Moroccan miner Managem plans $300 million capital increase in 2024 -CEO

RABAT (Reuters) – Moroccan mining company Managem plans to increase its capital by 3 billion dirhams ($300 million) in the first half of this year to fund its gold, copper and cobalt expansion plans, CEO Imad Touimi said.

The decision was approved by shareholders as the company invests in gold, copper and cobalt projects to double its earnings from 9 billion dirhams by 2025, Imad Toumi told Moroccan news website Medias24.

Managem’s capital stood at almost 1 billion dirhams as of June 2023, according to the company’s latest financial report.

This month, Managem started gold production at its mine in northern Sudan, which represents up to 15% of its revenue, after a halt due to the war there, he said.

It plans to start gold production in Senegal in 2025, as part of its Bamouk West African assets.

The same year, it expects to double its copper output with the beginning of production at its Tizert mine in Taroudant, southern Morocco.

The company also plans to invest up to $100 million in a factory of cobalt sulphate, to meet demand from electric vehicle (EV) battery manufacturers.

Managem signed in 2022 a seven-year deal to supply French carmaker Renault with 5,000 tonnes of low-carbon cobalt sulfate annually starting from 2025.

Casablanca-listed Managem, which operates in six African countries, is controlled by the royal family holding company Al Mada.

(Reporting by Ahmed Eljechtimi; Editing by Emelia Sithole-Matarise)