Deccan Gold: The golden stock of small cap

Gold Exploration Company, Deccan Gold Mines on June 29 has surged by over 19 per cent. The company which is operating for the last 10 years was not able to extract gold due to licensing reason. However, according to the top company officials, company will be through in getting a license for Ganajur mines. The company is through with the approvals of Ministry of Mines and is awaiting for a letter of intent from the Government of Karnataka. Company plans to go into production by last quarter of 2017, or first quarter of 2018. Ganajur has an estimated gold deposit of 3,08,000 ounces. The company also has exploration prospects in Andhra Pradesh, Kerala and Rajasthan. 

The shares of the company in the last 5 days have surged by 23 per cent. In the last 6 months the shares have gained over 41 per cent. 52 week High/Low stand at Rs 71.37/23.90. Looking at the global prospective and unstable market, the prospective of the investor in this stock looks highly amicable, as gold is the only safe haven in the volatile market. The result of the company in the Q4FY16 is not that impressive. The company has reported a net loss of 2 crores in this quarter which has widened by more than 74 per cent as compared to Q4FY15.

Deccan Gold Mines Ltd., is an Indian company engaged in the business of gold exploration and mining in the states of Karnataka, Andhra Pradesh, Rajasthan and Kerala. The company operates in only one business segment i.e. gold mining and exploration.