Deccan Gold Mines Limited (DGML) has approved a rights issue of 3,93,37,893 shares priced at ₹80 per share, aiming to raise ₹314.70 crore from existing shareholders. This development comes as the company gears up for production and strengthens its financial position.

Key Highlights

• Rights Issue: Approved to raise ₹314.70 crore, with shares priced at ₹80 each.
• Issue Timeline: Opens on December 17, 2025, and closes on December 26, 2025.
• Record Date: December 9, 2025, set for determining eligible shareholders.
• Jonnagiri Plant: Successfully commissioned, with full-scale production underway.
• Kyrgyzstan Project: Final preparations for trial production are in progress.
• Debt Repayment Plans: Aims to clear ₹200 crore of existing debt.
• New Discovery: Nickel-copper-PG mineralization discovered at the Bhalukona project.

Financial Strategy and Rights Issue

DGML's decision to initiate a rights issue of ₹314.70 crore is a strategic move aimed at strengthening its financial position. The primary objectives of this capital raise are:

1. Debt Repayment: A significant portion of the funds will be used to clear existing debt, potentially improving DGML's balance sheet.
2. Exploration Funding: The remaining funds may support exploration activities across various projects, including the Bhalukona project.

This financial restructuring could improve DGML's balance sheet and provide capital for its growth initiatives.

Project Updates

Jonnagiri Plant

The successful commissioning of this plant is a crucial step towards establishing DGML as a gold producer in India. Full-scale production at this site could impact the company's revenue in the coming quarters.

Kyrgyzstan Project

With final preparations underway for trial production, this project represents DGML's international expansion and diversification strategy. The progress here could be a key driver for the company's future growth.

Bhalukona Project

The discovery of nickel-copper-PG mineralization adds a new dimension to DGML's portfolio. This find could potentially diversify the company's resource base beyond gold, providing additional avenues for growth and risk mitigation.

Market Implications

The developments at DGML, particularly the rights issue, are likely to attract investor attention in the Indian mining sector. As the company transitions from exploration to production, it may see increased interest from both retail and institutional investors. The rights issue, while dilutive in the short term, could set the stage for stronger financial performance if the production ramp-up meets expectations.

Conclusion

Deccan Gold Mines Limited appears to be at a pivotal juncture in its corporate journey. The rights issue, along with the successful commissioning of the Jonnagiri plant and progress in the Kyrgyzstan project, collectively position the company for potential growth. However, investors should closely monitor the execution of these plans, particularly the transition to full-scale production and the outcomes of the exploration activities funded by the rights issue.

As DGML moves forward, its ability to efficiently manage its expanding operations, control costs, and capitalize on its mineral discoveries will be crucial in determining its success in the competitive mining industry. The coming quarters will be critical in assessing whether the company can translate these developments into tangible financial results and shareholder value.

Deccan Gold Mines Limited (DGML) has presented an ambitious roadmap for its global gold and critical minerals operations in an investor presentation. The company, which is India's first listed exploration and mining entity, outlined its diverse portfolio spanning India, Kyrgyzstan, Mozambique, Finland, and Tanzania.

Key Highlights

• Rights Issue: DGML is preparing for its largest capital raise to date, with a rights issue not exceeding ₹315.00 crores.
• Production Targets: The company aims to increase gold production at its Jonnagiri mine in India and Altyn Tor project in Kyrgyzstan to approximately 1 tonne per annum each by 2030.
• Critical Minerals Focus: DGML is expanding into critical minerals, including lithium, tantalum, and copper, with projects in Mozambique and India.
• Finland Operations: The company is advancing gold exploration projects in Finland, a Tier 1 mining jurisdiction.

Operational Updates

Jonnagiri Gold Mine, India

• India's first new private gold mine since independence
• Total JORC Mineral Resources of 8.20 million tonnes at 1.49 g/t Au
• Initial production forecast of 400 kg/year, with plans to increase to 800+ kg/year by FY 2027

Altyn Tor Project, Kyrgyzstan

• 60% investment in Avelum Partners
• Mineral Resources estimated at 4.65 Mt grading 1.21 g/t Au for 5.60 tonnes
• Low-grade stockpiles and tailings to provide 3-4 years of production

Mozambique Projects

• Lithium and tantalum exploration in the Alto Ligonha Pegmatite Province
• Copper exploration in the Tete Province, showing strong evidence of mineralization

Finland Operations

• Three gold exploration projects in Eastern Finland
• Kuikka Deposit showing high-grade gold values ranging from 5g/t to over 120g/t

Bhalukona Nickel Project, Chhattisgarh

• One of the first nickel licenses granted in India
• Early evidence of nickel, copper, and platinum group elements (PGEs) mineralization

Financial and Strategic Outlook

DGML's presentation highlighted its focus on both near-term production and long-term exploration. The company's strategy includes:

1. Increasing gold production at existing mines
2. Developing critical mineral projects in Mozambique
3. Exploring high-potential areas in Finland and India
4. Seeking acquisitions of near-production gold or critical mineral projects

The rights issue, not exceeding ₹315.00 crores, is expected to fund these expansion plans and strengthen the company's position in the global mining sector.

Management Commentary

Dr. M. Hanuma Prasad, Executive Director and Managing Director, stated, "Our diverse portfolio across multiple jurisdictions positions Deccan Gold Mines as a significant player in both gold and critical minerals sectors. We are committed to responsible mining practices and creating value for all stakeholders."

Deccan Gold Mines' investor presentation underscores its transformation from a purely gold-focused company to a diversified minerals producer, aligning with global demand for critical minerals and maintaining a strong presence in the gold sector.