2019 monaco resources annual report · 2020. 5. 5. · monaco resources group annual report 2019 ....

MONACO RESOURCES ANNUAL REPORT2019

MONACO RESOURCES GROUP ANNUAL REPORT 2019 . 3

5 Who we Are

6 At a Glance

10 Global Presence

12 Strategy

14 Sustainable Business

17 Our Operations

38 Business Performance

40 Outlook

42 Risks & Uncertainties

STRATEGIC REPORT

45 Consolidatedstatementofprofitorloss

46 Consolidated statement of other comprehensive income

47 Consolidatedstatementoffinancialposition

48 Consolidatedstatementofcashflows

49 Consolidated statement of changes in equity

50 Notestothefinancialstatements

94 Signingofthefinancialstatements

CONSOLIDATED FINANCIAL STATEMENTS

OTHER INFORMATION

96

INDEPENDENT AUDITOR'S REPORT

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MONACO RESOURCES GROUP ANNUAL REPORT 2019 . 54 . MONACO RESOURCES GROUP ANNUAL REPORT 2019

MONACO RESOURCESSTRATEGIC REPORT

Who we AreAt a GlanceGlobal PresenceStrategySustainable BusinessOur OperationsBusiness PerformanceOutlookRisks & Uncertainties

01 MONACO RESOURCESWHO WE ARE

Monaco Resources is a global group specialising in natural resources.

Our asset base is well diversified and spans Metals & Minerals, Agribusiness, Energy, Infrastructure & Logistics and Finance & Investments.

The group brings together businesses with decades of experience covering production, trading and services. Our deep knowledge and long term outlook enables us to effectively meet the needs of our international clients.

Headquartered in the Principality of Monaco, the group operates in over 45 countries and employs more than five thousand people.

We take a long term view, focusing on cost effective operations and providing value added integrated services for our international customers. Our business model does not rely on price speculation.

Through our five underlying divisions, we combine our knowledge of natural products with technology investments and strong marketing, finance and distribution capabilities.

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METALS & MINERALS DIVISIONMONACO RESOURCESAT A GLANCE

Monaco Resources is an international & diversified group specialising in production, trading and services related to the natural resources sector.

Our business is organised across 5 divisions:

Themetalsandmineralsdivisionownsadiversifiedportfolioofproductionandprocessingassets,whichhasbeencombined with global marketing and trading activities.

ALUMINIUM BASE METALS

AGRIBUSINESS DIVISION

Theagribusinessdivisiongrows,processesanddeliversessentialagriculturalandfoodproductstolocalconsumermarkets in Africa and international suppliers across the globe.

AGRICULTURE FOOD

The Energy division is focused on pipeline services and the marketing and sales of hydrocarbon products.

TRADING & MARKETING PIPELINE SERVICES

ENERGY DIVISION

5DIVISIONS

5500+EMPLOYEES

45+COUNTRIES

BULK & FERROUS RAW MATERIALS

METALS &MINERALS AGRI-BUSINESS ENERGY

INFRASTRUCTURE& LOGISTICS

FINANCE &INVESTMENTS

GLOBAL PRESENCE

The Group is headquartered in Monaco with key office hubs in London and Luxembourg. We have a presence in 49 countries and employ more than 5500 people.

OUR APPROACH

• We take a long-term view and focus on cost-effective operations.• We have a multi-product portfolio and a broad asset base in strategic locations. • We leverage our market knowledge and technical expertise to provide value-added,

integrated solutions for our international clients. • Our business model is risk-averse and not dependent on price speculation.

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REVENUES

1.02 B€

GROSS PROFIT

251 M€

OPERATINGPROFIT

101 M€

EQUITY

682 M€

EBITDA

101 M€

MONACO RESOURCESKEY DATA

Theinfrastructure&logisticsdivisionisfocusedprimarilyonthenaturalresourcessector,providingservicesthatspanports&terminalsmanagement,logisticsandtechnologysolutions.

PORTS & TERMINALS LOGISTICS SERVICES

INFRASTRUCTURE & LOGISTICS DIVISION

OurFinanceand Investmentsdivisionprovidesstructured tradefinancesolutionsandmakes investments in thenatural resources sector.

FINANCE INVESTMENTS

FINANCE & INVESTMENTS DIVISION

MONACO RESOURCESAT A GLANCE

BULK HANDLING & BAGGING AIRPORT TERMINALS

TRANSPORTATION INFRASTRUCTURE TECHNOLOGY

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Monaco Resources Group is a global and diversified natural resources group, with a strategic asset portfolio around the world.

MONACO RESOURCESGLOBAL PRESENCE

6CONTINENTS

49COUNTRIES

LOCATIONS

AlgeriaAustraliaAustriaBelgiumBeninBrazilBulgariaBurkina FasoCameroonCentral African R.ChadChileChinaCyprusFinlandFranceGabon

GermanyGhanaGreeceIndonesiaItalyIvory CoastLuxembourgMadagascarMaliMauritiusMauritaniaMonacoMozambiqueNetherlandsNigerNigeriaPhilippines

R. of CongoR. of GuineaR. of North MacedoniaSenegalSerbiaSierra LeoneSingaporeSouth AfricaSpainSwitzerlandTogoTurkeyUAE - DubaiUKUSA

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Our Strategy is based on five key success factors

Our diversified model and wide range of products reduces our exposure to changes in demand and market conditions. Operating in both domestic and international markets we are able to leverage our knowledge of the natural resources sector.

Our strategy integrates products, services and technology. We leverage our wide product range, strategic presence and human capital to deliver quality products and competitive services. Our approach builds market resilience and helps us to bring value to our customers, suppliers and the group as a whole.

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Diversification

IntegratedSolutions

MONACO RESOURCESSTRATEGY

We take a risk averse approach and our business model does not rely on price speculation. Our income is received largely in two currencies - USD and Euro thereby avoiding unnecessary fluctuations and we seek back-to-back operations to avoid inventory risk.

We have a broad asset base including metals and minerals production sites, agricultural facilities, ports and terminals and a network of global offices. We have significant execution capabilities and are strategically located in over 45 countries.

We build on our strong sector knowledge to create resource efficient operations and routes to market. We maintain long term partnerships with customers and suppliers enabling us to efficiently fulfill the needs of our international customers. Our global reach gives us insight into market flows that yield competitive advantage.

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Risk Averse

Know-how

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Environmental, social and governance principles are at the heart of our business.

We believe that we are responsible for delivering products, services and methods that respect the natural and social environment in the countries where we operate.

We invest in modern equipment, technology, processing and farming methods to ensure energy efficiency and the protection of the natural environment.

ENVIRONMENT

MonacoResourcesdeliversbenefitstoourstakeholdersandwidersociety.

MONACO RESOURCESSUSTAINABLE BUSINESS

Our metals subsidiary focuses on minimising energy consumption.

We invest in efficient equipmentand technology at our production sites and actively recycle aluminium and copper, reducingwastage andusingsignificantly lessenergy thanprimary production methods alone.

Ouragriculturebusinessadoptsascientificapproachto crop selection and farming methods to make the most of natural conditions. By selecting areas with higher rainfall and multiple harvest seasons forexample,weareabletocultivateefficientlyandreduce our impact on the environment.

SOCIAL

GOVERNANCE

We work with national and local governments and encourage good governance.

Throughengagementwithlocalstakeholders,weworkeffectivelyandsafely.Byrespectingthelocalenvironmentandconductingourselvesinamannerthatwillnot jeopardisethecultureorenvironment,webuildandmaintainrespected networks.

We invest into education and health as part of a sustainable business approach.

In this way we enhance performance as well as support economic growth opportunities.

Throughoursubsidiarieswebringbenefitstoourstakeholdersandthecommunitiesinwhichwework.

Wehave fundednewschools in theRepublicofGuinea, theRepublicofCongoandSierraLeoneandsupportamedical centre in the Republic of Guinea.

We are member of the Foundation of Prince Albert II of Monaco, whosepurpose is to protect the environment and to encourage sustainable development.

MONACO RESOURCESSTRATEGIC REPORT01

MONACO RESOURCESOUR OPERATIONSMETALS & MINERALS

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MONACO RESOURCESMETALS & MINERALS

ALUMINIUM

BASE METALS, BULK & FERROUS

We are a leading European, independent producer of alloyed slabs. Production is based on the environmentally friendly recycling of aluminium scrap.

We process and trade a range of metals and minerals which includes copper, zinc, ferrochrome, chrome and steel products.

BAGR BERLINER ALUMINIUMWERKGermany

STOCKACH ALUMINIUMGermany

+35years

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+90,000 mtproduction

capacity p.a.

+90years

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capacity p.a.

+50years

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capacity p.a.

+10years

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capacity p.a.

