Managem’s revenues fall in Q1 on lower cobalt output

Bou Azzer mine. Credit: Managem

Managem, Morocco’s largest mining company, reported on Friday a 13% drop in revenue to 1.935 billion dirhams ($194 million) in the first three months of this year, citing lower cobalt output.

Production at its Bou Azzer cobalt mine in the Atlas mountains has been reduced “to preserve resources,” amid low prices in the international market, the company said in a statement.

The Bou Azzer mine supplies German automaker BMW with cobalt, widely used in electric car batteries. The company also plans to supply Renault in 2025.

Managem also reported a “temporary suspension” of production at another cobalt industrial site in Guemassa near Marrakech, where it has been investing in seismic reinforcements, following the September 8 quake that hit the Atlas mountains.

Low cobalt performance was offset by an increase in gold, silver and copper prices, it said.

Casablanca-listed Managem, which operates in six African countries, is a subsidiary of Al Mada, a private investment fund majority-owned by the Moroccan royal family.

(By Ahmed Eljechtimi; Editing by Jane Merriman)


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