Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Deccan Gold Mines Ltd (BSE: 512068) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Hanuma Prasad — Managing Director
Unidentified Speaker
Imran Ghani — Unidentified Participant
Chirag Candelwal — Unidentified Participant
Aniket Gogate — Unidentified Participant
Analysts:
Aditya Butra — Analyst
Raman KV — Analyst
Churchit Mallow — Analyst
Ashit Koti — Analyst
Manish Gupta — Analyst
Viraj Mahadevia — Analyst
Amish Kanani — Analyst
Darshan Chandra — Analyst
Harsh — Analyst
Manansha — Analyst
Nikhil Chandak — Analyst
Kunal Shah — Analyst
Unidentified Participant
Sandhya Gupta — Analyst
Sandeep Mathewanan — Analyst
Deepak Pandey — Analyst
Chetan Shah — Analyst
Jhalak Jain — Analyst
Paras Cheddar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Deccan Gold Mines Limited Investor relations call. Please note all participants are currently in listen only mode. There will be an opportunity to ask questions following the conclusion of the management’s opening remarks. Please note that this call is being recorded. I now hand the call over to Dr. Hanuma Prasad, Managing Director, Deccan Gold Mines Ltd. Over to you sir.
Hanuma Prasad — Managing Director
Thank you very much. Swapnil. Good morning to all the shareholders and potential investors into a our company. It’s really a pleasure to meet all of you again. In fact we should have done this call few days back but because of few other issues like Saturday, Sunday, etc. We had to do this today. And I once again thank all of you for taking time to come to know about Deccan Gold and its operations. So what I will do is I. Because yeah, Rajiv will arrange the presentation which I will do. And after that you feel free to ask questions.
We are here to answer to all your questions, Rajiv. Yeah, so it’s really my pleasure to come forward to you after some time. Now we know last quarter we did not do this investor call because of various other other issues which I had explained. But now it’s my pleasure to really come here and present the significant growth that has happened. In fact, if I put it in this way, it is a kind of transforming journey for us as a Deccan Gold Mines. We have been exploring and of course we’ll continue to explore also.
But this quarter is something which a significant development has happened. One of our associate companies, that is Jiomiso, has recorded a profit and we could show some profit as a 26% shareholder of that company. So that I believe is a significant step in the company’s history itself. Because as you all know we went through different difficult phases. But now I think we are looking forward into something big. Next one. Yeah, I mean I skip all this. This is a forward looking statement. It’s a company’s overview and it’s our vision.
I think you’re all familiar with it. And this presentation is already on the our website and the BSE portal so you can always access that one. So. Next one. Yeah. You all know that it is listed on the Bombay Stock Exchange and few months back it started trading on National Stock Exchange as well. Now we still remain as the kind of first company to work on gold and critical minerals. I mean dedicated to only to these things. We developed as a partner in the first private gold mine in India which is first one since independence.
And we are the one we are developing A gold mine in Kyrgyzstan which is going to be commissioned in the next two, three months. And we discovered a new a gold deposit in Karnataka sometime back, unfortunately, which is in the codes and I’ll explain about that also. And we discovered this I think is a very significant discovery as far as critical mineral portfolio for company as well as the kind of impact that it’s going to have on the entire critical mineral scenario. In India itself we have discovered economic grade nickel, copper PG mineralization.
Of course we are going to drill more and I will explain about this project as well. So in a nutshell, we are a company with multiple projects. Couple of them are coming into the fruition. One has already come in and the other one is coming into the production. Then we have series of projects where we are continuously working and creating the value. And with the view that in the next two to three years we’ll have multiple mines, not only gold but also in the critical mineral segment. If you see the company structure again, we have 26% in Geomiser Services, that is the Janagiri Gold Project.
And then we have 60% in Alentor Gold mine that is in Kyrgyzstan now. And we have licenses in Tanzania where we want 100%. Then in the gold portfolio, the Kalevala Golds, that is the Finnish company, there are three different project areas in it which includes exploration as well as one mining license which we have been pursuing and we have the rights to go up to 51%. So at some point it will become for subsidiary. If you come into the critical mineral sector. We have a lithium tantalum exploration project that is in Mozambique and also a copper gold exploration project in Mozambique.
I will show some slides on these projects as well. And most importantly the nickel they they write they actually when they granted this from the Balukona project they have the composite license as shown as a nickel chromium BG license. I think that is the elements that they have identified at that point in time. But our work has clearly shown that it is actually nickel, copper, palladium. That is the kind of mineralization that is present in this block which again in few detailed slides I will explain.
And importantly that is owned 100% by Deccan Gold Mines and it is not through any subsidiary, but it is 100% by the parent company itself. And the last but not the least is the tungsten project that is in Spain. I think last time also I have explained that this project is in one of the very key tungsten tin areas of Spain. Spain in one Spain is actually other than China. Spain is one of the large tungsten producer. So we are, we are in the right place in terms of geology. We did a lot of due diligence, we are still doing the due diligence but at the same time we are contributing to the drilling that is happening.
And we have intersected some zones that also I will show you. So this is the kind of the company structure. If I just look at the highlights of the last quarter only that is 25, 26. One of the most important things was we raised 315 crore through the rights issue. I thank all the shareholders for having trust in us and contributed towards this rights issue. And with that 315 crores we could clear all the outstanding debts by end of March. And we became a debt free company in that quarter. And the second significant achievement of the last quarter, the Jannahgiri gold project which is owned by Geomiser Services which is our associate company, it started generating revenue through the sale of gold from the dry production that has been happening.
They have sold the gold. In fact they have set up a, a refinery and it is in fact a bullion that has been sold. And you can clearly see that they have achieved profitability which obviously flowed into our books as well. This is a very significant moment not only for Geomyser but for Tekken and also for India as such. Because this is the first gold project that is commissioned in India after so many years and it is all in the news. I think you might have seen all those things. And in terms of the Kyrgyzstan project we commissioned the gravity circuit and we started producing gold concentrates.
That is the gravity concentrates. And as I, as I would explain later, we are going to commission the Meril Pro system in the month of June. That means we will start producing the small amounts of Gore bar from these gravity concentrates. By the end of July we will have the full scale leaching circuit which would take us to the peak capacity about one kilo per day. I complete later. And also another significant achievement that we have in the year in the last quarter is we discovered nickel, copper, platinum, palladium mineralization in Balukona project which I believe, I firmly believe that it is one of the significant steps in terms of the company.
It will take the company a long way into the future. Of course, subject to some more drill hole results. I’ll show some drill hole results. In fact we have announced it to the market, the first drill hole results as well. So these are the highlights, these are the achievements that we have made and as a management, as a Technical team. We feel very proud to what we have done in the last quarter. So I will get into the update on each and every project. I will not prolong too long so quickly I’ll try to complete the updates the presentation itself so that we’ll have much longer time for question and answers.
So this is the project’s content page. This is the how the projects have been arranged, the slides have been arranged for various projects. This is the project summary. What’s the kind of stake that we have? What is the metal that we are exploring? What are the possible resources that we have and expected production in the year 2027 that is FY27 and also of course going beyond that one. And what is the cost? That is all in sustaining cost per ounce. It’s not done actually. And the capex required going forward and potential all this.
This is a summary sheet which you can always go through when we have time the next one. So coming to the Chagiri Gold project, I don’t have to elaborate on this much more because we have been talking about this for quite some time. As of today, the open pit mining operations are going on. It is a very simple metallurgy. So the recovery is upwards of 90%. That is what we have. We have estimated based on the test work and all those results that have been done in 2016, 17, 18, they have come to reality.
They are actually whatever we have done is exactly. It’s very, very perfect. I think much of the credit goes to our technical team that has done this kind of work. And gold mineralization as you all know it distributed in four blocks as and today we are mining in the only east block which has got about 12 tons of gold mineralization. If we add and currently we are drilling in the west block and south block and there is a possibility to increase the resource to at least 32 tons. That is a million ounces and beyond that.
So the first target is to get to 32 tons in the entire project area, not necessarily in the open pit. Open pit there will be 12 or 13 tons but then you go into the rest block, south block. So that means within the mining lease area there will be two or three mines operating. One couple of them could be open pit mines. One could be an underground operation. So with the current operating license conditions, which is 1,000 tons per day, that is roughly around 300,000 tons per annum. The East Pit has around 10 to 10 years of mine life.
That is the first phase which I have always been narrating, but can be extended to 12 to 15 years as an open pit operation. With the additional resources the life of the mine of the east pit can itself we extended beyond 15 years. And the production forecast is around 600 kilos in the 2627. As you all know by March end of March this year around 140
Unidentified Speaker
Exit
Hanuma Prasad — Managing Director
Around 100 kilos of gold. Refined gold has been produced and part of that has been sold. And those numbers are all there in our financials and the peak production. So which could be achieved in the next couple of years. That’s about a ton per year. That is how the expansion is going on. So the if I just convert all those numbers the Production forecast for 27,600 kilos beyond that it is around 20 y 28. It could be 800. If everything goes well, it could be a ton as well. And the revenue in the FY27 based on the current prices it could be around 900 crores at an EBIT of 75%.
That’s what we are going to clock in this year. The EBIT will be 630 and the cat of around 470 crores. And 26% of that is attributable to the Deccan which is equal to around 120 crores. Next one. So how the expansion is going on here? I think mine plant were operating in line with feasibility. Exp mentioned the updated resource models will likely increase the resources at least half a million ounces very very soon. And then we’ll go into the 1 million ounces. Ten drill rigs are on site and which are operating in the south block and also in the deeper mineralization with west block with a target to achieve million ounces that is about 32 tons in the next year or so.
And at the same time the expansion for the higher capacity beyond the 2,000 tons per day. Because at thousand tons per day our production capacity would be anywhere around 500 to 600 kilos. But to increase to go to the 1 to 1.2 tons we need the plant to be expanded. And that expansion would require certain permissions particularly a public hearing would be required. And the files are moved in that particular direction as well. So that in the next six to eight months we’ll have a clear idea on how much expansion is going to happen.
Which would reflect in the figures of FY28 and the few other things I would like to add on this on this project. I mean I don’t have to keep repeating that this is the must go project in India. But it has attracted a lot of I mean it has created a lot of oomph in the state in the country as well because this is a project which is coming in the right time into the production and where India there is a lot of debate that’s going on the gold, gold purchases and so on, so forth. As a company we always believed and we have been articulating through various media channels that that we India should be self sufficient.
