Oil Servicing vs Gold Mining - Japaul Case
Very interesting indeed: an oil servicing company in Nigeria, Japaul, moves into gold mining and the market is happy. Covid-19 has changed the world. One would have expected the company to have more prospects in the oil sector than mining solid minerals. The firm even rebranded, changing its logo and name from Japaul Oil & Maritime Services to Japaul Gold & Ventures Plc. Go figure.
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Mr. Ahmed Jinad, Head, Investment Research, Meristem Securities Limited, who spoke at today’s webinar organized by Meristem, revealed that the key driver behind the recent gains in the shares of the company on NSE remains the recent restructuring process of the former oil servicing company into its new business of mining natural resources.
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As investors are optimistic about the performance of the company in this new line of business, it is important to note that the Management of Japaul has taken avid steps by rebranding and changing its logo and name from Japaul Oil & Maritime Services to Japaul Gold & Ventures Plc.