Japaul Gold targets N4 billion turnover from mining sector investment

•Gets SEC’s approval on special placement of 8b units of new shares
•Market capitalisation dips by N50b amid losses in 25 stocks

Japaul Gold and Ventures Plc has expressed optimism for increased capital appreciation and dividend payout as the firm received approval from the Securities and Exchange Commission (SEC) for a special placement of eight billion units of new shares at N2.50 kobo to run pari-passu with the existing shares to boost investment in the mining sector.

According to the chairman of the company, Paul Jegede, the company is targeting a turnover of N4 billion and a profit of N2 billion by the end of next year.
At a press briefing held in Lagos, Jegede said the company has diversified into gold mining and is now being re-organised structurally by KPMG to become a world-class Gold Mining Company, not only in Nigeria but across the globe.

“The kind of business we are doing is a business that will earn dollars for us, gold is sold in dollars, we will be earning dollars, no marketing, no advertisement for it, people can pay one year ahead for the gold you have not even produced.

“In the oil and gas, there were no new investments, we used to service the international oil companies by providing vessels that they need to support the production of crude oil and gas but now, there is no new investment, there is no patronage, we have to diversify. We have a ready market for it and we are going to earn foreign currency.”

Japaul decried the inability of banks operating in the country to support the mining sector by way of providing credit facilities, noting that the sector has great potential to stimulate economic growth.

He said the company is well-positioned to drive the business of gold mining and other minerals with the vision of having both gold produced and gold reserves of over 100 million ounces between now and the year 2034.

According to him, the firm has acquired many exploration licenses in different parts of the country and mining leases in different Gold fields. He added that the company has 637,000 inferred reserve ounces of gold, which is worth $1,551,095,000 on the mining leases that it has acquired.

With these, he said the company has been able to come up with the means of financing further exploration and commence the preliminary development of the gold field, with the plan to commence gold production before the end of 2025.

Managing Director, Akin Oladapo said the company’s transition into the mining sector was aimed at carving a niche for the organisation across the value chain of the global mining business.

He pointed out that the company changed its name from Japaul Oil & Maritime Services Plc to Japaul Gold & Ventures Plc in the year 2020 as a result of this strategic shift.

“There is light now at the end of the tunnel for the company that looked as if it was going out of business, coming from a huge operating loss of N2 .9 billion in 2021 to an operating profit of N191 million in 2022 and N 619 million in 2023, but due to economic situation as regards foreign exchange, the company was hit by an exchange loss of about N1.20 billion, which hurt our net position.”

MEANWHILE, Nigerian equities investors lost N50 billion as bearish sentiment prevailed at the close of yesterday’s trading. The All-Share-Index (ASI) lost 87.76 points, representing a loss of 0.09 per cent to close at 96,715.04 points. Also, market capitalisation shed by N50 billion to close at N55.576 trillion.

The decline was driven by price depreciation in large and medium capitalised stocks amongst which are; Julius Berger Nigeria, Oando, Northern Nigeria Flour Mills (NNFM), Skyway Aviation Handling Company and PZ Cussons Nigeria. Investor sentiment, as measured by market breadth, closed positive as 32 stocks advanced while 25 declined.

Caverton Offshore Support Group emerged as the highest price gainer of 9.95 per cent to close at N2.10, per share. Red Star Express followed with a gain of 9.69 per cent to close at N3.85, while UPDC advanced by 9.63 per cent to close at N1.48, per share.