Japaul Gold and Ventures Plc has announced the signing of a N26 billion sand mining contract with Gravitas Investment Limited to mine 3.5 million cubic meters of sand for the reclamation of Gracefield Island, located at the end of Chevron Drive, Lekki, Lagos State.
The announcement was made public on November 25, 2024, through a disclosure published on the Nigerian Exchange (NGX) and signed by the company’s Secretary, Michael Edeko.
According to the release, Japaul Gold will play a pivotal role in the reclamation of 200 hectares of land, a development that is expected to usher in a slew of luxurious amenities, including a golf course, golf estate, boat club, yacht parking spaces, and shopping malls.
The sand mining project aims to reclaim swamps and lagoons in the area, paving the way for a high-end development that will become a new Banana Island.
Set to be completed in 26 months, the project will transform Lekki into a premier residential and commercial hub.
According to the disclosure:
“Japaul Gold and Ventures Plc (Japaul or the Company) has recently signed a sand mining contract with Gravitas Investment Limited for the purpose of mining 3,500,000 cubic meters of sand to aid in the reclamation of swamps and lagoons at Gracefield Island (end of Chevron Drive), Lekki, Lagos State.”
Backstory
Japaul recently completed a private placement to raise funds for its gold mining projects across several goldfields, where it holds mining leases and exploration permits.
- The company is nearing the end of its exploration phase, with gold production expected to begin on or before 2026, according to Mr. David Dawson, the company’s Canadian Mining Manager.
- Before gold production can commence, Japaul will need to install a custom-built gold processing plant and develop the required infrastructure. As a result, production is not expected immediately but should begin once these preparations are completed.
- In the interim, Japaul plans to support its operations through its sand mining and land reclamation project. This venture is expected to provide a source of revenue while the company continues its work toward starting gold production.
At the same time, management has assured shareholders that dividend payments will be prioritized as part of its ongoing commitment to delivering value.
Performance
Japaul Gold reported a pretax profit of N174.7 million for the third quarter of 2024, a 134.36% increase from N74.5 million in the same period the previous year, bringing its nine-month pretax profit to N578.1 million.
- Revenue also saw a significant increase of 190.27%, rising from N319.5 million in Q3 2023 to N927.6 million in Q3 2024. The total revenue for the first nine months of 2024 reached N2.1 billion.
- Most of this revenue came from the Japaul offshore unit, which contributed N1.5 billion over the nine months, followed by the Japaul Dredging unit, which accounted for N520.9 million.
As of opening on November 26, 2024, Japaul Gold is on a long-term upward trend in the stock market, with its shares priced at N2.16.
