Japaul Gold and Ventures Plc has announced the signing of a significant N26 billion contract with Gravitas Investment Limited for the mining of 3.5 million cubic meters of sand to aid in the reclamation of Gracefield Island in Lekki, Lagos State. The announcement was made on November 25, 2024, through a disclosure published on the Nigerian Exchange (NGX) and signed by the company’s Secretary, Michael Edeko.
The sand mining project, aimed at reclaiming swamps and lagoons in the area, will span a 26-month period. It will play a crucial role in transforming Gracefield Island into a high-end residential and commercial hub, similar to the upscale Banana Island development. Once completed, the reclaimed land will feature luxurious amenities such as a golf course, a golf estate, a boat club, yacht parking spaces, and shopping malls, with an overall reclamation project covering 200 hectares.
Project Timeline and Impact
The sand mining project is expected to be completed in 26 months, and it is anticipated to significantly elevate Lekki’s status as a premier location for both residential and commercial developments. The reclamation efforts will pave the way for a thriving upscale community that promises to boost the local economy.
Strategic Role in Japaul’s Operations
This sand mining and land reclamation venture is particularly important for Japaul Gold as it provides an immediate source of revenue. The company is currently in the exploration phase of its gold mining projects, which are expected to commence production by 2026. However, before gold production can begin, Japaul will need to install a custom-built gold processing plant and develop the necessary infrastructure. The reclamation project, therefore, plays a critical role in sustaining operations in the interim and contributing to the company’s financial performance.
Performance and Financial Growth
Japaul Gold has reported a strong financial performance for Q3 2024, with a pretax profit of N174.7 million, a 134.36% increase from N74.5 million in the same period the previous year. Total revenue for Q3 2024 reached N927.6 million, marking a 190.27% increase compared to N319.5 million in Q3 2023. The company’s total revenue for the first nine months of 2024 stood at N2.1 billion, with the majority of this coming from its offshore and dredging units.
Future Outlook and Shareholder Value
Japaul Gold’s strong performance is reflected in the growth of its stock price, which has been on an upward trend. As of November 26, 2024, shares were priced at N2.16. The company’s management has also reiterated its commitment to prioritizing dividend payments, ensuring ongoing value delivery to shareholders as it continues to expand its operations.
Overall, this contract for the sand mining project marks an important step in Japaul Gold’s broader strategy to diversify revenue streams and position itself for long-term growth in both the sand mining and gold production sectors.
