Lloyds Enterprises Acquires 31.58 Percent Stake in India's First Private Gold Mine Project

Lloyds Enterprises Limited has officially announced its decision to acquire an indirect 31.58 percent stake in Geomysore Services India Pvt Ltd (GMSI), the company developing India’s first privately developed gold mine, the Jonnagiri Gold Mine Project in Andhra Pradesh. This move marks a major milestone in the company's strategy to diversify its business portfolio into high-potential sectors while delivering sustainable long-term value to stakeholders.

Details of the Deal

Lloyds Enterprises Limited (LEL) will invest Rs 140 crore to acquire a 50 percent partnership interest in Prakar Estate And Promoter LLP. This LLP holds a 63.17 percent controlling stake in GMSI. Through this structure, Lloyds will effectively own 31.58 percent of GMSI.

This transaction was approved by the company’s Board of Directors at its meeting held on 4th July 2025.

About Geomysore Services India Pvt Ltd (GMSI)

GMSI is the company behind the development of the Jonnagiri Gold Project, located in Andhra Pradesh. It is notable as the first gold mine to be commercially developed in Independent India. The project is strategically significant not just for GMSI but for the broader Indian mining sector.

Key Highlights of the Jonnagiri Gold Project

• Mining Lease: The project holds a mining lease for 1,000 tonnes per day processing capacity (equivalent to 330,000 tonnes per annum).

• Regulatory Clearances: Fully compliant with all major statutory approvals, including Environmental Clearance (EC) and Consent to Operate (CTO) from the Andhra Pradesh Pollution Control Board. Notably, the EC is valid until 2043, ensuring regulatory continuity for long-term operations.

• Resource Potential: Currently has JORC-certified gold resources of around 13.1 tonnes, with potential upside of up to 42.5 tonnes (1.5 million ounces) based on feasibility studies and ongoing exploration.

• Production Target: Plans to produce up to 1,000 kg of refined gold annually over the next 15 years.

• Investment to Date: Over Rs 405 crore already invested, with the project now in advanced stages of commissioning and expected to commence commercial production in the current quarter.

• Revenue and Profitability: Expected peak revenue of approximately Rs 950 crore annually and EBITDA of around Rs 700 crore.

• Import Substitution Benefit: Domestic production will allow cost savings by avoiding import duties on gold.

• Operational Synergies: The processing plant is situated within the mining lease area, providing logistics efficiency and reduced ore handling costs.

Strategic Importance for Lloyds Enterprises

According to Lloyds Enterprises, this investment aligns with the company's strategic vision of diversifying its portfolio into high-growth, high-value sectors. It leverages Lloyds Enterprises’ deep experience in minerals and metals, positioning the company to tap into the global gold production ecosystem at a critical stage of commercialisation.

Gold has historically been seen as a hedge against economic volatility, delivering an 11.07 percent CAGR over the last decade (2014–2024 in Indian prices). This acquisition represents an opportunity for Lloyds Enterprises to participate in that value chain, while supporting India’s broader goal of reducing reliance on gold imports.

Advantages of the Investment Structure

By acquiring a 50 percent partnership interest in Prakar Estate And Promoter LLP, Lloyds Enterprises is able to indirectly secure a 31.58 percent stake in Geomysore Services India Pvt Ltd. This structure provides an efficient route to participate in the project while partnering with experienced stakeholders in the mining industry.

Market Context and Gold Demand

India is among the world’s largest consumers of gold, but domestic production has remained minimal for decades, leading to heavy reliance on imports. The Jonnagiri Gold Mine Project is poised to change that by establishing India’s first modern, large-scale gold mine.

With import duties contributing significantly to gold prices in India, domestic production offers a cost advantage. By investing in GMSI, Lloyds Enterprises is not only diversifying its business but also tapping into a sector with long-term, structurally strong demand.

Operational Readiness and Risk Profile

One of the strongest selling points of this acquisition is that the Jonnagiri Gold Project is near commissioning. With regulatory approvals in hand and most infrastructure in place, the execution risk is considered minimal. Production is expected to begin within the current quarter.

This readiness reduces uncertainties that typically come with greenfield mining projects and ensures a quicker return on investment.

Environmental and Regulatory Compliance

GMSI’s Environmental Clearance is valid until 2043, and the project has received the necessary Consent to Operate. This regulatory certainty provides confidence in the long-term sustainability of operations, making it an attractive asset for investors like Lloyds Enterprises.

Economic Impact and Value Creation

Lloyds Enterprises expects that this investment will multiply the overall value proposition for the company. With peak revenue of ~Rs 950 crore per annum and expected EBITDA of ~Rs 700 crore, GMSI is positioned as a high-margin business.

The cost advantage from import substitution further improves profitability, while the efficient processing setup within the mining lease area reduces operational costs.

Management's Perspective

Commenting on the acquisition, Mr. Rajesh R Gupta, Executive Director of Lloyds Enterprises Limited, said:

“This investment aligns with Lloyds Enterprises’ strategic vision to diversify its portfolio across high-potential sectors while creating sustainable long-term value for stakeholders. The Jonnagiri Gold Project represents a unique opportunity to participate in the world's gold production ecosystem at a pivotal stage of commercialisation.”

He further emphasised that gold has been a reliable hedge against economic uncertainty, with an impressive CAGR over the past decade. By investing in GMSI, Lloyds Enterprises is leveraging its deep expertise in the minerals and metals space to deliver attractive long-term returns.

Investor Implications

For shareholders and potential investors, this acquisition represents a strategic shift. It reflects the company’s ambition to move beyond its traditional areas and capture growth in high-value sectors like gold mining.

The partnership with Prakar Estate And Promoter LLP also brings in synergies from experienced stakeholders in the mining domain, helping reduce execution risks.

Future Outlook

With this acquisition, Lloyds Enterprises is poised to become a significant player in India’s emerging gold mining sector. As the Jonnagiri project nears production, Lloyds will gain exposure to a steady revenue stream from one of the country's most strategically important natural resources.

This aligns with India’s broader push to reduce gold import dependence, supporting domestic industries while conserving foreign exchange.

Conclusion

Lloyds Enterprises’ Rs 140 crore investment for a 31.58 percent stake in Geomysore Services India Pvt Ltd via Prakar Estate And Promoter LLP marks a transformative step for the company.

It offers exposure to a fully permitted, near-production gold mine with strong long-term value creation potential. By diversifying into gold mining, Lloyds Enterprises is demonstrating strategic foresight, enhancing its portfolio resilience, and reinforcing its commitment to delivering sustainable value for all stakeholders.

This move not only strengthens Lloyds Enterprises’ position in the Indian corporate landscape but also signals its readiness to capitalise on new opportunities in India’s growing and evolving economy.

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