Deccan Gold Mines

[jnj333]

Some initial Findings about Deccan Gold -


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"Deccan Gold Mines is the first privately owned gold exploration company in India to be listed on the BSE. Established as a gold exploration company in 2003, DGML now has a large portfolio of exploration prospects in Karnataka, Andhra Pradesh, Kerela and Rajasthan.

DECCAN GOLD MINES LTD A Veritable Gold Mine

SCRIP CODE: 512068
SCRIP ID: DECNGOLD
CMP: Rs 43.45

Deccan Gold Mines Ltd is the first privately owned gold exploration company in India to be listed on the BSE. Established as a gold exploration company in 2003, DGML now has a large portfolio of exploration prospects in Karnataka, Andhra Pradesh, Kerela and Rajasthan.

India is the largest consumer of gold in the world but produces only a mere 2-3 tonnes of the precious metal on its own. Hardly any investment has so far taken place in the sector and Deccan Gold is one of the first companies to come into the field.

Government has adopted a liberal policy towards the mining sector and FDI is allowed upto 100%. While this is good, release of Prospecting Licences has been slow and this has prevented large investment from coming into this nascent industry. Being aware of this bottleneck, the Prime Minister and the Minister of Mines have recently set in motion a fast track approach for giving such licenses. It is hoped that this will lead to more production of gold and other precious metals in the country.

Deccan Gold has been promoted by a subsidiary (Rama Mines) of Australian Indian Resources Pvt Ltd. which has considerable experience in Gold mining. In India it is carrying on its activities through Deccan Gold and DGMLs wholly owned subsidiary, Indophil Resources Exploration Services. In 2006 Khemkas of Sun group have also taken an equity stake in the company.

The company has done substancial exploration work in Hutti, Hirenagnur in Karnataka in the Kolar belt and in other potential minefields in Rajasthan , AP, Kerela. The areas in Karnataka, especially have traditionally been the only locations in India where gold has been mined for many years. The company has applied to the Govt. for Prospecting Licences( PLs) and Mining Leases and these are awaited.

Reasons to Buy

* Only available opportunity in the stock market for entering the exciting gold mining industry.
* Strong domestic demand currently met almost entirely by imports.
* Foreign promoters have wide experience in the industry.
* Last but not the least, DGML possesses mining rights on some of the most lucrative mines in India with proven reserves.

Concerns

* New venture with no track record of turnover and profits
* Delays in obtaining Govt approvals may lead to profitability projections not being realized.

Recommendation

I recommend a strong buy on this stock for investors with large risk appetite. The share has a potential to hit a target of Rs 200 in next two years.

Source: Power Your Trade"

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I think it has the potential to surpass the mentioned target easily. Will Try to keep this thread updated.

jnj

 

[Prabhjeet]

Very good find JNJ as usual, i am sure it will reach your targets

 

[jnj333]

-Indian Government has laid down plans to explore about 20000 tonnes of gold and diamonds by 2010

-Despite abundant reserves of gold and other minerals, India imports Rs 65000 crore worth gold per annum and Rs 75000 crore of diamonds

-India currently produces hardly 0.4% of its gold consumption despite having 9% of global gold reserves under the countrys land mass. Though private entrepreneurs have come forward for reconnaissance, hardly less than 1% of them have come up to mining stage. This is mainly for want of latest technology, high risk capital etc. The government is also formulating a new mining policy to boost exploration of gold and diamond deposits and cut down the countrys over-dependence on imports.

-The new policy will also allow any investor who finds gold to automatically get permission to begin mining. It will not require gold and diamond explorers to obtain a separate leasing licence from states, as one mining licence would be enough to ensure that India explores its additional gold and diamond reserves to the tune of 20,000 tonnes by 2010.

-Deccan Gold Mines Ltd (DGML) said at least four global gold mining companies have approached them for joint ventures.


ABOVE ALL GIVES TREMENDOUS ADVANTAGE TO DECCAN GOLD AS IT IS THE ONLY LISTED COMPANY IN INDIA.

