Deccan Gold Mines Ltd (512068)

Deccan Gold Mines reported a standalone net profit of ₹6.51 crore in Q2 FY27, up from ₹1.18 crore in Q1 FY27, on standalone total income of ₹17.24 crore. Growth was driven by its 26% associate, Thriveni Lloyds Swarnagiri, which produced 135 kg of gold in Q2 (224 kg in H1 FY27) with an EBITDA margin of ~70%, generating ₹13.91 crore in profit share for Deccan Gold. Consolidated net loss narrowed sharply to ₹0.55 crore from ₹8.73 crore in Q1 FY27. Internationally, its 60%-owned Altyn Tor gold project in Kyrgyzstan was inaugurated, dispatching its first 1.2 kg doré bar for refining validation.

• Associate Swarnagiri produced 135 kg gold in Q2 (224 kg in H1 FY27) targeting ~400 kg for FY27.
• Share of associate profits rose to ₹14.20 crore in Q2 FY27 vs ₹6.64 crore in Q1 FY27.
• Consolidated net loss narrowed to ₹0.55 crore from ₹8.73 crore in Q1 FY27.
• Standalone net profit grew to ₹6.51 crore from ₹1.18 crore sequentially on income of ₹17.24 crore.
• Altyn Tor (Kyrgyzstan) dispatched maiden 1.2 kg doré bar for refining validation.

Deccan Gold Mines' subsidiary, Avelum Partner LLC, has executed an agreement with state-owned OJSC Kyrgyzaltyn for the refining and sale of gold-bearing doré produced from the Altyn Tor Gold Project in the Kyrgyz Republic. Under the agreement, a first trial consignment of a 1.2 kg doré bar has been dispatched to establish operational, refining, and settlement procedures. This milestone advances commercialization for a pre-revenue mining company that posted TTM revenues of only ₹14 Cr and a net loss of ₹45 Cr. Establishing a commercial refining route is critical to unlocking revenue from Altyn Tor, where the company targets 800 kg to 1 ton of annual gold production.

• Subsidiary Avelum Partner LLC signed an agreement with state-owned OJSC Kyrgyzaltyn for gold doré refining and sale
• Dispatched first consignment containing a 1.2 kg doré bar from the Altyn Tor Gold Project
• Consignment aims to validate operational, refining, and financial settlement workflows
• Advances commercialization of Altyn Tor, where the firm ultimately targets 800 kg to 1 ton annual output

Deccan Gold Mines has reported preliminary geological modelling indicating over 4 million tonnes of mineralisation grading ~0.24% nickel equivalent (Ni_Eq) at its Bhalukona project in Chhattisgarh. The current estimate is based on 15 drill holes totaling 2,773 metres and covers only about 25% (300-350 metres) of an identified 1.3-km mineralised corridor. While Deccan Gold remains loss-making with TTM revenue of ₹14 Cr and TTM PAT of -₹45 Cr, domestic critical mineral discoveries represent a key strategic growth vector. The figures are preliminary exploration estimates and do not yet constitute defined mineral resources or reserves.

• Preliminary modelling indicates potential for over 4 million tonnes of mineralisation at ~0.24% nickel equivalent (Ni_Eq).
• Current estimates cover only ~25% (300–350 metres) of the identified 1.3-km mineralised corridor.
• Diamond-core drilling completed across 15 drill holes totaling 2,773 metres since March 2026.
• The project spans approximately 30 sq. km under a Composite Licence executed on April 1, 2025.

Deccan Gold Mines has reported preliminary geological modelling results for its Bhalukona Ni-Cu-PGE deposit in Chhattisgarh, revealing over 4Mt of potentially economic ore grading ~0.24% Ni-equivalent (containing >10,000 tonnes of Ni-equivalent metal). The estimate covers only near-surface mineralisation and ~25% (300-350m) of an identified 1.3km mineralised corridor. Exploration to date includes 15 diamond core drill holes totaling 2,773 meters across the 30 sq. km composite licence area. While encouraging for the exploration-stage company (TTM revenue of Rs 14 Cr and loss of Rs 45 Cr), the estimates are preliminary and do not yet constitute JORC/defined reserves.

