₦airaland Forum

benzmatic:
https://openai.com/chatgpt/overview/ Is Ellah Lakes a scam company?

Ellah Lakes Plc is a **publicly listed agribusiness** on the Nigerian Exchange (NGX), founded in 1980, with a focus on oil palm, cassava, soybean, rice, maize and livestock. It’s a legitimate company with ongoing partnerships, government projects, and a public track record—not a scam. Here’s what recent reporting shows:

---

### ✅ Confirmed activities & credibility

* In **September 2022**, Ellah Lakes took over the management of the 5,000-hectare Adarice Farms in Enugu State under a Memorandum of Understanding with the state government, aiming to build a “Staple Crop Processing Zone” ([Nairametrics][1], [Nairametrics][2]).
* It also has a 2,400-hectare palm plantation acquired in 2019 and is working on additional 5,000-hectare leases in Ondo and Enugu ([Nairametrics][3]).
* The company has registered capital raises and funding rounds, including a ₦5 billion private placement in early 2024 and previous funding efforts including rights issues and partnerships .

### 📉 Financial lens

* Ellah Lakes has faced **financial challenges**, including periods of zero or minimal revenue, such as ₦780,000 in 2024 with a net loss of ₦893.9 million ([Businessday NG][4]).
* It is actively restructuring finances—converting debt to equity, issuing new shares, and leveraging government schemes .

### 🌱 Business growth & legitimacy

* The company’s strategy includes vertical integration: crop cultivation + processing, livestock (piggery), and partnerships like the International Institute of Tropical Agriculture (IITA) for soybean production ([The Nation Newspaper][5]).
* Their annual general meetings are well-documented in credible Nigerian media (e.g., BusinessDay, The Guardian, Nairametrics), with executive names published and board activity openly reported ([Businessday NG][4]).

---

### 🚫 Conclusion

Ellah Lakes is a **real, regulated company** with transparency through NGX filings, strategic acquisitions, public-private MOUs, and ongoing expansion plans. While it does face typical agribusiness financial hurdles, there’s **no credible evidence** to suggest it’s a scam. Its operations and public record support its legitimacy.

---

If you’re considering **investing or partnering** with them, I recommend:

* Reviewing their **latest financial statements** on NGX or their investor relations portal.
* Monitoring **ongoing updates around project commissioning** (e.g., palm oil mill activity due in Q1–Q2 2025) ([Businessday NG][4]).
* Seeking professional advice if you’re planning significant involvement.

Let me know if you'd like help digging into their latest annual report, stock performance, or strategic plans!

[1]: https://nairametrics.com/2022/09/12/ellah-lakes-plc-announces-take-over-of-adarice-farms-associated-assets-from-enugu-state-government/?utm_source=chatgpt.com "Ellah Lakes Plc announces Take Over of Adarice Farms & Associated Assets From Enugu State Government - Nairametrics"
[2]: https://nairametrics.com/2022/09/09/ellah-lakes-takes-over-adarice-farms-from-enugu-state-government/?utm_source=chatgpt.com "Ellah Lakes takes over operations of Adarice Farms from Enugu State Government - Nairametrics"
[3]: https://nairametrics.com/2022/09/18/ellah-lakes-plc-making-success-from-refocusing-strategic-acquisitions-under-chuka-mordi/?utm_source=chatgpt.com "Ellah Lakes Plc: Making success from refocusing, strategic acquisitions under Chuka Mordi - Nairametrics"
[4]: https://businessday.ng/companies/article/ellah-lakes-eyes-palm-oil-production-in-2025/?utm_source=chatgpt.com "Ellah Lakes eyes palm oil production in 2025 - Businessday NG"
[5]: https://thenationonlineng.net/ellah-lakes-iita-partner-on-n360b-soybean-market/?utm_source=chatgpt.com "Ellah Lakes, IITA partner on N360b soybean market - The Nation Newspaper"

emmaodet:
Why commercial paper? You raise CP for working capital payable less than a year.. mostly 270 days.
You need capital for many reasons and a short term capital raise is not suitable for long term repayment method.
Why go for CP when you can go for bank long term loan like 5 years?
And why go for bank long term 5 years that would be breathing down on you to payback interest with principal monthly while you can raise the same capital via equity with less pressure.
The aim and objectives of capital use determine which route you will use to raise cash.

Streetinvestor2:
Nop I just wanted to confirm. I don't even know anything about the company. Infact na from you I dey hear about the company for the first time.
Looks you don't know .I am worst enemy of the people marketing that junk stock called ellahlakes on this thread. They may accuse me of sending you to spoil thr market on the company..lol

Panadee:
I recall you also posted your ‘portfolio’ a few days ago while complaining about ‘hypocrisy’ and that people didn’t buy MECURE.
The funny thing is that I couldn’t find the same MECURE in your list of stocks. Was that an omission?

