### **Overview** Deccan Gold Mines Limited (DGML) is India’s **only BSE-listed company focused exclusively on gold and critical minerals**, with operations spanning India, Kyrgyzstan, Mozambique, Finland, and Tanzania. Founded in 2003, DGML has evolved from a domestic exploration firm into a globally diversified mining company with a dual focus on **gold production and critical minerals for the energy transition**. Following a strategic regrouping since 2021, the company is transitioning into **full-scale production** at two advanced gold projects and has rapidly expanded its footprint in lithium, tantalum, copper, nickel, and PGEs. Management’s vision is to become a **junior to mid-tier global producer** of gold and critical minerals by 2030, targeting **2 tonnes of annual gold production** and emerging as a key supplier of strategic minerals aligned with India’s self-reliance goals and global green energy demands. --- ### **Strategic Highlights (2021–2025)** - **Global Expansion & Diversification**: DGML has acquired stakes in advanced-stage gold projects in **India, Kyrgyzstan, Tanzania, and Finland**, while entering the **critical minerals sector** via major projects in **Mozambique and India (Chhattisgarh)**. - **First Mover Status**: - First BSE-listed company to operate in **Mozambique** for critical minerals. - First Indian mining company to invest in **Kyrgyzstan** (via Altyn Tor project). - Developing **India’s first new private gold mine since independence** at Jonnagiri. - **End-to-End Capabilities**: DGML has developed **integrated capabilities** from greenfield exploration to mine development and processing, supported by its in-house **Dubai-based consultancy arm, Deccan Gold FZCO (DGFZCO)**, which provides technical services across Africa and CIS countries. --- ### **Production Outlook (2025–2027)** DGML is on the cusp of production across multiple assets: #### 1. **Jonnagiri Gold Project – Andhra Pradesh, India (27% stake via Geomysore)** - **Resource**: JORC-compliant **12 tonnes (386,000 oz)** of gold across four blocks; East Lode hosts 150,000 oz. - **Mine Plan**: - Open-pit mining with **simple, high-recovery metallurgy** (free gold, ~90% recovery). - Initial processing capacity: **300,000 tonnes per annum (tpa)**. To scale to **660,000 tpa by FY2027**. - Initial production: **400–500 kg/year (13,000–16,000 oz)** from FY2027. - Long-term target: **1 tonne per year by 2030**. - **Status**: Operational pilot plant producing **dore bars**; full-scale commissioning expected shortly. - **Significance**: India’s first new private gold mine with high profitability due to low all-in sustaining cost (AISC), estimated at **$1,045/oz**. #### 2. **Altyn Tor Gold Project – Kyrgyzstan (60% via Avelum Partners)** - **Resource**: **5.6 tonnes (180,000 oz)** at 0.5 g/t cutoff; target to expand to **>8 tonnes**. - **Mine Plan**: - Open-pit and underground mining in the **Tien Shan district**, known for free-milling quartz veins. - Processing capacity: **330,000 tpa (~1,000 tpd)**, up from 300–400 tpd. - Leaching circuit to boost recovery from **60% to >90%**. - Production start: **2026**, with **350 kg/year** expected by **FY2027**, ramping to **800 kg/year** underground. - **AISC**: **$1,045/oz**. - **Status**: Production has already commenced at small scale; full ramp-up underway. #### 3. **Kalevala Gold Project – Finland (32% stake, option to increase to 75%)** - **Geology**: High-grade orogenic gold in **quartz veins (5–30 g/t Au)** in Suomussalmi greenstone belt. - **Kuikka Deposit**: - Historical bulk sample yielded **591g dore and 450g fine gold**. - Planned **2026 trial open-pit (7,000 tonnes ore, 1,500–2,500 oz)**, pending environmental clearance. - **Production Target**: **276 kg/year** starting **FY2029**, with future underground operations. #### 4. **Tanzania Projects** - Holds **five gold prospecting licenses** in high-potential greenstone belts. - Formerly held stake in **Lake Victoria Gold (LVG)** with 85,000 oz reserves; pursuing legal and strategic options for re-entry. --- ### **Critical