Self sufficiency is not that easy for a comp for a country which is importing it in terms of gold. But at least the whatever the minds that are available they should speed up and put them into the production as early as possible. That’s what we are trying to articulate to the government as well. So. So that is about Janagiri project. I’m happy to take any questions on this as well. Then coming to the next one. That is the Kyrgyzstan project where we have 60% so that’s our direct subsidiary and as you all know we have.
These are some of the statistics. This project we have been expanding the processing facility and also adding the leaching sector to it and most of the work is completed. Some of my amount of work is still left out till the first week of March there was a lot of snow on the side so we could not do some of the construction work. But at the same time we have been running the plant to get to the concentrates. So this project is also on the track. I recently also we have announced, we have released the timelines for this project now closing up to the By August we’ll have the inauguration of this entire operation.
So the production forecast for FY27 we have taken a conservative estimate of about 160 kilos. If you start in the month of August that’s how it’s going to look like. But FY28 will get to 300 to 350 kilos. So you may have a doubt that during winter is this going to be operational or not? From the next winter onwards it’s going to be operational. It’s because we have underground water pipings that have already been built and most of the infrastructure here that includes the leaching tanks and thickeners, all those things will be covered under sheds.
It is not going to be open area like in Janagiri. Here because of the extreme winter conditions we are covering everything up except the gravity circuit, except the crushing circuit. Everything will be covered. And of course in the crushing circuit you don’t require the COVID because it’s not a, it’s not a wet circuit. In any case that’s a dry. So if in FY27 based on the current prices we could get to 300 crores of revenue and the pad which is roughly around 100 crores and attributable pad to Deccan would be 60 crores.
So the revenue also will be picked into our books, consolidated in our books and this these timelines. As I mentioned, as one of our releases that we have mentioned, we are going to start dog production through intensive leaching circuit that is going to be established in the first week of June. So by second week of June we start seeing some dora bar from the available gold concentrates. And by end of July we will have the complete leaching circuit of that large scale. And the tailing dam that is very little bit of construction was required.
In the winter we could not do it. But it’s now going on bar footing. It will be ready by end of July. And so from August onwards we will have full scale commercial production. Next one. Yeah, this is what I have been telling Gravity circuit is commissioned. M circuit that is intense leaching circuit will be commissioned in June which will allow production of Dori bath from the gravity concentrates to leach circuit and tailing dam facility work is in full swing. Actually 130 Indian experts are now working with a large local team to accelerate the work the full scale production by August 20th 26th.
Inauguration is planned either on 15th of August which is our Independence Day or 31st of August which is the Kyrgyz Independence day. And investors and shareholders will be informed in advance. Of course once the date is finalized, the plant will initially operate with the existing tailings. This is as number of times we have articulated to our investors and shareholders that the the best part of Kyrgyz project is that there is about 1.6 million tons of tailings and low grade stockpiles which are readily available.
So once we have the leaching secured established we can simply use these savings and low grade stockpile for the next four years without doing any large scale mining operations. So that will significantly reduce our mining opex. So our EBITDA numbers will be quite good though we are sharing 17% revenue with the government company with whom we are in a joint venture. But because of the low opex the revenue, the EBITDA and the PAD would be reasonably good. That’s what I can say. And apart from the tailings and low grade stockpiles, we have also been working to increase the mineral resource within the pit.
And our team has just prepared the revised resource estimate which is going to submit it to the state reserve company by the end of June. At the same time, we’ll do the revised mine design and life of mine plant. That will be done in the August by August 2026. Why we have been doing all this after five years, how the mine is going to be operated, what is the resource? How best we can plan and extract material from the mine, from the open pit mine. Now that’s what we are doing. Now simultaneously we are drilling.
There are a couple of drill rigs which are going to be deployed now to drill below the existing open pit so that we will have a long term underground operation which will have a much higher grade. If I just give you the grades, the tailings and low grade stockpiles will have about a combination of 1 gram, 1.1 gram per tonne as an average grade. But when you go into the mine, the grades could be more than 3 grams per ton. So beyond 2,000, beyond four or five years, once we start accessing the high grade ore from the mine, the overall revenue and overall production of the gold could increase to something like 700 to 800 kilos.
That effectively it can double from what we are planning to do from this August onwards. So the tailings and low grade stockpiles really are the low hanging fruits which has taken us to this project. And luckily we are coming to the end of it. And the baby is going to be delivered very, very soon. I know there are certain delays. In fact, in certain delays in both the projects there is a bit of frustration not only among the shareholders, but even the management. As a team we had that frustration.
But now we have come to the final stage. One is going to be it’s already commissioned, it’s going to be inaugurated for the sake of much larger public. The other one that is alt into is going to be producing more. I think next year I’ll be able to show some DORA B to all our shareholders. Next one. So the third one that is the Balu K Nickel copper PGE project in Chhattisgarh. I think in even our previous presentations we have always been highlighting this is one of the projects that is that could deliver something significant to the Deccan gold mines.
The reason is I must just go back and much before like 2003, 2004, we have been doing a lot of research on nickel, copper, platinum in this country. As a group, we have generated a lot of knowledge and based on the science we have identified several areas. This is one of the areas we thought which could always deliver a good deposit. So that is the confidence we have. That’s the reason why we went into the auction and even offered 21% to the government. But we are privileged to be one of the very first companies to be granted a nickel license based on the surface results of geological survey.
They have presented it as a nickel chromium PCE project. But we always knew this is going to be nickel copper PGE project. So 30 square kilometers of license we have executed in the year 2025. And we quickly, in fact only last year, by March and April we got all the permissions. And then immediately we started of the rock chip sampling and the drone based magnetic surveys. And we tied up with National Geophysical Research Institute and we did lot of geophysical surveys. In fact we are now going to do geophysical surveys which can target mineralized zones even up to the depth of 500 meters or even beyond.
And actually in this map, in the maps that are presented here, you can see on the western left hand side we have several dots. All those are all nickel copper PCE points that have been identified on the ground. Then we have on the right side there is a geophysical map that is airborne magnetic bam. And below you can see the three dimensional, the kind of pink areas. That is where the mineralization is there. And it extends beyond 200 to 300 meters. So all this work has been done before we got into the drilling program.
Next one. So this is, this is the exciting part. We have completed as of now 400 meters of diamond core drilling. I mean diamond is nothing to do with the diamond mineralization. That core drilling, it will have diamond at its kind of at its rotary head so that it can cut the rock. So don’t please just confuse this diamond with something else. It’s a core drilling that we have done. Seven drill holes are already completed. About 1.3 kilometers of mineralized zone has been covered with these drill holes.
The first drill hole has intersected three mineralized layers of of Gabro with a combined width of 60 meters. That is really really wide. You can see in the course on the right hand side there are massive sulfides, I think more than 10, 15% of sulfides. All those shining ones. And also in the lower side you can see those sulfides. It is really, really exciting. And in the total they drill hole intersect about 30 meters of potentially economic sulfide mineralization which is equivalent to about 0.4% of nickel.
And in the high grade zones within it, that is in the first hole itself we got that is 1 2.6 meters at 1.01% nickel, 0.29% of copper and 0.2 grams per ton of palladium. Platinum is slightly less, palladium is more. That is the nature of the mineralization. So all the drill holes, these are the first drill hole results that we got. All the drill holes contain various bits of disseminated and heavy massive sulfide mineralization. The massive sulfites always give higher grades like 1% plus nickel, whereas the disseminated sulfates will give 0.2, 0.3, something like that.
So overall we get there on 0.4, 0.5% of nickel. The most important thing here is the width. The higher the width it’s possible to do the open pit mining. That’s what we are going to see when in the open pit mines you can extract one or even at the lower grades like 0.2 to 0.3% as well. So hence we believe this is going to be open, fit mine and economically minable. And we are. With the good results that we got, we will accelerate the drilling program this year and we’ll try to prove the mining resource, the minable resources very, very soon.
And we will fast track the mining lease application. In fact, as you all know, this is a composite license. That means it’s a seamless prospecting to the mining list. Once we identify the minable resource, we have to apply for the mining lease and get further approvals like Environment, IBM and so on and so forth. So we will reach to that stage very very quickly so that we will look it as a minable prospect touchwood and hopefully we’ll try our level best. Of course, subject to the availability of the funds.
Also in the next one year or so we should be able to reach to this point of at least large in the mining list application. Next one. So these are some of the intersections how they look like. You can see the red spikes. They are all the mineralized zones. And in the next holes when we government presented, you can see from the surface. We have already proved up to a depth of 200 meters in two different drill holes, number two and number three. I think next time we’ll be able to present that one.
We have already identified the extensions up to 3, 200 meters at least. So that is a big positive step. So coming to the other projects, other gold project, that is the Kalewala gold project. As I said, there are three projects here within this Kala Gold oa. One is S project, that is an exploration project. But also within that there is a small open pit mining license. Currently we are pursuing A mining license. Of course we have not done much work in this year in any of these projects. But these projects are also equally exciting.
In fact, Syria project has resource of about 2 tons which we are going to increase to about 4 tons. That’s always has been the plan that will be an underground operation. Similarly, the Pakalanpi project which is about 25 km is northeast of Sira that also has a known resource of about 2 tons and the average grade there is about 3.5 grams per ton. Similarly the last one corp the project that has four zones that have been identified. So far no drilling has been carried out in this project. So as a group these three projects would be able to deliver about 6 to 7 tons of gold for us.
And we’ll have. The idea is we’ll have a central processing plant and ore will be taken from all the three projects three mines into a central plant. That is what we are going to do and this project we have not. Other than pursuing the mining list which required environment clearances etc. Etc. Our consultants are working on it. We have not done much work of course for the reasons you know pretty well that more funds are required and our current focus is fully on Kringstan project to bring it into the full scale commissioning and also the other drilling projects which are showing a lot of interest.
Next one. So these are some of the war zones, how they look like and the cross sections as I mentioned they are going to be a resource. In fact here the grades are quite large. In Cuica itself the average grade is about 5 grams or even more because some of the intersections have come up with 120 grams per ton. But don’t look at 120 as in isolation that could be one or two intersections but overall grade anywhere could be around 5 grams to even up to 10 grams. That’s what we are. We are anticipating.
We did plan to drill in the month of July but I don’t think we’ll be able to do it because till my commission, the Kyrgyzstan project we don’t want to divert into this because already we are building in two other areas. One is the balcon which is giving good results and also the next one I will show you the tungsten project in Spain next. So coming to the Mozambique project here we have two, two companies. One is to explore for lithium, cesium and tantalum. Again I will show some slides. The plan always has been to set up the 100 ton per day processing plant to start with based on existing low grade stockpiles.
