Mines: A Sector Boosted by the Surge in Metals

The strong rise in gold and silver prices observed in recent months marks a major turning point for the global mining sector. In an international context marked by economic uncertainty, geopolitical tensions, and the search for safe-haven assets, precious metals are reclaiming their role.

Morocco is no exception to the rule, as this situation has fully benefited the listed companies in the sector, whose share prices have reached unprecedented peaks.

Since the beginning of the year, Managem’s share price has achieved a performance of 29.5%, and since 2025, the increase has climbed to 187%, with a share price of 8,290 DH.

The company has even become the second largest market capitalization on the exchange, just behind Attijariwafa bank. It has thus surpassed Maroc Telecom, with a valuation of 97.2 billion dirhams. Its subsidiary SMI benefits from the same upturn, with a share price of 6,000 DH, up 204% since the beginning of 2025.

Behind this ascent is the surge in the two precious metals. Gold indeed experienced strong growth last year, closing 2025 with a performance of 65%.

This rise continues into this year as well, breaking record after record to reach 4,700 dollars per ounce. If there is another precious metal riding the same trend, it is silver, which serves both as a safe-haven asset and an industrial metal.

It achieved a 155% increase in 2025, which continues, reaching a price of 94 dollars per ounce.

Boto, a new growth driver

The mining group derives more than half of its profits from its gold activities, which are set to become even more important with the recent start of production of the first gold ingot from the Boto mine in Senegal.

The mine, with an estimated lifespan of 12 years, aims for an average annual production of 160,000 ounces of gold, or about 5 tonnes, during the first three years. Its reserves are estimated at approximately 1.8 million ounces, corresponding to nearly 56 tonnes.

This mine adds to the company’s gold assets and exposes it directly to the metal’s price movements. In addition to Boto, there are other gold projects in Africa, notably in Gabon and Equatorial Guinea, with estimated annual production of 370,000 ounces in 2026 and 500,000 in 2030, and reserves of 9.3 million ounces.

These investments could increase the group’s debt burden. However, it has helped improve its financial resources through the sale of 45% of the capital of the JV indirectly holding the Gabgaba–Block 15 gold project in the Republic of Sudan, for an amount of 420 million dollars, to Norin Mining.

This operation is fully in line with Managem’s gold growth strategy. It should allow for the reallocation of financial resources to support the development of other strategic projects, including bringing the Boto mine in Senegal into production, consolidating production at the Tri-K gold mine in Guinea, advancing the feasibility study for the Karita project in Guinea, as well as progressing the development of the Eteke project in Gabon.

In any case, the company is in a logic of massive investments. Its consolidated net debt amounted to nearly 16 billion dirhams at the end of last September, up 55% compared to 2024.

SMI boosted by the silver surge

SMI should in turn benefit from the soaring price of silver. With a production cost below 20 dollars per ounce, the company should fully profit from this vertiginous rise in the metal’s price. Recall that in 2024, its revenue exceeded one billion dirhams, for a sold volume of 122,700 kg, at an average price of 27 dollars per ounce.

The momentum continued in 2025, with a 19% increase in its revenue to 978 MDH in the 3rd quarter. Note that its exploration program has identified an additional 22 million ounces (680 tonnes) of silver reserves, bringing SMI’s total reserves to 70.2 million ounces and extending the mine’s life by more than three years.

The context is so favorable that under these conditions, these two companies should close 2025 with results significantly more interesting than those of 2024. Revenue growth ranging from 15 to 20% is expected at the end of the past fiscal year.

If the rise in gold and silver prices continues, Managem and its subsidiary should see their revenues increase by more than 25%, at least by the end of the first quarter. This represents growth generated both by increased production volume and by soaring prices.

Favorable prospects

On the stock market, share prices have soared and propelled P/E ratios to peaks, with 97x for Managem and 50x for SMI. In 2026, these multiples are expected to decrease to around 50x and 47x respectively, thereby incorporating the expected growth in results thanks to the contribution of a full year from new projects.

This anticipation explains the influx of investors into these stocks, who are betting on a lasting improvement in fundamentals, supported by the expansion of production capacity and the ramp-up of the gold and silver assets of the two companies.

Beyond gold, a diversification strategy

While gold generates more than half of Managem’s operating profitability, silver accounts for a share of 13%, and the rest is shared among other business segments, related to critical metals and intended for energy and batteries.

The company is developing cobalt sulfate production at Guemassa, as well as manganese sulfate and graphite. The goal is to design products that meet the needs of both national and international industries.

Copper also counts as a cornerstone in the development of the company’s projects, because in addition to Tizert, it has committed with OCP to a metal smelter, intended to produce copper cathodes for industry as well as sulfuric acid for fertilizers.