Deccan Gold Mines has achieved a significant operational milestone with the successful completion of trial runs at Geomysore's Jonnagiri Gold Project. The company has now transitioned to commercial gold production, marking a crucial advancement in its mining operations.

Project Development Milestone

The Jonnagiri Gold Project has successfully completed its trial run phase, demonstrating the project's operational readiness and technical viability. This achievement represents a critical step in the project's development timeline, as trial runs are essential for validating mining processes and equipment performance before full-scale commercial operations.

Commercial Production Commencement

With the trial phase concluded, Deccan Gold Mines has moved forward with commercial gold production at the Jonnagiri facility. The transition to commercial operations signifies that the project has met all necessary technical and operational benchmarks required for sustained gold mining activities.

Strategic Significance

The commencement of commercial gold production at the Jonnagiri project represents an important development for Deccan Gold Mines' operational portfolio. The successful transition from trial runs to commercial production demonstrates the company's ability to execute mining projects and move them through critical development phases. This milestone positions the company to begin generating revenue from gold production operations at the facility.

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.