Managem is exploring the sale bonds in order to finance the expansion of development plans.
Rabat – Morocco’s leading mining firm Managem is considering raising $200 million through the sale of non-convertible bonds to fund development plans. The bonds will have a maturity of up to seven years.
They plan to have the terms of issuance approved by Managem’s general assembly on May 6.
The company’s annual profit attributable to shareholders rose 2% in 2018 to $38.5 million. But, just last month, Managem revealed that it experienced a 16% decrease in its total 2018 revenue to $454.5 million from the previous year’s revenue. The dip is due to metal prices falling internationally and the company’s Bakkoudou gold mine in Gabon closing.
Managem, which produces gold, silver cobalt, and copper, is controlled by the Moroccan royal family’s holding company, Almada.
The company has been part of the rapid growth seen by Morocco’s mining sector, which ranked second in the MENA region in 2018. Morocco has consistently seen improved performance in the sector since updating its mining code in 2015 to increase legal clarity and encourage foreign investment.
In addition to Morocco, Managem operates in Congo, Ethiopia, Gabon, Guinea, Cote d’Ivoire, Mali, and Sudan.