# 1. Financial Performance ## A. Key Figures * **Other Income:** **₹32 Cr** Total · **₹18.3 Cr - ₹19 Cr** Interest Income · **₹13 Cr** FX Gains * **Projected PAT (Geomysore):** **₹120 Cr** * **Projected PAT Margin (Kyrgyzstan):** **30%** FY27E · **40% - 45%** Peak Stage * **Target EBITDA Margin:** **70% - 75%** Group Operations ## B. Revenue & PAT * **Strategic Pivot:** Successfully transitioned from an exploration-focused entity to a revenue-generating producer, marking a defining period of profitability. * **Associate Contribution:** Reported earnings as a **26% shareholder** in Geomysore, which turned profitable during the quarter. * **Capital Allocation:** Projected earnings from Geomysore are expected to be reinvested into project expansion rather than distributed as dividends in the first year. * **Revenue Sharing:** Operations in Kyrgyzstan are governed by a **70% revenue-sharing** agreement with the government. ## C. Margin Profile * **Low-Cost Production Model:** Processing of tailings and low-grade stockpiles over the next four years is expected to significantly reduce operating expenses by bypassing large-scale mining. * **Unit Economics:** Management estimates production costs in specific areas at **₹3,000 per gram**, representing a massive spread against market prices of **₹16,000 per gram**. * **Operational Efficiency:** Anticipated high double-digit EBITDA margins are supported by lean opex, despite a **17% revenue share** obligation to a joint venture partner. * **Cost Drivers:** Investors are seeking further clarity on unit economics, LME price sensitivity, and the impact of crude oil prices on production costs. ## D. Other Income * **Yield on Debt:** Interest income is driven by a **15% interest rate** on debt funding provided to Auvilas. * **Currency Tailwinds:** Significant non-operating gains were realized from US Dollar-denominated lending activities. --- # 2. Project Portfolio & Capacity ## A. Key Figures * **Jonnagiri Gold Production:** **~100kg** total refined gold (as of March 2026) · **~30kg** March output · **~30kg** April estimate * **Jonnagiri Capacity & Life:** **1,000 TPD** (300,000 TPA) license · **10–15+ years** mine life * **Kyrgyzstan Altyn Tor Economics:** **$1,054/oz** AISC (incl. royalties) · **5%** Govt. royalty · **₹100 Cr** earmarked capex * Bhalukona Resource Estimate: 70,000–80,000 tonnes Nickel equivalent (preliminary) · 21% Govt. revenue share ## B. Jonnagiri Gold Operations * **Operational Milestone:** Successfully transitioned to the operational phase as India’s first new gold project in decades, achieving profitability through the sale of **999 purity bars** to domestic jewelers. * **Technical Validation:** Current open-pit operations have confirmed a metallurgical recovery rate exceeding **90%**, validating historical technical test work. * **Regulatory & Infrastructure:** Secured government orders for the transfer of remaining land blocks; formal plant inauguration by the **Chief Minister** is scheduled for next month. ## C. Kyrgyzstan Altyn Tor * **Commissioning Timeline:** Gravity circuit is operational with gold concentrate production underway; full-scale commercial production and the leaching circuit are slated for **August 2026**. * **Resource Optimization:** Initial processing focuses on low-grade tailings (**1.0–1.1 g/t**), with future underground development targeting high-grade ore exceeding **3 g/t**. * **Offtake & Standards:** All gold production is designated for sale to the National Bank of Kyrgyzstan, with pricing benchmarked to **LBMA standards**. ## D. Bhalukona Critical Minerals * **Strategic Discovery:** Identified significant Nickel-Copper-PGE mineralization in Chhattisgarh; the project is being fast-tracked for a mining lease application by **April 2025**. * **Economic Viability:** Wide mineralized zones suggest profitable open-pit potential even at lower grades (**0.2%–0.3%**); samples are currently being tested for **battery production** suitability. * **Monetization Path:** Plans to sell concentrates to major Indian smelters (e.g., **Adani or Vedanta**) unless scale justifies an internal smelter. ## E. Global Exploration Assets * **European Portfolio:** Developing high-grade gold assets in Finland (targeting **5–10 g/t**) and a Gold-Tin-Tungsten project in Spain, which recently yielded a high-grade gold intersection of **96.2 g/t**. * **Mozambique & Tanzania:** Operations in Mozambique (Lithium/Tantalum) are currently paused to prioritize Kyrgyzstan cash flows; portfolio rationalization in Tanzania resulted in relinquishing three non-performing licenses. * **High-Value