And I think you might have seen today’s report that Indian lithium imports have increased nine times in the last few years. So there is going to be a lot of requirement for lithium, particularly for the EV batteries in India. So whatever we do in Mozambique that would be directly beneficial to India as part of the India’s critical mineral strategy. I’ll show you some pictures. What is the work that we have carried out? And the other one is the other company which is focused on copper and gold mineralization in the Tate Province.
There are few licenses under that as well. Next one. So this is the work that we have carried out. It is primarily the surface work for the lithium and tantalum exploration. Based on the samples, four to five pegmatite zones which contain this kind of lithium and tantalum has been identified. All those blue circles, they, they are all the areas which are we are going to drill and we are going to produce a lithium tantalum concentrate, particularly lithium concentrate of more than 4%. And the left hand side there is a diagram.
You can see there are number of layers of tantalum rich mineralization. For your information, tantalum always very, very expensive material. It’s used in semiconductors. So those pegmatites are also going to be drilled again. Now the drill targets are ready. But we have not started up the drilling operations now because of our focus on Kyrgyzstan and other projects. But they’re all now ready I think anytime, depending on the availability of the funds. We’ll go on drill next. These are the samples that we have collected in copper gold areas.
That is in Tet Province of course we did. The highest we got was about 10 grams per ton of gold and 3.85% of the copper. But just don’t go by those surface values. But you can see the number of places that we got these anomalies and the continuities of those anomalies which would make up as the drill targets. Again, drilling is put on the vault because of the reasons which I have been explaining previously. Next. Yeah, this is the LON tungsten project. You all know that we have entered into MoU through our Dubai entity for the to review the project.
We always have in our mind we wanted to acquire this project. We have entered into MoU and currently we are finalizing the final agreements with them through which we are negotiating to get to 95% through different phases of funding in this project. As a test case have started drilling this project. Previously there were some drill holes which gave about 8 meters at 0.32% of tungsten and also 3 meters at 0.42% of tungsten and 1 meter gave about 96.2 grams per ton of gold. It is in fact a gold tin tungsten project.
That’s how this needs to be seen. There are some re targets but those potentials we do not know. If you look at the picture on the left hand side, lower side, you can see those dots. They are all the tungsten minerals that have been seen in the drill course itself. On the top right you can see the previous drill holes where the red spikes are all the intersections of the tungsten mineralization. So roughly from the surface up to 300 meters, presence of tungsten mineralization has been identified.
We are waiting for the results. Next slide please. So this is the. Initially the objective is to get a 51% stake by spending 1.76 million euros. And then this investment could be done either through our Dubai subsidiary or directly from Dubai itself. Sorry, from India itself. Then it becomes direct subsidiary of the Indian entity. The billing program I started to test strike and depth excess of mineralization. So far four holes have been done. About 1500 meters have been completed. Today all holes have intersected tungsten and tin mineralized zones of varying thickness.
Essay results are pending. Probably in the next week or 10 days we are going to get the results. Then we’ll announce those results the market as well. But you can see the drill cores. All the shiny specs are the tungsten mineralization. Actually on the tungsten mineralization if you put UV light they are all reflect like this. That is immediate detection of tungsten from the dell course without taking them to the lab. That’s what I presented here. And the program is reasonably white space drilling resource declaration subject the geological variability of the tungsten grades.
So I think next week we’ll have a clear picture about this project. But we are equally excited. I mean this could be like our Balugana in India. This could be a tungsten project in Spain. This could also deliver a lot of value to Deccan next one. So I will come to the other projects. I think most of you would like to see what is happening in Ganachev. You all know that our repetition is there in front of High Court. And we are also following up with Supreme Court. There are we are impedance along with the industrial case before the report was adjourned.
I mean for the holidays, that is, before the holidays there were few hearings that were held. And I think most of you are familiar with what the Supreme Court judge that time he was commenting on. But More than that, after this court holidays again they are going to be detailed hearings. We are in fact in touch with indocil team as well. Hopefully we’ll devise a common strategy and take this project, the court case forward once the court is opened. And at the same time you all know what’s happening in gold mining sector in India.
And really with the gold in India Prime Minister asking the people not to buy the gold and then putting a lot of restrictions on the imports, etc. So there is a definite need for the development of gold mines that is already proven in this country. So on that basis we have been approaching state and central governments through various means, through various contexts in the last one week. And we have also increased our articulation through the media and through various other means. So hopefully this may be the right time that government of India probably would recognize that there’s no point in holding the already proven minds under the litigation.
They may find a way. I mean it’s just the hope. But I assure you the management is fully working with both state and central governments and various other means to get to a logical end on this particular project. Of course this is a very, very important project in terms of. I mean if I start in terms of the emotions because this is the one which we discovered and then unfortunately we lost. And also in terms of value, the ebit of this project could be twice that of January because the grades are very high in this particular project as you all know.
So that’s about Ganache project and the last, the Tanzanian project last year we did a lot of sampling work at least in three of the licenses. The results that we have got though there are good spot values but the continuous zone could not be identified. So whereas in other two areas we have identified extensions. So in the three tenements we have relinquished and two of them we have retained but because of this not not able to identify the continuous extension areas. Our focus on Tanzania exploration is relatively reduced and also because there are results coming from various other projects, we have not put full focus.
And of course funding is another issue also. So probably in this year we’ll go back and do more exploration in the two tenements where we got encouraging values now. But one thing I think our investors and shareholders also need to understand, in any exploration projects the success rates are not always going to be 100%. It is actually 5 to 10% if you say ticket on the global stage. But we should be very proud that whatever the project that we have taken, we are really taking it to the next stage particularly I can say about Malukona project and also the Tungsten project.
The moment we started drilling we are getting the results so that I think our success rate as a company is significantly high. But unfortunately as of today Tanzania doesn’t fall into that category. We still need to do some more work before we go back to the TR next one. So I think last two, three slides. The financial overview the rights issue we have raised about 315 crores. The funds disperse. The fund disbursement is as follows. We repaid all the debt. That’s about 219 crores. A large part of it is of course is to the Hira Group under God Power and his path.
Then we have invested 32 crores out of that 315 into the Kyrgyzstan project and then we had to invest another 55 crores which has been actually year marked for the KISS project to complete the K project. That 55 crores we had invested into the GEOM services to maintain our 26% which we did. And I think that is a very very good decision considering the importance of the project and having a key 26% is very important for us. So management took the decision and taken the permission from the shareholders to divert the funds which have been originally allotted for the Kyrgyzstan project and we invested into the geomysource rights issue.
As a result we find a certain deficit in terms of funding. So we, we require up to up to 100 crore, I mean at least minimum 60 crores we require to complete that project. That is where we have been talking to few investors. We are hopeful that we are going to close it very soon next one. So this is as I said this is in discussion with multiple lenders and mostly let me say investors that includes key shareholders and one or two of the promoter group entities. Some of the key persons in the promoters they have also come forward and they are willing to do either debt or equity funding.
We are in the final stages of completing this and to facilitate this particular arrangement we also have this EGM to take the permission approval from the shareholders for related party transaction particularly from the promoter’s perspective because one of the key promoters wanted to put in money. So that is where we are asked for the related party transaction which required approval from the shareholders which is through the EGM that is on the day after tomorrow. Yes. And as I said these proceeds will be used to complete the Kyrgyz project commission the Kyrgyz project by the by the end of July and inaugurate in August that’s what we are doing.
So once we have the project completed and the drill results from Balukona and Tungsten project, we plan for much larger fundraise because these projects say, for example, we have to commission in the next one year convert the Balakona into mining lease. We would require anywhere around 400 to 500 crores to set up the processing plant which would be very, very similar to what we have done in January. So that kind of money will be required and then we will plan for a much larger funding. That could be.
Once we have all these three events have happened, that is one commissioning of the Kyrgyzstan project, we will know what is the kind of funding revenues that we get from that project. And also the drill results from Balu Kona and the Tungsten project, these two are the critical ones to assess what is the kind of funding that we require coming for going forward in the next one to two years. Then we’ll plan and the shareholders and the investors will be informed closer to the time of the funding.
The modality and structuring of that funding will be worked out very soon. So yeah, next one, next one. So with all these developments happening, I think by 2030 this is what we, we set ourselves to achieve. The increase in the gold production in January to 1 ton per annum and increase in the alternative almost close to one ton. It could be around 700 to 800 kilos. That’s what I believe. At least in the next three to four years. By 2030 we should be able to achieve that one. Develop India’s first nickel copper PG mine, that is the Balukana.
We are very confident of it. Commence production from the lithium tantalum and if possible from copper gold in the Mozambique project and probably get into the production in Finland. By 2030 we may be very, very close to the production in Finland and Tungsten project in Spain as well. So at least we have two to three gold mines operating, probably a couple of critical Minerals operating by 2030. That is our vision, that is towards which we have been working. And by then we’ll be probably one of the leading gold and critical mineral producers in this country.
And with all your support and support from the rest of the team members and the board management is confident that we would be able to reach to this point by 2030. And once again I thank all of you for taking your time and coming here to hear us. We are very, very happy. At least we have reached to this point. Now this quarter has been a very defining quarter for us wherein we got into some kind of revenue and the profits, not revenue exactly the profits were able to show. There have been a lot of question marks, doubts whether all these projects, because this is the first world project in India, whether this is going to happen or not.
And added to that there were delays and there was obviously frustration in the market with all that we could sustain and we could deliver. And that is also we are going to do with the art intolerable project as well. Yes, I admit there are few delays but some of the things are out of our hands. But we are able to come to this point now and added to that the good drilling results in Balukana project and hopefully Touchwood from the Spain project would take us to the next level very, very soon. Once again, thank you very much.
Please any queries and questions if they are not fully answered during this session, I assure you we will take all the questions and communicate if the data is not immediately available here. Thank you very much and we are happy to receive award to sw.
Operator
Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may click on the raise and icon from the participants tab on your screen to avoid repetition. The management will respond to all the questions at the end of the Q and A session. We will wait for a moment while the question queue assembles. We take our first question from Aditya Butra of Avora Advisors. Mr. Putra, please go ahead.
Questions and Answers:
Aditya Butra
Hi, good morning management. Thanks for the updates and kudos for the recent developments. My question is about the hedging policy that’s being adopted by the corporate. Given that our top line would be affected by change in global gold prices. So have we considered any sort of risk management on those fronts? That’s all.
Operator
Thank you so much. We take our first question. Sorry, we’ll take our next question from Raman KV of Sequent Investments.
Raman KV
Hello sir, can you hear me?
Operator
Yes, please go ahead.
