AFRICAN GROWTH UNDERWAY Annual Report www.managemgroup.com 2 INTRODUCTION ANNUAL REPORT 2018 MANAGEM INTRODUCTION Managem 2018 in figures… … and words TURNOVER Throughout OPERATING IN 4.356 MMAD its 90-year history, COUNTRIES the Group has successfully consolidated INVESTMENTS its expertise at every link in the mining 1.703 value chain, from MMAD exploration, extraction MINES and development to Managem is an African the marketing of raw mining operator with materials. a balanced portfolio of assets and metals. The PRODUCTS AND 6.000 Group provides natural EMPLOYEES 4 DERIVATIVES resources of strategic 5 importance for the global economy and contributes to meeting EBIDTA the worldwide demand INDUSTRIAL for raw materials driven 1.323 by an international MMAD UNITS market that is expanding fast technologically and economically. Contents INTRODUCTION AN AFRICAN THE STRATEGY THE ESSENTIALS MANAGEM, FINANCIAL Managem 2018 in figures FUTURE Managem 2020, 2018 operations and PROACTIVE STATEMENTS and words P. 04 a strategy for sustainable achievements P. 61 Managem, WITHIN ITS growth in Africa P. 22 (by metal) P. 34 90 years of expertise P. 12 ECOSYSTEM INSIGHT Tomorrow, 2020 P. 26 Capital & Stock Market Moroccan market leader performance P. 45 Strong values and Imad Toumi P. 08 and committed African Safety, an important unshakeable unity P. 52 operator P. 14 driver of performance P. 28 Governance P. 46 CSR, a proven Profile P. 11 News P. 16 P. 54 R&D & technology-focused Financial performance P. 49 commitment investment, the essence of the Managem Human capital... the heart of P. 58 pioneering spirit P. 30 our growth strategy Managem, an investor in sustainable growth P. 59 Annual Report www.managemgroup.com INSIGHT ANNUAL REPORT 2018 MANAGEM INSIGHT Imad Toumi Chief Executive Officer - Managem THE BUSINESS QUESTION THE SUCCESS QUESTION THE CSR QUESTION Was 2018 a year like We hear a lot about Having a positive social and societal impact any other at great successes. But and values to transmit, is that the “Miner Managem ? what is your best mindset” ? All our business lines are exposed and sensitive to victory ? Acting in the best interests of society has always been The sustainable development of our business activities market volatility. That’s why we’ve focused our efforts part of our genetic make up. So at Managem, CSR is is also central to our aims. Our global strategy for water on building a diversified portfolio and developing high- I’m in no doubt that our best victory of 2018 is our neither a fad nor just another topic of communication. conservation, reduced energy consumption, anticipating potential projects. openness and the affirmation of our African roots. This practical and effective commitment was recognised the negative impacts of Group activities on biodiversity 2018 marked a new turning point and rewarded By openness I mean our open attitude to Africa, the last year by our inclusion for the fifth year running in and the environment, facilitating a circular economy all the efforts of our teams and the strategic continent in which our business is so deeply rooted, the Top Performers of 2018 and our selection to join to spearhead waste management, and lastly an R&D investments made by the Group. It saw the inception its rich diversity and the promise it holds out for the the ESG 10 index, which calculates the real-time stock strategy of developing enhanced technology-based or commencement of work on some major projects, future. There’s the openness we demonstrate through market performance of socially responsible companies capabilities to achieve environmental excellence... with particular emphasis on gold, cobalt and copper. our investments in operations that create sustainable listed on the Casablanca Stock Exchange. While we’re all of these were introduced during 2018, and will be Whether we look at Tri-K in Guinea, Gabgaba in long-term value for the communities and regions delighted to receive awards and accolades like these, actively pursued going forward to support our vision of Sudan, Pumpi in the DRC or Imiter in Morocco, we’ve we work in. Our openness to new, more ambitious, our commitment runs much deeper. The nature of sustainable and responsible growth. succeeded in creating new opportunities and once again projects, to new perspectives on our business lines by the mining industry demands that we operate where For years, we have been committed to transforming 8 demonstrated our advanced expertise in exploration, embracing more new technologies for integration into the deposits are located; those locations are often our mining waste into resources and to creating value 9 research, operational performance and innovation. all our processes and future operations. Not to mention isolated and their communities put their trust in us. throughout our mines lifecycle. Since we acquired our first permits in Africa more than our openness to more sustainable, more responsible So integrating the