Small cap mining company hits 5 percent upper circuit after it received Letter of Intent from the Directorate of Geology and Mining, Government of Chhattisgarh.
The shares of this company have given multi-bagger returns to its investors. In just 6 months the company has managed to give more than 178 percent return and 216 percent return YTD.
For example, since January if someone had invested Rs. 1 lakh in this company, the worth of those shares would be around Rs. 3.16 lakh now.
With a market capitalization of Rs. 1,774 cr, the shares of Deccan Gold Mines Ltd started their Thursday trading session flat at Rs. 112 apiece and went to hit 5 percent upper at Rs. 124 apiece on NSE during the day.
Such a positive move was seen after the company in an exchange filing with exchange mentioned that it received a Letter of Intent (LoI) from the Directorate of Geology and Mining, Government of Chhattisgarh for for the Bhalukona – Jamnidih Nickel, Chromium and Associated PGE Block in Chhattisgarh
Furthermore, the company has mentioned that this is an important and significant milestone in the Company’s efforts to diversify into the Critical Minerals (CM) domain. It may be pertinent to note that the Government of India is giving significant thrust to exploration and mining of Critical Minerals which are essential to meet India’s Green Energy Transition targets.
Looking at the company’s financial statement, the company has increased revenue by 85 percent from Rs. 9 lakhs in the March quarter to Rs. 61 lakhs in the June quarter. In addition to that the net loss of the company was narrowed down from Rs. 98 lakhs to Rs. 29 lakhs during the same period.
Coming onto the important financials of the company, the return on equity was -2.86 percent during FY22-23, and the return on capital employed was -2.38 percent during the same period.
According to the latest shareholding pattern, the company has a huge public holding of 71.86 percent, Promoters have a 26.31 percent stake in the company, and the remaining 2.16 is with FIIs.
Deccan Gold Mine Ltd for a long period of time has been involved in gold exploration activities in India and overseas. DGML’s exploration in India, particularly in the state of Karnataka led to the discovery of open pittable gold deposits in the Archaen green belts of Dharwar Craton.
Written by Vaibhav Patil
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