NIKOLAIDIS TH. BROSGreece

CABLE RECYCLING INDUSTRIESSpain

STEELCOM GROUPLuxembourg (HQ), Monaco, Germany, Austria, USA, Brazil, China, UAE, Spain, Serbia, and Switzerland.

TENNANT METALS GROUPMonaco, Australia, South Africa, Luxembourg.

RAW MATERIALS

Our raw materials business unit is currently focused on the development of our bauxite asset in the Republic of Guinea.

SOCIÉTÉ DES BAUXITES DE GUINÉERepublic of Guinea

+60 years

in operation

11 Offices

4 Continents

+60years

in operation

4 Offices

3 Continents

Metalcorp Group is a diversified metals and minerals group with activities that span sourcing, production and processing, to marketing and trading.

Our business consists mainly of: Aluminium, Base metals, Bulk & Ferrous and Raw materials.

300million tonnes

of bauxite reserves

STEEL PRODUCTION COPPER PRODUCTION

TRADING & MARKETING

8million tonnes

production capacity p.a.

4PROCESSING PLANTS

300+EMPLOYEES

16COUNTRIES

KEY FIGURES

BUSINESS UNITS


MONACO RESOURCESOUR OPERATIONSAGRIBUSINESS

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AGRICULTURE

The Agricultural business produces essential food products and import substitutions for domestic markets primarily in West Africa.

OPERATIONAL LOCATIONS PRODUCTS

Agricorp encompasses agricultural activities across Europe, Africa and Asia, including the cultivation of essential products ranging from import-substitution

crops to vanilla, spices and niche products.

90.000+Hectares

650+EMPLOYEES

13COUNTRIES

KEY FIGURES

BUSINESS UNITS

MONACO RESOURCESAGRIBUSINESS

- Republic of Guinea- Republic of Congo- Ghana

- Rice ( white rice & rice seeds )- Maize- Beans & protein crops

- Spain- Republic of North Macedonia- Bulgaria

- Fruits & vegetables- Fresh mushrooms- Canned vegetables & mushrooms- Salt ( Low sodium )

FOOD

The Food business sources, transforms and trades perishable and processed food commodities in domestic and European markets.


- Madagascar- Indonesia- Mauritius

- High quality vanilla- Selection of spices- Essential oils- Toraja high-grade indonesian coffee

VANILLA & SPICES

The Vanilla & Spices business produces, procures, processes and exports high quality vanilla, spices and other niche products.


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MONACO RESOURCESOUR OPERATIONSENERGY

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The energy division is headed by Bluecorp Energy Group which focuses on pipeline services and the marketing and sales of hydrocarbon products.

We are organised across two business units:

• Trading and marketing• Pipeline services

MONACO RESOURCESENERGY

Our trading and marketing activities include:

• Supplying marine and aviation fuels for commercial vessels, military clients and yachts.

• Crude oil off-take and marketing under term contracts.

• Natural gas off-take and marketing under term contracts.

TRADING & MARKETING

PIPELINE SERVICES

Our pipeline services business provides the following services:

• Pipeline surveillance.

• Tests, pipe works and interventions.

• Cathodic protection.

• Topography, pipeline engineering and training.

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MONACO RESOURCESOUR OPERATIONSINFRASTRUCTURE & LOGISTICS

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MONACO RESOURCESINFRASTRUCTURE & LOGISTICS

PORTS & TERMINALSLOGISTICS SERIVICES

We develop, operate and manage global multimodal supply solutions for a large number of international customers in various industries.

R-Logitech is an international infrastructure and logistics service provider focused primarily on the natural resources sector. The Group’s principal business lines are ports and terminals management, logistics and

technology solutions.

40+TERMINALS

4500+EMPLOYEES

30+COUNTRIES

KEY FIGURES

BUSINESS UNITS

As one of the largest port-infrastructure companies in Europe, Euroports operates and manages a network of ports in strategic locations across Europe and China. Euroports value proposition includes high-quality maritime supply chain solutions delivered through its network of deep-sea & inland terminals.

EUROPE & CHINA

R-Logistic operates through a network of agencies on the African continent to establish innovative and integrated multimodal transport solutions, supporting its clients in their core businesses, including mining, oil and gas, industrial, agricultural, commodity trading and military logistics support.

WEST,CENTRAL AFRICA & MAGHREB

Nectar has extensive knowledge and experience in the operation and management of specialist bulk terminals. The group has built up a strong reputation with regards to their terminal design and development services around the world.

SOUTH, EAST AFRICA, ASIA & LATIN AMERICA

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FREIGHT FORWARDING

Manuport Logistics, offers customers a fully-integrated supply chain solution with a broad range of freight-forwarding services. Manuport Logistics serves a diverse portfolio of leading customers with specific industry needs, ranging from consumer goods, textiles, flooring, steel, complex project cargoes, and sugar to forest products, fertilisers, foods, chemicals, oils, and other liquids.

INTERNATIONAL

We invest in the necessary infrastructure for the transportation of products in relation to natural resources.The investment includes roads and rail infrastructures to support the other logistic services our Group offers.

INTERNATIONAL

TRANSPORTATION INFRASTRUCTURE

TECHNOLOGY

Our Technology activities focuses on providing and developping innovative technical solutions supporting the logistics needs of our international clients optimising costs and time with our Award-winning technology.

INTERNATIONAL

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MONACO RESOURCESOUR OPERATIONSFINANCE & INVESTMENTS

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Our Finance and Investments division provides structured trade finance solutions and makes investments in the natural resources sector.

MONACO RESOURCESFINANCE & INVESTMENTS

We provide equity and debt capital to mid-tier companies operating in the natural resources industry. Sector focus includes: metals and minerals; food and agriculture; energy, both conventional and alternative, and natural resource related infrastructure.

We assist natural resources sector companies with business development, drawing on our deep industry expertise and our significant network across Europe, Middle East, Africa and Asia.

FINANCE

INVESTMENTS

We provide customised supply chain finance to drive clients’ growth, enabling them to trade with confidence across multiple jurisdictions.

We provide pre-payment facilities for commodity producers, expediting their route to market.

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MONACO RESOURCESBUSINESS PERFORMANCE01 BUSINESS PERFORMANCE

Despiteavolatileenvironment,theGroupwasabletoincrease its traded volumes.

Furthermore,thebusinessmodelofourgroupisfocusedon “locking in” the Gross Margin. This is achieved by structuring deals on a back-to-back basis to eliminate price risk. This significantly reduces the dependencyofourprofitability towardsmarketprices.Only in thesituation that the Group’s margins are expressed in a percentageofthemarketprice,theeffectoffluctuationspartlyinfluenceourresults.Alldivisionsincreasedtheirvolumes,grossmarginsandresults.

The solvency (total group equity divided by the balance sheet total) at the balance sheet date moved from 38.5% in 2018 to 28,4% in 2019. This includes self-liquidatingTradeFinance,whichisaddedtothecurrentliabilities.TradeFinanceisutilizedtofinancethedealsof the Trading division and leads to a corresponding increase in inventory and accounts receivable, whichare both pledged to the Trade Finance Banks. When receivables are paid by our customers, our CompanyreceivestheprofitmadeonthesedealsandtheTradeFinance facility is repaid.

BUSINESS REVIEW

GENERAL

In2019,theGroupcontinuedtodevelopopportunitiesandnewactivitiesineachofitsfivebusinessstreams,witha focus on expanding niche markets and vertical integration.

TheGroupappliesarisk-aversestrategythroughwhichthegrossprofitondealsislockedin,independentofthemarket prices.

TheGrouphasmadesignificantprogresstobuildaninternationallogisticbusiness.Asaresult,oftakingacontrollingstake in Euroports, one of the largest port-infrastructure companies in Europewhich operates andmanages anetwork of ports in strategic locations across Europe & China.

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MONACO RESOURCESOUTLOOK01

TheGrouphasinplacelongtermfinancingthroughtheissuanceofseveralBondsontheLondon,FrankfurtandOsloExchanges.AdditionallysignificantTradefinancelinestosupportthecommercialactivitiesareinplace.

Asoverthelastyears,theCompanywillensurethatthegroupremainsleanintermsofheadcount.

Keymanagementpositionsarefilledbypersonnelwiththerequiredexperience,background,andentrepreneurialspirit and drive to contribute to our growth and success.

Additionalpersonnelwillonlybeemployed,whenthegrowthinouractivitiesrequiresso.

GENERAL

FINANCING

EMPLOYEES

OUTLOOK

TherecentemergenceofthenovelcoronaviruscouldleadtosubstantialdisruptioninChina,USA,Europeandtheworldeconomy,whichcouldhaveanadverseimpactonthedemandforthecommodities,productsandlogisticssuppliedbytheGroup.Although,theresultofalargescalespreadingofthevirusremainsuncertainin2020,neartermweaknessisareality,anditcouldhaveadditionallonger-termmaterialadverseeffectsonworldmarketsandthus affecting the Group.

