Deccan Gold Mines

Dears,
Have a look into deccan gold mines a potential multibagger stock. Please note this is a very high-risk stock. Please do your research before investing.
You can find more details from the below links.
https://deccangoldmines.blogspot.com/2016/09/know-deccan-gold-mines-before-investing.html
DGML – GMSI merger is on the card. GMSI is a subsidiary of https://thriveni.com/

Stock Alert: Deccan Gold: Deccan Gold is buying into 49% of Geomysore. Interestingly Geomysore is the only private Gold mining company which has both Mining License from Central government and LOI from State Government of Andhra Pradesh. This is for their Jonnagiri Gold Mines with has over 12 tonne gold potential and current plan of extraction of 1 Tonne / Annum i.e. 500 Cr of revenue from 2023 onwards. Currently the Geomysore is into land aquisition which is 40-50% complete and now need to put the plant. The interesting point is both Deccan Gold and Geomysore has common investors in name of Australian Indo Resources (AIR). AIR holds 40% into Geomysore which will be transferred to DGML. So it is a strategic move on behalf of AIR to amalgamate both the companies to create Indias only private gold mining company with 2 ML, where one has been awarded LOI from State Government (Geomysore) and other one is pending (DGML). So Geomysore will not be listed anymore and to participate in the gold mining sector in India, DGML is the only stock. Coming to Geomysore mine numbers. The cost of extraction gold / ounce is 500 USD as per the latest report on Jonnagiri. The feasibility report was done when the Gold prices were in range of 28K/10 Grams. Current Prices are 50K/10Gram i.e. almost double. From financial standpoint, in 2023, the gold prices are likely to be in range of 60K/10 grams. So for 1 tonne of Gold output, Jonnagiri will give 600 CR revenue to Geomysore. 150Cr will be the extraction costs. The profit before tax (35%), royalty(6%) and depreciation will be 450 Cr, Assume 50Cr will go in plant and machinery depreciation, the net profit before tax and royalties will 400 Cr. Out of this 40% i.e. 160 Cr will go into tax and royalties. The profit before tax will be 240 Cr. 120 Cr will come to DGML due to 50% holding into Geomysore. 9 Cr is the DGML stock in circulation. i.e. 14 Rs EPS. Now for a Gold mining company, PE in Gold bull market can be easily 20X and more. There in 2023 when the first quarter production results comes out, the stock will trade in range of 300 Rs. If DGML gets Hutti and other mines, then it will be Sone pe Suhaga. But now with certain certainty on the Geomysore Jonnagiri Mines, this is an excellent and long term pending move that has come from AIR. I believe the current price movement is consolidation at 30 levels. Once it decisively breaks 30 Rs, it should move to 50-60 levels. But the two year target based on Jonnagiri is 300 Rs. If DGML performs in this 18 months time-period i.e. gets Ganajur LOI from Karnataka State, then this is easily touch 1,000 Rs in 2023.