The business/activities of Deccan Gold are subject to risks which must be considered carefully by investors before making a decision to apply for equity shares. The risk factors could adversely affect the value of the assets of the Company.
The principal risks include, but are not limited to, those detailed below:
Speculative Nature of Exploration
Gold exploration activities are conducted with a view to identifying economically mineable gold deposits. Exploration activities may not always lead to identifying such deposits. To this extent, investment in gold exploration would be considered speculative.
Resource estimates are expressions of judgement based on knowledge, experience and industry practice. Estimates, which are valid when made, may change significantly when new information becomes available. Also the reserve estimates are imprecise arid depend on some interpretations, which may prove to be inaccurate.
Commodity Prices and Exchange Rates
The Company’s future revenues will depend on the economic viability of the Company’s mineral properties based on international commodity gold price trends. International gold prices fluctuate and are affected by various factors including world demand for gold, production levels of various nations and forward selling by producers.
Development and Operational Risks
When the Company moves to establish and operate a mining site, it would be subject to all the operational risks associated with developing a new mine. The entire process of mining can only be started on receipt of all environmental/ acquisition of surface rights and other regulatory clearances and there would be associated risks of obtaining/ delay in obtaining the required approvals.
Changes in relevant taxes, legal and administrative regimes, accounting practice and government policies may adversely affect the financial performance of the Company.
While every effort as been made to ensure the accuracy of information here, Deccan Gold cannot gaurantee such accuracy. Furthermore, the material contained herein is provided solely for informational purposes and is not to be construed as a solicitation or as an offer to buy or sell any commodities, securities or related financial instruments. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Decca Gold does not accept responsibility for any losses or damages arising either directly or indirectly from the use of this information.