Synopsis:
Deccan Gold Mines’ Jonnagiri project in Andhra Pradesh, India’s first major private gold mine, is likely to begin production soon, targeting 750 kg annually and scaling to 1,000 kg within three years, as per reports.
During Thursday’s trading session, shares of a company involved in the mining and exploration sector surged by more than 11 per cent on the BSE. What triggered this significant jump? Let’s explore the details in this article.
With a market cap of Rs. 2,143 crores, the shares of Deccan Gold Mines Limited (DGML) were closed in the green at Rs. 135.95 on BSE, up by around 10 per cent, as against its previous closing price of Rs. 123.65. The stock has delivered negative returns of over 11 per cent in one year, but has gained by around 9 per cent in the last one month.
What’s the News
India’s first large private gold mine in Andhra Pradesh is likely to commence full-scale production shortly, according to Deccan Gold Mines Limited (DGML) officials. The site is located in the Kurnool district of Andhra Pradesh, near the villages of Jonnagiri, Erragudi, and Pagadirayi in Tuggali Mandalam. The development is going to be significant as India currently imports nearly 1,000 tonnes of gold annually, making it the country’s second-largest import after crude oil.
The company is the first and only listed gold exploration company on the BSE, and holds a stake in Geomysore Services India Limited, which is developing the Jonnagiri gold mine in Andhra Pradesh.
The project secured environmental clearances in June and July, while additional state approvals are still in process. Project stabilisation is currently underway, with efforts focused on finalising the plant’s technology. According to DGML’s Managing Director, Hanuma Prasad, full-scale production is expected to commence in the near future, as he noted during the CII India Mining Summit 2025.
At full capacity, the Jonnagiri project aims to produce around 750 kilograms of gold per year, with plans to scale output to about 1,000 Kgs within the next two to three years. India’s current gold output is only 1.5 tonnes annually.
Financials & More
Deccan Gold Mines reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 67 percent, from Rs. 3 crores in FY24 to Rs. 5 crores in FY25.
Similarly, the company narrowed its net loss to Rs. 43 crore from Rs. 64 crore in the same period last year, reflecting a year-on-year improvement of around 33 percent.
Deccan Gold Mines Limited is engaged in the business of extraction, processing & sale and exploration & development of mining assets, mainly precious metals such as gold in the states of Karnataka, Andhra Pradesh and Rajasthan. The company aims to transform these gold prospects into commercially viable production. Its project portfolio spans the Dharwar-Shimoga, Hutti-Maski, Mangalur Schist Belt, and Ramagiri Schist Belt regions.
Written by Shivani Singh
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