Morocco miner Managem expects $50m H1 2019 net profit decline
Net profits and turnover drop expected despite Managem's expansion plans amid declining cobalt, zinc, and copper prices
Moroccan mining company Managem revealed that its turnover would likely drop by $31.6m and net profits by $49.5m in H1 2019 compared to same period last year as a result of the price drop of metals such as cobalt, zinc and copper.
As part of its plan to mitigate its financial performance, Managem confirmed it would expand its gold production capacity in Sudan and increase its silver production by 35% in the Imider mines in Morocco.
Plans are in place as well to raise cobalt production by 36%.
The company also has an array of projects under development in Africa as part of its growth plans, including a copper production project in Congo in partnership with the Chinese mineral group Wanbao with an investment of approximately $580m, which will come into production in 2021.
The company is also preparing to launch a major copper production project in the Tiznit region in 2023.