Lloyd Enterprises Stock Surges On Strategic Gold Mining Venture

Lloyd Enterprises has seen its stock price jump over 40% in the last month, driven by a significant strategic acquisition in the mining sector.

The company is set to acquire a 50% stake in Prakar Estates and Promoters LLP. This substantial acquisition is valued at Rs 140 crore and is anticipated to be finalised before July 15, 2025, marking a swift and decisive move by Lloyd Enterprises.

Prakar Estates operates primarily in the acquisition and management of mining assets. Beyond this, the entity is well-equipped to provide specialised services including drilling, mineral testing, and geological consultancy. A key aspect of Prakar Estates' portfolio is its significant 63.17% ownership in Geomysore Services India.

GMSI is the holder of the mining lease for the Jonnagiri Gold Project, which stands as India's inaugural gold mine in Andhra Pradesh. It's important to note that Deccan Gold Mines holds a 27.27% stake in the company.

This project boasts an impressive capacity of 1,000 tonnes per day, equating to 330,000 tonnes per annum. GMSI has ambitious plans to produce up to 1,000 kgs of refined gold annually for the next 15 years, with commercial production slated to commence within the current quarter. Financially, GMSI projects a peak revenue of Rs 950 crore per annum and an expected EBITDA of Rs 700 crore.

This acquisition holds immense strategic importance for Lloyd Enterprises. Given Prakar's over 63% ownership in Geomysore, Lloyd Enterprises will effectively gain an indirect 31.58% stake in Geomysore Services through this transaction. With Geomysore deeply involved in gold mining and processing, this move clearly indicates Lloyd's proactive exploration of significant investment opportunities within the mining industry.

The indirect benefits flowing to Lloyd Enterprises through GMSI are noteworthy. GMSI is poised to enjoy a considerable cost advantage over gold imports, primarily due to exemptions in import duties. Furthermore, the strategic location of its processing plant directly within the mining lease area is expected to significantly reduce logistic costs, enhancing overall operational efficiency and profitability.