EVEN IF IT IS ABLE TO EXPLORE ONLY 1000 TONNES IN NEXT 3 YEARS IT CAN GIVE THE COMPANY A REVENUE OF MORE THAN 50000 CRORES!!!!!!!

THOUGH HIGHLY SPECULATIVE RIGHT NOW IF ALL GOES AS EXPECTED IT HAS THE POTENTIAL TO TOUCH A MARKET CAP OF 25000 CRORE FROM THE PRESENT MARKET CAP OF 250CR ONLY IN THREE YEARS TIME A JUMP OF WHOOPING 100 TIMES.

JUST IMAGINE THE SHARE PRICE . POTENTIAL TO TOUCH 4000+ .

A LONG TERM GAMBLERS STOCK - WHO KNOWS ONE CAN STRIKE GOLD WITH THIS ONE.

 

[viraj07]

I know the promoters on a personal level and they are very upbeat about the prospects of their comapny .

 

[nansrired]

This is not listed on NSE. How to Buy BSE stocks. Do sharekhan allow BSE purchases.
Thanks

 

[viraj07]

Deccan gold listed in BSE .In sharekhan terminal you should change the exchange from NSE to BSE in order to make purchases on the BSE .

 

[nansrired]

Earlier I tried to purchase BSE shares but got an alert "you cannot purchase the scrip".
I came to conclusion that onl NSE shares can be traded on Sharekhan. Am I correct ?

 

[sairam]

I know the promoters on a personal level and they are very upbeat about the prospects of their comapny .

dear viraj, who are the promoters ? any large business family or group that we know from Economic Times ?

 

[viraj07]

The main promoter is an Australian Businessman , who is an experienced hand in mining in Australia. He started his venture in India about 15 years back . From that time he has gradually gone from one step to another wining friends all the way . Recently , i have learnt that few industrial groups have picked up stake in his company .

 

[amitjawale]

-Indian Government has laid down plans to explore about 20000 tonnes of gold and diamonds by 2010

-Despite abundant reserves of gold and other minerals, India imports Rs 65000 crore worth gold per annum and Rs 75000 crore of diamonds

-India currently produces hardly 0.4% of its gold consumption despite having 9% of global gold reserves under the countrys land mass. Though private entrepreneurs have come forward for reconnaissance, hardly less than 1% of them have come up to mining stage. This is mainly for want of latest technology, high risk capital etc. The government is also formulating a new mining policy to boost exploration of gold and diamond deposits and cut down the countrys over-dependence on imports.

-The new policy will also allow any investor who finds gold to automatically get permission to begin mining. It will not require gold and diamond explorers to obtain a separate leasing licence from states, as one mining licence would be enough to ensure that India explores its additional gold and diamond reserves to the tune of 20,000 tonnes by 2010.

-Deccan Gold Mines Ltd (DGML) said at least four global gold mining companies have approached them for joint ventures.


ABOVE ALL GIVES TREMENDOUS ADVANTAGE TO DECCAN GOLD AS IT IS THE ONLY LISTED COMPANY IN INDIA.

EVEN IF IT IS ABLE TO EXPLORE ONLY 1000 TONNES IN NEXT 3 YEARS IT CAN GIVE THE COMPANY A REVENUE OF MORE THAN 50000 CRORES!!!!!!!

THOUGH HIGHLY SPECULATIVE RIGHT NOW IF ALL GOES AS EXPECTED IT HAS THE POTENTIAL TO TOUCH A MARKET CAP OF 25000 CRORE FROM THE PRESENT MARKET CAP OF 250CR ONLY IN THREE YEARS TIME A JUMP OF WHOOPING 100 TIMES.

JUST IMAGINE THE SHARE PRICE . POTENTIAL TO TOUCH 4000+ .

A LONG TERM GAMBLERS STOCK - WHO KNOWS ONE CAN STRIKE GOLD WITH THIS ONE.

I really appreciate about ur predictions & deep study....
& I hope Deccan Gold must be the next Jai Corp...
What wud be the near term target for Deccan Gold...
Meanwhile can u tell me about Kamdhenu Ispat....Nowdays it showing some upward movements