Neartermconfidenceinstabilityofglobaldemandhingesonmanyfactors,especiallytheimpactofthecoronavirusdisruption.

The Group remains focused on the strategy to sustainably grow while operating in a responsible manner across all aspectsofourbusiness.Clearlyintheshorterterm,theimpacttotheGroupcouldbenegativebutremainsuncertain.The Group is closely watching coronavirus developments and potential scenario impacts on global growth and markets andwhatadjustments,ifany,areappropriateforourbusinessplanning.

PreliminariesfromthefirstquartershowanoverallresilientperformanceoftheactivitiesoftheGroup.

The Group will further explore and develop niche markets as well as continuing to explore distressed assets that become available due to the market circumstances.

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MONACO RESOURCESRISKS & UNCERTAINTIES01

Monaco,April30th 2020

Pascale YounèsDirector

RISKS & UNCERTAINTIES

FLUCTUATION IN CURRENCY EXCHANGE RATES

TheCompanyfindsitssuppliersandcustomersacrosstheglobe,whileoperationsandoperatingcostsarespreadacross several different countries and currencies. Fluctuation in exchange rates, in particular,movements inUSdollarandAustraliandollaragainsttheeuro,mayhaveamaterialimpactontheCompany’sfinancialresults.Notethatourbusiness ismainlyexecutedonadollarbasison thepurchasing,sellingaswellas thefinancingside. Ifcurrencyisnotnaturallyhedgedthroughback-to-backdeals,theexposureishedgedthroughadequateinstruments.

Thetradingactivitiesaredependentontradefinancing linesavailability.Wehavesignificantuncommittedtradelineswithmajorbanks.Thesetradefinancinglinesareuncommittedbynatureand,therefore,noguaranteecanbegiventhattradespresentedtothesebankswillbefunded.However,allpresenteddealsthusfararefinancedbythebanks.

FINANCING, CASH FLOWS AND LIQUIDITY

Themarketpricesforthevariousbasemetalsarevolatileandcannotbeinfluencedneithercontrolled.Inventoriesarethereforesubjecttovaluationchanges,whichmayhaveamaterialimpactontheCompany´sfinancialresults.However,theCompanyentersintoback-to-backdealsinwhichservesasanaturalhedgethat“locks”themarketprice,sothattheCompanyisnotexposedtopricefluctuations.IncaseswheretheCompanyisnotcoveredbythisnaturalhedge,thepriceriskismitigatedbyapplyingadequatefinancialinstruments.

PRICE VOLATILITY

TheCompany’soperationsandprojectsspannumerouscountries,someofwhichhavemorecomplex,lessstablepoliticalor social climatesandconsequentlyhigher country risk.Political risks includechanges in laws, taxesorroyalties,expropriationofassets,currencyrestrictionsorrenegotiationof,orchangesto,miningleasesandpermits.Similarly, communities in certain regionsmayopposeminingactivities for various reasons.Anyof these factorscouldhaveanadverseimpactontheCompany’sprofitabilityinacertaingeographicregionoratcertainoperations.However,sofartheCompanyhasnotexperiencedthoseproblems.

COUNTRY RISKS, POLITICAL, COMMUNITY AND FISCAL INTERVENTION

Other risks facing the Company include performance risk on offtake agreements; quality of commodities traded and produced,competition,environmentalandinsurancerisksanduncertaintyofadditionalfinancing.Theserisksandthe mitigating measures are monitored and managed by the Company on a regular basis and appropriate action is taken whenever this is required.

OTHER RISKS

Thepresentationoffinancial statements requires themanagement tomakeestimationsandassumptionswhichaffectthereportedamountsofassetsandliabilities,andthedisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandreportedamountsofrevenuesandexpensesduringtheperiod.Actualresultscoulddiffer from those estimates impacted by the following risks:



The Group remains focused on the strategy to sustainably grow while operating in a responsible manner across all aspects of ourbusiness.Clearly in the shorter term, the impact to theGroup couldbenegativebut remainsuncertain. The Group is closely watching coronavirus developments and potential scenario impacts on global growth andmarketsandwhatadjustments,ifany,areappropriateforourbusinessplanning.

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MONACO RESOURCESCONSOLIDATEDFINANCIAL STATEMENTS

02

ConsolidatedstatementofprofitorlossConsolidated statement of other comprehensive incomeConsolidatedstatementoffinancialpositionConsolidatedstatementofcashflowsConsolidated statement of changes in equityNotestothefinancialstatementsSigningofthefinancialstatements

Please note that the use of rounded amounts and percentages may

result in rounding differences of one unit (KEUR, %, etc.).

CONSOLIDATED STATEMENT OF PROFIT OR LOSS(before appropriation of result)

EUR 1.000 Note 2019 2018

Continuing Operations

Revenue 2 1.019.526 809.085 Revenue from contract-based assets 2 1.577 1.828 Cost of sales 2 -770.474 -682.735

Gross profit 2 250.629 128.179

Operating income and expensesOther operating income 3 - 4.401 Selling expenses 3 -15.662 -5.102 Administrative expenses 3 -133.903 -73.527

-149.565 -74.228

Operating profit 101.064 53.950

Depreciation and similar 3 -49.773 -6.662

Non-operating expensesUnrealized fair value changes -5.052 -533 Financial income and expense 4 -52.043 -22.411 Net finance cost -57.095 -22.944

Profit before tax -5.804 24.344

Income tax expense 5 -7.086 -6.144

Profit from continuing operations -12.890 18.200

Profit -12.890 18.200

Profit attributable to:Equity holders of Monaco Resources Group S.A.M. -4.744 15.271 Non-controlling interests -8.146 2.929

-12.890 18.200

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CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

EUR 1.000 2019 2018

Profit -12.890 18.200 Other comprehensive incomeRevaluation PPE (note 6) 228.996 5.032 PPA adjustment Goodwill -16.109 -DefferedTaxLiabilities -48.187 -Translation differences foreign companies 1.481 -1.717Fair value changes 201 - Amortisation Offtakes -1.577 -

Total comprehensive income 151.915 21.515

Total comprehensive income attributable to:Equity holders of Monaco Resources Group S.A.M. 95.280 20.308 Non-controlling interests 56.632 3.851

Total result 151.915 21.515

CONSOLIDATED STATEMENT OF FINANCIAL POSITION(before appropriation of result)

EUR 1.000 Note 31/12/2019 31/12/2018

Assets

Non-current assetsProperty plant and equipment 6 994.675 303.000 Intangiblefixedassets 7 833.656 59.671 Financialfixedassets 8 42.641 13.544

Total non-current assets 1.870.971 376.215

Current assets

Inventories 9 51.356 46.073 Receivables,prepaymentsandaccruedincome 10 332.548 292.417 Securities 11 - 97 Cash and cash equivalents 12 151.365 75.609

Total current assets 535.269 414.196

Total assets 2.406.240 790.411

Equity and liabilities

Equity

Share capital 30.000 30.000 Reserves and retained earnings 394.371 205.070

Equity attributable to the equity holders of Monaco Resources Group 424.371 235.070

Non-controlling interest 257.869 69.165

Total equity 682.240 304.235

Non-current liabilitiesLoansandborrowings 14 1.172.030 249.638 Provisions 15 6.941 5.338Deferred tax liabilities 5 124.645 4.079

Total non-current liabilities 1.303.616 259.055

Current liabilitiesCurrent liabilities and accruals 14 420.385 227.122

Total current liabilities 420.385 227.122

Total equity and liabilities 2.406.240 790.411

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CONSOLIDATED STATEMENT OF CASH FLOWS(before appropriation of result)

EUR 1.000 31/12/2019 31/12/2018

Operating profit 101.064 53.950

Working capital changes- Movements trade receivables -8.892 -134.188 - Movements inventories -5.283 -5.209 - Movements on other receivables and assets -38.856 13.664 - Movements trade payables -4.292 89.301 -MovementsTradefinanceandotherfinancing 78.148 -2.056

20.825 -38.488

Income tax paid -7.086 -6.144

-7.086 -6.144

Cash flow from operating activities 114.692 9.318

Investmentsinintangiblefixedassets -335.264 -10.858 Disposalsofintangiblefixedassets 5.354 - Investments in property plant and equipment -405.350 -42.735Acquisitions of group companies -296.500 - Disposals of group companies - 484 Acquisitions of non-consolidated companies - -2.762 Disposals of non-consolidated companies - 330 Investmentsinotherfinancialassets - -4.442 Acquisition of non-controlling interests 417

Cash flow from investment activities -1.031.760 -59.566

Proceeds from issuance of share capital - - Proceeds from borrowings and leasing liabilities 1.097.280 110.896 Repayment of borrowings and leasing liabilities -47.562 -36.315 Movements on loans receivable - 1.144 Otherfinanceincome 157 5.221 Otherfinanceexpense -7.774 -5.930 Interest received/paid -50.953 -15.170

