Making the most of declining junior miners
Miners are underperforming gold despite getting support from the stock market.
Morocco’s largest mining company Managem has taken control of the Boto gold project in Senegal under a deal worth $197 million, it said on Wednesday.
The deal is part of a transaction last year to buy the assets of Canada’s Iamgold, which also include mines in Mali and Guinea, for a total of $282 million.
Managem said the Senegal mine would strenghten its position in West Africa and its near-term gold production growth.
The company expects to close the acquisition of other gold assets in Guinea and Mali in the third quarter, it said.
Casablanca-listed Managem, which operates in six African countries, is controlled by the Morocco royal family holding company Al Mada.
The company reported a profit up 88% to 1.615 billion dirhams ($160m) last year on the back of higher sales of precious metals.
(By Ahmed Eljechtimi; Editing by David Goodman)
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