In the last quarter, because only 59 kgs of gold has been sold, the numbers look slightly on the lower, not slightly, significantly on the lower side and also there were initial expenses going through this one. So, to stabilize to about 65%, 70% of EBITDA, I believe it will take another quarter or two.

Risks & concerns

  • Ganajur project legal delays

    medium

    The Ganajur gold project, a potential value driver, has been stuck in court for over two years, impacting its production timeline.

    Management acknowledged

  • Funding for extensive project pipeline

    medium

    The company has a large pipeline of gold and critical mineral projects requiring significant capital (estimated Rs. 2,000 Crores), which will be funded through a combination of debt, equity, and off-take agreements.

    Management acknowledged

  • Competition for mineral licenses

    low

    Acquiring mineral licenses, especially for critical minerals, is competitive, with other companies (e.g., Chinese) often making counter-offers.

    Management acknowledged

  • Initial stages of Jonnagiri financial results

    low

    Q1 FY27 results for Jonnagiri are in initial stages, with lower sales volumes and initial expenses impacting profitability, but management expects stabilization and growth.

    Management acknowledged

Q&A highlights

5 direct
Jonnagiri cash flow and dividend, future funding for project pipeline. Partial
Hence, I honestly, I doubt whether we get dividends in this financial year. It might happen next year, but I cannot guarantee. It is the decision of the Board of Geomysore Services.

Addresses immediate shareholder returns and funding strategy for ambitious growth plans, indicating potential delay in dividends from Jonnagiri.

Asked by Nikunj Devpura

Jonnagiri Q1 profit lower than expected, guidance for Kyrgyzstan and Jonnagiri. Direct
In the last quarter, because only 59 kgs of gold has been sold, the numbers look slightly on the lower, not slightly, significantly on the lower side and also there were initial expenses going through this one. So, to stabilize to about 65%, 70% of EBITDA, I believe it will take another quarter or two.

Clarifies the reasons for lower Q1 profitability at Jonnagiri and sets expectations for future quarters regarding EBITDA stabilization.

Asked by Hitesh Gupta

Altyn Tor production from tailings, dore bar refining, overall capex for projects and funding. Direct
So, this quarter clearly defines that we have come to at least 30 kilos per month or more at least about a kilo per day. I think that is the first ramp up that we wanted to do on a quarterly basis. You can see how it is being stabilized and it is being increased.

Provides details on the initial production ramp-up at Altyn Tor and the significant capex requirements for the diverse project pipeline, including refining processes.

Asked by Aniket Gogate

Status of Ganajur and Hutti Gold Mines, strategic partnerships. Partial
But your point is valid. Suppose if tenure will be reinstated, if all those rights are given, then probably Hutti also stands a good chance. But I think for strategic reasons, we are fully focused on Ganajur as of now.

Highlights the ongoing legal challenges for key gold projects and the company's focus, while acknowledging potential for Hutti.

Asked by Pranay Jain

Government support for critical minerals, Uzbekistan offer. Direct
Government is planning to fund or provide loans to the companies which are into the critical mineral segment. I think that is where we will have an advantage of getting the government support in terms of funding.

Indicates potential for government funding and strategic partnerships in the critical minerals segment, which could de-risk future capex.

Asked by Sunder Padmanabhan

Capex for underground mining at Altyn Tor and Jonnagiri. Direct
I think this query is particularly with regard to the Altyn Tor, I suppose and its project. Now the existing open pit is almost up to a depth of 170 meters. But the ore body continues downwards and we are going to start through a decline... So, that would require a capital at that point around Rs.150 Crores of the capital down the line in the next after 3 to 4 years that is when that kind of capital is required.

Provides specific capex estimates and timelines for transitioning to underground mining at key projects, crucial for long-term resource extraction.

Asked by Aniket Gogate

Physical AGM request. Direct
Yes, Imran, you are quite a physical AGM. I think this year we will, I guarantee you we will have it in Mumbai.

Addresses shareholder engagement and commitment to physical meetings, indicating a response to investor feedback.

Asked by Imran Ghani

3 min read 7 chapters

Detailed narrative

Q1 Performance & Strategic Shift

Deccan Gold Mines has marked a significant transition in Q1 FY27, establishing itself as a gold producer with initial operations at Jonnagiri and dore bar production from Kyrgyzstan. The company has clearly defined two strategic verticals: gold and critical minerals, with distinct growth and expansion plans for each. While Q1 financials for Jonnagiri, with Rs. 87 Crores revenue from 59 kilos of gold sold and Rs. 6.35 Crores PAT contribution to Deccan, are in initial stages, management anticipates substantial growth in subsequent quarters.

Jonnagiri Gold Project Update

The Jonnagiri project produced 112 kilos of dore bar (90 kilos bullion) in Q1 FY27, with 59 kilos sold. The company holds approximately 80 kilos of gold equivalent in stock. Management expects Jonnagiri to produce 500-600 kilos of gold in FY27, increasing to 750-800 kilos in FY28, with a long-term potential of 2 tons per annum by 2029-30. Significant expansion is underway, including increasing processing capacity to 2,500 tons per day and land acquisition, which will utilize incoming funds.

Kyrgyzstan Gold Project (Altyn Tor) Progress

The Altyn Tor project has commenced dore bar production from its Merrill-Crowe system, demonstrating operational viability. The larger leach circuit and tailings facility are nearing completion, with full-scale commercial production expected to begin very soon after final arrangements are made in August 2026. The company has invested over Rs. 300 Crores in this project and plans to increase the resource base by October, with underground resources projected to exceed 5 tons, adding 6-7 years to the mine life.

Finland Gold Projects (Kalevala) Development

Deccan Gold acquired a 51% stake in the Kalevala project in Finland for $1-2 million in 2023. The project, located in a highly potential Archean greenstone belt, includes two prospects: Kuikka and Pahkalampi. Kuikka has an estimated 70 kilos of gold from a small open pit and a high average grade of 5 grams per ton, with plans to increase resources to 4 tons and complete a feasibility study by 2027. Overall production from Finland is anticipated beyond 2028-2029.

Critical Mineral Portfolio Expansion

The company is aggressively developing its critical mineral vertical, focusing on battery minerals like lithium, tantalum, nickel, copper, and PGE. Drilling is underway at the Bhalukona project in Chhattisgarh, where a 1.3 km mineralized zone containing nickel, copper, and palladium has been identified. In Spain, the Logrosan Tungsten Project has completed its first phase of drilling, with preliminary resource modeling expected by early October. In Mozambique, drilling for lithium and tantalum is set to begin by end-September, aiming for a 200 ton per day processing plant by end-2027 and production by 2028.

Capital Raising & Funding Strategy

Deccan Gold successfully raised Rs. 137 Crores through CCDs, equity shares, and warrants, with contributions from HNIs and management. These funds are primarily allocated to accelerate exploration and development across the critical mineral projects. The company estimates a total funding requirement of approximately Rs. 2,000 Crores for its extensive project pipeline, planning a combination of debt and equity, alongside potential off-take arrangements, particularly for critical minerals.

Board Changes & Governance

The company announced key Board changes, with Mr. Pandarinathan Elango appointed as Chairman, succeeding Mr. Kailasam. Ms. Jade Gemma Devenish, with 16 years of experience with the group and instrumental in the Jonnagiri project, has been appointed as a Non-Executive, Non-Independent Director. These changes are aimed at strengthening leadership and strategic oversight for the company's ambitious growth trajectory.

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