Deccan Gold Mines Ltd. has received the nod from the Andhra Pradesh Pollution Control Board to operate Jonnagiri Gold mines for a project by Geomysore Services (India) Pvt., an associate of the company. According to Hanuma Prasad Modali, managing director of the company at its peak the mines will produce 750 kg of gold.
He further added that it is the first gold mine to be established in India in last 80 years. "In first year, it will produce 400 kg of gold, but in its final stage the mine will produce 750 kg of gold per annum," Modali told NDTV Profit.
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The final permission from the Andhra Pradesh Pollution Control Board means that the company can operate the mines and the processing plant. However, he added that it will take a couple of months to begin operation as there is a need to conduct a few trial runs before the operations begin.
The gold mined from the project is expected to be sold to refineries that are close to the project.
While discussing the revenue gains from the mine, he said that in the first year, they expect to make a revenue of Rs 300-350 crore, if they pull out 400 kgs of gold at an EBITDA margin of 60%. This is likely to happen in financial year 2027 he added.
Deccan Gold Mines Shares Advance
The share price of Deccan Gold has rallied to hit 10-month high at the back of this announcement. Additionally, the shares were also trading at a high volume.
The shares of Deccan Gold Mines rose as much as 14.28% to Rs 170.50 apiece, the highest level since Aug. 6, 2024. It pared gains to trade 11.70% higher at Rs 166.75 apiece, as of 10:17 a.m. This compares to a 0.38% advance in the Sensex index.
It has risen 58.42% in the last 12 months and 46.70% year-to-date. Total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 49.23.
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