Japaul Gold Signs N26bn Sand Mining Contract For Gracefield

Japaul Gold and Ventures Plc has taken a significant step in its operations with the announcement of a N26 billion sand mining contract with Gravitas Investment Limited.

The agreement covers the mining of 3.5 million cubic meters of sand to reclaim 200 hectares of swamps and lagoons at Gracefield Island, a high-end development situated at the end of Chevron Drive in Lekki, Lagos State.

This development was made public recently, through a disclosure on the Nigerian Exchange (NGX) signed by the company’s Secretary, Mr. Michael Edeko.

The sand mining project is a crucial element of the ambitious plans to transform Gracefield Island into a luxury community. The development, according to Japaul Gold, would feature exclusive amenities, including a golf course, a golf estate, a boat club, yacht parking facilities, and upscale shopping malls. Widely referred to as the ‘new Banana Island,’ Gracefield Island is expected to establish Lekki as a premier destination for both residential and commercial excellence. With a 26-month completion timeline, the project promises to significantly reshape the Lagos real estate landscape.

While Japaul Gold has long-term plans for gold mining, the sand mining contract forms part of its broader strategy to sustain its operations as it prepares to commence gold production by 2026. The company, which recently concluded a private placement to finance its gold exploration efforts, is currently focused on installing a custom-built gold processing plant and developing the necessary infrastructure to begin production.

The company revealed that the sand mining venture would serve as a reliable source of revenue during this preparatory phase. Japaul’s management has reaffirmed its commitment to shareholders, emphasising plans to prioritise dividend payments while maintaining operational growth.

Japaul Gold’s financial performance has been robust, with the company posting a pretax profit of ₦174.7 million in the third quarter of 2024, representing a 134.36 percent increase from the ₦74.5 million reported in the same period of 2023. Its nine-month pretax profit for 2024 reached ₦578.1 million, supported by a total revenue of ₦2.1 billion during this period—a year-on-year growth of 190.27 percent. The company’s offshore unit contributed ₦1.5 billion to this figure, while its dredging unit added ₦520.9 million.

Japaul’s stock continues to show strong performance in the Nigerian market, opening at ₦2.16 on November 26, 2024, as part of a sustained upward trajectory.