Deccan Gold Mines Shares Fall 2.74% as Selling Pressure Dominates; Company Signs Spain Tungsten Deal

Mumbai, June 11: Shares of Deccan Gold Mines Limited declined 2.74% on Wednesday, with the stock last trading at ₹154.21 against a previous close of ₹158.56, even as the company announced a significant international expansion through a definitive earn-in agreement for a tungsten project in Spain that could reshape its long-term growth trajectory. 

The stock opened at ₹159.39, touched an intraday high of ₹160.87 in early trade before sellers overwhelmed buyers through the afternoon session, with the low of the day recorded at ₹154.20 — near the last traded price — indicating that the stock found no meaningful support on the way down. The VWAP for the session stood at ₹157.38, positioned well above the LTP, confirming that the bulk of the day’s volume was transacted at prices higher than the closing mark, a pattern typically associated with late-session distribution. The order book at the time of reporting showed a pronounced skew toward sellers — 75.30% sell versus 24.70% buy — with total sell-side quantity at 3,89,132 against a buy side of 1,27,620, underscoring the extent to which selling pressure dominated the session despite positive news on the corporate front. 

Weekly Trend 

Wednesday’s decline does not mark a sudden reversal — it is the continuation of a deteriorating weekly trend that has been in force since the start of June. The one-week chart presents a bearish progression: Deccan Gold was trading near ₹168 on June 4, briefly touched a weekly high of approximately ₹170 on June 5, and then entered a sustained downtrend through June 6 and 7 before attempting a partial recovery to around ₹167 on June 9. Wednesday’s session erased those gains entirely, with the stock shedding close to ₹14 from its weekly peak — a weekly loss of approximately 8.2% — as sell-side momentum built progressively through the second half of the week. The weekly chart leaves little room for ambiguity: each attempted recovery has been met with fresh supply, and Wednesday’s close near the weekly low confirms that sellers remain firmly in control heading into the next session. 

The Catalyst: Logrosan Tungsten Project and Europe’s Critical Minerals Push 

Against the backdrop of the day’s price weakness, Deccan Gold Mines announced the signing of a definitive Earn-In, Option and Shareholders Agreement for the Logrosan Tungsten Project located in Spain — a transaction that marks the company’s first foray beyond Indian borders and into the high-stakes European critical minerals arena. 

Under the agreement, Deccan Gold will invest EUR 1.76 million to progressively acquire an initial 51% stake in Logrosan Minera SL by March 2027, with a subsequent option to increase its ownership to 75% subject to agreed milestones and an independent valuation. The company may further increase its stake to as much as 95% over time through future funding participation and dilution provisions — a structure that limits upfront capital outlay while preserving the path to majority control. 

The Logrosan project represents a significant geographic pivot for a company that has until now focused exclusively on gold exploration across India’s Dharwar Craton and other domestic belts. Tungsten — a metal used extensively in industrial tooling, defence applications, and electronics manufacturing — is attracting renewed strategic interest across Europe as governments seek to reduce dependence on Chinese supply chains for critical industrial inputs. By entering this space now, Deccan Gold is positioning itself at an early stage of what could be a structurally driven demand cycle for the metal in Western markets. 

Source

•  https://www.nseindia.com/get-quote/equity/DECNGOLD/Deccan-Gold-Mines-Limited