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Why gold funds saw a record weekly inflow — and what it signals for Indian investors
business update, Markets - July 5, 2025

Strategic Investment Fuels Deccan Gold Mines’ Kyrgyzstan Gold Project

Strategic Investment Fuels Deccan Gold Mines’ Kyrgyzstan Gold Project

₹30 Crore Loan from Godawari Power & Ispat Empowers Deccan Gold Mines’ Overseas Expansion and Stake Acquisition Plans

Introduction
India’s mining industry is undergoing a significant transformation, with Deccan Gold Mines Limited—one of the country’s leading gold exploration companies—expanding its global presence. The company’s international ambitions have received a fresh impetus through a ₹30 crore loan from Godawari Power & Ispat Ltd, reflecting strong investor confidence in DGML’s long-term strategy and the strategic relevance of its gold project in Kyrgyzstan.

The Strategic Partnership: DGML and GPIL
Background
Deccan Gold Mines Limited has been at the forefront of gold exploration in India and abroad. Its partnership with Godawari Power & Ispat Ltd, a major player in the steel and power sector, has evolved over recent years, with GPIL emerging as a key financial backer for DGML’s ambitious projects.
The Latest Funding Round
On July 3, 2025, DGML finalized an agreement to receive an additional Rs 30 crore in debt funding from GPIL. This brings the total loan amount extended by GPIL to DGML to Rs 80 crore, reflecting a deepening financial relationship and shared commitment to the success of the Altyn Tor Gold Project.
• Loan Tenure: 36 months
• Interest Rate: 12% PA
• Security: DGML has pledged equity shares in its associate firm, Geomysore Services, valued at over ₹66 crore.

The Altyn Tor Gold Project: India’s Gateway to Central Asia
Project Overview
The Altyn Tor Gold Project, located in the Tien Shan district of Naryn Province, Kyrgyzstan, is a cornerstone of DGML’s international strategy. The project is operated by Avelum Partner LLC, a subsidiary of DGML, and is estimated to contain significant gold reserves, positioning it as a high-potential asset in Central Asia.
Recent Developments
• Expansion and Construction: Work is underway to expand the processing plant, with a focus on ramping up activities and completing construction to commence gold production in 2025.
• Resource Potential: The site is believed to hold approximately six tonnes of gold resources, with ongoing geological and mining work to further delineate reserves.
• Operational Readiness: DGML’s workforce in Kyrgyzstan is fully mobilized, and the company is on track to meet its production targets for the year.

Equity Acquisition and Growth Strategy
Strengthening the Portfolio
A portion of the new funding will be used for equity acquisition, specifically to increase DGML’s stake in Geomysore Services (India) Private Limited. This move is expected to consolidate DGML’s position in the Indian gold mining sector while supporting its overseas ambitions.
Broader Investment Commitments
In addition to the GPIL loan, DGML has recently secured other investment commitments, including a Rs 60 crore infusion from a consortium of investors for its key projects in India and Kyrgyzstan. These funds are earmarked for both the Jonnagiri Gold Project in India and the Altyn Tor Gold Project, highlighting DGML’s dual focus on domestic and international growth.

Market and Industry Impact
Investor Sentiment
The announcement of the latest funding round has generated positive buzz in financial markets and among investors. The strategic partnership between DGML and GPIL is seen as a model for collaboration between mining and industrial companies, leveraging financial strength and sector expertise.
Industry Implications
• Boost to Indian Mining: DGML’s success in securing international funding and executing cross-border projects sets a precedent for other Indian mining firms.
• Resource Security: The development of the Altyn Tor Gold Project is expected to enhance India’s access to gold resources, reducing reliance on imports and supporting the country’s economic goals.

Conclusion
The ₹30 crore debt facility extended by Godawari Power & Ispat Ltd represents a pivotal milestone for Deccan Gold Mines Limited. Armed with this solid financial support, DGML is set to fast-track the advancement of its Altyn Tor Gold Project in Kyrgyzstan while also reinforcing its equity position within the Indian market. This strategic move not only cements DGML’s position as a leader in gold exploration but also signals a new era of international expansion for Indian mining companies. As the project advances towards production, the partnership between DGML and GPIL stands as a testament to the power of collaboration and vision in the mining sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Why gold funds saw a record weekly inflow — and what it signals for Indian investors
Market News - June 6, 2025

Deccan Gold Mines Set to Launch India’s First Gold Mine in 80 Years

Deccan Gold Mines Set to Launch India’s First Gold Mine in 80 Years

With operations approved at Jonnagiri, Deccan Gold plans to extract 400 kg of gold by FY27, pushing stock to a 10-month high.