Minerals Portfolio** DGML has strategically diversified into **lithium, tantalum, nickel, copper, and PGEs**, aligning with India’s and the world’s energy transition needs. #### **Mozambique (via DGMOZ & DMMOZ subsidiaries)** - **Lithium-Tantalum Project (Alto Ligonha Pegmatite Province)**: - Targets **lepidolite, spodumene, zincolite** with co-existing Ta, Cs, Be, Ga. - **Due diligence reveals Li₂O up to 6%**. - **First shipment**: **150 tonnes of 2.5% Li₂O ore exported to China (Sep 2024)**. - **Plan**: - Build **100-ton-per-day (tpd) processing plant (2026)**, scalable to **1,000 tpd (2029)**. - Target **72,000 t/year of 4–5% Li₂O concentrate** (+ by-products). - Target resource: **3 million tonnes at 1% Li₂O**. - **Challenges**: Preliminary **NPV negative (-$62M to -$68M)** due to high Capex; scale and by-product credits seen as key to future economics. - **Copper-Gold Project (Tete Complex)**: - DGML holds **90–95% stake** over several tenements. - Artisanal mining confirms **malachite and gold mineralization**. - **Drilling planned Q1 2026** to upgrade resources. - Geologically akin to Zambian Copperbelt. #### **India – Bhalukona-Jamnidih Project (Chhattisgarh)** - Targets **nickel, chromium, platinum group elements (PGE)**. - **Mineralized zone**: Up to **1 km long**, with high-grade Pd (1,174 ppb), Pt (241 ppb), Ni (0.16%). - **Transfer to Novadhatu Minerals Pvt Ltd**, with **drilling set for January 2026**. - **Potential**: Could be **India’s first nickel-PGE mine**. #### **Other Critical Projects** - Secured **lithium prospecting license in Tanzania (100.5 km²)** with pegmatite veins identified. - Won **nickel/PGE composite license in Chhattisgarh via auction (Mar 2023)**. --- ### **Financials & Capital Strategy** - **Funding Challenges (2022–2023)**: Struggled with fundraising due to **unproven production, lack of track record, and limited collateral**. International debt was difficult to secure. - **Debt Load**: Has **₹200 crores of debt secured against Geomysore shares**. - **Rights Issue**: Planning a **₹315 crore rights issue** (subject to BSE approval) to: - Repay ₹200 crores of debt. - Fund exploration in Finland, Mozambique, Tanzania, and new acquisitions. - **Historical Funding**: Raised **₹118 crores via equity and debt (Sep 2024)**. Previously targeted **₹72 crores ($9M) to acquire stakes** in Jonnagiri, Tanzania, and Kyrgyzstan. --- ### **Operations & Subsidiaries** - **Deccan Gold FZCO (Dubai)**: - Provides **exploration consultancy** in Africa, Middle East, and CIS. - Focus: **Gold, lithium, nickel, rare earths**. - Uses **drone LiDAR, magnetic, and EM surveys** (via Steiger Geoscience MoU). - Generated **$54K revenue (2024)**; projected **$250K (2025)**. - **Subsidiaries**: - **DGMOZ & DMMOZ (Mozambique)**: For lithium and multi-metal exploitation. - **Kalevala Gold Oy (Finland)**: Holds 7 tenements and mining license applications. --- ### **Management & Governance** - **Dr. Hanuma Prasad, MD & Director**: - Stepped down from other boards to focus on DGML's global expansion. - Key architect of international strategy (Kyrgyzstan, Mozambique, Finland). - Also MD of **Geomysore**, DGML’s associate holding Jonnagiri. - **Technical Team**: - **Dr. K.S. Yogananda (GM Exploration)**: 15+ years in gold exploration (Jonnagiri, Tanzania). - **Peshwa (JORC RPQ)**: Senior geologist with experience in Champion Reef and Sudan. - **Rajeev Hanamasagar**: GIS-IT lead with expertise in Surpac, DataMine. --- ### **Growth Strategy (2025–2030)** - **Gold**: - Target **~2 tonnes/year**, combining Jonnagiri (~1t), Altyn Tor (~0.8t), Finland (~0.27t), and new acquisitions. - Acquire gold projects with **<2-year path to production**; prefer **majority control**. - **Critical Minerals**: - Develop **scalable lithium-tantalum hub** in Mozambique. - Advance **Bhalukona (Ni-Cr-PGE)** with ~2 years of drilling. - **M&A Criteria**: - Gold: Advanced stage, majority ownership. - Critical minerals: Greenfield with strong potential; 2–3-year resource definition. - Jurisdiction: Proximity preferred but not mandatory.