Deccan Gold Mines targets production, debt reduction amid expansion

Deccan Gold Mines Limited, in its Q2 FY 2025-2026 investor relations call, announced the successful commissioning of its Jonnagiri plant, with full-scale production underway. The Kyrgyzstan project is also nearing trial production within weeks. The company aims to produce around 20-25 kilos of gold during the winter period from Kyrgyzstan and initially around 400 kilos per year from Jonnagiri, with potential to increase to 800 kilos plus.

A rights issue is planned to raise approximately INR 315 Crores, primarily to repay INR 200 Crores of existing debt and fund initial exploration and drilling in four other projects. These include lithium and copper-gold projects in Mozambique and a gold project in Finland, where a trial mine is projected to start in 2026. The company also reported discovery of nickel-copper-PGM mineralization in its Bhalukona project.

By 2030, Deccan Gold Mines aims to be a mid-tier gold producer, supplying critical minerals, with Jonnagiri production reaching one ton and Altyn Tor exceeding 800 kilos. The company plans to prioritize projects with majority ownership and is looking into new acquisitions in both gold and critical minerals.