Moroccan "Managem" Invests $750 Million to Double Gold Production

SadaNews - The Moroccan "Managem" Group, operating in the mining sector in Africa, plans to invest $750 million to increase gold production by 134% from 213,000 ounces last year to half a million ounces by the end of the current decade, according to Imad El Tumi, the company's CEO, in a statement to "Asharq News".

The company, owned by the "Al Mada" investment fund based in Morocco, operates in 7 countries on the continent, where it produces precious and base metals, as well as cobalt and fluorine. It has recently begun investing in a natural gas project.

The company's gold production rose by 26% last year. This increase, along with a surge in prices, helped achieve a net profit exceeding $322 million, marking an annual increase of nearly 384%. Gold contributed more than half to this result. The company also raised silver production by 18% to reach 151 tons.

The average price of the precious metal last year was $3,445 per ounce, an increase of 44%, while the average silver price rose 42% to $40 per ounce.

Gold Projects in Gabon and Guinea

The CEO of the group expects gold production to commence at the "Etéké" project in Gabon in the fourth quarter of 2028, with production reaching about 60,000 ounces of gold, and an investment of $150 million.

The company is also working on finalizing feasibility studies for the "Karita" project in Guinea, expecting to produce 200,000 ounces starting in 2029, with anticipated investments reaching $600 million. The company also intends to acquire stakes in existing gold projects as part of its efforts to increase production.

Gold reached $4,600 per ounce this week after declining following the onset of the Iran war. "Goldman Sachs" anticipates it will end this year at $5,400, with continued purchases by central banks and the potential for two interest rate cuts in the U.S. during this year.

The revenue of the Moroccan company rose by 55% last year, reaching $1.3 billion. El Tumi stated in a statement to "Asharq News", during the annual results conference in Casablanca on Tuesday, that revenues will exceed $2 billion in the next two years, supported by increased production and rising gold prices in international markets.

Investment of $1.5 Billion by 2030

In recent years, the group has invested $1.2 billion and intends to inject more than $1.5 billion by the end of the current decade in gold and critical minerals, in addition to natural gas.

Last year, the company expanded its operations by acquiring a controlling stake in "Sound Energy Morocco", which holds the concession for the "Tendrara" onshore natural gas field expected to start commercial production of liquefied gas by next June, which will contribute about 5% to revenues in the coming years.

The "Tendrara" field is the first liquefied natural gas project in the kingdom, anticipated to produce 100 million cubic meters annually in the first phase, rising to 600 million cubic meters by 2029. It will be connected to a local pipeline to transport production to industrial areas.

The production from the field is expected to cover part of the local consumption, which exceeds one billion cubic meters annually, usually imported from Spain via pipeline.

"Managem" has become the second company in terms of market value on the Moroccan Stock Exchange, with a market capitalization exceeding $10 billion, having previously ranked seventh at the end of 2025.

Its stock closed on Tuesday's trading session at 8,500 dirhams, a level that signifies double what it was at the end of 2024, before the surge in gold prices.