Shares of Deccan Gold Mines Ltd (DGML) surged nearly 9% to ₹134.60 on Thursday after the company announced that India’s first large private gold mine in Andhra Pradesh is likely to begin full-scale production soon.
A top company official confirmed that the mine, located at Jonnagiri in Andhra Pradesh and developed by Geomysore Services India Ltd (where DGML holds a stake), is set to commence operations “very soon.” The project holds national significance as India imports close to 1,000 tonnes of gold annually, making it the country’s second-largest import item after crude oil.
At 2:40 pm, DGML shares were trading at ₹134.60, up ₹10.95 or 8.86% from the previous close of ₹123.65, with strong momentum witnessed in late afternoon trade.
As the first and only listed gold exploration company on the BSE, DGML’s progress at Jonnagiri is viewed as a landmark step towards reducing India’s dependency on imports and boosting domestic resource development.
Market experts suggest that successful ramp-up of operations could enhance DGML’s revenue visibility and investor sentiment further.