Deccan Gold Mines: a debt-free balance sheet and a clearer path to production

The presentation highlighted a rights issue raising about 315 crore and clearance of outstanding debts, Jonnagiri (associate) entering revenue and profitability, commissioning of the gravity circuit in Kyrgyzstan, and discovery plus drilling progress for Ni-Cu-PGE mineralization at Bhalukona.

The PPT stated FY-27 gold production forecast of 600 kg and FY-28 of 800 kg, with peak production about 1 tonne per year. It also provided illustrative FY-27 estimates: revenue 900 crore, EBITDA 630 crore (75%), PAT 470 crore, and attributable PAT to Deccan (26%) of 120 crore.

Management said the gravity circuit is commissioned, the Merrill Crowe circuit is expected to be commissioned in June 2026, and full-scale production is targeted by August 2026, after completion of leach circuit and tailings dam works by end of July.

Management said Jonnagiri pays 4% royalty plus district mining fund and NMET totalling about 5.28% from topline under older Indian regulations, and Kyrgyzstan pays 5% royalty; management also mentioned revenue sharing arrangements in Kyrgyzstan when discussing margins.

The PPT stated 1,200 m of diamond core drilling across 7 holes, extending the mineralized zone to about 1.3 km. Management highlighted an intersection in BJD-01 of 2.6 m at 1.01% Ni with Cu and Pd, and described wider zones averaging around 0.4% Ni-equivalent above a 0.2% Ni-equivalent cutoff.

Management said additional funding of up to 100 crore is required, with a minimum of about 60 crore, mainly to complete commissioning of the Kyrgyzstan project and related requirements; it also indicated a larger fund raise would be planned for the next phase of project development.