Pipeline:** The Ganajur project is highlighted as a premier asset with potential EBITDA estimated at **2x** that of the Jonnagiri project due to superior ore grades. --- # 3. Strategic Initiatives & M&A ## A. Key Figures * **Asset Ownership:** **26%** Jonnagiri (India) · **60%** Altyn Tor (Kyrgyzstan) · **100%** Tanzania Licenses * **Production Targets (2030):** **~1 Ton/Annum** Jonnagiri · **700-800 kg** Altyn Tor * **FX Impact:** **₹1,500 Cr** savings in foreign exchange per ton of domestic gold produced ## B. Stake Acquisition Model * **Strategic Expansion:** Utilizing an "earn-in" investment model to scale holdings in Finland and Spain, with a near-term goal of reaching a majority **51% stake** in Spanish tungsten-tin operations. * **M&A & Listing Strategy:** While a reverse merger and separate listing for Geomysore have been evaluated to unlock value, no board decisions are imminent due to historical **valuation discrepancies**. * **Subsidiary Framework:** International acquisitions are being optimized through a **Dubai-based subsidiary** to facilitate phased funding and operational flexibility. ## C. 2030 Production Roadmap * **Multi-Project Transition:** Evolution from explorer to producer is underway, with a target to operate multiple gold and critical mineral sites within **2 to 3 years**. * **Critical Mineral Diversification:** Long-term growth is anchored by India’s first **Nickel-Copper-PGE mine** at Bhalukona and lithium/tantalum projects in Mozambique. * **Capital Intensity:** Management is currently defining the total **equity and debt** requirements necessary to fund the transition to a multi-asset producer by the end of the decade. ## D. Partnership & JV * **Strategic Alliances:** Partnering with the **Mineral Exploration Network** to access high-potential European assets, with rights to increase project stakes up to **95%**. * **Geopolitical Advantage:** Strong relations with the state-owned **Kyrgyzaltyn** in Kyrgyzstan provide a stable operating environment where Indian management is preferred over regional peers. * **Legal Collaboration:** Pursuing a collaborative legal strategy with **Indocil** to resolve Ganajur project hurdles, leveraging a perceived superior legal position. ## E. Policy Advocacy Efforts * **National Interest Alignment:** Actively engaging the **PMO and NITI Aayog** to frame domestic gold mining as a critical tool for reducing India's **800-ton annual import** reliance. * **Litigation Resolution:** Shifting toward high-level policy advocacy in Andhra Pradesh and Karnataka to break the deadlock on the **Ganajur litigation**. --- # 4. Capital Allocation & Funding ## A. Key Figures * **Rights Issue Proceeds:** **₹315 Cr** Total raised * **Debt Repayment:** **₹219 Cr** To Hira Group and Godavari Power (Achieved debt-free status) * **Project Investments:** **₹32 Cr** Kyrgyzstan direct investment · **₹55 Cr** Geomysore equity stake maintenance * **Near-Term Funding Gap:** **₹60 Cr** to **₹100 Cr** Required for Kyrgyz project completion * **Medium-Term Capex:** **₹350 Cr** to **₹400 Cr** Per project (Bhalukona/Jonnagiri model) · **₹500 Cr** Spanish project * **Long-Term Funding Target:** **₹800 Cr** to **₹1,000 Cr** ($100M) Estimated for dual-project setup ## B. Rights Issue & Debt Profile * **Clean Balance Sheet:** The company utilized the majority of its recent capital raise to extinguish all outstanding debt, transitioning to a **debt-free** position as of March 2026. * **Promoter Commitment:** High-profile promoters, including **Mark Creasy**, participated in the rights issue; major entities like Yandal and Halcyon maintained their stakes without selling. * **Strategic Reallocation:** A portion of funds originally intended for Kyrgyzstan was diverted to maintain a **26% stake** in Geomysore, creating a temporary funding deficit for the Kyrgyz operations. ## C. Future Capex & Project Roadmaps * **Kyrgyzstan Operationalization:** Management requires significant capital to reach production, with an "outer limit" of **₹100 Cr** to cover construction and working capital through the August inauguration. * **High-Intensity Mining:** Future projects in Spain and Bhalukona carry heavy price tags; Spain’s underground requirements necessitate **₹500 Cr**, while Bhalukona’s open-pit and plant setup is estimated at **₹400 Cr**. * **Infrastructure Benchmarking:** New projects are being modeled after the Jonnagiri project, assuming a **1,000 tonnes per day** capacity. ## D. Fundraising Strategy * **Multi-Pronged Approach:** To bridge the **₹500 Cr to ₹700 Cr** total portfolio requirement, management is