Lagos, Nigeria – Gravitas Investment Limited has awarded Japaul Gold and Ventures Plc a significant N26 billion contract to mine 3.5 million cubic meters of sand. This initiative is a key step in the ongoing reclamation of Gracefield Island, a prestigious development located at the end of Chevron Drive in Lekki, Lagos State.
The Nigerian Exchange (NGX) disclosed on November 25, 2024, that Japaul Gold and Ventures Plc has been awarded a transformative project to recover 200 hectares of land in Lekki, Lagos. This ambitious initiative will pave the way for a luxury development featuring a golf course, a golf estate, a boat club, yacht parking spaces, and shopping malls, with Japaul Gold playing a central role in reshaping the landscape.
By reclaiming swamps and lagoons in the area, the sand mining project is set to transform the site into a luxurious destination, envisioned as the new Banana Island. The ambitious project is scheduled for completion within 26 months, establishing Lekki as a pinnacle of opulent living and a powerhouse of commercial excellence.
Japaul Gold’s foray into sand mining comes as the company nears the completion of its exploration phase for gold mining projects. With gold production anticipated to commence in or before 2026, the sand mining venture provides a strategic opportunity to generate revenue while the company focuses on its core gold mining operations.
The company’s recent private placement has secured the necessary funds to support its gold mining endeavors, including the installation of a custom-built gold processing plant and the development of essential infrastructure. However, the immediate focus remains on the sand mining project, which offers a tangible revenue stream and aligns with the company’s commitment to shareholder value.
Japaul Gold’s financial performance has been impressive, with a significant increase in both pretax profit and revenue. The company reported a pretax profit of N174.7 million for the third quarter of 2024, a substantial 134.36% increase compared to the same period in the previous year. Revenue also surged by 190.27%, reaching N927.6 million in Q3 2024.
The Japaul offshore and dredging units have been key contributors to this growth, generating substantial revenue. As of November 26, 2024, Japaul Gold’s shares are trading at N2.16, reflecting a positive long-term trend in the stock market.
