Managem reveals lower first quarter revenue due to lower cobalt production

(MENAFN) Managem, Morocco's largest mining company, disclosed a 13 percent decrease in its revenues for the first quarter of this year, amounting to 1.935 billion dirhams (USD194 million). The decline was primarily attributed to a reduction in cobalt production. In response to falling prices in the international market, the company opted to scale back production at its cobalt mine in Bouzar, located in the Atlas Mountains, with the aim of conserving resources. Bouzar mine serves as a crucial supplier of cobalt to prominent automotive manufacturers such as BMW, particularly for the production of electric vehicle batteries. Additionally, Managem has plans to commence cobalt supply to Renault by 2025.

Furthermore, the company announced a temporary suspension of production at another cobalt industrial site in Al-Kamasa, near Marrakesh. This decision was prompted by the need for seismic reinforcement following an earthquake that struck the Atlas Mountains region on September 8th. Despite the challenges faced in the cobalt sector, Managem noted that the decline in cobalt performance was offset by the upward trajectory of gold, silver, and copper prices.

Managem, listed on the Casablanca Stock Exchange and operating across six African countries, operates as a subsidiary of the Al Mada Investment Fund. The company's strategic decisions reflect its commitment to adapt to market dynamics while prioritizing resource conservation and operational resilience in the face of external disruptions. 



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