Deccan Gold sets sights on 600 kg output at Jonnagiri by FY27
Management outlines a massive capital expansion plan while navigating a ₹100 crore funding gap for its Kyrgyzstan gold project.
What's new
- Management expects 75% EBITDA margins from the Jonnagiri mine once at scale.
- A ₹60-100 crore funding gap persists for the Altyn Tor plant in Kyrgyzstan.
- The firm plans a future equity or debt raise between ₹800-1,000 crore.
Why it matters
Deccan Gold is pivoting from exploration to production, but the heavy capital requirements for Bhalukona and Kyrgyzstan weigh on the balance sheet. Investors must weigh the potential for high-margin gold output against the dilution or debt risks inherent in a ₹1,000 crore fundraising plan.
What we're watching
- Official inauguration of the Jonnagiri mine in the coming weeks.
- How management bridges the immediate ₹60-100 crore funding gap.
- Progress on Bhalukona’s nickel resource estimate of 70,000-80,000 tonnes.
The full read
Deccan Gold’s latest investor call frames an ambitious transition into a multi-asset producer. The firm targets 600 kilograms of gold from its flagship Jonnagiri site in FY27, promising a 75% EBITDA margin. Meanwhile, the Kyrgyzstan-based Altyn Tor project is slated for August 2026 commissioning, aiming for 160 kilograms of gold initially. Execution here is not free. Management confirmed a ₹60-100 crore funding shortfall to finish the Altyn Tor plant, which it intends to cover via promoter-led debt or equity. Looking further out, the company outlined a massive ₹800-1,000 crore capital raise to fuel its long-term project pipeline, which includes a nickel-equivalent resource at Bhalukona and tungsten assets in Spain. With the Jonnagiri mine inauguration arriving in the coming weeks, the company is moving from promise to proof. The next test is whether the firm can sustain its production timelines without stretching its capital structure beyond its means.