evaluating a Follow-on Public Offer (FPO), QIPs, and preferential allotments. * **FPO Timing:** Plans for an FPO are being aligned with cultural milestones (e.g., **Dhanteras**) to optimize market sentiment, though execution depends on drilling results and project integration. * **Value Unlocking:** Potential for a **Geomysore IPO** within 1-2 years is being discussed as a mechanism to unlock shareholder value. * **Promoter Support:** Key shareholders and Australian promoters have expressed willingness to provide further **debt or equity** to meet a **₹100 Cr** immediate three-month requirement. ## E. Internal Accrual Reinvestment * **Tax-Efficient Inflows:** Investments in Kyrgyzstan are structured as **15% interest-bearing debt**, allowing the company to recoup capital as debt repayment and avoid dividend taxes for up to **1.5 years**. * **Self-Sustaining Growth:** Management expects internal accruals from initial gold sales to fund the transition to underground mining in Kyrgyzstan and future expansions at Geomysore. * **Capital Discipline:** The company is weighing the reinvestment of projected **₹180 Cr** profits into capex versus potential shareholder payouts. --- # 5. Operational Execution & Technology ## A. Key Figures * **Drilling Progress:** **1,200 meters** diamond core (1.3km strike) · **1,500 meters** extension drilling (4 holes) * **Nickel Grade (Expected):** **0.4% to 0.5%** (Massive sulphides @ 1%+ | Disseminated @ 0.2%-0.3%) * **Project Workforce:** **130** Indian experts (Kyrgyzstan) · **200** total personnel (Kyrgyzstan) * **Processing Capacity:** **100 TPD** (Mozambique lithium plant) ## B. Mining & Processing * **Infrastructure Milestones:** Construction of the large-scale leaching circuit and tailing dam is underway, with a targeted completion date of **July 2026**. * **Strategic Lithium Entry:** Establishing a processing plant in Mozambique to upgrade low-grade stockpiles to **>4% lithium concentrate**, aligning with India’s critical mineral security needs. * **Regional Monetization Models:** Gold sales are bifurcated by jurisdiction; refined bars are sold directly to Indian jewelers, while Kyrgyzstan production is sold to the National Bank at LBMA-linked prices. * **Winter-Proofing Operations:** Infrastructure in cold-climate regions has been specialized with underground pipelines and enclosed sheds for leaching tanks to ensure year-round continuity. ## C. Resource Modeling Progress * **Nickel-Copper Potential:** Initial drilling confirmed significant mineralization layers, including high-grade zones of **1.01% nickel** and **0.29% copper**. The project is estimated to hold a resource value equivalent to **7 to 8 tonnes of gold**. * **Timeline for Resource Updates:** A revised resource estimate is slated for **June 2026**, with a comprehensive Life of Mine (LOM) plan following in **August 2026** to optimize open-pit extraction. * **Exploration Upside:** Geophysical surveys indicate mineralization extends to depths of **500 meters**, well beyond current drilling; meanwhile, the Logrosan project has confirmed tungsten and potential Rare Earth targets. * **Pending Assays:** UV light testing has confirmed tungsten presence in recent cores, with formal assay results expected within **7 to 10 days**. ## D. Technical Team Strengthening * **Talent Retention Strategy:** To address the gap between major projects, the company is transitioning its core process engineering team from Kyrgyzstan to upcoming sites like Bhalukona. * **Aggressive Recruitment:** The technical bench is being expanded with plans to hire **15 additional engineers** in the next two months to support the project pipeline. * **Global Leadership Structure:** Operations are decentralized under specialized leads, including Andrew Weeks (Mining/Exploration), Alexander Mikhailov (Europe/CIS), and Krishna Kumar (Mozambique). ## E. Infrastructure & Logistics * **Strategic Synergies:** The company’s proximity to **Vedanta’s license area** offers potential logistical advantages for concentrate processing should mineralization patterns align. * **Local Partnerships:** Infrastructure essentials, including power and water approvals, are being managed by local partner **Kyrgyzaltyn** to de-risk execution. --- # 6. Risks & Mining Uncertainties ## A. Key Figures * **Projected Gold Output:** **1 to 1.2 tons** Target capacity * **Government Duties (India):** **5.28%** of top-line (4% Royalty + 1.28% DMF/NMET) * **Conservative Price Benchmarks:** **₹15,000/gram** (Jonnagiri) · **$4,000/oz** (~$500 discount to LBMA for Kyrgyzstan) * **Production Lead Time (Ganajur):** **30 