Managem 2004 accounting income plummets, CEO

The accounting income of Morocco mines' exploitation company, Managem, dropped in 2004 because of several international and domestic factors.

Managem CEO, Abdellaziz Abarro, said the decline was caused by dollar fluctuation, regression in the contents of exploited mines, and reorganization costs.

Despite an upsurge in raw material prices in 2004, Managem did not profit by the rise because of its charges and commitments and a weak dollar, explained Abarro at a press conference organized Thursday in Casablanca on the performance of the company during the previous year.

The regression in mines' contents, the official went on, weakened the sales volume in comparison to 2003, especially in zinc and copper concentrates, and gold bullion, which respectively decreased by 7%, 34% and 36%.

Investments were consolidated jumping from MAD 614m in 2003 to MAD 675m in 2004 (MAD 1 = Euro 0.1), said Abarro, pointing out that global indebtedness aggravated from MAD 984m to MAD 1.15b in 2004.

The company, which is part of Morocco's largest holding firm, ONA, intends, to pursue exploration efforts on different mining sites in 2005, affirmed Abarro.