• Preliminary modelling indicates >4Mt of ore grading around 0.24% Ni-equivalent, containing >10,000t of nickel-equivalent metal
• Current estimates cover only 25% (300-350m) of an identified 1.3km long, 100+m wide mineralised corridor to depths exceeding 200m
• Exploration completed includes 15 diamond core drill holes totaling 2,773m across the 30 sq. km composite licence area
• Top mineralised intercepts include 34.20m at 0.31% Ni_Eq (BJD-09) and 54.00m at 0.21% Ni_Eq (BJD-03)

Deccan Gold Mines has completed its maiden 8-hole drilling programme totaling 3,522 metres at the Dehesa target within its Logrosán project in Spain, with all holes showing tungsten or tungsten-tin mineralisation. Preliminary geological modelling indicates potential mineralisation exceeding 2.3 million tonnes, including over 2,000 tonnes of tungsten trioxide (WO₃) and 500 tonnes of tin oxide (SnO₂). The company holds an earn-in agreement to acquire a 51% stake in Logrosán Minera S.L., with options to scale to 75% or 95%. Exploration is also underway at the Maria prospect (3 holes completed, 820 metres drilled) alongside €250,000 in Spanish government exploration incentives.

• Maiden drilling completed across 8 holes totaling 3,522 m (average depth ~430 m, deepest 626 m), with all holes intersecting mineralisation.
• Preliminary modelling indicates >2.3 million tonnes of mineralised material, including >2,000 tonnes of WO₃ and 500 tonnes of SnO₂.
• Holds earn-in agreement to acquire 51% of Logrosán Minera S.L., with options to expand to 75% and up to 95%.
• Secured up to €250,000 in Spanish government deductions for exploration costs at the La Brujas prospect.

Deccan Gold Mines released its 42nd AGM presentation outlining operational transitions from exploration to commercial production. At the Jonnagiri project in Andhra Pradesh, Q1 FY27 output reached 112.7 kg doré, 89.7 kg gold ingots, and 59.0 kg refined gold sold, with targets to reach ~90 kg per quarter and eventually >1 tonne per annum by 2029. In Kyrgyzstan, the Altyn Tor gold processing plant was officially inaugurated on September 12, 2026, following first doré output on August 5, 2026. The company is also advancing critical mineral exploration across Spain (tungsten-tin), Mozambique (lithium-tantalum), and India (Bhalukona Ni-Cu-PGE).

• Jonnagiri produced 112.7 kg doré, 89.7 kg ingots, and sold 59.0 kg refined gold in Q1 FY27, targeting ~90 kg per quarter
• Altyn Tor processing plant officially inaugurated on September 12, 2026, after first doré production on August 5, 2026
• Jonnagiri reported Q1 FY27 standalone profit of ₹11.5 Mn and share of Geomysore profit of ₹63.5 Mn
• Bhalukona Ni-Cu-PGE completed ~2,500 m drilling over a >1.3 km zone, targeting a 3,000 tpd plant setup
• Mozambique lithium-tantalum exploration planned with 1,500-2,000 m drilling starting October for an initial 200 tpd plant by end-2027

Deccan Gold Mines announced that its Altyn Tor Gold Project in Kyrgyzstan, operated via subsidiary Avelum Partner LLC, has transitioned to the production stage and will be inaugurated by Kyrgyz President Sadyr Japarov on September 11, 2026. This marks the first Indian investment in the Kyrgyz gold mining sector to reach commercial production. The operational milestone is critical for Deccan Gold, which generated TTM revenue of just ₹14 Cr and net losses of ₹45 Cr, as commercial output begins generating operating cash flows.

• Altyn Tor Gold Project scheduled for official national inauguration on September 11, 2026.
• Project marks the first Indian investment in the Kyrgyz Republic's gold mining sector to reach production stage.
• Deposit is located in the Naryn region within the 300km Soltan Sary mineralization zone (Tien Shen Shear Zone).
• Transition from exploration to production is set to scale operations above current TTM revenue base of ₹14 Cr.

Deccan Gold Mines detailed its operational transition from exploration to commercial gold production during its Q1 FY27 earnings call. The company booked a ₹6.35 Cr profit contribution from Geomysore Services (Jonnagiri project) following the sale of 59 kg of gold bullion. At the Altyn Tor mine in Kyrgyzstan, dore bar production has commenced, with revenue and profit contributions expected starting Q2 FY27. To support ongoing exploration and expansion, the Board has approved a ₹137 Cr fundraise via equity, CCDs, and warrants, representing ~27.6% of net worth.

• Geomysore Services contributed ₹6.35 Cr profit to Deccan Gold in Q1 FY27 with 59 kg gold bullion sold from Jonnagiri.
• Board approved a ₹137 Cr capital raise through CCDs, equity shares, and equity warrants to fund exploration assets.
• Jonnagiri processing capacity planned to scale from 1,010 tpd to 2,500 tpd, targeting up to 2 tons of gold per annum by 2029-2030.
• Altyn Tor mine in Kyrgyzstan commenced dore bar production, expected to deliver continuous output and revenue in Q2 FY27.
• Estimated future underground capex of ₹150-200 Cr for Altyn Tor (3-4 years out) and >₹400 Cr for Jonnagiri (4-5 years out).