Japaul Lists 8bn Shares At N2.5k Per Share As Gold Mining Prospects Brighten

Japaul Gains SEC Approval for Special Placement

Japaul Gold & Ventures Plc has announced that it secured approval from the Securities and Exchange Commission (SEC) for the Special Placement of 8 billion units of new shares at N2.50kobo.

This move aims to further strengthen the company’s position in the gold mining sector, enhancing its financial prospects.

The approval marks a critical step in Japaul’s strategic shift from oil servicing to gold mining, which began in 2020.

During a press briefing at Japaul’s corporate office in Lagos on Monday, Chairman Jegede A. Paul, alongside Group Managing Director, Akin Oladapo, spoke on the company’s progress. Paul expressed optimism about Japaul’s future, stating, “We have been able to come out of the woods, and there is light now at the end of the tunnel.”

Operating Profit Despite Setbacks

Japaul’s recent financial performance has shown significant improvement. After facing an operating loss of N2.859 billion in 2021, the company bounced back to record an operating profit of N191 million in 2022.

By 2023, this profit rose to N619 million. However, the company was hit by an exchange loss of N1.2 billion due to Nigeria’s foreign exchange situation, which resulted in negative operating profits.

Paul noted that the company remains confident about the future. “With all indications, the loss will be wiped out this year despite the hardship in the economy,” he said, adding that the commencement of gold production would further enhance the company’s profitability.

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Japaul’s Transition into Gold Mining

Japaul Gold & Ventures Plc, which started as an oil servicing company in 1997, has undergone significant restructuring in recent years.

In 2020, the company made a strategic decision to diversify into the mining of gold and other solid minerals. This shift was driven by the dwindling demand from international oil companies (IOCs), which had been a key part of Japaul’s business.

Oladapo emphasised the company’s new focus, stating, “Nigeria is blessed with more than 44 different minerals, including gold, and we have strategically positioned ourselves to tap into the mining industry’s vast potential.”

Japaul’s goal is to produce and hold gold reserves exceeding 100 million ounces by 2034. The company has acquired several mining leases and exploration licenses across Nigeria, with 637,000 inferred reserve ounces of gold currently valued at $1.551 billion.

Restructuring for Growth

To further streamline its operations and prepare for the global stage, Japaul has engaged KPMG for a structural reorganisation. Oladapo shared, “Japaul is on track to becoming a world-class gold mining company, not just in Nigeria but globally.”

The company also disclosed its plans to begin gold production before the end of 2025. This marks a critical phase in Japaul’s development, as the company continues to explore financing options to support further exploration and preliminary development of its gold fields.

A Trailblazer in the Nigerian Market

Japaul has always been at the forefront of its industry. It was the first company in the maritime sector listed on the Nigerian Stock Exchange before diversifying into gold mining.

The management remains confident that the company will continue to lead in the mining sector, particularly as financial institutions in Nigeria begin to recognise the potential of the mining industry.

“Without a doubt, the future of the crude oil business is bleak due to global warming concerns, and we foresaw this situation, which is why we diversified into mining. This decision will add value to our shareholders through dividend payments and possible bonus shares,” said Oladapo.

Looking Ahead

Japaul’s management is optimistic about the company’s future, with expatriates already being engaged to manage its mining operations.

They believe that their expertise will help ensure the mining operations meet international standards.

The Special Placement, which has been approved by the SEC, is expected to fuel further growth for Japaul, as the company moves toward its goal of becoming a significant player in the global gold mining industry. “This is a welcome development that calls for celebration,” concluded Paul.