Rabat — Morocco’s leading mining company, Managem Group, is making a significant move to expand its gold operations, allocating $750 million to enhance production and strengthen its market position. This strategic investment reflects the company’s optimism in a market that is as much influenced by geopolitical dynamics as by the demand for precious metals. Managem aims to boost its gold output by a remarkable 134%, elevating production from 213,000 ounces in the previous year to an estimated 500,000 ounces by the end of the decade.
The company’s decision to invest heavily in gold production follows a year of impressive financial results. In 2025, Managem’s net profit surged to $322 million, marking a 384% increase year-on-year. This surge was propelled by both increased production and the soaring gold prices.
Gold’s contribution to the company’s earnings was substantial, accounting for over half of its total profits, reinforcing its pivotal role in the company’s business portfolio. Additionally, silver output grew by 18%, reaching 151 tonnes.
The market conditions for gold remain favorable. In 2025, gold prices averaged $3,445 per ounce, a 44% increase from the previous year, with silver prices also rising by 42% to approximately $40 per ounce. Despite recent price volatility, institutions like Goldman Sachs anticipate that prices will remain high, driven by central bank purchases and the anticipation of lower US interest rates.
Managem’s expansion plans extend beyond Morocco’s borders. The company is actively advancing two significant projects in West Africa. The Etéké project in Gabon is set to commence production in late 2028, with an annual output of 60,000 ounces and an investment of $150 million.
The Karita project in Guinea is currently undergoing feasibility studies and is anticipated to produce 200,000 ounces annually from 2029 onwards, with an investment of $600 million. Simultaneously, Managem is seeking stakes in existing gold assets to accelerate growth without overreliance on new projects.
In addition to its focus on metals, Managem is diversifying its portfolio. The company recently acquired a controlling stake in Sound Energy Morocco, gaining access to the Tendrara gas field. Production is expected to start as early as June 2026, with an initial output of around 100 million cubic meters per year, which could escalate to 600 million cubic meters by 2029. This new revenue stream is expected to contribute modestly to the group’s revenues, around 5%.
Managem’s investments over the past few years have reached $1. 2 billion, and the company is committed to allocating over $1. 5 billion by 2030, focusing on gold, critical minerals, and energy assets.
This level of investment underscores the company’s long-term confidence in commodity markets and its operational presence across Africa. The market’s response has been positive, with Managem’s valuation surpassing $10 billion, making it the second-largest listed company on the Moroccan stock exchange. Its share price has doubled since the end of 2024, largely aligned with the rise in gold prices.
Through these moves, Managem is not just benefiting from a favorable market cycle but actively shaping its future growth, reflecting a broader shift in Morocco’s economic landscape.
Source: moroccoworldnews
