Managem: Confirmed Demand for Gold in West Africa

The Moroccan mining group is strengthening its strategic positioning in the precious metals sector across the continent. Operating in six African countries (Senegal, Guinea, Côte d’Ivoire, Gabon, Sudan, and the DRC), in addition to Morocco, Managem continues to pursue its growth strategy in West Africa, with a focus on gold projects.

In recent weeks, the mining company has made two significant announcements in this regard. First, on February 13, Managem announced the signing of a strategic agreement with Canadian Barrick Gold Corporation, a global leader in gold and copper production, with a portfolio spanning the world’s most prolific mining districts.

This partnership aims to advance gold exploration in Senegal across the Daorala, Noumoufoukha, and Faraba exploration permits, covering an area of 820 km². These permits lie within a prolific geological setting extending from western Mali to eastern Senegal—a region already known for multiple major gold discoveries.

Under the agreement, Barrick will invest $7.5 million over the first two years, followed by $15 million between the third and seventh years. The goal is to complete a pre-feasibility study confirming a potential of at least 2 million ounces of gold.

This strategic agreement follows Managem’s recent finalization of the full acquisition of another gold exploration project, Karita in Guinea, from Canadian company Iamgold. Managem was also granted two new exploration permits, “Doumou” and “Diagana,” located adjacent to the Karita asset, further bolstering its development potential in the region.

500,000 Ounces of Gold by 2030

Previously, in April 2023, Managem made a major move by finalizing the acquisition of Iamgold’s stakes in Senegal. This included a 90% share in the highly promising Boto gold project (with the remaining 10% held by the Senegalese government), as well as 100% of exploration interests in the country.

Over the years, Managem’s gold operations have expanded significantly, driven by a strategy combining greenfield exploration and the acquisition of advanced-stage projects. The group aims to become one of the largest gold producers in West Africa.

Managem currently operates the Wadi Gabgaba mine in Sudan and the Tri-K mine in Guinea—one of its most significant assets with an annual production capacity of 130,000 ounces of gold. The first gold bar from Tri-K was poured in June 2021. The company is also conducting exploration work at the Etéké gold project in Mouila, southern Gabon.

In total, Managem’s gold production reached 4,470 kg by the end of 2023, accounting for over one-third of the company’s revenue. This share is expected to grow further, surpassing 50%, with the planned commissioning of the Boto mine in Senegal this year.

Forecasts for this major project indicate average annual production of 170,000 ounces of gold during the first three years, and approximately 128,000 ounces annually over the mine’s 11-year lifespan. By 2030, Managem targets total production of 500,000 ounces of gold (over 14,170 kg) across all its sites, solidifying its position as a leading African gold player.

Focusing on Major Projects 

The growing prominence of gold assets in the group’s portfolio requires substantial investments. In this regard, Managem has spared no expense. For the Boto project alone, a budget of 3.5 billion dirhams (MAD) has been allocated. 

Between 2023 and 2025, the group has planned a total investment envelope of MAD 17.4 billion to develop its strategic projects, including gold initiatives and the Tizert copper mine in Morocco (see box). To support this investment program, Managem raised MAD 3 billion through a capital increase. 

Concurrently, the company has begun divesting from smaller-scale assets to refocus on large-scale projects, streamlining and rationalizing its mining portfolio. 

For instance, in early January, Managem sold its subsidiary Compagnie minière d’Oumejrane—which has produced copper concentrate since 2014—to MetalNRG Plc, a London Stock Exchange-listed firm. Earlier, in May 2024, the group struck a deal with Australia’s Atlantic Tin to divest another subsidiary, Samine. 

Managem’s gold strategy is already yielding results, as evidenced by its operational indicators as of late September 2024. The group has benefited from increased production volumes coupled with rising precious metal prices (+17% for gold). 

Revenue as of September-end surged to over MAD 6.5 billion, marking a 10% year-on-year improvement. Meanwhile, its stock price continues to climb sharply, rising 38.63% since the start of the year to MAD 4,005 (as of February 18). Since January 2024, the share price has skyrocketed by 132.2%. 

Tizert Copper and Cobalt Sulfate: Production to Begin in 2025

In addition to the scheduled launch of the Boto gold project in Senegal, other major projects set to become operational this year will significantly expand the group’s footprint, driving a surge in revenue and profit margins.

First is the Tizert copper project in Taroudant Province. With an investment of nearly MAD 4 billion, operations at this site—starting in the second half of 2025—are projected to double copper output.

The second key initiative, launching in Q2 2025, is Morocco’s first cobalt sulfate plant at the Guemassa complex, developed under a partnership with Renault Group. The facility is expected to produce 5,800 tons of cobalt sulfate annually, with 80% earmarked for the French automaker.