Japaul Gold and Ventures Plc announced a plunge in profit after tax from N40.917 billion in the 2019 financial year to -N1.182 in the 2020 financial year.
In the company’s audited financial statements released on Tuesday, revenue stood at N689.643 million in the period under review, down from N725.472 million recorded in the corresponding period of 2019.
Gross loss moderated from N943.394 million in 2019 to N318.089 million in 2020, while operating profit nosedive from N42.237 billion in 2019 to -N826.437 million in 2020.
Net finance costs also plunged to -N3.249 million in 2020, down from N1.208 billion in 2019.
Profit before tax stood at -N829.686 million in the period under review from N41.029 billion posted in 2019.
Loan/profit from continuing operations declined from N40.917 billion in 2019 to -N996.745 million in 2020.
The company posted a N185.104 million loss from discontinued operations net of tax.
Japaul Gold and Ventures Plc, formerly known as Japaul Oil and Maritime Services Plc, announced in November it had received approval in principle from H&H Mines Limited to invest in the company once it concludes its proposed fundraising in 2021.
The company’s shares rose over 200 percent following the news before Investors King, in numerous articles, highlighted the possibility of the deal not materialising as expected given COVID-19 and Japaul Gold’s ability to raise funds needed to complete the deal.
Since the deal was announced, the company has been unable to raise the required funds to complete the deal as expected, hence the reason the price of Japaul Gold and Venture shares plunged.