Reuters
by Aziz El Yaakoubi
Morocco’s biggest mining holding firm Managem reported a 13 percent rise in 2015 net profit due to higher production and cost cuts, which outweighed lower metals prices.
Net profit attributable to shareholders was 205 million dirhams ($21.25 million) last year, compared with 182 million the previous year.
Managem said it was hit by an 18 percent drop in silver prices, a 20 percent fall in copper prices and a 15 percent drop in lead prices in 2015. But production of gold rose 27 percent, cobalt by 24 percent, copper by 20 percent and lead by 18 percent.
Controlled by the Moroccan royal family’s holding company SNI, Managem produces gold, silver, cobalt and copper in Morocco and Gabon and recently won contracts to explore for gold in Sudan.
Operating profit rose 38 percent to 617 million dirhams as consolidated sales hit 4.3 billion dirhams, up 12 percent from 2014.
Last year, Managem stopped extracting gold in the southern Akka gold mines after reserves fell to non-viable levels, leading to the loss of around 300 jobs.
Managem subsidiary Imiter Mettalurgic Co (SMI), which operates in the Imider area, said 2015 net profit fell 4 percent to 234 million dirhams. SMI, the world’s seventh-biggest producer of silver, said it was hit by foreign exchange losses.
Managem said it will propose a dividend of 20 dirhams per share, while SMI said it will propose a 220 dirhams dividend.
($1 = 9.6465 Moroccan dirham)
(Reporting by Aziz El Yaakoubi, editing by Louise Heavens)