Raman KV
So I have a few questions. One is I just want to understand because it’s we are into mining of gold. Is there any duty or government tax that we have to pay in respective areas like India as well as out of India and what percentage of revenue is that? One is that. And second one, I just want to understand the unit economics. Like if we have to mine and produce one ton of gold, how much of that out of that, assuming the current gold prices at lme, how much will be, what percentage will be your gross margin in that mining process and what will be your other expenses?
I just want to understand the revenue to EBITDA flow of your coal mining business. Thank you.
Operator
Thank you so much. We are taking our next question from the line of Churchit Mallow of Genuity Capital. Please go ahead.
Churchit Mallow
Hi sir, Am I audible?
Operator
Yes please.
Churchit Mallow
So I have few questions. So firstly just aren’t we facing any issues regarding production to crude prices? First second thing, in the other income, what’s the breakup like? Can you just give you the breakup of other income? Third question is to whom we are selling this gold? Like. Like the that product. We have produced 100 kg of gold, right? So to whom we are selling and what is the average realization on what then on that that we are selling. And now final question is in the Finland project who is the other owner that we have?
We are owning 51% of the stake. So who are the other owners and from whom we bought this stake of 51%? Thank you.
Operator
Thank you so much. We have our next participant, Ashit Koti of Almonds Global Securities. Ashit, please go ahead. Ashid, please unmute your microphone and you can go ahead with your question please.
Ashit Koti
Yeah, thanks for the opportunity sir. This is regards to all in all multiple minds which would be operational in that scenario. Each mind’s capacities what has been identified that was one part and second is overall working capital requirement assuming multiple locations are getting operationalized. And the third one was if we are going to, are we going to sell gold as a gold bar or as a gold coin or how. How exactly our selling proposition is going to be. Yeah.
Operator
Is that it? Yeah. All right. Yeah. Thank you so much. We have Manish Gupta of Money Grow Asset Private Limited. Manish, please go ahead.
Manish Gupta
Hi, thank you for the presentation Management. I have a few questions all linked to one common theme on the cash flow side. So my question is that as you rightly said you need around 100 crores for Kyrgyzstan. I want to understand will any funds come from the Jiomiso project through dividends or any such thing or maybe some other value unlocking of jiomyso through an IPO etc. On the Kyrgyzstan side this 100 crore is needed. You said the inauguration is sometime in August so only three months are left from today.
So 100 crore is needed in these three months itself for some major construction out there or because I’m confused, you said that is needed to operationalize the project or do we need it after the project is operationalized to add more capacity? If you could clarify and same way, you know, once the capacity is up and running, maybe by end of FY27 can we expect any fund Inflow in the form of dividends or any other format from both Jiomisur and Kyrgyzstan. Because, you know, Balukona also needs around 400 crores to reach a level of mind lease application.
So how do we cross this problem so that we can expedite Balukona? Because unless we expedite that, we won’t be able to pursue. So it’s like a chicken and egg situation. So that’s my question. Thank you.
Operator
Thank you. We have Viraj Mahadevia of Moneygrow with his question now. Viraj, please go ahead.
Viraj Mahadevia
Hi, Hanuma. Congratulations on the journey so far in a funding constrained environment. Big job by Univantine. Just to get a sense on the Spain tungsten and valkona nickel, copper palladium projects, what would be the potential revenue generation of these projects three years from now? If it’s going, I mean, based on the results seen, you know, if you can just give an indicative range of the kind of revenue that can be generated from these two projects. My second question is, is there a chance that you could accelerate the Jonah project, ramp up to one or over one ton over the next 12 to 15 months?
Is that within the realm of possibilities? And I think that’s all the best.
Operator
Thank you so much. We’ll take our next question from Amish Kanani of Novice Investments. Amish, please go ahead.
Amish Kanani
Yeah. Hi, sir. Congratulations on the achievements of last couple of quarters. So my question is one, you know, we have seen these projects, you know, a couple of years back also we had some expectations and, you know, you did mention there was some frustration of, you know, not achieving these on time. So first question, sir. When we are seeing a delay in projects, is it because of the resources, which is, say, money and, or, you know, the operating environment of those mines, which is, you know, taking little more time than what, you know, we are, you know, say, targeting.
I understand, you know, we should target aggressively and then maybe we can miss a couple of quarters. It’s okay, you know, but the point is one, is it only money capital, which is, you know, we may, you know, now be able to get more or it’s, you know, even the resources on the ground, manpower and, or, you know, operating license conditions and stuff like that. What are the constraint of, you know, reaching milestone? And in that context, if you can give us some sense, you are sounding quite bullish on Balukona, you know, in FY30, 2030 slide, we’re not getting a sense of, you know, how.
How do we look at Balukuna in terms of actual commercial Production or maybe even, you know, initial, you know, drilling where, you know, we start some, you know, better production. What is the year which we should look for, you know, which probably could be our next big trigger for production and revenue. Thanks.
Operator
Thank you, Amish. We have Imran Ghani, our individual investor with this question. Imran, please go ahead with your question.
Imran Ghani
Yeah, good morning everyone. Can you hear me?
Operator
Yes, please, please go ahead.
Imran Ghani
Yeah. I must congratulate to the Deccan Gold team. To be honest, I was frustrated earlier but now seeing the developments, I am very happy and thank you Team Hanuma and all. Mike, I have very few questions because everything is cleared. Hanuma mentioned that some key shareholders oblique promoters are interested to give us debt or take some equity. Are these Australian promoters or shareholder? Please provide the details if possible. Second, that we were debt free a few months ago. Now again we are going for debt.
Then we will be debt ridden. Can’t we go for a preferential allotment or private placement? And the third thing that are there any hurdles visible for Kyrgyzstan? That’s all.
Operator
Thank you so much. Imran.
Imran Ghani
Yeah, thank
Operator
You. We are taking a next question from Chirag Candelwal who is also an individual investor. Chirag, please go ahead with your question.
Chirag Candelwal
Yeah. Hi. Congratulations sir, on the commercialization of Jonadri and the drug discovery at Balukona. I wanted some color on the regulatory and operational timelines for Balukona. So assuming all goes well, by which calendar year do we realistically estimate to submit a formal lease application for Balukona? And also if the management can give some color on the timeline for tungsten. Thank you.
Operator
Thank you so much. We’ll go with our next individual investor, Mr. Aniket Gogate. Mr. Gogarte, please go ahead and unmute your microphone.
Aniket Gogate
Hello.
Operator
Yes, please go ahead.
Aniket Gogate
Thank you for the opportunity. My first question is around can we allocate more funds to Kyrgyzstan project itself and start underground mining project and addition to that, what could be the CAPEX requirement for the same? This would be my first question. My second question would be around the industrial case. I just wanted to understand in the event of favorable outcome, what could be the indicative timeline and capital requirement for the mine development? My last question would be around across the Finland, Tanzania, Mozambique, Spain and Balukona mines.
Can you just provide a brief three to five year roadmap and along with that expected CAPEX per mine? Thank you so much.
Operator
Thank you. Aniket. We’ll take our next question from Darshan Chandra from Home Investment. Please go ahead with your question. Darshan.
Darshan Chandra
Yeah, I’M audible.
Operator
Yes, please
Darshan Chandra
Sir. Just I wanted to know the Ms. Garbage guidance given by the company for FY27. So what price of the gold has been in that guidance means is that 4,500 or what kind of price for the guidance we maintain. And my next question is for resistant project in this year the ebitda or the PAT margin is around coming around 30 to 35% May for FY20 it can how much it will be targeted due to operational efficiency coming for FY28 is can you it can be increased from 33% to say 45. That’s it. Thank you.
Operator
Thank you. We have Harsh of Toro wealth managers. Harish, please go ahead with your question.
Harsh
Yes, thank you for the opportunity. Just have couple of questions. One is around what support are we expecting from the government, you know with respect to promoting mining of gold and other minerals and especially that you found new nickel block as well. And the second is you mentioned that we would need a larger funding going ahead. So any tentative plan you have for the 2030 roadmap which you mentioned how much total funding you would need across equity and debt. If you could know highlight that.
Thank you.
Operator
Thank you so much. We have manansha of money BE Investment advisors. Manan, please go ahead with your question.
Manansha
Yeah. Hi. Thank you for the opportunity. Am I audible?
Operator
Yes please.
Manansha
Yeah. So I believe there was some land acquisition which was supposed to happen in Jonagiri. Has that concluded? Also would Jonagari mine require any further capital going forward from here or the cash flows that they would generate would self fund that? Basically just wanting to understand if there is any risk of us getting diluted in Jonagari any further next question was has there been any consideration to reverse merge or the primary shareholder of of Jonagari any intention or any discussions have happened to reverse merge them into Deccan Gold and thereby getting that mine listed or that company listed through reverse merger.
Thank you.
Operator
Thank you. We’ll take our next question from Nikhil Chandak of Sangvi family office. Nikhil, please go ahead.
Nikhil Chandak
Yeah, you know my, my first actually suggestion or request would be that at least in your presentation and investor communication please do include some contact details. It’s almost impossible to reach out to anybody in the company to ask giving basic questions on the company. So contact details or some email ID where somebody would respond that would really help out. The second part was, you know a lot of your projects are actually outside India and each will be governed by its own rules, regulations in terms of royalties, in terms of repatriation.
Of funds and so on, so forth. Even on the India front there will obviously be a royalty element. So if some details could be provided on these projects. So when you give an EBITDA estimate, how do you really come on that EBITDA estimate? What are the risk to it? Is there an upside, downside risk or at least some sense on what royalty rates and cost of, you know, of the operations are? And the third one is just wanted to clarify. So you know, on the rights issue you mentioned that, you know, groups like Godavari and Lloyds and so on, so forth had participated.
So just wanted to understand are they still strategic investors in the company from the promoter’s side or from the company side or are they still partners with with Deccan Gold the likes of Godavari Power and Royce Group? Thank you.
Operator
Thank you so much. Nikhil. We’re taking a next question from Kunal Shah of Heartwood Financial Services. Kunal, please go ahead with your question. Yes,
Kunal Shah
Good afternoon. Can you hear me?
Operator
Yes, please.
Kunal Shah
Very good afternoon. Congratulations to the team and thank you for giving me this opportunity. I think you know the previous people have just asked the same question which I wanted to ask. FY27, going by your numbers so you know the profitability for decking pool would be around 180, 180 crores. So just wanted to get an idea for FY28 to 30. And the second question, the promoter you mentioned which is willing to, you know, give the debt and equities in the Australian promoter or someone else. Thank you.
Operator
Thank you. Kunal, we have Jhalak Jain of Chhattisgarh Investment Limited. Jalak, please go ahead with your question. Miss Jain, please. Hello. Yes please.