Cash flow from financing activities 991.148 59.846

NetcashflowExchange rate and translation differences on movements in cash 1.565 784

Movements in cash 75.756 10.382

Cash and cash equivalents at 1 January 2019 75.609Cash and cash equivalents at 31 December 2019 151.365

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(before appropriation of result)

EUR 1.000 Issued share capital

Share premium

Revaluation reserve

Translation reserve

Other reserves

Result for the year

Legal entity share in group equity

Third-party share in

group equity

Group Equity

2018Opening Balance 30.000 - 17.043 3.264 120.388 13.326 184.021 64.102 248.123

Total comprehensive income and expense for the periodProfit/(loss)fortheperiod - - - - - 15.727 15.727 2.473 18.200 Revaluation PPE (note 6) - - 1.266 - 5.032 - 6.298 1.378 7.676 Foreign currency translation differences - - - -1.717 - - 1.717 - -1.717 Total comprehensive income and expense for the period - - 1.266 -1.717 5.032 15.727 20.308 3.851 24.159

Other movements in equityAllocation of prior year result - - - - 13.326 -13.326 - - - Capital contribution - 20.094 - - - - 20.094 - 20.094Acquisitions - - - - 561 - 561 417 978 Disposals - - - - -3.793 - -3.793 1.446 -2.347 Other movements in equity - - -1.828 - 15.706 - 13.878 -651 13.227 Total other movements in equity - 20.094 -1.828 - 25.800 -13.326 30.740 1.212 31.952

Total 30.000 20.094 16.481 1.547 151.220 15.727 235.069 69.165 304.234

2019Opening Balance 30.000 20.094 16.481 1.547 151.220 15.727 235.069 69.165 304.234

Total comprehensive income and expense for the periodProfit/(loss)fortheperiod - - - - - -4.744 -4.744 -8.146 -12.890Revaluationoffixedassets(note 7) - - -1.376 - - - -1.376 - -1.376Revaluation PPE (note 6) - - 100.106 - - - 100.106 64.594 164.700Foreign currency translation differences - - - 1.296 - - 1.296 185 1.481Total comprehensive income and expense for the period - - 98.730 1.296 - -4.744 95.280 56.632 151.914

Other movements in equityAllocation of prior year result - - - - 15.727 -15.727 - - -Capital increase - - - - 25.000 - 25.000 - 25.000Acquisitions - - - - 70.989 - 70.989 145.279 216.268Other movements in equity - - - -222 -1.746 - -1.968 -13.207 -15.175Total other movements in equity - - - -222 109.970 -15.727 94.021 132.072 226.093

Total 30.000 20.094 115.211 2.621 261.190 -4.744 424.370 257.869 682.240

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1.1 Corporate information

The activities of Monaco Resources Group S.A.M. (“Monaco Resources” or "the Group" or “the Company”) and its group companies primarily consist of the trading andproductionofmetalsandminerals,thetradingandproduction of agricultural commodities, the tradingof energy commodities and operating infrastructure logistics and providing services. The Company has its legalseatat2,ruedeLujerneta,98000Monaco,andisregistered with the number 11S05525.

The Company was incorporated as a limited liability company under the laws of Monaco on 5 September 2011 for the purpose of establishing an industrial holding company. Its major shareholder is Cycorp First Investment Ltd. In Cyprus the financial statementsof Cycorp First Investment Ltd. are available at theChamber of Commerce of Cyprus.

TheCompanyhasitscorporateheadquartersinMonaco,which is also the seat of the group of legal entities. The consolidated annual accounts comprise the financialinformation of the Company and of its investments in which it exercises a controlling interest. These investments are fully included in the consolidation.

1.2 Statement of compliance

The consolidated financial statements have beenprepared in accordance with International Financial Reporting Standards as adopted by the European Union, and its interpretations adopted by theInternational Accounting Standards Board (IASB),and are in compliance with the provisions of the laws in Monaco. The above Standards and Interpretations arecollectivelyreferredtoas“IFRS” inthesefinancialstatements. The Company is exempted from its obligationtoprepareconsolidatedfinancialstatements. TheCompany-only financial statements are preparedin accordance with accounting principles applicable in Monaco and are presented and published separately from the consolidated financial statements. Thisstatutory company-only annual report of the Company prevails over this annual report from a legal perspective. The objective of this report is to provide an overview of the activities of the Company and its subsidiaries.

TheconsolidatedfinancialstatementsoftheGroupareprepared in accordance with IFRS as adopted by the European Union, the Group mandatory has to adoptnew effective standards and apply IAS 8 “Accounting Policies,ChangesinAccountingEstimatesandErrors”. IAS 8 “Accounting Policies, Changes in AccountingEstimates and Errors” is applied in selecting andapplying accounting policies, accounting for changesin estimates and reflecting correctionsof prior period

errors. Changes in accounting policies and corrections of errors are generally retrospectively accounted for,whereas changes in accounting estimates are generally accounted for on a prospective basis.

New Mandatory accounting standards are applied following transition method of the relevant accounting standard and described in Note 1.4.

1.3 Basis of preparation

The consolidated financial statements have beenprepared on the historical cost basis except for certain propertiesandfinancialinstrumentsthataremeasuredat revalued amounts or fair values at the end of each reportingperiod,asexplainedintheaccountingpoliciesbelow.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurementdate,regardlessofwhetherthatpriceisdirectly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability,theGrouptakesintoaccountthecharacteristicsof the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined onsuchabasis,exceptfor:

• measurements that have some similarities to fair value but are not fair value, such as net realizablevalue in IAS 2 or value in use in IAS 36.

• In addition, for financial reporting purposes, fairvalue measurements are categorized into Level1,2or3basedon thedegree towhich the inputsto the fair value measurements are observable and the significanceof the inputs to the fair valuemeasurementinitsentirety,whicharedescribedasfollows:

• Level 1 inputs are quoted prices (unadjusted) inactive markets for identical assets or liabilities that the entity can access at the measurement date;

• Level2 inputsare inputs,other thanquotedpricesincludedwithinLevel1,thatareobservablefortheasset or liability either directly or indirectly; and

• Level3inputsareunobservableinputsfortheassetor liability.

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. ACCOUNTING POLICIES

1.4 New and revised IFRSs and IAS 8 changes

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) (collectively, the Boards) respectively haveissued largely converged new IFRS. The Group has adopted the new accounting pronouncements which havebecomeeffectivethisyear,andareasfollows:

IFRS16‘Leases’

IFRS16 ‘Leases’ replaces IAS17 ‘Leases’ alongwiththree Interpretations (IFRIC 4 ‘Determining whether anArrangementcontainsaLease’,SIC15 ‘OperatingLeases-Incentives’ and SIC 27 ‘Evaluating theSubstance of Transactions Involving the Legal Formof a Lease’). The adoption of this new Standard hasresulted in the Group recognising a right-of-use asset and related lease liability in connection with all former operating leases except for those identified as low-value or having a remaining lease term of less than 12 months from the date of initial application.

ThenewStandardhasbeenappliedusingthemodifiedretrospective approach,with the cumulative effect ofadopting IFRS 16 being recognised in equity as an adjustment to retained earnings for the current period. Prior periods have not been restated.

Forcontractsinplaceatthedateofinitialapplication,theGrouphaselectedtoapplythedefinitionofaleasefrom IAS 17 and IFRIC 4 and has not applied IFRS 16 toarrangementsthatwerepreviouslynotidentifiedaslease under IAS 17 and IFRIC 4.

The Group has elected not to include initial direct costs in the measurement of the right-of-use asset for operating leases in existence at the date of initial applicationof IFRS16,being1 January2019.At thisdate,theGrouphaselectedtomeasuretheright-of-useassets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition.

Instead of performing an impairment review on the right-of-use assets at the date of initial application,the Group has relied on its historic assessment as to whether leases were onerous immediately before the date of initial application of IFRS 16.

On transition, for leases previously accounted for asoperating leases with a remaining lease term of less than 12 months and for leases of low-value assets the Group has applied the optional ex-emptions to not recognise right-of-use assets but to account for the lease expense on a straight- line basis over the remaining lease term.

Forthoseleasespreviouslyclassifiedasfinanceleases,the right-of-use asset and lease liability are measured at the date of initial application at the same amounts as under IAS 17 immediately before the date of initial application.

On initial application of IFRS 16 the weighted average incremental borrowing rate applied to lease liabilities recognisedunder IFRS16whichspans from3,5%to8,5%. TheGroup has used hindsight for determiningthe lease term when considering options to extend and terminate leases.

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NOTE 1.

