Japaul Gold Jumps by 56% on Plan to Establish Refinery
JAPAULGOLD stock market valuation spiked by 56% to become the best performer in the Nigerian Exchange (NGX) in the just concluded week. This pushed the company’s market capitalisation to N12.4 billion, spread over its 6.262 billion outstanding shares.
The market reacted positively to the company’s equity capital raise announcement to finance its dual acquisition with a plan to establish a gold refinery to drive value higher. Its share price advanced to N1.98, according to data from the Nigerian Exchange. It had opened the week at N1.27.
In a statement signed by Michael Edeko, JAPAUL Gold and Venture Plc, the company told the Nigerian Exchange about its planned 8 billion ordinary shares private placement filed with SEC to raise N20 billion equity capital.
Management told the exchange that the proceeds would be used to finance its expansion of the company’s minefields through the acquisition of a 50% stake in H&H Mines.
The company is also seeking to acquire a 100% stake in Covenant Gems and Gold Minerals Limited via assets for shares exchange while seeking to establish a gold refinery to maximise value.
Citing a competent person report, the company said the mining lease of H&H Mines Ltd has gold reserves in excess of 20,000kg. It also disclosed Covenant Gems and Gold Minerals Ltd minefields contain copper and mineable gold.
Japaul Gold bolstered profit to N661.6 million in 9 months of financial year 2023, from about N24 million in the comparable period in 2022. The feat came as the company grew its topline strongly by increased operational activities.
This saw turnover rising to N2.183 billion, more than 115% year-on-year growth from N1.015 billion. The bottom line expansion was also supported by the company’s increased income from other sources.
Its net finance costs grew moderately to N960,000 at the end of the period, translating to a 8.4% surge from N886,000 in the equivalent period in 2022. The company made no provision for tax payment, making pre and post-tax equal to settle at N661 million in nine months of 2023 earnings scorecard submitted to the Nigerian Exchange. Oil Prices Rises Above $80 After Pressures