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Japaul Gold reports loss after first half-year profit in five years

Japaul Gold reports loss after first half-year profit in five years

After reporting its first half-year profit in five years in June 2020, Japaul Gold and Ventures Plc, a Nigerian mining and technology development company, returned to a loss in the first six months of 2021.

The company recorded a loss of N257.54 million in the first half of 2021 compared to a profit of N38.29 million reported in the corresponding period of 2020, as gathered from the company’s 2021 unaudited results for the period ended June 30th, 2021.

Japaul’s gross profit declined by 40.24 percent to N91.76 million in June 2021 from N153.55 million in the same period of 2020. It is a key determinant of a company’s efficiency rate, ability to earn a profit while simultaneously managing production and labour costs.

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The company’s revenue was also done by 4 percent to N314million in the review period from N327million in the previous quarter.

A breakdown of the unaudited financial results showed that Japaul’s net assets declined by 9 percent from N2.8billion to N2.6billion in the period under review.

Meanwhile, the company had in December 2020 changed its name from Japaul Oil & Maritime Services Plc (the Company) to Japaul Gold & Ventures Plc and was implemented by the Nigerian Exchange Group (NGX).

In line with the approval of the shareholders of the Company at its Annual General Meeting held on 29 July 2020 and the receipt by the Company of a new certificate of incorporation from the Corporate Affairs Commission (CAC), the names change, according to Japaul was occasioned by the pronounced emphasis in its mining business and its venture into technology development.

The company is shifting from largely oil and gas-dependent business activities.