Deccan Gold Mines: Production from the gold mine will start soon, stock ran after the news

News Topical, Digital Desk : Deccan Gold Mines Ltd. (DGML) will soon begin full-scale production at its Jonnagiri gold mine in Andhra Pradesh, according to the company's Managing Director, Hanuma Prasad. This will be India's first large private gold mine. Geomysore Services India Ltd. is developing the mine, which is DGML's stake in the project.

Approval Received in July

DGML MD Hanuman Prasad stated during the CII India Mining Summit 2025 that the project received environmental clearance in June and July. Necessary clearances have also been sought from the state government. Currently, plant technology and project stabilization work is underway. The mine will soon begin full-scale production. What will be the production potential? The Jonnagiri project is expected to initially produce 750 kg of gold per year. The company plans to increase production to 1,000 kg (approximately 1 ton) per year in two to three years. Currently, India's domestic gold production is only 1.5 tonnes. With the launch of this project, the country's annual production capacity will be increased by approximately 1 ton. Why is this significant? India is the largest consumer and importer of gold, importing approximately 1,000 tonnes of gold annually. If domestic gold production is increased, dependence on imports could be reduced. This could have a positive impact on the current account deficit (CAD). It will also benefit the domestic gold mining industry. Where is this project? This project is located in the Tuggali Mandalam area, near the villages of Jonnagiri, Erragudi, and Pagadirai in Kurnool district. DGML was established in 2003 and is India's first and only gold exploration company listed on the BSE. The company also has mining assets in India, Kyrgyzstan, Finland, and Tanzania. The stock saw a sharp rise . The news broke before market close on Thursday. Following the news, the stock saw a sharp rise. The stock closed the session with a gain of nearly 10%. The company is part of the BSE Smallcap Index. Even after today's gain, its market cap remains below ₹2,200 crore. The stock had reached ₹170 in June this year. Today, it closed at ₹134, compared to around ₹150 a year ago. This means the stock is delivering a negative return of 11% over one year. It is down 21% from its peak levels. 
 

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