EUR 1.000 Carrying amount as per 31 December 2018

Carrying amount as per 1 January 2019

Financial assets

Property,plantandequipment 2.006 2.006

Leaseliabilities 2.006 2.006

Total 2.006 2.006

Table 1: The following is a reconciliation of the financial statements from IAS 17 to IFRS 16 at 1 January 2019:

EUR1.000

Total operating lease commitments as per 31 December 2018 17.746

Operating lease liabilities before discounting 17.746

Discount using incremental borrowing rate 9.300

Operating lease liabilities 8.446

Finance lease obligations 2.006

Total lease liabilities under IFRS 16 as per 01 January 2019 10.452

The following reconciliation of operating lease commitments as per 31 December 2018 to lease liabilities recognized at 1 January 2019

IFRIC 23 – Uncertainty over income tax treatment

The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. Due to its global reach, including operating in high-risk jurisdictions, the Group is subject to enhancedcomplexityanduncertainty,whichmayleadtouncertaintax treatments and the corresponding recognition and measurement of current and deferred taxes. The judgements and estimates made to separately recognise and measure the effect of each uncertain tax treatment are re-assessed whenever circumstances change or when there is new information that affects those judgments. The Group has re-assessed its global tax exposure and the key estimates taken in determining the positions recorded to adopt IFRIC 23.

As of 1 January 2019, the global tax exposure hasbeen determined by referencing to the uncertainty that the tax authority may not accept the Group’s proposed treatment of tax positions. The adoption of the interpretation had no material impact on the Group.

The Group reclassified according to IAS 8 assetsbetweenfixedassetsandreceivables,prepaymentandaccrued income for the year ended 2018. The Group decided to do this reclassification retroactively in thefinancialstatements2019.Therewasnoeffectontheprofitandlossstatementnoronequitynorfortheyearended 2019.

Several other amendments to existing standards apply for thefirst time in2019,butdonothavean impactfinancialstatementsoftheGroup.

1.5 Basis of consolidation

The consolidated financial statements incorporatethefinancial statements of theCompany and entities(including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:

• has power over the investee;• isexposedorhasrights,tovariablereturnsfromits

involvement with the investee; and• has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over theinvesteewhen the voting rights are sufficient to giveit the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficienttogiveitpower,including:

• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

• potential voting rightsheldby theCompany,othervote holders or other parties;

• rights arising from other contractual arrangements; and• any additional facts and circumstances that indicate thattheCompanyhas,ordoesnothave,thecurrentability to direct the relevant activities at the time that decisionsneedtobemade,includingvotingpatternsat previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiaryacquired or disposed of during the year are included in theconsolidatedstatementofprofitor lossandothercomprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Profit or loss and each component of othercomprehensive income are attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficitbalance.

Whennecessary,adjustmentsaremadetothefinancialstatements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.All intragroup assets and liabilities, equity, income,expenses and cash flows relating to transactionsbetween members of the group are eliminated in full on consolidation.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect thechanges in their relative interests in thesubsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is

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recognized directly in equity and attributed to owners of the Company.

When theGroup loses controlof a subsidiary, againor lossisrecognizedinprofitor lossandiscalculatedas the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amountoftheassets(includinggoodwill),andliabilitiesof the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassifiedtoprofitor lossor transferred toanother categoryofequityasspecified/permittedbyapplicableIFRSs).

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accountingunderIAS39,whenapplicable,thecostoninitial recognition of an investment in an associate or a joint venture.

1.6 Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a businesscombinationismeasuredatfairvalue,whichis calculated as the sum of the acquisition-date fair valuesoftheassetstransferredbytheGroup,liabilitiesincurred by the Group to the former owners of the acquiree and the equity interest issued by the Group in exchange for control of the acquiree. Acquisition-relatedcostsaregenerallyrecognizedinprofitor lossas incurred.

Attheacquisitiondatetheidentifiableassetsacquiredand the liabilities assumed are recognized at their fair value except that:

• deferred tax assets or liabilities, and assets orliabilitiesrelatedtoemployeebenefitarrangementsarerecognized and measured in accordance with IAS 12 Income Taxes and IAS 19 respectively;

• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 at the acquisition date; and

• assets (or disposal groups) that are classified as

held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and theliabilities assumed. If, after reassessment, the net oftheacquisition-dateamountsoftheidentifiableassetsacquired and liabilities assumed exceeds the sum of theconsiderationtransferred,theamountofanynon-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any),theexcessisrecognizedimmediatelyinprofitorloss as a bargain purchase gain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interest proportionate share of the recognized amounts of the acquiree’s identifiable netassets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controllinginterestaremeasuredatfairvalueor,whenapplicable,onthebasisspecifiedinanotherIFRS.

When the consideration transferred by the Group in a business combination includes assets or liabilities resultingfromacontingentconsiderationarrangement,the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with correspondingadjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the “measurement period” (which cannot exceed one year from acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified.Contingentconsiderationthatisclassifiedasequityisnot re-measured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingentconsiderationthat isclassifiedasanasset

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or a liability is re-measured at subsequent reporting datesinaccordancewithIAS39,orIAS37Provisions,Contingent Liabilities and Contingent Assets, asappropriate,withthecorrespondinggainorlossbeingrecognizedinprofitorloss.

Whenabusinesscombinationisachievedinstages,theGroup’s previously held equity interest in the acquiree is re-measured to its acquisition-date fair value and theresultinggainorloss,ifany,isrecognizedinprofitor loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where such treatmentwould be appropriate if that interest were disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reportsprovisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above),oradditionalassetsorliabilitiesarerecognizedto reflect new information obtained about facts andcircumstancesthatexistedattheacquisitiondatethat,ifknown,wouldhaveaffectedtheamountsrecognizedat that date.

1.7 Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business (see note 1.6.) less accumulated impairmentlosses,ifany.

For the purposes of impairment testing, goodwill isallocated to each of the Group’s cash-generating units (or groups of cash-generating units) that is expected to benefitfromthesynergiesofthecombination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or morefrequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generatingunit is less than itscarryingamount,the impairment loss is allocated first to reduce thecarrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rate based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized forgoodwill is not reversed in subsequent periods.

Ondisposal of the relevant cash-generating unit, the

attributable amount of goodwill is included in the determinationoftheprofitorlossondisposal.

1.8 Investments in associates and joint ventures

An associate is an entity over which the Group has significantinfluence.Significantinfluenceisthepowerto participate in the financial and operating policydecisions of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisionabout the relevant activities require unanimous consent of the parties sharing control. The results and assets and liabilities of associates or joint ventures are incorporatedintheseconsolidatedfinancialstatementsusing the equitymethod of accounting, exceptwhentheinvestment,oraportionthereof,isclassifiedasheldforsale,inwhichcaseitisaccountedforinaccordancewithIFRS5.Undertheequitymethod,aninvestmentinan associate or a joint venture is initially recognized in theconsolidatedstatementoffinancialpositionatcostand adjusted thereafter to recognize the Group’s share oftheprofitorlossandothercomprehensiveincomeofthe associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture (which includesanylong-terminterestthat,insubstance,formpart of the Group’s net investment in the associate or joint venture), the Group discontinues recognizing itsshare of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

An investment in an associate or joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associateorajointventure,anyexcessofthecostoftheinvestment over the Group’s share of the net fair value oftheidentifiableassetsandliabilitiesofthe investeeisrecognizedasgoodwill,whichisincludedwithinthecarrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiableassets and liabilities over the cost of the investment,afterreassessment,isrecognizedimmediatelyinprofitor loss in the period in which the investment is acquired.

The requirements of IFRS 9 are applied to determine

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whether it is necessary to recognize an impairment loss with respect to the Group’s investment in an associate orajointventure.Whennecessary,theentirecarryingamount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any Impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture or when the investment tis classifiedasheldforsale.Whenthegroupretainsaninterest in the former associate or joint venture and the retainedinterestisafinancialasset,theGroupmeasuresthe retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IFRS 9. The difference between the carrying amount of the associate or joint venture at the datetheequitymethodwasdiscontinued,andthefairvalue of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized inother comprehensive income by that associate or joint venturewould be reclassified to profit or loss on thedisposal of the related assets or liabilities, theGroupreclassifies the gain or loss from equity to profit orloss(asareclassificationadjustment)whentheequitymethod is discontinued.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no re-measurement to fair value upon such changes in ownership interests.

When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Group reclassifies toprofitorlosstheproportionofthegainorlossthathadpreviously been recognized in other comprehensive income relating to that reduction in ownership interest

ifthatgainorlosswouldbereclassifiedtoprofitorlosson the disposal of the related assets or liabilities.

When a group entity transacts with an associate or a jointventureoftheGroup,profitsandlossesresultingfrom the transactions with the associate or joint venture are recognized in the Group’s consolidated financialstatements only to the extent of interest in the associate or joint venture that are not related to the Group.

1.9 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns rebates and other similar allowances.