months** Post-litigation win (15m approvals + 15m construction) ## B. Seasonal & Operational Risks * **Climate Sensitivity:** Kyrgyzstan operations face extreme weather risks; a one-month funding delay can trigger a **three-to-four-month** work stoppage due to **-30°C** winter temperatures. * **Strategic Deferment:** Management has paused drilling in Finland to prioritize full-scale commissioning in Kyrgyzstan and active projects in India and Spain. * **Execution Gaps:** Leadership acknowledged that planning for harsh climates and civil works requires improvement to prevent future seasonal offsets. ## C. Commodity & Cost Exposure * **Risk Mitigation Strategy:** The company lacks a formal hedging policy, relying exclusively on significant price discounts in financial projections to buffer against gold price volatility. * **Energy Input Stability:** Crude oil fluctuations are expected to have a minimal impact (**<5%**) on production costs due to stable supply and lower fuel pricing in Kyrgyzstan versus India. ## D. Legal & Litigation * **High-Stakes Litigation:** Critical gold deposits in Karnataka and the Ganajur project remain stalled by ongoing High Court and Supreme Court proceedings. * **Strategic Coordination:** Management is aligning with the Indocil team to develop a unified legal strategy for upcoming hearings to resolve licensing disputes with State and Central governments. ## E. Regulatory & Compliance Hurdles * **Banking & Capital Flow:** Overseas Direct Investment (ODI) compliance checks by Indian banks have caused liquidity bottlenecks, delaying international fund transfers by up to **one month**. * **Permitting Bottlenecks:** Jonnagiri expansion and Kyrgyzstan development are contingent on pending public hearings and environmental clearances required for increased plant capacity. * **Government Relations:** While the Indian State Government is facilitating land acquisition for the first mine, the Ganajur project remains heavily dependent on securing specific policy relief. --- # 7. Guidance & Outlook ## A. Key Figures * **Production Targets:** **600kg** Gold (FY26-27) · **800kg - 1,000kg** Gold (FY28) ## B. Production Volume Targets * **Scaling to Peak Capacity:** Management is targeting a steady-state production of **1 ton per year** through ongoing expansions and a transition from low-grade surface materials to high-grade underground ore. * **Project-Specific Ramps:** Significant volume growth is expected from the Dhonamani project, with inquiries into accelerating the ramp-up to reach full capacity within **12 to 15 months**. * **Underground Transition:** Long-term output is projected to double following the shift to underground mining, with development costs estimated between **₹50 Cr and ₹100 Cr**. ## C. FY2027 Financial Projections * **Profitability Drivers:** Robust consolidated margins are underpinned by high-margin operations, with the Jonnagiri project expected to contribute **₹120 Cr** to the bottom line. * **Capital Allocation & Dividends:** Despite strong projected earnings, dividend payouts for FY2027 are unlikely as cash flows are prioritized for the **Jonnagiri plant expansion**. * **Valuation Benchmarks:** Management and shareholders highlighted a target **P/E multiple of 45**, significantly above the Indian market average, supported by the projected earnings per share. * **Future Visibility:** Clearer financial guidance for FY2028 will be available within **6 to 8 months** once the scale of plant expansions is finalized. ## D. Commissioning Timelines * **Kyrgyzstan Operational Milestones:** The full-scale leaching circuit is slated for completion by **July 2026**, targeting a peak capacity of **1kg of gold per day**. * **Immediate Catalysts:** Commissioning of the intense leaching circuit is expected in **June 2024**, enabling the immediate production of Doré Bars from gravity concentrates. * **Regulatory Upside:** The Indocil project timeline could be shortened by **8 to 9 months** contingent upon fast-tracked environmental clearances. ## E. Resource Expansion Goals * **Jonnagiri Resource Target:** The company is aggressively drilling with **10 rigs** to increase resources from 12 tons to a **1 million ounce (32 ton)** target within the next year. * **Strategic Diversification:** Exploration is underway at the Spain Tungsten and Bhalukona projects, with a three-year horizon for potential revenue generation from these diversified assets. * **Asset Longevity:** Proven resources at key sites are expected to support a mine life of approximately **15 years** with daily plant capacities of up to **3,000 tonnes**.