Managem: 13% decline in sales in the first half

Reversal of Managem's sales in the first half of 2019. The figure generated for the first six months fell sharply. The Group notes a decrease of 13% compared to the same period of the previous financial year thus amounting to 2.16 billion dirhams. Managem, which has just reported on these quarterly financial results, attributes this decline to four factors. The first is the significant decline in prices on the international market.

For this purpose, we note a decline of 62% for colbat, 16% for zinc, 11% for copper, 9% for silver and 20% for lead. Among the factors that impacted Managem's sales, the Group cites the recovery of SMI's fundamentals, which led to a 35% increase in silver production, as well as the significant increase in Manub's gold production. thanks to the start of the extension of 2,400 tons in Sudan. Among the factors mentioned is also the significant increase in the production of Colbat. Increases in processing capacity of secondary materials have indeed contributed to increase this production by 36%. Managem has seen an increase in its net debt for the first half of the year. It has consolidated from 725 million dirhams to be at the end of June 2019 around 3.51 billion dirhams. This indebtedness is marked by "the Group's investment effort, the acquisition of the additional securities of" Tri-K "and the inclusion of operating lease obligations in accordance with IFRS 16, which has been applied since January. 2019 ".

Capital expenditure (Capex) amounted to 798 million dirhams, 30% of which related to new development projects. It should be noted that during the first half of the year, Managem recorded a significant advance in terms of the execution of strategic projects. The first six months of the year saw the start of production of the Sudan extension after completion of studies, construction, assembly and commissioning.
The Group has also finalized the start-up tests for SMI's waste treatment plant (haldes) and has also acquired a further 30% stake in the joint-veture with Avocet Mining partners. The Group currently holds 85% of the Mandiana mining company.
In parallel with the launch of the feasibility study for the Tizet copper project, the Group also launched the program for financing the Tri-K project in Guinea and the various related studies.