Key facts
- Deccan Gold Mines shares rose 20% to a new all-time high.
Deccan Gold Mines shares jumped 20% to a new all-time high following a Supreme Court decision upholding its pre-2015 mining lease rights for the Ganajur Gold Project in Karnataka. The ruling protects legacy applicants from the 2015 mining law overhaul mandating auctions.
The Supreme Court's decision provides legal clarity and protection for legacy mining lease holders, potentially impacting other companies with similar pre-2015 applications and bolstering investor confidence in Deccan Gold Mines' future development of the Ganajur project.
Shares of Deccan Gold Mines experienced a significant surge, climbing 20% to reach a new all-time high of Rs 196.50. This rally followed a Supreme Court decision that upheld the company's pre-2015 mining lease rights for its Ganajur Gold Project in Karnataka. The apex court's bench, comprising Justices Prashant Kumar Mishra and Atul S Chadukar, ruled that the company's vested rights would persist despite subsequent amendments to mining laws. The court clarified that applications approved before 2015 would not be considered 'pending applications' and thus would not be subject to the post-2015 statutory regime mandating auctions, nor to lapse provisions introduced in 2021. The Ganajur Gold Project is estimated to hold 3.08 lakh ounces of gold resources. The company's stock has seen substantial gains, rising over 60% in the past month and 63% year-to-date, contributing to its current market capitalization of approximately Rs 3,889 crore.
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