moroccoManagem

Company Profile and History

MANAGEM is a public listed company, established in 1930, with a share capital of US$ 85 million. MANAGEM focuses on two areas: mining and hydrometallurgy. Its service companies specializing in exploration, research & development and engineering.

In the services sector, two subsidiaries, REMINEX and TECHSUB, have extended MANAGEM's expertise in this area: REMINEX specializing in research, engineering and exploration; and TECHSUB specializing in underground work.

CTT (Compagnie de Tifnout Tighanimine):

Located 120 kilometres south of the town of Ouarzazate, CTT-Bou Azzer is one of MANAGEM's oldest mines. CTT Guemassa, a company in charge of the group's hydrometallurgical activities as a whole, manages five operational units producing cobalt cathodes, copper sulfate, nickel sulfate and zinc oxide.

CMG (Compagnie Minière des Guemassa):

Created in 1988, CMG runs the Hajar polymetal mine, 30 km from Marrakech, and has been producing zinc, lead and copper concentrates since 1992. In July 2004, CMG started working the Draa Sfar polymetal deposits, 15 km from Marrakech, to supplement and support production by the Hajar site.

SMI (Société Métallurgique d'Imiter):

Created in 1969, SMI operates the Imiter metal silver mine, located 150 kilometers east of Ouarzazate. It produces 99.5% pure metal silver bullion.

Samine(Société Anonyme d'Entreprises Minières):

Created in 1974, Samine operates the El Hammam mine located 80 kilometres from Meknès. It is one of the top fluorine producing mining firms in the world.

AGM (Akka Gold Mining):

Akka Gold Mining, 280 kilometres south-east of Agadir, started extracting metal gold from the Iourirn gold deposits in 2001.

In Country Location

TWIN CENTER, Tour A, angle Bd. Zerktouni et Bd. Al MAssira Al Khadra-BP 16016,Casablanca, Morocco:
Telephone: +212 (0)22 95 65 65
Telefax: +212 (0) 22 95 64 64

Services and Products

MANAGEM operates as a mining and hydrometallurgical group, which produces and sells cobalt, base metals, and metal derivatives. It services companies specializing in exploration, research and development, engineering, boring, and mining. The company produces a range of concentrates, including cobalt, zinc, lead, copper, and fluorine, as well as precious metals, such as gold and silver from various projects in Morocco and Africa. It also processes complex materials and produces cobalt cathodes and chemical specialties, such as zinc oxide, copper sulfate, nickel sulfate, and arsenic trioxide.

Number of Employees

MANAGEM has a work force of around 1,800

Financial Information

Currency in
Millions of Moroccan Dirhams
As of: Jan 02
2004
Restated
Jan 02
2005
Restated
Jan 02
2006
Jan 02
2007
4-Year
Trend
Revenues 1,6916 1,8621 1,6464 2,1971
Other Revenues 3136 3298 2297 3445
TOTAL REVENUES 2,0052 2,1919 1,8761 2,5416
Cost of Goods Sold 8021 1,0115 7608 9498
GROSS PROFIT 1,2031 1,1804 1,1153 1,5918
Selling General & Admin Expenses, Total 5665 6230 6070 7024
Depreciation & Amortization, Total 5538 6126 5995 5993
Other Operating Expenses 251 329 110 116
OTHER OPERATING EXPENSES, TOTAL 1,1454 1,2685 1,2175 1,3133
OPERATING INCOME 577 -881 -1022 2785
Interest Expense -233 -324 -126 --
NET INTEREST EXPENSE -233 -324 -126 --
Currency Exchange Gains (Loss) 127 -33 -- --
Other Non-Operating Income (Expenses) -359 -2882 -583 -2127
EBT, EXCLUDING UNUSUAL ITEMS 112 -4120 -1731 658
Gain (Loss) on Sale of Assets -- 630 2771 10
EBT, INCLUDING UNUSUAL ITEMS 112 -3490 1040 668
Income Tax Expense 178 223 356 227
Minority Interest in Earnings 89 1321 578 -227
Earnings from Continuing Operations 23 -2392 1262 214
NET INCOME 23 -2392 1262 214
NET INCOME TO COMMON INCLUDING EXTRA ITEMS 23 -2392 1262 214
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 23 -2392 1262 214  

Market Share

Managem is the largest Moroccan integrated mining operator.

Business Objective

“To become a world-scale mining group developing and operating high quality mines; be among the leaders in a number of integrated hydrometallurgy sectors and niche markets; create added value through customer service and satisfaction, research and innovation as well as excellence among its personnel”

Business Model

MANAGEM is operating in the two areas of mining and hydrometallurgy. To ensure the development of its two specialist areas, MANAGEM has set the following strategic guidelines: maintain mining activity in Morocco by consolidating and improving performances in its current activities and identifying and developing new mining projects; acquire or make equity investments in mining projects internationally, in Africa and the Middle East in particular. The metals targeted are precious metals, base metals and special metals; and develop and consolidate MANAGEM's position in hydrometallurgy.

Ownership of Business

Owned 78.18% by ONA Group

Benefits Offered and Relations with Government

In terms of the 1951 Mining Law mining (except for phosphates) can be carried out by any individual or corporate entity, regardless of their nationality.

All mineral resources are the property of the state, which issues permits and licences for the exploration and exploitation of the resources. The current mining legislation is enforced through executive orders and the Directorate of Mines. Under the law, a mining company may set up a tax-exempt reserve fund of up to 50% of the fiscal profits for exploration and development investment.

Product Development

In 2008 MANAGEM reported a loss of MAD350mn (US$40.6mn). As a result of the performance, the company is looking to cut production costs at all of its businesses in 2009, which is estimated to bring in an additional MAD200mn (US$23.3mn).

MANAGEM has signed research agreements with the national hydrocarbons office (ONHYM, formerly BRPM). The aim of this partnership is to carry out a program of works and technical-economic studies on deposits discovered. Projects at the feasibility study stage: Cobalt derivative project and Draa Sfar downstream
project.