Directors of Japaul Gold & Ventures Plc, on Tuesday, presented its audited financials for the year ended December 31, 2020, revealing yet another spate of “substantial losses from its operations,” from what it termed “curtailed activities, which had raised doubt about its ability to continue as a going concern.”

The group reported a net loss from operation of N1.182bn, made worse by the N2.243bn working capital deficiency, compared to the N1.715bn reported in the 2019 full-year, following which the directors proposed a series of measures, including ‘arranging for private equity investment/funding.”

Other suggested ways out of the company’s precarious financial condition, the group said, would include “full exploration and production of gold through mechanized mining using today’s technology; sustaining and expanding our existing quarrying business; refurbishing and upgrading of existing equipment for hiring purposes; advancing into smart real estate through high and blockchain technologies; (and) sustaining and growing our recent effort in retail sand mining operations at various sites across the country.”

Notwithstanding these uncertainties, however, the directors say they “have a reasonable expectation that the group have adequate resources to continue in operation for the foreseeable future.

“For these reasons, the Directors continue to adopt the going concern basis in preparing the financial statements at 31 December 2020, they noted.

According to the result submitted through the Nigerian Exchange Limited portal, revenue for the period dropped from N725.472m to N689.643m, while director costs dropped to N1.007bn from N1.668bn, resulting in a gross loss of N318.089m, compared to the N943.393m reported in the corresponding period of 2019.

The company, however suffered a significant drop in ‘other income’ from N43.816bn to N610.401m, being what the directors said was the ‘effects of settlement.

Explaining this arrangement, Japaul Gold recalled that “in prior year, land, building and marine equipment pledged as collateral securities for various loans obtained by the company from Access Bank were ceded and debt waived. Ownership of some finance leases (Marine vessel, Continental 1 and Asha deep) were duly transferred to the bank and associated debts (due and not due) were pardoned based on executed terms of settlement before the Federal High Court directive on suit no: FHC/L/CS/1222/2018.”

Administrative expenses for the period jumped from N635.838m to N1.118bn, resulting in operating loss of N829.686m, compared to prior year’s N42.236bn operating profit.

Net finance costs for the period fell from N1.208bn to N3.249m; as loss before tax stood at N829.686m, as against the profit of N41.028bn; just as after-tax loss came to N996.745m, from the previous N40.917bn profit.