Detailed Narrative
Debt-Free Status and Rights Issue
Deccan Gold Mines successfully completed a rights issue, raising ₹315 crores. This capital infusion enabled the company to repay all outstanding debts totaling ₹219 crores by the end of March 2026, achieving a debt-free status. This financial restructuring is a significant milestone, providing a stronger balance sheet for future growth initiatives.
Jonnagiri Gold Project Operational Update
The Jonnagiri Gold project, where Deccan Gold Mines holds a 26% stake through Geomysore Services, has commenced revenue generation from trial production. The project has achieved profitability, with approximately 30 kilos of refined gold produced in both March and April 2026. For FY27, the project forecasts production of 600 kg, generating ₹900 crores in revenue with a 75% EBITDA margin, and contributing ₹120 crores in PAT attributable to Deccan Gold Mines. The company aims to increase resources to 32 tons (1 million ounces) in the next year.
Kyrgyzstan Gold Project Progress and Outlook
The Kyrgyzstan gold project, a 60% owned subsidiary, is on track for commissioning the Merrill-Crowe system in June 2026 and the full-scale leaching circuit by end of July 2026, targeting commercial production by August 2026. The production forecast for FY27 is 160 kg, rising to 300-350 kg in FY28. Revenue for FY27 is projected at ₹300 crores, with ₹60 crores in PAT attributable to Deccan, and PAT margins expected to reach 40-45% at peak stage. The project requires an additional ₹60-100 crores for completion.
Bhalukona Nickel-Copper-PGE Discovery
Deccan Gold Mines announced a significant discovery of economic grade Nickel-Copper-PGE mineralization in its 100% owned Bhalukona project. Initial drill results from seven completed holes show a mineralized zone of 1.3 kilometers, with one hole intersecting 2.6 meters at 1.01% nickel, 0.29% copper, and 0.2 g/t palladium. The company aims to prove up 70,000-80,000 tonnes of nickel equivalent resource and plans to submit the mining lease application by October 2026, with a processing plant capex estimated at ₹400-500 crores.
Spain Tungsten Project Development
The Logrosan Tungsten project in Spain is progressing, with Deccan Gold Mines increasing its stake to 51% by investing €1.76 million, with rights to go up to 95%. Initial drilling has intersected tungsten mineralization up to 300 meters depth, with some intersections showing high grades like 96 grams per ton of gold, indicating a Gold-Tin-Tungsten project. The company plans to launch the mining lease application by October/November 2026, with estimated capital requirements of ₹500 crores for the project.
Future Growth and Funding Strategy
Deccan Gold Mines envisions operating 2-3 gold mines and a couple of critical mineral mines by 2030, aiming to be a leading producer in India. This ambitious roadmap requires substantial future funding, estimated at ₹800-1000 crores ($100 million) for the next year or so, to develop projects like Bhalukona and Spain Tungsten. The company plans to assess funding modalities, including equity and debt, after the Kyrgyzstan project is commissioned and initial drill results from other projects are finalized.