Deccan Gold Mines Shares Rose Sharply As Jonnagiri Project Nears Rollout

Shares of Deccan Gold Mines rose about 16% on Monday. Traders reacted to fresh updates around its key mining project.

The stock hit an intraday high of ₹123 on the Bombay Stock Exchange (BSE).

Over the past month, Deccan Gold Mines shares have gained 24%. Still, it remains down 10% over the last six months. On a year-to-date basis, it has performed well, rising nearly 30% so far in 2026.

The buzz is around the Jonnagiri gold project in Andhra Pradesh, which is now said to be close to starting operations, possibly in early May.

A Rare Private Gold Mining Project

The site is located in Kurnool district and has drawn attention because large private gold mines are not common in India. Most of the country’s gold still comes from imports, with very little mined locally.

With an investment of around ₹400 crore, the project is being watched as a test case for private participation in this space.

What Does The Project Look Like?

The mine is spread over an area of almost 598 hectares. Based on current plans, it should operate for several years after the production ramp-up phase.

Preliminary calculations indicate that the yearly gold production capacity might be close to 1,000 kg. However, the real output in the future is likely to fluctuate as it depends on the implementation of the project and the local situations.

The project is owned by Geomysore Services India, where Deccan Gold Mines owns a minority stake.

What Do The Q3 Numbers Suggest?

The company is still in the development stage, which shows in its numbers. Revenue remains very low, and losses continue.

On a consolidated basis, Deccan Gold Mines posted a net loss of ₹18.92 crore in Q3 December 2025, slightly lower than the ₹21.04 crore loss in the same quarter last year.

Net sales came in at just ₹0.04 crore, falling 93.85% year-on-year in Q3 December 2025.

Also Read - Bank of Maharashtra Q4FY26 Profit Surges 35% to ₹2,014 Crore

Investor View

The recent jump in the share price reflects expectations rather than current earnings. The next trigger will be how smoothly the project moves into production and whether output matches expectations.

Sources:

The Economic Times

Business Standard