The majority of Group's revenue is recognized when the goods are delivered and titles have passed, atwhichtimeallthefollowingconditionsaresatisfied:

• theGrouphastransferredtothebuyerthesignificantrisks and rewards of ownership of the goods;

• the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amounts of revenue can be measured reliably;• itisprobablythattheeconomicbenefitsassociatedwiththetransactionwillflowtotheGroup;

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The Group has one type of revenues that derives from arrangements with performance obligations satisfiedover time (contract based assets) in accordance with IFRS15.Themethodofthisspecificrevenuerecognitionis described in note 1.4 and note 2.2.

1.10 Leasing

For any new contracts entered into on or after 1 January 2019, the Group evaluates whether a contract is, orcontains a lease. A lease is defined as a contract, orpartofacontract,thatcontainstherighttouseanassetfor a period of time in exchange for consideration to be payed.

ToapplythisdefinitiontheGroupassesseswhetherthecontract meets three key evaluations of IFRS 16:

• the contract contains an identified asset, which iseitherexplicitlyidentifiedinthecontractorimplicitlyspecifiedbybeingidentifiedatthetimetheassetismade available.

NOTE 1.

• the Group has the right to obtain substantially all oftheeconomicbenefitsfromuseof the identifiedasset in the period of use, considering its rightswithinthedefinedscopeofthecontracttheGrouphastherighttodirecttheuseoftheidentifiedassetthroughout the period of use.

• the Group assess whether it has the right to direct 'how and for what purpose’ the asset is used in the period of use.

Atleasecommencementdate,theGrouprecognisesaright-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost,which is made up of the following costs:

• theinitialmeasurementoftheleaseliability,• anyinitialdirectcostsincurredbytheGroup,• an estimate of any costs to dismantle and remove theassetattheendofthelease,and

• any lease payments made in advance of the lease commencement date net of incentives.

The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment when such indicators exist.Atthebeginningofleasingdate,theGroupmeasuresthe lease liability at the present value of the lease payments unpaid at that date, discounted using theinterest rate implicit in the lease. The Group uses an incremental borrowing rate if the implicit rate is not available.

Lease payments included in themeasurement of thelease liability are made up of the following:

• fixedpayments• variablepaymentsbasedonanindexorrate,• amounts expected to be payable under a residual

value guarantee and• payments arising from options reasonably certain to

be exercised.

Subsequent to initial measurement, the liability willbe reduced for payments made and increased for interest. It is remeasured to reflect any reassessmentormodification,oriftherearechangesinin-substancefixedpayments.

When the lease liability is remeasured, thecorrespondingadjustment is reflected in the right-of-useasset,orprofitandlossiftheright-of-useassetisalready reduced to zero.

The Group has decided to choose for the possibility of IFRS 16 to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability,the payments in relation to these are recognised as an expense inprofit or loss on a straight-linebasis overthe lease term.

On the statement of financial position, right-of-useassets have been included in property, plant andequipment and lease liabilities have been included in loans and borrowings or current liabilities and accruals.

1.11 Foreign currencies

Inpreparingthefinancialstatementsofeachindividualgroupentity, transactions incurrenciesotherthantheentity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreigncurrencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical costs in a foreign currency are not retranslated.

Exchange differences on monetary items are recognized inprofitorlossintheperiodinwhichtheyariseexceptfor:

• Exchange differences on foreign currency borrowings relating to assets under construction for future reductive use which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

• Exchange differences on transactions entered into in order to hedge foreign currency risks.

• Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur in the foreseeable future therefore forming part of the net investment in the foreign operation),whicharerecognized initially in other comprehensive income and reclassified from equity to profit or loss onrepayment of the monetary items.

For the purposes of presenting these consolidated financial statements, the assets and liabilities of theGroup’s foreign operations are translated into Euros using exchange rates prevailing at the end of each reporting period. Income and expense items are translatedattheaverageexchangeratesfortheperiod,

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unlessexchangeratesfluctuatesignificantlyduringthatperiod,inwhichcasetheexchangeratesatthedatesofthetransactionsareused.Exchangedifferencesarising,ifany,are recognized inothercomprehensive incomeand accumulated in equity (and attributed to non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e. disposal of the Group’s entire interest in a foreign operation, ora disposal involving loss of control over a subsidiary that includesa foreignoperation,orapartialdisposalof an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interestbecomesafinancialasset)alloftheexchangedifferences accumulated in equity in respect of the operation attributable to the owners of the Company arereclassifiedtoprofitorloss.

In relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control over the subsidiary,the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognized in profit or loss. Forall other partial disposals (i.e. partial disposals of associates or joint arrangements that do not result in theGroup losingsignificant influenceor jointcontrol),the proportionate share of the accumulated exchange differencesisreclassifiedtoprofitorloss.

Goodwill and fair value adjustments to identifiableassets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognized in other comprehensive income.

1.12 Retirement benefit costs and termination benefits

Payments to defined contribution retirementbenefit plans are recognized as an expense whenemployees have rendered service entitling them to the contributions.

1.13 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Thetaxcurrentlypayableisbasedontaxableprofitfortheyear.Taxableprofitdiffersfrom“profitbeforetax”as reported in theconsolidatedstatementofprofitor

lossandother comprehensive income,because itemsof income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and thecorresponding tax based used in the computation of taxable profit. Deferred tax liabilities are generallyrecognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it isprobablethattaxableprofitswillbeavailableagainstwhich those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxableprofitnor theaccountingprofit. Inaddition,deferredtaxliabilitiesarenotrecognizedifthetemporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in jointventures,exceptwheretheGroupisabletocontrolthereversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that therewill be sufficienttaxableprofitsagainstwhich toutilize thebenefitsofthe temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to theextent that it isno longerprobable thatsufficienttaxableprofitswillbeavailabletoallowallorpartoftheasset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in whichtheliabilityissettledortheassetrealized.,basedon tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets

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reflects the consequences that would follow fromthe manner in which the Group expects at the end of the reportingperiod, to recover or settle the carryingamount of its assets and liabilities.

Currentanddeferredtaxarerecognizedinprofitorloss,except when they relate to items that are recognized in other comprehensive income or directly in equity,in which case, the current and deferred tax are alsorecognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination the tax effect is included in the accounting from the business combination.

1.14 Property, plant and equipment and Intangible fixed assets

Property,plantandequipmentarestatedatcost,beingthe fair value of the consideration given to acquire or construct the asset, including directly attributablecosts required to bring the asset to the location or to a condition necessary for operation and the direct cost of dismantlingandremovingtheasset,lessaccumulateddepreciation and any accumulated impairment losses.

Intangible assets include goodwill and off-take contracts. The offtake contracts as per 31 December 2019 were valued at cost. For the accounting policies concerning mineral rights reference is made to note 1.16.

Property,plantandequipment (with theexceptionofland and buildings) are depreciated to their estimated residual value over the estimated useful life of the specificassetconcerned.Identifiableintangibleassetswithafinitelifeareamortizedonastraight-linebasisand/or in accordance with the unit-of-production method (“UOP”) over their expected useful life. Reference is made to note 1.24 for more details on the application of the UOP method. Goodwill is not amortized.LandandbuildingsarevaluedatFairValuein accordance with IFRS 13 and changes are accounted for in other comprehensive income.

Themajorcategoriesofproperty,plantandequipment(with the exception of land and buildings) and intangible assets are depreciated/amortized on a UOP and/or straight-line basis as follows (per annum):

Land:FairvaluemodelBuildings: 0%Plant and Equipment: 10% - 33%Other operating assets: up to 10%

Assets under finance leases, where substantially allthe risks and rewards of ownership transfer to the

Groupas lessee,arecapitalizedanddepreciatedovertheir expected useful lives on the same basis as owned assetsor,whereshorter,thetermoftherelevantlease.Allother leasesareclassifiedasoperating leases, theexpenditures for which are charged against income over the accounting periods covered by the lease term.

1.15 Biological assets

Monaco Resources Group points in its consolidated financial statements land for the cultivation of vanillaand spices measured at fair value. Through the long lifecycle and harvest cycle a fair value approach according to IFRS respective IAS 41 was not applicable in the previous years. In the financial year 2019significantprogresswasmadeandthereforeitbecameapparent that Agro Natural Resources Madagascar S.A. has to account for their biological assets according to IAS 41. It is the Group’s position that the vanilla plant has to be separated into a bearer plant part (vanilla tendril) and biological assets / agricultural produce.

The vanilla tendril as a bearer plant falls within the scope of IAS 16 with the result that the initial recognition of the vanilla tendril has to be accounted at cost. The initial recognition is finished after the bearer plant isclassifiedbytheGroupasreadytouse.Thesubsequentmeasurement of the vanilla tendril is initial recognition less amortization measured over the useful lifetime. As a consequence, all costs relating to thevanilla tendrilareclassifiedasmaintenancecost.