Unidentified Participant
Okay, so my first question Is, is the 100 crore which is which, which you will use in Kyrgyzstan project. So what is the usage of that fund? And my second question is for Jonagiri, the what is a real end product? Is the Dora Dorabar gold or the refined gold? And my third question is the selling of gold which you are going to refine it? Where will you sell it? In India or outside the selling of nickel from the CG plant? Thank you.
Operator
Thank you so much. Jalak. We’ll take our next question from Sandhya Gupta of NIP ccd. Sandhya, please go ahead with your question. Now. You can unmute your microphone and then you can go ahead with your question.
Sandhya Gupta
Hello.
Operator
Yes,
Sandhya Gupta
Can you hear me?
Operator
Yes, please.
Sandhya Gupta
Okay. Good afternoon everybody. So Hanuma, first of all congratulations for starting up Jonagri. I think compliments to you, Charles Jade Manas and the entire team. I know 10 years of efforts, unrelenting efforts facing villagers getting her out, paying land compensation and making this project operational with all the environment where I think the huge feather in the cap. I think something you should be or would be always proud of in your career. So as usual I have a list of questions and I will request you that once you answer if some of them are not unanswered please give me an opportunity to ask follow up questions.
So my compliments also to the two shareholders on asking the two questions which I had been asking for five years on a hedging policy and what would be the payout. So you are saying no 180 crore would be the profit from both the projects. So which translates into an eps of around 10 rupees on the current equity base of the company. So how are you going to utilize that 180 crores? Because on the other side you have a CAPEX requirement and all the projects I tuted to you over two years ago that you need to raise thousand corrodes by various means.
QIP FPO rides qip of course you did the rights you put did that first. So I want to know what is your vision now for because you yourself are saying some 500, 700 crore requirement. I want to have a clear blueprint on how you are planning to raise the money apart from what is coming from the promoter group. Now during my multiple visits to Jonah Green I once again give compliments on that team. You have a very your biggest strength is your people which you never you know advocate which I say you should be advocating because the kind of geologist and people who are in the project team, excellent bunch of people and they having implemented two project.
My question to you is which we have discussed earlier also you said that this team can now go and implement a project anywhere in the world. But I don’t think after you complete Kyrgyzstan by say end of the year you have any other projects to be executed in next 12 to 8 to 18 months. So what happened to these guys? You leave them or they would be on the rolls without any work because there’s no major project for implementation with you at the moment. The other question is regarding, you know in every presentation you keep on saying you 10 days, 15 days, one month we will come back to you on this and that but which is never happening till the next investor call.
We keep on writing mails to you, they are not replied. We keep on sending reminders to you, they are not replied. So what I’m pointing to you is you have been saying that you are strengthening your team. So I want to know exactly specifically each department wise what have you done to strengthen your team. Because as I told in the one of the EMS also I would be happy if you do one less project but do things rightly and in timelines you commit. The other question is regarding Ganajur. You said or you have been saying for many years.
The earlier management all used to say that we are doing every little bit possible license with state government and central government. I would actually specifically request you what exactly has the company done in the past three months? Because I had an earlier run in with the earlier chairman. When I said can you please demonstrate to me in writing what has been done? He said no, Mr. Peshwa went and met this person, that person. I said did you even write a thank you mail to the person to whom you met?
So I want to exactly know what you are specifically doing on this court case with Ganadu state and central government. I know the effort you are putting the team is putting talking to Indo cylinders. Highly appreciate that. So I would like to have a full view of the same thing. So thank you. I think I will ask follow up questions once you answer. Once again congratulations to all of you.
Operator
Thank you so much. That was Mr. Devinder Gupta with this question. We are taking a next question from Sandeep Mathewanan of money grow asset. Please unmute your microphone and you can go ahead with your question. Mr. Sandeep.
Sandeep Mathewanan
Yeah. Good afternoon. I have one question. What is the production of gold in Jonagari for the month of March and April? Thank you.
Operator
Thank you so much. Sandeep. Next question is coming in from the line of Deepak Pandey of Shagun Capital. Please go ahead.
Deepak Pandey
Hi. Thanks for an opportunity. Sir, just a question on the past promoters have been selling, you know, post results and post any major updates. Are they still looking to sell? Are there any promoters who are, you know willing to sell their stake? That’s my only question. Thank you.
Operator
Thank you. Deepak. Next question is coming from the line of Chetan Shah of Prime Corporation. Please go ahead.
Chetan Shah
A plant visit for the Jonagiri mines and what is the cost of production for the Jonagiri mines and Altian Tor.
Operator
Thank you so much. We have Rajiv Agarwal of Sterling Capital. Please go ahead.
Jhalak Jain
Can you hear me?
Operator
So your voice is not clear enough. Can you speak clearer or much closer to the microphone please?
Jhalak Jain
Can you hear me? Yes,
Operator
Please.
Jhalak Jain
I was seeing the results. I just want to know why the employee cost is coming down sequentially quarter on quarter for last two quarters. And I have. I am noticing a big increase in other operating income compared to last year. So what constitutes this other operating. That was my first question. My second question is regarding the. This project in Pakistan. So can you just. What was the revenue sharing you will be doing with the government there and what kind of. We should consider.
Operator
Sorry, Mr. Agarwal, I’m really sorry. I’ve got a message from the team that we are still not able to get. What exactly you want to ask? It’s not clear enough. So your voice.
Jhalak Jain
Did you hear my first question?
Operator
Sorry sir, we couldn’t hear that as well.
Jhalak Jain
Okay, just hold on.
Operator
Sure, sir.
Jhalak Jain
Now I am audible.
Operator
Yes, that is much clearer. Sir, can you go ahead with both your questions please?
Jhalak Jain
I just wanted to. I was seeing the results. So I just noticed a quarter on quarter decrease in employee expenses and for last two quarters. And my. I have noticed a big increase in other operating income. So can. Can you just give me an explanation for why other operating increases in other operating income and increase so much. And my second question is regarding the altitude project. So can you explain to me what will. What percentage of revenue would you all be sharing with the government there and what are the other taxes and royalties involved?
Thank you.
Operator
Mr. Rajiv, I would request you to please rejoin the queue and try one more time because we are still not able to hear your questions clearly.
Jhalak Jain
Okay.
Operator
Sure, sir. We’ll take our next question from Paras, Cheddar of Purple one Vertex Ventures. Mr. Cheda, please go ahead.
Paras Cheddar
Yeah. Thank you sir. Congratulations for the tremendous effort and the exemplary, you know, performance in terms of getting these mines close to production or. Or actually producing mines. So. And despite all the setbacks, but now that we are close on both these projects my question was, you know, which is the next mine that seems to be or that could come into production earliest after these two. And presuming if it is Chhattisgarh, what kind of resources do we expect at you know, in terms of nickel, copper, platinum resource base and you know, capacity for us, you know, in terms of processing capacity for you know, this mine.
If. If that is a mine that could be the closest next one to come up. That’s the question from my side. Thank you so much.
Operator
Thank you, Paras. We have a follow up question coming in from Charchit Malu of Genuity Capital. Charjit, please unmute your microphone and you can go ahead.
Churchit Mallow
So just quick question. Since we are generating a good amount of money like in FY27 FY28 so can’t we fund our capex like as the promoter mentioned of 100 crore capex from internal approvals only. So secondly so in the nickel copper project so what percentages from nickel and like can just give the distribution of nickel copper and the other the rare earth metals. And since we have like my third question is then when we, when we mine the gold what sort of other metals or anything that is come with that and is it sellable or not?
So that’s it. Thanks a lot.
Operator
Thank you so much. Ladies and gentlemen, that completes the question session. We request all the investors if they have any queries which are unanswered you can raise your questions and address it to infodecangoldmines.com I’ll repeat that you can address the queries to infodecangoldminES.com Now I will hand it over back to Mr. Prasad for the answering session. Over to you sir.
Hanuma Prasad
Thank you very much. Once again I will do my best to answer all these queries. If there is anything that is missing obviously we will we prepare the list and probably will communicate. So in terms of the first one on the hedging and risk management in terms of change in the gold prices I mean as on today all the estimates that we are making like in terms of Kyrgyzstan and in terms of Janagiri, that’s what these are the two examples I can take we have been using for all our calculations like a figure is like 15,000 rupees per gram so that is at a discount with the market price as on today and similarly in Kyrgyzstan also that is Based on the LME LBMA price we again use about $500 less than the price.
Something around $4,000 is being used for all our cash flows and projections. Other than that there is no clear hedging or risk management policy in terms of gold price if it falls down because that kind of scenario can be because we are not using very high prices to estimate our cash flows, projections etc. I think whatever the discount we are giving that puts manage if there in case of any fall in the world price. That’s what we believe. Yeah. And in terms of duty that needs to be paid to the government.
See in India because the Janagiri mine is one of the oldest like in 2013 it was granted so it comes under the previous regulation. We pay 4% royalty to the government of Andhra Pradesh and another 1.28% which is split between state and center in the form of District Mining Fund and also National Mineral Exploration Trust So in total it comes to around 5.28%. That’s what we pay to the government here. That goes from the top line. Similarly in Kyrgyzstan we Pay royalty of 5% to the government and.
Just a sec. Yeah. And in terms of production, the cost of production EBITDA margins again I can take the example of these two mines Janagiri on a very basic unit basis like 1 gram per ton it could be 1 gram. To produce 1 gram of gold it would cost us around 3000 rupees whereas the market price as and today 16,000. So we are looking at an EBITDA margin of upwards of 70 75%. That’s the kind of EBITDA that we will we get here. Similarly in Kyrgyzstan, as I said the all in sustaining cost there is around including the royalty payments it is about $1054.
I think that’s what we given in the presentation as well. Super ounce. Whereas the international prize in our calculations we have taken around $4,000. So again there also we are looking at around 75% at least 70% EBITDA there. But then we always calculate based on the PAT margin. Now that includes, as I said we have a 17 revenue sharing with the government of Kyrgyzstan. So all that included the PAT would be around 45% at the peak stage. I think that is one of the questions someone also has asked what would be the past margin particularly from Kyrgyzstan going forward?
Because now it is around in this FY27 it is roughly around 30 but going forward it would be between 40 and 45%. That’s the kind of margins that we are looking at. Yeah. Any issues regarding production due to crude prices impact? I mean it is not really actually what happens as of today it’s not happening much. See in Kyrgyzstan the crude prices are not moving very significantly. Of course there is slight change, there is no doubt about it and it is being continuously supplied through Kazakhstan.
