Casablanca – Managem Group, a Moroccan mining and hydrometallurgy company founded in 1930, delivered a robust financial performance in 2024, driven by rising metal prices, increased sales volumes, and strategic expansion initiatives. Operating in Morocco and several African countries, Managem specializes in the extraction, processing, and commercialization of base metals, precious metals, cobalt, and other minerals. Despite challenges in the cobalt market, the group reported significant revenue growth and profitability, reinforcing its long-term commitment to strengthening its position in the global mining industry.
Revenue growth and financial highlights
For the 2024 fiscal year, Managem recorded a revenue of $886 million, representing an 18% increase compared to 2023. This growth was primarily attributed to the favorable price movements of key metals, particularly gold (+19%), silver (+14%), and copper (+12%). The rise in gold and silver prices was largely influenced by their status as safe-haven assets amid geopolitical uncertainties, while copper benefited from increased demand.
The group’s financial results were also bolstered by a higher volume of sales, particularly in gold and copper. The resumption of operations in Sudan played a crucial role in boosting gold sales, while the Pumpi project significantly contributed to the strong performance of copper exports.
However, cobalt prices declined by 33%, prompting Managem to temporarily scale down production to preserve resources. Despite this challenge, the company successfully mitigated the impact by leveraging growth in other metal segments.
Profitability and financial stability
Managem’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved by 11%, reaching $266 million. The operating net profit increased by 18% to $62 million, demonstrating strong operational efficiency.
The company also benefited from a favorable exchange rate effect, which contributed an additional $6.5 million to its financial results. However, the overall tax burden increased by $22 million, slightly affecting net profitability.
A capital increase of $300 million was successfully completed in 2024, marking a historic subscription rate that reflected strong investor confidence in Managem’s future prospects. The group also maintained a stable revenue distribution across different metals, with 60% of its total revenue coming from international markets.
Key strategic developments in 2024
The year 2024 was pivotal for Managem, as it continued its expansion strategy with several major developments:
- Silver Reserves Discovery: The company announced the discovery of 600 tons of new silver reserves in Morocco, securing a 12-year supply visibility.
- Copper Expansion at Tizert: Managem is preparing to double its copper production through the Tizert project, which is in its final construction phase.
- Gold Expansion in West Africa: The acquisition of the Karita gold project in Guinea, with nearly 2 million ounces of resources, strengthens the company’s footprint in West Africa.
- Diversification into Natural Gas: The group acquired Sound Energy Morocco East Ltd, now rebranded as Mana Energy, marking its entry into the natural gas sector.
- Cobalt Market Strategy: Due to falling cobalt prices, Managem adopted a cautious approach, reducing its sales volume by 33% while focusing on developing value-added products such as cobalt sulfate.
Outlook for 2025
Looking ahead, Managem aims to further expand its operations while enhancing its position in the strategic metals market. Key priorities for 2025 include:
- Launching commercial operations at the Tizert and Boto projects in the second half of the year.
- Completing the construction of its cobalt sulfate production unit in Morocco, with product certification expected by the end of 2025.
- Developing new projects in manganese and graphite, reinforcing its focus on battery-grade strategic metals.
To underscore its financial strength, the Board of Directors has proposed a dividend of $4.00 per share for the 2024 fiscal year, reflecting the company’s confidence in its future growth and profitability.
Managem’s 2024 performance highlights its resilience and adaptability in a dynamic market environment. As a company with over 90 years of experience in mining and hydrometallurgy, Managem continues to expand its presence in Africa, investing in key projects across gold, copper, and cobalt production. Despite challenges in the cobalt sector, the group successfully capitalized on the strength of gold, silver, and copper markets, while advancing its long-term strategy for expansion and diversification. With new projects set to come online in 2025, Managem is well-positioned for sustained growth, particularly in critical metals for the energy and automotive sectors.