The Group recognizes the vanilla beans as a biological asset,asvanillabeansareabiologicalasset,whicharenotclassifiedasabearerplantandclearlyidentifiableon the bearer plant. Also the entity controls the asset as a result of past events, if the company will haveprobable future economic benefits, and the fair valueor cost of the asset can be measured reliably. Therefore the company has to value the not harvested vanilla beans on initial recognition at fair value (market value) less estimated costs to sell. The Group accounted for theprofitresultingfromfairvaluemeasurementofthenot harvested vanilla beans within the financial year2018. The gain on initial recognition of these biological assetsatfairvaluelesscoststosellisincludedinprofitorloss(otherfinancialincome,seenote4).Thevanillabeans will be subsequent measured at fair value less estimated costs to sell at the point of harvest or a subsequent reporting period.

1.16 Mineral rights

Mineral rights consist of exploration and evaluation expenditure,mineral resources,mineral reserves, andmineral rights.

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Exploration and evaluation expenditure relates to costs incurred on the exploration and evaluation of potential mineral resources and includes costs such as researching and analyzing historical exploration data,exploratorydrilling, trenching,samplingandthecostsof pre-feasibility studies.

Exploration and evaluation expenditure for each area ofinterest,otherthanthatacquiredfromthepurchaseof another company, is charged to the statement ofincome as incurred except when:

• the expenditure is expected to be recouped from future exploitation or sale of the area of interest; and it is planned to continue with active and significantoperations in relation to the area;• orat the reportingperiodend, theactivityhasnotreached a stage which permits a reasonable assessment oftheexistenceofcommerciallyrecoverablereserves,in which case the expenditure is capitalized.

Purchased exploration and evaluation assets are recognized at their fair value at acquisition.

Capitalized exploration and evaluation expenditure is recordedasacomponentofmineralrightsinproperty,plant and equipment. All capitalized exploration and evaluation expenditure is monitored for indications of impairment.Whereapotentialimpairmentisindicated,an assessment is performed for each area of interest or at the cash generating unit level. To the extent that capitalized expenditure is not expected to be recovered it is charged to the statement of income.

Mineralreserves,resourcesandrights(togetherMineralRights)whichcanbereasonablyvalued,arerecognized

In the assessment of fair values on acquisition,Mineral Rights for which values cannot be reasonably determined are not recognized. Exploitable Mineral Rights are amortized using the UOP over the commercially recoverable reserves and, in certaincircumstances, other mineral resources. Mineralresources are included in amortization calculations where there is a highdegreeof confidence that theywill be extracted in an economic manner.

1.17 Impairment

At the end of each reporting period the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indicationexists, the recoverableamountofthe asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible

to estimate the recoverable amount of an individual asset,theGroupestimatestherecoverableamountofthe cash-generating unit to which the asset belongs.

When a reasonable and consistent basis can be identified,Intangibleassetswithindefiniteusefullivesand intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the asset may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent market assessments of the time value of moneyandtherisksspecifictotheassetforwhichtheestimatesoffuturecashflowshavenotbeenadjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount.

Animpairmentlossisrecognizedimmediatelyinprofitorloss,unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossistreatedasa revaluation decrease.

Whenan impairment loss subsequently reverses, thecarrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amountbutsothattheincreasedcarryingamount,doesnot exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years.

A reversal of an impairment loss is recognized immediatelyinprofitorlossunlesstherelevantassetiscarriedatarevaluedamount,inwhichcasethereversalof the impairment loss is treated as a revaluation increase.

1.18 Inventories

Production Inventories are stated at the lower of cost and net realizable value. Costs of inventories are determinedonafirst-in-first-outbasis.Net realizablevalue represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

The Trading inventories are stated at Fair Value lesscosts to sell.

NOTE 1.

1.19 Provisions

Provisions are recognized when the Group has a present obligation as a result of a past event it is probable that theGroupwillberequiredtosettletheobligation,anda reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the presentobligationat theendof the reportingperiod,taking into account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flowsestimatedtosettle thepresentobligation, itscarryingamountisthepresentvalueofthosecashflows(whenthe effect of the time value of money is material).

When some or all the economic benefits required tosettle a provision are expected to be recovered from a third party a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.20 Financial instruments

Financialassetsandfinancial liabilitiesarerecognizedwhen a group entity becomes a party to the contractual provisions of the instruments.

Since1January2018theGroupclassifiesitsfinancialinstruments as either financial assets at amortisedcost,atfairvaluethroughothercomprehensiveincome(FVTOCI)oratfairvaluethroughprofitorloss(FVTPL).The classification depends on the Group´s businessmodelformanagingthefinancialassetsandcontractualtermsofthecashflows.

Amortised cost : Assets that are held for collectionof contractual cash flows represent solely paymentsof principal and interest. Interest income from those financialisincludedinfinanceincome.

FVTOCI:Assetsthatareheldforcollectionofcontractualcashflowsand for selling thefinancial assets,wherethecashflowsoftheassetsrepresentsolelypaymentsof principal and interest.Interest income from these financial assets is included in finance income usingthe effective interest rate method. Unrealized gains or losses are recorded as a fair value adjustment in the consolidated statement of comprehensive income and transferred to the consolidated income statement when thisfinancialasset issold.Exchangegainsandlossesand impairments related to these financial assets areimmediately recognized in the consolidated income statement.

FVTPL : Assets that do not meet the criterias foramortisedcost or FVTOCI. Changes in fair valueof financial instruments at FVPL are immediatelyrecognized in the consolidated income statement.

Listed redeemable notes held by the Group that aretradedinanactivemarketareclassifiedasFVTPLandare stated at fair value at the end of each reporting period. Changes in the carrying amount of FVTPLmonetaryfinancialassetsrelatingtochangesinforeigncurrency rates, interest income calculated using theeffective interest method and dividends on FVTPLequityinvestmentsarerecognizedinprofitorloss.Otherchanges in the carrying amount of FVTPL financialassets are recognized in other comprehensive income and accumulated under the heading of investments revaluation reserve. When the investment is disposed oforisdeterminedtobeimpaired,thecumulativegainor loss previously accumulated in the investments revaluationreserveisreclassifiedtoprofitorloss.

DividendsonFVTPLequityinstrumentsarerecognizedinprofitor losswhentheGroup’s right to receive thedividends is established.

The fair value of FVTPL monetary financial assetsdenominated in a foreign currency is determined in that foreign currency and translated at the spot rate prevailing at the end of the reporting period. The foreign exchangegainsandlossesthatarerecognizedinprofitor loss are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses are recognized in other comprehensive income.

FVTPLequity investments thatdonothaveaquotedmarket price in an active market and whose fair value cannot be reliably measured and derivatives are linked to and must be settled by delivery of such unquoted equity investments are measured at cost less any identified impairment losses at the end of eachreporting period.

Financial assets are initially recognised at fair value on thetradedate,including,inthecaseofinstrumentsnotrecorded at fair value through profit or loss, directlyattributable costs. Other investments, provisionallypriced trade receivables and derivates are carried at fair value. Trade receivables (without provisional price features), loans and other receivables are carried atamortised cost adjusted for any loss allowance.

Financial liabilities (except derivates and liabilities with provisional price features) are initially recognised at fair value of consideration received net of transaction costs as appropriate and subsequently carried at amortised cost. Derivates and financial liabilities includingprovisionalpricefeaturesarecarriedatFVTPL.

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1.21 Impairment of financial assets

Financial assets, other than those at FVTPL, areassessed for indicators of impairment at the end of each reporting period. Financial assets are considered tobe impairedwhen there isobjectiveevidence that,as a result of one or more events that occurred after the initial recognitionof thefinancialasset, theestimatedfuturecashflowsoftheinvestmenthavebeenaffected.

For FVTPL equity investments, a significant orprolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment.Forall otherfinancialassets,objectiveevidence of impairment could include:

• significantfinancialdifficultyoftheissuerorcounterparty; or• breachofcontract,suchasadefaultordelinquencyin interest or principal payments; or• it becoming probable that the borrower will enterbankruptcyorfinancialreorganization;or• the disappearance of an active market for thatfinancialassetbecauseoffinancialdifficulties.

Forcertaincategoriesoffinancialassets,suchastradereceivables assets are assessed for impairment on a collective basis even if they were assessed not to be impaired individually. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increasein the number of delayed payments in the portfolio past the average credit period, aswell as observablechanges in national or local economic conditions that correlate with default on receivables.A loss allowance for expected credit losses is determined for all financial assets, other than those at FVTPL, atthe end of each reporting period. The expected credit loss recognised represents a probability-weighted estimate of credit losses over the expected life of the financial instrument. Metalcorp Group applies thesimplifiedapproachtomeasurethelossallowancefortradereceivablesclassifiedasamortisedcostusingthelifetime expected loss provision. The expected credit loss on trade receivables is estimated using a provision matrix by reference to past default experience and an equivalent credit rating, adjusted as appropriatefor current observable data and forward-looking information.Forallotherfinancialassetsatamortisedcost the Group recognises lifetime expected credit losseswhen there has been a significant increase incredit risk since initial recognition.

