Multibagger in just 1 year: This mining company is to invest Rs 60 crore in the Jonnagiri Gold Mining Project!
The stock gave multibagger returns of 205 per cent in just 1 year and over 400 per cent in 3 years.
Deccan Gold Mines Limited present an Update on the Jonnagiri Gold Mining Project of Geomysore Services (India) Private Limited (“Geomysore”) which is located in Andhra Pradesh, India. Details below:
- Funding: Key shareholders of Geomysore, Thriveni, and Deccan Gold Mines Limited (DGML), will invest a total of Rs 60 crore of equity capital in Geomysore by August 2023. The funds will be used for land acquisition, ordering equipment, and starting the processing plant and water pipeline construction.
- Land Acquisition: Geomysore has acquired 120 acres of land in Jonnagiri and aims to acquire 130 more acres by the end of the current quarter. They plan to have a total of 250 acres to build the processing plant and reservoir.
- Pilot Plant: Geomysore operates a Pilot plant producing gold. They will increase its capacity to 40 TPD, aiming to produce 1 kg of gold per month.
- Mining: Open pit mining is ongoing, extracting around 800 TPD of gold ore, to be used later when the processing plant is operational.
- Full Capacity Processing Plant: The process flow is finalized, and civil work for a 1000 TPD processing plant will start in September 2023.
- Power and Water Infrastructure: A power supply has been established, and water supply permission is granted for the processing plant's construction.
- Exploration and Drilling: Geomysore is exploring and drilling further to increase the resource in different blocks.
- Background: The company acquired a significant stake in GMSI under a share swap arrangement completed in March 2023. More details can be found in previous updates.
Deccan Gold Mines Limited was established in the year 2003 by Australian promoters with deep roots in the mining and exploration sector. Since its inception, DGML and its wholly owned subsidiary Deccan Exploration Services Private Limited (DESPL) have actively pursued gold exploration activities through the adoption of modern methods and the latest technology in all of its exploration prospects.
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DGML has a market cap of over Rs 1,000 crore with a 3-year stock price CAGR of 70 per cent. Today, shares of DGML plunged 0.29 per cent to Rs 79.11 per share with an intraday high of Rs 83 and an intraday low of Rs 77.70.
The stock gave multibagger returns of 205 per cent in just 1 year and over 400 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.