KEY POINTS
- Japaul Gold inks N26 billion sand mining deal for Gracefield Island luxury development.
- The project involves mining 3.5 million cubic meters of sand over 26 months.
- Gracefield Island aims to feature luxury amenities, enhancing Lagos’ urban real estate sector.
Japaul Gold and Ventures Plc has signed a N26 billion ($15.4 million) sand mining deal with Gravitas Investment Limited to reclaim swamps and lagoons at Gracefield Island in Lekki, Lagos State.
The project will pave the way for a 200-hectare luxury development featuring high-end amenities such as a golf course, yacht parking spaces, and shopping malls.
Japaul Gold plans landmark sand mining project
The agreement, disclosed on November 25 through the Nigerian Exchange and signed by company secretary Michael Edeko, involves mining 3.5 million cubic meters of sand.
Japaul Gold plans to complete the project within 26 months, setting the stage for a premier residential and commercial hub akin to Banana Island.
A milestone for Lagos urban development
Gracefield Island, situated at the end of Chevron Drive, is envisioned as a transformative project for Lagos’ real estate sector.
The land reclamation is expected to support high-value developments while strengthening Lagos’ position as a modern urban center.
“This project underscores our commitment to delivering value and driving economic transformation,” Japaul said in a statement.
Revenue diversification amid Gold exploration
The sand mining initiative aligns with Japaul’s strategy to diversify its income streams while progressing its gold mining ambitions.
Although gold production is slated to commence until 2026, revenue from the sand mining operation will sustain ongoing operations and reassure shareholders of dividend commitments.
Japaul recently raised funds through a private placement to support its gold exploration efforts. The company plans to complete infrastructure and install a custom-built processing plant before production begins.
Strong financial performance fuels growth
The company reported significant financial gains in the third quarter of 2024 with pretax profit of N174.7 million ($0.11 million), up 134 percent from N74.5 million($0.04 million) in Q3 2023. Nine-month revenue of N2.1 billion ($1.24 million), a 190 year-on-year increase.
Revenue was led by Japaul Offshore, contributing N1.5 billion($0.89 million), with the dredging unit adding N520.9 million ($0.31 million).
Japaul Gold’s stock continues to trend upward, trading at N2.30 ($0.0014) as of November 28.
With its sand mining contract and ongoing gold exploration, Japaul Gold positions itself as a key player in Nigeria’s infrastructure and natural resource sectors.
Gracefield Island’s development promises to reshape Lagos’ skyline, offering a glimpse into the city’s aspirations for urban luxury and sustainability.