Streetinvestor2:
Bros you go soon put me for wahala. They go soon say na me send you come.Nobe you come last time to market one phem stock abi I am mistaking u for another moniker .The name na legend. Na thr I firt hear the name of the company

Princkez:
don't worry about the new investor because the money is already down...please wait till after the egm .

crownprince2017:
On the street, the name sohsoh means
"omo Ase"
If you are, we are not.

crownprince2017:
For your mind now, you think you are smart, I don't think so, were you not alive when someone like u organise a Q&A session with the CEO? Let say u were not wise enough to come n ask the questions disturbing your mind atleast he gave the address of the farm which you can listen to online with 500 data.

You would have make a lot of sense saying you went to the farm and discovered everything said by the CEO is lie. Hence, you can establish the tinko guy relationship.

Logically, you guys are contradicting each other based on tinko comparisons.

Ellahlakes gave the complete address where the operations are taking place did tinko do that? Instead u were carried away by tinko big packaged office.

Did tinko guy grant interview that allow shareholders ask questions?

The Lake Rice in the pictures is not produced by Ellah Lakes

Why aren't there any pictures of the Ellah Lake Products on the internet?

You are a joke...

SonofElElyonRet:
You want a list ?

bovali:
Mecure Key Financials (Q1 2025)
- Profit After Tax (Q1 2025): ₦568.71 million
- Basic EPS (Q1 2025): ₦0.14 per share
- Shares Outstanding: 4,000,000,000
- Annualized EPS: ₦0.14 x 4 = ₦0.56 per share
- Total Equity (March 2025): ₦14,527,713,000
- Book Value Per Share: ₦14,527,713,000 / 4,000,000,000 = ₦3.63 per share

Valuation
1. P/E Multiple (Nigerian Pharma: 8x–12x)
P/E - Implied Value (₦)
8x - 0.56 x 8 = 4.48
10x - 0.56 x 10 = 5.60
12x - 0.56 x 12 = 6.72

2. Price/Book (P/B) Method
- Book Value Per Share: ₦3.63
- P/B Range (1.0x–1.5x): ₦3.63 – ₦5.45

Fidson Key Financials (Q1 2025)
- Profit After Tax (Q1 2025): ₦3,250,658,000
- Basic EPS (Q1 2025): 142 kobo = ₦1.42
- Shares Outstanding: 2,294,996,000 shares
- Annualized EPS: ₦1.42 x 4 = ₦5.68
- Total Equity (March 2025): ₦26,976,971,000
- Book Value per Share: ₦26,976,971,000 / 2,294,996,000 ≈ ₦11.76 per share

Valuation
1. P/E Multiple (Sector Range: 6x–10x)
P/E - Implied Fair Value (₦)
6x - 5.68 x 6 = 34.08
8x - 5.68 x 8 = 45.44
10x - 5.68 x 10 = 56.80

2. Price/Book (P/B) Method
- Book Value per Share: ₦11.76
- P/B Range (1x–1.5x): ₦11.76 – ₦17.64

My Opinion
- I intentionally used a lower multiple for Fidson just to show why it is fundamentally stronger than MeCure on both earnings and asset base.
- The market should and does price Fidson at a premium to MeCure, justified by higher profit, superior balance sheet, and a track record of sector leadership.
- If you are considering both as portfolio candidates, Fidson offers better downside protection (via asset base) and greater upside if sector multiples expand.
- MeCure remains investable at the lower band of sector multiples, especially if its cancer center and recent projects drive sustainable profit growth, but it is a “mid-tier” play versus Fidson’s “sector leader” status. Mecure is overvalued as it is. Best case it goes to 14 naira (26% upside) or it drops to 7 naira (37% down side)

megawealth01:
But their dividends paymet is very low na

Sunrisepebble:
English
Fidson looks the better stock in that sector. Paid N1 from 2.something earnings. They can likely pay N2 for the next full year

megawealth01:
The MECURE guy here... What exactly do you see in this MECURE that makes you declare it a buy RECOMMENDATION?

All I can see about them is they probably have good management and predominantly Indians?

Locotrader:
Chief Driver of profitability in Cileasing
Reduction of operation cost by adopting CNG conversion of it's fleets of vehicles in Nigeria through Bola Ahmed Tinubu CNG initiatives and the use of Electric vehicles in Ghana .

The commercial papers of 10B for these initiatives was oversubscribed in March 2025

Read more

megawealth01:
What about this MECURE you have been posting for days now

I will look into their books this JUNE when I have free time

Heishere:
So after the comparison, you placed Mecure above Fidson because of commercial papers? Hope people are not paying you for this recommendation?

SohSoh:
Thank you for your comment. To clarify, this is a current BUY recommendation for Mecure Industries Plc,

GeeKudi:
And he keeps posting the long piece repeatedly. We have seen it already nah

Heishere:
So after the comparison, you placed Mecure above Fidson because of commercial papers? Hope people are not paying you for this recommendation?