Kayode Tokede
Japaul Gold & Ventures Plc has announced that it has received approval from the Securities & Exchange Commission (SEC) for a Special Placement of eight billion units of new shares at a price of N2.50k per share, alongside the existing shares.
This special placement has provided the company with an additional N20 billion in capital. Japaul Gold & Ventures is listed on the Nigerian Exchange Limited (NGX).
The Chairman, Mr. Jegede Paul, shared this information during a press briefing held yesterday. He revealed that the company’s new shares have been listed on the NGX at a price of N2.50 per share. Japaul Gold & Ventures was incorporated in 1994 and commenced operations as a private company in 1997.
Initially, Japaul operated as an oil servicing company, providing offshore logistics services to international oil companies through the chartering of vessels, barges, and accommodation barges. In 2005, the company diversified into mining operations, including dredging and quarry activities, due to low patronage from oil servicing companies, including Japaul, which prompted strategic decision-making.
Mr. Paul further explained that Nigeria is abundantly blessed with over 44 different minerals, including gold, in various parts of the country. Japaul has strategically positioned itself to tap into the mining industry’s great potential by engaging in gold and other solid minerals mining. The company’s vision is to produce and reserve over 100 million ounces of gold by 2034.
In pursuit of this goal, Japaul has secured numerous exploration licenses in different parts of the country and mining leases in various gold fields. The company is currently undergoing restructuring by KPMG, aiming to become a world-class gold mining company not only in Nigeria but globally.
Currently, Japaul has 637,000 inferred reserve ounces of gold, which are valued at $1,551,095,000 based on its mining leases. To finance further exploration and commence the preliminary development of its gold fields, the company has formulated a clear plan to start gold production by the end of 2025.
The Managing Director, Mr. Akin Oladapo, also expressed his perspective on Japaul’s transition into the mining sector. He stated that the company aims to establish a niche across the value chain of the global mining business. This strategic shift led to Japaul changing its name from Japaul Oil & Maritime Services Plc to Japaul Gold & Ventures Plc in 2020.
Mr. Oladapo highlighted the significant progress Japaul has made, starting from a massive operating loss of N2.869 billion in 2021 to achieving an operating profit of N191 million in 2022 and further improving to N619 million in 2023. However, the company faced an exchange loss of approximately N1.20 billion due to the economic situation concerning foreign exchange, which adversely affected its net position.
With these recent developments, Japaul is poised for continuous revenue and profitability growth. The company expects to pay dividends in the near future and add substantial value to the assets of its investors.
Japaul has always been a pioneer in its business endeavors. It was the only company in the maritime sector listed on the Stock Exchange before diversifying into gold mining. Japaul is now at the forefront of finding innovative financing methods for gold mining, an area of business that many financial institutions in Nigeria have yet to fully grasp.
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