Japaul Gold Secures N20bn to Fuel Ambitious Expansion into Nigeria’s Mining Sector

Japaul Gold & Ventures Plc has taken a monumental leap in its evolution by securing approval from the Securities & Exchange Commission (SEC) for a special placement of eight billion new shares at N2.50 each. This successful capital raise translates to an infusion of N20 billion into the company, which has been officially listed on the Nigerian Exchange Limited (NGX).

Speaking at a press briefing, the Chairman of Japaul Gold & Ventures, Mr. Jegede Paul, highlighted the company’s strategic transformation from its oil servicing roots into the gold mining sector.

He explained that the company began as an oil servicing company, providing offshore logistics services to international oil companies, such as chartering vessels and barges, but due to the dwindling patronage from IOCs, the firm had to make a strategic pivot in 2020 to focus on gold and other solid minerals.

The Chairman, added that Nigeria, endowed with more than 44 different minerals across the country, presents an untapped wealth of opportunities, especially in gold mining.

According to him, Japaul has strategically positioned itself to capitalize on this, with the vision of building both a robust gold production capacity and a reserve exceeding 100 million ounces by 2034.

He, therefore, pointed out that the company has acquired multiple exploration licenses and mining leases, allowing it to build a significant gold portfolio.

As of now, Japaul boasts an inferred gold reserve of 637,000 ounces, valued at $1.55 billion, according to Paul. This reserve will serve as a foundation for the company’s long-term ambitions, which include advancing exploration activities and initiating gold production by the end of 2025.

To ensure that Japaul can scale effectively in the global mining landscape, the company has undergone a structural reorganization by KPMG. Paul stated, “The objective is to become a world-class gold mining company not just in Nigeria, but globally.”

This transition marks a significant milestone in the company’s turnaround story. Japaul, which posted a staggering N2.87 billion operating loss in 2021, made a remarkable recovery with an operating profit of N191 million in 2022.

The company’s profitability further soared to N619 million in 2023, though foreign exchange losses amounting to N1.2 billion dented its net financial position. Despite these challenges, the company remains optimistic about its future growth trajectory.

On his part, the Managing Director of Japaul Gold & Ventures, Mr. Akin Oladapo, emphasized the strategic importance of this transition into mining, which prompted the company’s name change from Japaul Oil & Maritime Services Plc to Japaul Gold & Ventures Plc in 2020.

“This shift is not just about diversification but establishing Japaul as a key player in the global mining value chain,” Oladapo explained.

He noted that Japaul’s recovery and growth demonstrate that the company is on a path to sustainable profitability.

“There’s now light at the end of the tunnel. Our recent financial performance shows that we’ve come out of the woods, and with the current developments, we are poised for continuous revenue and profit growth. Shareholders can expect ceaseless dividend payments soon,” Oladapo added.

Japaul has consistently blazed a trail in its industries, being the only maritime company listed on the stock exchange before transitioning to gold mining. Now, it is charting a new course in financing mining operations, a sector still not fully embraced by many Nigerian financial institutions.

With N20 billion in fresh capital, restructured operations, and ambitious plans to dominate the mining industry, Japaul Gold & Ventures is well on its way to becoming a formidable force not just in Nigeria but on the global stage. The company’s strategic transformation signals a new era of growth and profitability, driven by the abundant resources of Nigeria’s mining sector.