So their fuel prices actually are less than India. So slight increase obviously will increase impact our overall cost But I believe it could be less than 5 to 10% in the overall price. Less than 5. That’s what I think. But at the current price increase of 4 to 5 rupees only in India and also in Kyrgyzstan that is about two to three zones. We I don’t foresee a significant impact on the gold price cost of production in fact. Yeah. To whom we are selling the gold. Yeah, in terms of the gold sale in India we produce refined gold.
It is not the dora. There is a refinery that is set UP and from Refinery999A gold power bars are being produced and they are sold to the jewelers. And whereas increased on the door that you produce the national bank has the right of pressure of Visa. So we have to sell the door bar to the national bank. They will settle the LBMA price of that day minus refining charges. That’s what they do in in India of course we are refining. So we will sell the 999 those gold bars to the.
Unidentified Participant
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Hanuma Prasad
In Finland someone has asked who is the major shareholder in Finland as of now in both in Finland and in Spain there is a company called Mineral Exploration Network. They own their balance of the stake and we have been investing money to acquire acquire highest stake in these companies. That is like earning. Every time we make investment they issue the shares. So as I said in Spain by spending another $1.76 million we’ll get to 51%. Then by completing the feasibility study and making it ready for the mining and start we actually producing we have the rights to go up to 95%.
So that is how these things are structured. And the partner is Mineral Exploration Network. They are owned by a Russian geologist and also a Russian prospector. These two are Russians but they are based out of Europe and one person is based out of uk. They have a pretty long history of doing exploration identifying the projects in these areas. And previously by raising some money they have also drilled in both these projects. So we are able to get the projects where some amount of drilling has already been done.
So these are the two share major shareholders. Eventually they become minority shareholders in these two companies. So in terms of capex, Ashish, what is the capex of each mine? If you go by the one mine that we have set up from the scratch to the end, that is the Jonagri project. If I take those numbers and the capacity is like thousand tons per day operation capacity that would cost around 350 to 400 crores. That’s the kind of capital that would be. We would be looking at it maybe a little bit more if the plant capacity has to be more in the first phase itself.
But thousand ton capacity that would be around 400 crores is going to be the capital requirement. And that is across all the projects in even in I think that will be the kind of capex. Whereas if you go into an underground mining operations there could be mining capex. Say someone has asked what could be the incremental capital that is required to open the underground mines in Kyrgyzstan. See in the case of Kyrgyzstan we are going to start an underground mining operation only after three to four years.
So by then the revenues that are coming through the gold sales internal accruals itself should be able to sufficient to operate to. To start the underground mining operation. In terms of underground mining operations we may be looking at an additional capital for the development of shafts and those kind of things in case of decline that will develop the decline. Anywhere between 50 to 100 crores is the kind of capital required to develop an underground operation to start the underground operation.
Then again it will slowly develop in itself now through the revenues. So from the perspective of Kistan project I don’t think we would require additional funding from here beyond this point. Because internal accruals itself would help the production to the underground operation. I think I mentioned this. The gold Dora bar in India we are going to sell is not the doar. It is 999 bar to the jewelers. And in terms of pricing, the price that is going to be settled in India, as I said in Kyrgyzstan it is the LBMA price that is being used.
Whereas in India the Indian Bullion Jewelers association price is the price which is fixed and the sales will happen based on that price. Yeah, in terms of cash flow, yes, there is. We. We project around 120 crores of pad from the GMSO. But you all know that it has to come to us when they declare dividends. My sense is in the first year at least no dividends are going to be declared because there will be money required for the expansion of the project itself so that it may not be required as of now.
And in terms of Geomysour and going forward, what are the plans? I only get because there is no formal communication on that front and it has not been discussed in the board also. But there is a possibility that Geomysour on its own could go to IPO at some point in time. That’s a possibility which being frequently discussed. But no clear decision has been taken on that one. So that if it happens it could be down the line one to two years. That could unlock our value also. And there is also a question on kill case.
The 100 crores are required in the next three months for them is there any major construction pending and so on and so forth. In fact 100 crores is the completely outer limit that we are taking in case of any emergencies. But the actual requirement is around 60 crores. So that is what is going to be spent in the next two to three years. And in case if there are any contingencies, any emergencies we will have and Also next two, three months of working capital that is what we have worked out and came up with this number.
But really what is required is around 60 crores. With that we will be ready to get into the production. That is how we look like. And in terms of fund inflow the dividends from Geomyser and Kyrgyz I think in from Geomysour I have mentioned previously that unless they declare dividends we may not get any money so that 120 crores may not come to us this year that I think I’m more or less certain of that. In terms of Kyrgyzstan, our investment so far whatever has gone in has gone in as debt which carries about 15% of interest on it.
So as soon as they start generating revenues the money will flow back to Deccan as the repayment of debt is with 15% interest on it. So there won’t be any given so money will start coming in into GM into Deccan from K as soon as they commence the production and start generating revenue. So it’s not at least first one year or so it will come in as a debt remember debt repayment with 15% interest. So there may not be any loss in the dividend tax at least for the 11 1/2 years. In from Cris and in terms of Viraj has asked about some info on tungsten and Balukona Tungsten I think it’s bit too early for me to watch out the numbers but Balukona again these are the very very indicative numbers which could significantly change with the drilling etc what it could be if everything as we think if it happens then we would be looking at anywhere around 70 to 80000 tons of nickel as a resource nickel equivalent that means copper, gold, a copper palladium and a nickel all combined.
That’s a nickel equivalent. So maybe around 75, 80,000 tons of nickel. That is what we anticipate to prove up to the depth of 200. Beyond that I am not going to comment now because our bill horse have shown the continuity of the mineralization. So if we do that one if we prove that kind of resource particularly in a nickel basis and I think it may be easy if I actually equate that how much the what it would be the equivalent of gold terms it may be around 78 tons of gold. That is how it probably looks like and in terms of plant the capacity if this kind of research is going to be improved we may have around 2,000 to 3,000 tons of plant operation which could run for about 15 years.
That is like. Like very, very broad geological numbers. You must. I must say, I mean because you have asked for this. Based on my geological experience, I am telling these numbers. So nowhere I. I want to caught up in this kind of situation. But that. That’s how it’s going to be. Amish, you have asked about the delay in these projects. Is it because of the money or what are the other constraints particularly in terms of operating environment, etc etc. Both the projects have two different problems.
Project never had an issue with the money because there is a major partner who is willing to contribute to the project. So there the issue has been in the last moment we had to to get the additional environment clearances that has delayed actually in the 2024 and then subsequently after that by July, August last year the plant was operational. In fact, if you see from August itself, before my actually departed from Geomesro, we started producing small quantum of the gold as part of the trial production.
So the. The delay can be attributed partly to the environmental approvals that we had to get the additional approvals that we had to get in the year 2024 and then subsequently some amount of construction that needs to be completed necessarily after getting the approvals. So that is where the delay has happened. In the case of. In terms of Kistan two other money, of course we have been able to raise money and send it. Now one of the reasons there are some delays is because of money transfer from Indian banks.
I think I should clearly mention this as well. They have been asking a lot of questions. It’s a foreign, it is overseas direct investment. So many times, even up to 15 days to a month, they used to hold the money in transferring it. And Kyrgyzstan is a place where weather and climate is very, very important. If a money transfer is delayed for about 15 days or a month in the month of September, from October onwards you will have winter time. And that will have a kind of serious impact in terms of construction.
And once that phase is crossed, you cannot do the civil construction for about three to four months. And the temperatures like minus 30 degrees. I think that is where these. But I don’t want to attribute everything to the banks. It could be our planning would have been much better. And also this is first time we have been working in those kind of harsh climates. And our planning in terms of particularly civil work, that’s what I can clearly say. There’s civil work, even a month delay, it could completely offset your plans by another three to four months.
So that is what has happened. So this time actually we were Very, very clear. In fact, by end of January, February we could send about 130 people onto the side. So we don’t want to take any chances and want to complete this before August. So that is what the real constraints are. And in terms of Balup, as I said, we have been bullish. We have been doing a lot of research on the nickel, copper, platinum in this country because we never produce nickel. Various the other countries like Australia and all they have big nickel mines.
Now what we have realized is conceptually our. The Indian exploration was not going in that particular direction. But. But we have generated a big dossier in the year 2004, 2005 itself. So this is one of the projects which we have always been targeting. So that’s one of my personal favorite. So I started seven weeks were bullish. But what we are looking at in terms of mining lease applications. I think this is another question asked by someone else. Also these two projects and tungsten project there are timelines before which we have to apply for the mining list.
In terms of Balukona, we have to apply the mining list by next year. So by next October we have to do it. So we have to drain and then keep the project ready next next year. So by next April. So we are fast pacing this entire drilling work. And we will also do the beneficiation test work. I also would like to add one other piece of information that some of the samples we have been particularly because this is nickel, which is used in battery. One of the research institutes they have already taken some samples from us to test whether they can actually make the battery out of this material.
So we have been doing so we are doing whatever best that is possible for this project. And by April we have to apply this. We may get another six months of time period extension, but we have to complete it. So that is really. We are working on bar footing in this area and we will launch the mining application. So once we get to the mining le application and if we have designed enter the processing plant by April next year. And from there it would take about one and a half years to construct any processing plant depending on the kind of processing that is required.
And that plant as I said would cost around 400 crores and going forward after 18 months. So somewhere around 29 there is a possibility that we could produce something out of this. These timelines need to be refined. I don’t want to be very aggressive at this stage. But one thing is sure that by next April we have to submit the mindset in terms of Spain Actually the time period is much less. We have to launch mining mining list application by October, November this year. So we are going to complete our definitive agreements and we are going to launch the mining lease application by the end of October or no November.
I think by then we will launch the application again. The same timelines would apply and the difference being in Finland in Balukona that could be an open phase operation but in Finland it’s going to be an underground operation because the loads are narrow and they go up to a depth of 300 meters. So the capital requirements in Finland could be a little bit more. If it is 400 crores in Baluna it could be 500 crores there in in Spain. Imran, you have asked who are the key promoters of the shareholders.
I can only say that we are talking to the promoters. They are key people in the promoters. I cannot disclose beyond that at this point. They are Australians. Are Australians. So we are talking to one of the key promoters. So we will come back on this and we are talking in terms of both death and the preferential work. It is not just preferential workman looking at the. We will come back on this very very soon and in terms of any hurdles visible for Kyrgyzstan I don’t foresee now because we have started very early this year by February we have moved entire team and we have started working and what is left out is very very small now the work that is left out is not, not much and so I don’t foresee any problems by next month if once we generate some amount of durable through leaching circuit technically we are into the production and then by July I am very very hopeful.
