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Rabat – Leading Moroccan mining company Managem reported a 13% slide in revenues in the first quarter of 2024, an annual drop from MAD 2.2 billion ($220 million) to MAD 1.9 billion ($190 million).
In a financial statement, the company attributed the decrease to operational disruptions and unfavorable market conditions.
Managem’s profits took a hit from the temporary halt in polymetallic – containing more than one type of metal – operations at its Guemassa site in Marrakech.
According to the company’s statement, this halt in operations was due to the construction of a new seismic dam designed to boost the company’s resilience against earthquakes.
The measure was taken in response to the earthquake on September 8, 2023, in the Al Haouz region, resulting in a revenue loss of approximately MAD 210 million ($21 million), noted the statement.
Beyond construction work, the company’s profits were impacted by the reduced cobalt production from its Bou-Azzer mine to conserve resources amidst a significant drop in cobalt prices.
During this period, Managem also undertook a two-month maintenance of certain facilities, further reducing revenue by around MAD 120 million ($12 million).
Despite the grim financial report, Managem saw some positive developments. The appreciation of precious metal and copper prices – 12% for gold, 6% for silver, and 11% for copper – partially offset the revenue decline.
In addition, there was an improvement in silver production from both open pit and underground operations.
Strategic developments
Managem achieved significant milestones in its growth strategy during the first quarter. The company completed a MAD 3 billion ($300 million) capital increase on April 17, 2024, with approval from the Moroccan Capital Market Authority (AMMC). This capital increase is intended to support ongoing and future projects.
Likewise, investment in development projects reached MAD 1.3 billion in the first quarter, with 60% of the funds allocated to the Boto project in Senegal and the Tizert project in Morocco.
Regarding its financial position, Managem reported a net debt of MAD 8.7 billion ($872 million), up MAD 1.2 billion ($120 million) from the previous quarter.
The increase reflects the company’s continued investment in development projects across Africa, aiming to strengthen its position in the gold and energy transition metals markets.
Meanwhile, the mining company resumed gold production in Sudan, in a bid to diversify its portfolio and reinforce its strategic focus on precious metals.
Read Also: Morocco’s Managem Turnover Rises by Over 81% in First Half of 2022