communities in these regions from Thanks to our R&D efforts, we were able to recycle, in 20 years ago, our operational activities have expanded means of production. To make Managem an integrated, the very outset of operations is crucial if we want 2018, more than 40% of our mining waste across all our continually to the point where we now have a presence prosperous, resilient and high value-added Group. our projects to be viable and sustainable for the long sites. in 9 African countries, including Morocco, with a portfolio term. Contributing to the socio-economic development This year, we also completed the construction of the of balanced assets at different stages of maturity. We of Managem operating locations is one of the six tailings treatment plant at Imiter silver mine. are in no doubt of the potential for growth offered by the commitments set out in the new Group CSR charter This is an important and sustainable investment, continent of Africa to which Morocco belongs, and we adopted in 2018; others address key issues such as contributing to creating regional jobs and reducing our remain fully committed to being a proactive contributor health and safety, environmental protection and wastes while creating value. to its economic and social development. business ethics. We also make sure to actively participate in the growth We are also aware that our operational excellence This is the background against which we continue our of our sites surrounding communities. In this matter, wouldn’t be complete without exemplariness in terms of dynamic of constructive engagement with stakeholders, we focus on the promotion of entrepreneurship for a Health and Safety at work. because we understand that this is the only way to sustainable development. This year, we have signed We make concrete efforts to reach our objective of “0 create mutual prosperity and move forward together a partnership with Injaz Al-Maghrib, a non-profit accident” and we will maintain our highest requirement on the shared issues of sustainable development by organization, to roll-out entrepreneurship initiation level for optimal safety. pooling our resources to achieve mutually beneficial programs around the mining areas where we operate, outcomes. targeting primary and high schools students but also cooperatives. INSIGHT ANNUAL REPORT 2018 MANAGEM THE INNOVATION QUESTION diversification will allow us to reduce the risk of cobalt price decline. Innovating to trans- THE FUTURE QUESTION Profile form, stimulate and unite... Is that a reality Today’s companies YOUR MOTTO ? WHAT WAS YOUR Agility, resilience and durability. MOST UNFORGETTABLE within the Group ? are all on a quest for EVENT OF 2018 ? YOUR SOURCE OF Acquiring a majority stake in the meaning. So what Tri-K project and the completion of In a world of constant change where progress and INSPIRATION ? The story of Managem is my inspi- its feasibility study, which confirmed technological innovation go hand-in-hand with ration. A Group that has grown over the presence of more than 1 million development and provide powerful economic leverage, actually is the voca- many years to establish itself as ounces of reserves. This high-po- innovation is becoming a necessary and even essential a leader in its industry in Morocco, tential project is one of the Group’s alternative. It is inseparable from the sustainability tion of Managem ? and which is engaged in a process of most important for a decade, and of mining and a vector for growth. So it must be The vocation of Managem in 2018 was absolutely to continual future-focused transfor- represents an important milestone encouraged through investment in research and generate meaningful outcomes. The actions we take mation. in the new era of growth for the development: that’s something we are fully aware of, have practical outcomes that impact not only on local Managem strategy for gold and the and which we are already engaged in. communities, but also on the wider world. The metals continent of Africa. We are absolutely focused on the future, which is THE THING YOU’RE we mine, process and produce are essential to the world why Managem is engaged in a continual process of MOST PROUD OF ? we live in today. Gold, silver, cobalt, fluorite, to name just Our extraction and value-added transformation through the introduction of a shared AN AMBITION THAT HAS a few, are at the heart of the essential objects we use processing of strategic raw mate- vision built around goals and imperatives driven by the BECOME A REALITY ? every day. But beyond this primary mission, Managem rials means that Managem makes The practical implementation of the challenges of a demanding future. This point is proved gives meaning to everything it does through its practical its own particular contribution to project to extend the industrial units on the one hand by the level of investment we commit commitment to its operating regions and the people building the world around us.