I really don’t foresee any hurdles at this stage. I think, I think your queries on timelines I think I have already addressed those things. Yeah. Can you allocate more funds to start under? Yeah, I think an I did mention about the capex requirements for underground operation but we cannot start the underground operation right now because we need to do some more drilling. Then only we can actually design an underground operation that could take about one and half to two months, two years. Sorry. So that’s why that fund we cannot allocate right now but as I said that that money will come out of the operations or the revenues from the Crusade project itself.
What is name? Yeah and yeah and your another case if we win what would be the indicator timeline for M development etc if we win indicate Indo Suppose this week inds the case then we have to come back to the hypotrophobia Karnataka. And then we get. We had to get the favorable order and the mining lease here. And from then onwards we need to get the Indian Bureau of Mines approval. We have to learn with the mining list application, we need to have the public hearing environment clearances. With our experience in Zonagaria, I can say that it could take between 12 to 15 months and then we are simultaneously at some stage we can start the land acquisition plan, keep the ground ready and the construction would take, even if you do very, very aggressively around another 15 days, 15 months.
So we are looking at around three months, maybe three, three 30 months before we actually produce gold out of that project. We may be able to speed up the process. If the environment clearance comes within six months, then we may actually cut down eight to nine months later. So between two and a half to three years is a likely timeline when we go to the. When we produce the gold from there. And Darshan. Yeah. Finland, Tanzania, Mozambique, Balupuna. The timelines, the roadmap, as I said for Balukona, which is really in my view probably that is the next project which is going to.
Going to. We are aware we’re going to spend a lot of time and beneficiation test work also is going to be done this year. So we’ll get into some kind of plan designs. And all this also answers one of the queries from what is this construction team is going to do? See how this is being operated is we have the core team of the processing technology. So they are the process engineers and the supporting team to them. So they will be retained because there will be that kind of work. Once Kyrgyzstan is completed, that team will start working on designing the plant for maybe Balukona or something else.
So that team would be retained. They will not go anywhere other than that. The team that we have is primarily the engineers on site who will be recruited into the company there itself. In our partners already we have recruited about four engineers and 15 more are going to be recruited in the next two months into that company. So they will start working in that project. And the rest are all actually the workers on the ground. They will. They are all on the contract basis. So they will go back and we’ll call them whenever it is required again.
So that is how the team is going to work. Yeah, I think what price of gold has been taken for your guidance? That I think I answered that one as well. Yeah. In terms of hush, you have asked about what support we are getting expecting from government promoting mining of gold and other minerals. See in Kyrgyzstan, maybe I’ll start from India. India. This is the first time mine is being developed and it’s coming into the production. So the state government is really helping us. There is no doubt about it.
The state government has instructed all their offices in the district level and even lowest levels to to help us so that they the mind would the production would start immediately because there are more than 900 people are also employed there. So it has created a lot of impact in that area. So there is a good support from the state government. All the permissions within the land acquisition that was one of the questions. What’s happening to the landing position? It’s going on in full swing. As I said.
There are three more blocks that we have to cover. The land acquisition is going on. Government is also helping the in fact the district tele has given orders whatever the government land and sealing land that needs to be immediately converted and given to the company. So that process is going on. So government is pretty supportive of it. And in terms of Kyrgyzstan, as I said Kistan, 10% of its revenue comes from the gold mining. So that’s a very key sector for that company. And we are in joint venture with a government company that is called Kyrgyz Alton which is like NMDC in India.
So whatever the support that is required they do. But having said that the local support, local people that we manage that is the strength that we have. And it’s not like I’m not praising our team but in one of the recent meetings the KAR chairman he has informed Prime Minister that Indian investors are far better than many other investors from many other countries because these guys really take care of the local communities. So that is the philosophy of Deccan and that we are continuously doing it.
So that part I think we are handling for ourselves other approvals in terms of power, water and all those things. Our partner, that is credit, they take care of it and that is a key product for them as well. And large funding going ahead. As I said, even two projects, even if two projects have to set up by in the next year or so we are looking at around conservatively around 800 crores. 802,000 crores. That could be like $100 million. That is what we are staring at or we are looking at in the next.
So that’s why we need to really wait for the drilling results. That’s why I said till August we will wait and make a plan on that. But the kind of money that we require is around thousand crores. And if you have to raise that money, one of the thought process process that we have is do it. We go back to the primarily it’s a equity plus debt funding. Equity could be raised through FBO and then we could do a debt raising with two minds in operation. I think this time getting debt from any banks or any financial institutions would be much more easier than the kind of situation that we are in.
The land acquisition is pretty much going on and going forward there won’t be any investment into geomiso because the internal accruals itself would support the expansion of that project. So I don’t foresee any further dilution in geomiso on an immediate basis. In terms of reverse budget. This is something which we did try but unfortunately because of evaluation related issues etc, so it did not happen. We keep going back to this issue, keep talking to it, but I cannot really guarantee that when this is going to happen it ever happens.
And similarly in terms of Geomyser getting listed separately again I think I answered that question. The thought process is there but nothing, no concrete decision has yet been taken or communicated to the board and it has not been discussed in the board. Yeah, contact details. I think we’ll provide that. The contact details will be provided and in the presentation itself we will add that. And also we have given email details that is important so please send that if you have any. But we will send the contact details of the team.
So in terms of team this is something which Dev has also been asking what’s the kind of team that you have and what is happening? So I will take a little bit of time to elaborate what is the kind of team that we have in Bangalore and also across various other places other than me. And if we take the head office here, the mining division, the mining exploration is managed by Andrew Weeks who is the president for mining and exploration. We have got him from Australia, he moved from Australia and he’s been supported by at least three members who one of them we have recently employed.
So their job is to take the data, prepare the resource models, prepare the designs and so on and so forth. We are going to increase that team by adding another mining engineer also. So that is the core team like a brain here and then entire corporate and legal these things are taken care by suburb. I think you are all familiar with Subramaniam. He has a team of his own people I think two, three people who are reporting to him and all the accounts across the globe is taken care by Karu and he has again team of three people working under him.
So that is the core team that is working from the. From this office. Other than that, in each places like if you take the Kyrgyzstan. Kyrgyzstan, that whole operation is headed by one Mr. Nosha Dharma. He is the head business for that. And then there are general directors, There are directors. A total of around 200 people are working in Kyrgyzan because. Because that is a big operation. So we have a deputy director for mining. We have deputy director, production deputy director, HR Deputy director.
They are all curious people. Deputy director, HR and accounts and security. Safety and security. So there is a big team there including mining engineers, the geologists. All of them are there. In fact they operate independently. They take advice from the geology team or the corporate team here. That’s how it is being operated. Similarly in Mozambique we have had business on Mr. Krishna. Krishna, I mean I just gave you a background of the team leaders. Also Navaj has been an entrepreneur. He is the one who has taken us to Kyrgyzstan and he is also a part shareholder.
He has invested into that company as well. So he has been taking the complete responsibility. He has built a big network in Kyrgyzstan itself and also of the CAS countries by the way, in case if you are going for an expansion. So similarly in Mozambique and we are. The team is headed by one Krishna Kumar. He is basically an engineer and as a banker he worked in Citibank in Dubai for about 15, 20 years and he was also a mining entrepreneur. He. He’s been heading the entire team and the team includes about three, four geologists and other local supporting staff who are working in those projects.
Again in the Balukona, again it is operated from the Indian team. So Andrew manages that entire project. And in terms of Spain and Finland, as I said, we have a partner that is Mineral Exploration Network. There is a geologist by name Alexander Mikhailovich. He is a senior professional. He has been working for last 30 years across CIS, Africa and Canada. So he is heading the project. He’s the kind of project manager there for both the projects, the European projects and he has his own supporting staff that includes geologists, mining in so on and so forth.
So this is the. This is the core team. This is how we are functioning. I think that replies one of the queries that Dev has. These are the team and departments. Apart from that we have HR head who is a consultant and also we have outsourced ESG that is being done by another company based out of Gura and that company is creating all the policies etc. So hr, ESG all put together, they make all the policies. Next one. I think Kunal, I did reply to Your query on 184-PROFITS-120 has to come from Janagiri I think as dividends.
It may not come in 2027 but I cannot say in the financial 28 it might happen but I cannot tell anything at this point in time. The debt again debt or equity it is from one of the Australian about the. I have mentioned already the usage of funds. I think this is yeah up to 100 crores. We can we send. Yeah I think how what is the fund requirement in next three months we’ll make a small announcement to the market so that you will have idea about this. 100 crores as I said 100 crores is the really outer limit.
But in the next three months how the funding is going to be that will that particularly in Kistan because the funding some amount of funding is also going into other projects particularly Balupuna and the tungsten project. And we may contemplate drilling in Mozambique very soon because that is also very important and results surface results are pretty good that and there is a clear business plan in in Mac. Yeah I think Jan, I did mention that it is a refined gold that is going to produce selling of the gold it’s going into the bullion dealers and will in India you cannot export the gold.
It has to be sold in here only I think in Kyrgyzstan I. I did mention it is going into the national bank. So we’ll come to that. Yeah I think now we’ll complete the other and Sandeep from money grow. You ask what is the production in Janagiri in the month of March and April. In the March and April as I understand it is around 30 kilos that have been 30 kilos each that have been produced. April numbers I get to get it but it will be around 30 kilos. That’s what I understand. And you also mentioned that promoters have been selling others.
You mentioned that promoters have been selling. I think number of times we did clarify the promoter’s position. The promoter is not one individual but there are multiple. There are two companies. One is Rama Mites Mauritius and then the other one is Australian resources. In these two companies there are two major shareholders. One is Handel Investment they own about 10% and the other one is Halcyon they want about 5%. Yeah. Out of the 20s. So these two are not making any sales. I’m not selling any of these shares.
It is the balance of the retail shareholders. They are the ones who have been selling the shares. That’s why you see that there is no large quantum of sales that has been done by the promoters but unfortunately because they sell even 50,000 that it actually shown as a promoter are selling. But the key promoters again with whom we have been talking and they have in fact contributed during rights issue also as you all know. So the same promoter is willing to extend debt and equity during this time also.
So the sale I think it is. It’s going to be reduced and the major shareholders, major promoters are not doing to sell. But having said that the smaller shareholders, the retail shareholders within the promoter group might sell. But they I think last three months there had no sales. I suppose. Yeah. Cost of production in Jiri I have answer to it plan visit for Ziri There is I think you all might have heard even just Chief Minister has been announcing that next month he is going to inaugurate the plant.
So once the inauguration is all happened then we will try to arrange a site visit a plant visit for some of the. Some of our investors before that I can guarantee you it is not going to happen. And bar I think I did answer. We are bullish on Balakona based on the current bill results. And I think I also said what would be the kind of resources and the capacity. Yeah. If any more information you require on this, please contact. Yeah, I mean church with the as of today because we don’t have dividends coming from project we will not be able to fund that 100 crores.
