Read theIPOguru's latest article in the Hindustan Times - "Muscle and Mining" under Ak'Nomics column that is featured every Saturday. In his article theIPOguru mentioned about a stock - Deccan Gold Mines, which as of 11th Jan was quoting at Rs.116. I had invested in this stock a couple of years back at around Rs.13.5 per share. It was then more of a long-term Call Option, given the tremendous upside potential for the stock, if it were to hit gold. The company's recent annual report talks in great detail about its mining operations and also offers details on the current policy regime in India. The company's annual report and website are quite informative.
At the current market price, DGML commands a market cap of close to Rs.700 crore, that for a company which has not produced an ounce of gold so far ! Looks a little far fetched, isnt it? Maybe it is. But, then like I mentioned earlier, it should be seen more as a long term Call option, which if it clicks can turn out to be a big multi-bagger!! Ofcourse, as is the case with options, one stands to lose the entire premium paid....
For those interested in having a look at this company, here are some useful links:
- Company website.
- Annual Reports
- A long and detailed interview with Mr.Sandeep Lakhwara, MD, DGML
- DGML's current projects