The Managem Group announced Thursday that its turnover in the first half of 2019 would decline by 300 million dirhams and the half-year net profit would be down by 370 million dirhams compared to the end of June 2018, under the effect of the significant decline in prices of Cobalt, Zinc and Copper.
“In a context marked by the uncertainties that continue to weigh on the world economy, metal prices have undergone significant corrections at the end of June 2019 compared to the same period of the previous year, notably the Cobalt, whose average price is down 62%,” said Managem in a statement, noting that in this unfavorable context, Managem, like all operators in the mining sector, is impacted by this turnaround.
These negative effects would also be partly mitigated by the positive impacts linked in particular to the significant increase in gold production in Sudan thanks to the new extension of the plant started in the first quarter, and the recovery of SMI fundamentals (Imiter metallurgical company) due to an increase in silver production of more than 35%, to the growth of Cobalt production of +36%, as a result of the efforts undertaken for increases in the processing capacity of the production units and to improving cash-cost.
In the short term, the first quarter start-up of the project to expand the gold production capacity in Sudan and the SMI waste disposal plant which will reach the nominal regime in the second half of the year 2019, will enable the group to improve its production and future results.
In the medium term, “Managem, confident in the soundness of its fundamentals and in the recovery of the markets, maintains its profitable growth prospects by deploying efforts to improve operational performances and by pursuing the implementation of its development program”, concludes the press release.