So that’s why we are talking to the. The investors, particularly shareholders and the promoters. And you have also asked what is the distribution of nickel and copper resources. It is actually if you in terms of proportion, if I give you some numbers it will be like 0.4% nickel and around 0.3% copper. Copper is slightly less than nickel and about 3.4 grams of platinum plus palladium primarily. So that’s the kind of. It is slightly. Nickel is more than the copper and the palladium will come as the resource, as the credit.
That is how the. Yeah. And you have also asked what sort of other minerals you get and if they are salable. In fact, in these two projects, particularly including Finland, the gold here is the free milling gold without any other commodities. In Janagiri in the Dora there will be very very small quantum of silver which is always associated with the gold. But it is very negligible in terms of the quantum. So these three projects we may not get any other other commodity. But having said the project in Spain that has.
That can have gold credits like the Tim tungsten mineralization there has some gold credits. I think I have shown in the presentation that one of the intersections has a one way 96 grams per ton of gold so the gold credits are going to come out of Spain tungsten project There is other three projects Spain have much which one? Which one? Yeah so I think the now if I go back to the queries the first one is the 180cr profit from GEOM I I I mentioned clearly the 120 crores of profit may not come in or will not come I think this year because there is going to be an expansion in Janagiri and once it comes I think next year we will address that issue and in terms of K I have already said that all the investments have gone in as debt with 15% interest that money will come back to us which can be used for the other compounds Next in terms of the huge capex requirement yes if Balupana Drilling and Spain banks and project drilling comes out to be very successful then we need to raise money I think I have already indicated what’s the kind of capital that we are looking at and what could be the mode of this money raise which is which includes debt and equity so that is what we are looking at and more a clear blueprint can only be provided once we know based on the drill results how that is going to happen and also by August we will come to know what’s the kind of internal accruals that we are going to have so then a blueprint can be prepared and sent you to and in terms of completing various project the team etc.
I think that I have already mentioned what they are going to do and what is the team how they are we are not going to sack the process engineers because they are the brain they are the ones who are sitting here and designing the entire thing but other engineers who have been working obviously they will be employed in those respective projects that’s what we done in January also we’re taking many engineers trained them and recruited them in January project the same thing we are going to do here but the key guys will be saying back and they will design for the other clubs and in terms of strengthening the team especially his department wise I mean I think I have told you what are the team that we have what other things that we are going to do.
I think you are always be in touch with Subu on these issues and we have always asked that please we have a policy in terms of responding to them so we are coming up with a policy that how to interact with the shareholders how quickly we have to respond to it all those Things will be communicated very, very soon. It is actually the board as well. And in terms of Gaza what you have exactly what the company has done in the past three months. I mean, one we have. If I split it into two to three parts.
One we have. We are in touch with industrialized. We have been discussing with their team. And in fact there were even industrial has asked for some kind of association with us. Because they see our case is much stronger than their case. But at the same time they wanted to have some business relationship with us. If the case is going to be successful. And they want to lead it. But that we have not concluded anything with them. But in terms of strategy how to argue. So our lawyer and their lives are in touch.
That is on the legal trend. That is what we are doing. And in terms of other things which are firmly believe it’s more than the legal. It is a policy matter that someone has to handle it. In terms of the policy matters. We are trying to approach the the policy maker in this country through some of our contexts both in Andhra and Karnataka. So these are the steps that we are taking. And we have intensified those things in the last month. Obviously, I cannot give complete details at this point in time of those steps that we have taken.
And this is really to impress the government under these conditions where gold imports are stopped. And there is going to be India in a long term basis have to be supported by the domestic production. And as I mentioned somewhere that each ton that is produced in India we stop 1500 crores of foreign exchange. So each term is really important. And it has been articulated. We have communicated to even to the Prime Minister’s office putting all these things. And we are getting in touch with those policymakers.
And in fact I also spoke to Niti Ayog about a week back asking about our project. So efforts are being made from the policy direction. Because that is the only place I think this project can be delivered. So if government minds and gives some respite in the policy then this project can be delivered very, very quickly. We are working on those lines as well. So this is what we have been doing. And so I think I have answered most of the questions. And if there are any things that are missing in this.
There are almost three pages or four pages there may one or two that we could have missed. Please feel free to contact us. We will certainly respond to those queries. And there was one question I think which I missed. That was where will you sell the nickel? So actually what happens is from the mine will produce concentrate that concentrate Will have nickel, copper and palladium. And generally this cost concentrates are sold to the smelters. And in India there are few copper smelters. That is they are owned by Adani and also Vedanta.
So probably we may have to sell this concentrate to one of them. Unless the product grows so big that we will be able to set up a smelter. But prima facie probably this SM concentrates will be sold to one of these big smelters in India. And also the our next door neighborhood Vedanta. Our license is bordering with Veranta’s license. So they will also be exploring. So if they also find the same mineralization, I think it is something from the same area. The concentrates can be taken out and it can be taken to a smelter.
So that is the real strategy for selling of the concentrates or the nickel, copper or PGE for from. Yeah, I think it’s over to you. I think we have answered most of these questions.
Operator
Thank you so much. Sir, we have got a follow up question from Charchit Malu of Genuity Capital.
Hanuma Prasad
Yeah,
Operator
We’ll take his question now. Charge it please. Go ahead.
Churchit Mallow
Hi sir, can you just please also give the you know description of other income that I think you haven’t answered that.
Unidentified Participant
Other income consists of primarily interest income from where we have already mentioned that we are given loan to Avila. So that’s an interest income. And the balance is about exchange gain or loss which is about 19 crores plus another 13 crores. That’s a breakup of the other income.
Churchit Mallow
So going forward can we expect the same kind of other income in FY27, FY28?
Unidentified Participant
Yeah, it depends. Because mainly why this exchange gave us erosion is not because what you have lent to them is in dollars. When we revalue we end up in a currency exchange. Gain and interest. You know as of we only invested 60% in AV balance. All the funding has gone through tech funding. So we’ve been charging 15% interest. So that’s interest income which is shown. How much was
Churchit Mallow
It for interest income?
Unidentified Participant
It’s about 18. About roughly about 19 crores. 18.3.
Churchit Mallow
I think we had close to 10 odd crores in other 10. 10 odd crores in other. Right.
Unidentified Participant
Yeah. Can you repeat?
Operator
Can you repeat that one more time? I think management is asking you to repeat.
Churchit Mallow
Just a sec. So 18 crores comes came from your interest income. Rest is from exchange. Right. You.
Unidentified Speaker
Thank you.
Churchit Mallow
Got it.
Operator
Thank you so much. We also have another question coming in from Devinder Gupta. Mr. Gupta, please unmute your microphone. Yes, please go ahead. Good
Sandhya Gupta
Afternoon again. Am I audible?
Operator
Yes sir.
Sandhya Gupta
So Hanuma1 is a clarification which I want to give which you presume shareholders know, as you said, they know who participate in the right issue from Australia. But I think the company never declared that Mark Greasy, the main promoter of A or whatever it is, Rama Minds, participated in the rights issue. I think that is something we should be proud of. And I think company should have shared in a communication to BSE or to shareholders. I came to know because of my own research and which I got validated from Subu.
So I think that is for the benefit of all the shareholders. I want to share and my investment rational I want to share with everybody is based because I was lucky to visit in 2007, I think no, 2009, all the mines in Ganaju, all the seven prospects just after Mark Creasy visited those places. And I had the benefit of what inputs he gave to the geologist there, Harish, who was very kind with me to, you know, take me to all the seven tenements over two days. So that is something I think gives comfort to lot of shareholders, especially to me.
And that is why I’ve stayed invested in the company for over two decades now. Now the other question is, you know you talked about fpo. I think when you came out with the right issue, I requested you that can you be ready with an FPO at least paperwork wise so that you know it would be a perfect way to time it either at Akshayat which is gone now or we can time it at the time of Dhanas. And now today, first time, you know you have stated that we will have a EPS of around 10 today. The PE multiple of small cap index in India is around 30.
So I see that, you know Deccan can easily get a PE multiple of 45 which is around 450 rupees share price. So are we ready? I want this answer from you. Is your team ready to do an FPO at a 30 days notice?
Unidentified Participant
I think he has already told this fuel planning could come only after the present projects get into it.
Sandhya Gupta
No Subu. But
Unidentified Participant
No how
Sandhya Gupta
Much you will raise can be done decided. But are you ready with the all the paperworks? You are that merchant banking guy, Nitin. Are you ready with all the paper? Because let’s be very frank. You guys are very good. You have done a great job. But I think when it comes to implementing, we always have delays. So we need to do paperwork in advance. You have done a right issue You FPO is not too different and we had been discussing for years that you know we mining in a capital intensive business. We all know you will always need capital.
So are we ready with that blueprint?
Unidentified Participant
Yeah, definitely. Already we have been in touch with the merchant bankers and see paperwork and other things are mostly standardized format. So basically once the resources and budget is finalized, I think that completes the documentation process and as regards the timelines and all that, now it’s all deadline driven by the stock exchanges.
Sandhya Gupta
Lot of your requirement is capital infusion. You need so many millions in Spain, you need so many millions in Finland. You need minimum amount for drilling in Balukona. So I think at least I see you have at least 100, 200 crore of visibility already. So it’s not necessary you do one FPO, you do one at 450 rupees and maybe when the price go up, you do one at 600, 900 rupees later. Lot of companies do that. But are we ready with our first set of IPO to go somewhere around Dhantiras because that is the time Indians buy gold.
And I think it would be a very compelling story for Deccan to come with the FPO with an eps. I. I will sincerely request you please consider this in your board meeting in your strategy discussion that you need to do a capital raising this year on Dhanteras. It’s a. According to me it’s a very compelling story. 10 rupees EPS and small cap multiple India P is 30 today. In a depressed market, Decan will easily get a PE multiple of 45 rupees.
Unidentified Participant
Sure. I will be in touch with you so
Sandhya Gupta
That we don’t lose track of this. Thank you so much.
Unidentified Participant
Thanks. Thank you. Thank
Operator
You so much. We will take that as the last question.
Unidentified Participant
Yeah.
Operator
If you have any unanswered questions, you may write to infoecongoldmines.com alternatively you may also call on 080-4776-2900. Ladies and gentlemen, on behalf of Deccan Gold Mines Limited, we conclude today’s call. Thank you for joining us. You may now click on the leave icon to exit the meeting. Thank you all for your participation.