Deccan Gold Mines Breaks Ground on India’s First Post-Independence Gold Project

In a landmark moment for India’s mining landscape, Deccan Gold Mines Ltd. is on the verge of beginning operations at the Jonnagiri Gold Mine in Andhra Pradesh — the nation’s first gold mining venture since gaining independence. The company, working alongside its affiliate Geomysore Services (India) Pvt. Ltd., has received crucial clearance from the Andhra Pradesh Pollution Control Board (APPCB), paving the way for both extraction and processing activities to kick off at the site.

Hanuma Prasad Modali, the managing director of Deccan Gold, shared insights into the project’s potential, stating that the mine could eventually yield up to 750 kilograms of gold annually. However, during its initial phase, the company aims to extract 400 kilograms in the first operational year.

From Regulatory Approval to Operational Readiness

The APPCB’s clearance is a pivotal milestone that authorizes both mining activity and the operation of the gold processing facility. While the final regulatory barrier has now been cleared, Deccan Gold’s management has indicated that operations will not begin immediately. Trial runs are expected to take place over the next few months to ensure that systems are functioning efficiently before large-scale production starts.

The mined gold is expected to be sold to refineries located in close proximity to the project site, providing logistical ease and ensuring smooth monetization of output.

Gold Output and Financial Expectations for FY27

Looking ahead, the company anticipates a substantial revenue windfall in the financial year 2026–27 (FY27). If Deccan Gold achieves its target of extracting 400 kilograms of gold in the initial year, it estimates a revenue of ₹300–₹350 crore, supported by an EBITDA margin of approximately 60%. This high margin underlines the profitability potential of the Jonnagiri project.

As operations scale up, the company hopes to reach its full production capacity of 750 kilograms per year, creating a strong foundation for sustainable growth and earnings.

Stock Surges to 10-Month High on Project Announcement

News of the regulatory approval and operational launch has triggered a sharp rally in Deccan Gold Mines’ stock. The share price jumped as much as 14.28%, touching a high of ₹170.50 per share, marking its strongest level since August 6, 2024. As of 10:17 a.m., the share price had moderated somewhat, settling at ₹166.75 while maintaining a robust gain of 11.70% for the session.

This price movement came amid unusually high trading volumes, with activity reaching nearly 13 times the 30-day average, reflecting significant investor interest. The Relative Strength Index (RSI) stood at 49.23, signaling neutral territory without overbought or oversold conditions.

Long-Term Stock Performance Reflects Investor Optimism

Deccan Gold Mines has demonstrated robust performance in the broader market context as well. The stock has gained 58.42% over the past 12 months, and has delivered 46.70% year-to-date (YTD) returns. These figures highlight growing investor confidence, likely fueled by expectations surrounding the Jonnagiri project and optimism about India’s untapped gold mining potential.

This resurgence in gold mining activity is not just significant for Deccan Gold but also marks a notable shift in India’s resource exploration landscape, which has long been underdeveloped in terms of precious metal mining.

A Major Leap for Indian Mining and Resource Development

The Jonnagiri Gold Mine stands as a symbol of progress in India’s mining sector, which has historically seen limited activity in gold extraction. For decades, India has remained dependent on gold imports to meet domestic demand. The successful launch of this project could potentially reduce that reliance and inspire further exploration and development of mineral-rich regions across the country.

The project also brings with it socio-economic benefits, including job creation, infrastructure development, and state revenue generation in Andhra Pradesh. Moreover, Deccan Gold’s collaboration with Geomysore underscores the strategic value of partnerships in bringing long-term, capital-intensive mining projects to life.

Final Thoughts

Deccan Gold Mines’ journey toward launching India’s first post-independence gold mine is a landmark moment not only for the company but also for the nation’s mining sector. With production set to begin following final trial runs, the company expects to generate ₹300–₹350 crore in revenue in FY27 from 400 kg of gold, eventually ramping up to 750 kg annually.

The announcement has already ignited strong investor enthusiasm, sending the stock soaring to a 10-month peak. As India embarks on a renewed path of mineral exploration and domestic resource utilization, Deccan Gold is spearheading an initiative that could usher in a transformative chapter for domestic gold mining in India.

 

 

 

 

 

The image added is for representation purposes only

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