Forfinancialassetscarriedatamortisedcost,theamountof the impairment loss recognized is the difference

between the asset’s carrying amount and the present valueofestimatedfuturecashflows,discountedatthefinancialasset’soriginaleffectiveinterestrate.

Forfinancialassetsthatarecarriedatcost,theamountof the impairment loss is measured as the difference between the asset’s carrying amount and the present valueoftheestimatedfuturecashflowsdiscountedatthecurrentmarketrateofreturnforasimilarfinancialasset. Such impairment loss will not be reversed in subsequent periods.

Thecarryingamountofthefinancialassetisreducedbytheimpairmentlossdirectlyforallfinancialassetswiththeexceptionoftradereceivables,wherethecarryingamount is reduced through the use of an allowance account.

Whenatradereceivableisconsidereduncollectible,itiswritten off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profitorloss.

Forfinancialassetsmeasuredatamortisedcost,if,inasubsequent period, the amount of the impairmentloss decreases and the decrease can be related objectively to an event occurring after the impairment wasrecognized,thepreviouslyrecognizedimpairmentloss is reversed through profit or loss to the extentthat the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognized.In respect of FVTPL equity securities, impairmentlosses previously recognized in profit or loss are notreversed through profit or loss. Any increase in fairvalue subsequent to an impairment loss is recognized in other comprehensive income and accumulated under the heading of investments revaluation reserve. In respect of FVTPL debt securities, impairment lossesaresubsequently reversed through profit or loss ifan increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss.

1.22 De-recognition of financial assets and financial liabilities

The Group derecognizes a financial asset when thecontractual rights to the cash flows from the assetexpire, or when it transfers the financial asset andsubstantially all the risks and rewards of ownership of the asset to another party.

NOTE 1.

If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to controlthetransferredasset,theGrouprecognizesitsretained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of atransferredfinancialasset, theGroupcontinues torecognize the financial asset and also recognizes acollateralized borrowing for the proceeds received.

Onde-recognitionofafinancialassetinitsentirety,thedifference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equityisrecognizedinprofitorloss.

On de-recognition of a financial asset other than itsentirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the groupallocatesthepreviouscarryingamountofthefinancialasset between the part it continues to recognize under continuing involvement, and the part it no longerrecognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or losses allocated to it that had been recognized in other comprehensive incomeisrecognizedinprofitorloss.Acumulativegainor loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.

TheGroupderecognizesfinancial liabilitieswhen,andonly when, the Group’s obligations are discharged,cancelled or they expire. The difference between the carryingamountof thefinancial liabilityderecognizedand the consideration paid and payable is recognized inprofitorloss.

1.23 Derivatives and hedging activities

Derivativeinstruments,whichmainlyincludecontractsto sell or purchase commodities that do not meet the ownuseexemption,aswellasFXderivativestoaminorextend, are initially recognize at fair value when theCompany becomes a party to the contractual provisions of the instrument and are subsequently re-measured to fair value at the end of each reporting period. Fair

values are determined using quoted market prices,dealer price quotations or using models and other valuationtechniques,thekeyinputsforwhichincludecurrent market and contractual prices of the underlying instrument,timetoexpiry,yieldcurves,volatilityoftheunderlying instrument and counterparty risk.

Gains and losses on derivative instruments for which hedgeaccountingisnotapplied,otherthantherevenueadjustment mechanism embedded within provisionally pricedsales,arerecognizedincostofgoodssold.

Those derivatives qualifying and designated as hedges are either(i)aFairValueHedgeof thechange in fairvalueofarecognized asset or liability or an unrecognized firmcommitment,or(ii)aCashFlowHedgeofthechangeincashflowstobe received or paid relating to a recognized asset or liability or a highly probably transaction.

A change in the fair value of derivatives designated as a FairValueHedgeisreflectedtogetherwiththechangein the fair value of the hedged item in the statement of income.

A change in the fair value of derivatives designated as aCashFlowHedgeisinitiallyrecognizedasacashflowhedge reserve in shareholders’ equity. The deferred amount is then released to the statement of income in the same periods during which the hedged transaction affects the statement of income. Hedge ineffectiveness is recorded in the statement of income when it occurs.

When a hedging instrument expires or is sold, orwhen a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing inequity at that time remains in shareholders’ equity and is recognized in the statement of income when the committed or forecast transaction is ultimately recognized in the statement of income.

A derivative may be embedded in a “host contract”. Such combinations are known as hybrid instruments andatthedateofissuance,theembeddedderivativeisseparated from the host contract and accounted for as a stand-alone derivative if the criteria for separation are met. The host contract is accounted for in accordance with its relevant accounting policy.

1.24 Critical accounting policies, key judgments and estimates

The preparation of the consolidated financial

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statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual outcomes could differ from those estimates.

The Company has identified the following areas asbeingcriticalofunderstandingtheCompany’sfinancialposition as they require management to make complex and/or subjective judgments and estimates about matters that are inherently uncertain:

Depreciation and amortization of property plant and equipment and mineral rights

Mineral rights and certain plant and equipment are depreciated / amortized using UOP rate of depreciation/ amortization, and therefore the annual charge tooperations, can fluctuate from initial estimates. Thiscould generally result when there are significantchanges in any of the factors or assumptions used in estimating mineral reserves, notably changes inthe geology of the reserves and assumptions used in determining the economic feasibility of the reserves. Such changes in reserves could similarly impact the useful lives of assets depreciated on a straight line basis,where those lives are limited to the life of theproject,whichinturnislimitedtothelifeoftheprovenand probably mineral reserves. Estimates of proven and probablereservesarepreparedbyexpertsinextraction,geology and reserve determination.

Assessments of extraction, geology and reservedetermination,assessmentsofUOP ratesagainst theestimated reserve and resource base and the operating and development plan are performed regularly.

Impairments

Investments in Associates and other investments,advances,andloansandproperty,plantandequipment,and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable or at least annually for goodwill andother indefinite lifeintangible assets.

If an asset’s recoverable amount is less than the assets’ carrying amount, an impairment loss is recognized.

Futurecashflowestimateswhichareusedtocalculatethe asset’s fair value are based on expectations about future operations primarily comprising estimates about production and sales volumes, commodity prices,reserves and resources, operating rehabilitations andrestoration costs and capital expenditures. Changes in such estimates could impact recoverable values of these assets.

Estimates are reviewed regularly by management.

Valuation of derivative instruments

Derivative instruments are carried at fair value and the company evaluates the quality and reliability of the assumptions and data used to measure fair value in the threehierarchy levels,Level1,2and3,asprescribedby IFRS 7.

Fair values are determined in the following ways: externally verified via comparison to quoted marketpricesinactivemarkets(Level1);byusingmodelswithexternallyverifiablyinputs(Level2);orusingalternativeprocedures such as comparison to comparable instruments and/or using models with unobservable market inputs requiring the Company to make market basedassumptions(Level3).

Provisions

The amount recognized as a provision, including tax,legal, restoration and rehabilitation, contractual andother exposures or obligations is the best estimate of the consideration required to settle the related liability, including any related interest charges, takinginto account the risks and uncertainties surrounding the obligation. The Group assesses its liabilities and contingencies based upon the best information available, relevant tax laws and other appropriaterequirements.

Fair Value measurements

In addition to recognizing derivative instruments at fair value,asdiscussedabove,anassessmentoffairvalueof assets and liabilities is also required in accounting for othertransactionmostnotably,businesscombinationsand disclosures related to fair values of marketing

inventories, financial assets and liabilities. In suchinstances,fairvaluemeasurementsareestimatedbasedon the amounts for which the assets and liabilities could be exchanged at the relevant transaction date or

NOTE 1.

reportingperiodend,andarethereforenotnecessarilyreflectiveofthelikelycashflowuponactualsettlements.Where fair value measurements cannot be derived from publiclyavailableinformation,theyareestimatedusingmodels and other valuation methods. To the extent possible,theassumptionsandinputstakeintoaccountexternallyverifiableinputs.However,suchinformationis by nature subject to uncertainty; particularly where comparable market based transactions rarely exist. The company applies the fair value model to its agricultural land assets for which valuations are obtained using generally accepted valuation techniques that have been reviewed and approved by third party experts.

Extension options for leases

When the Group has the option to extend a lease,management uses its judgement to determine whether or not an option would be reasonably certain to be exercised. The Group’s Management considers all facts and circumstances including their past practice,experience and any cost that will be incurred in the future to change the lease asset if an option to extend is not taken. Based on these evaluation management decides and determine the lease term. No potential lease payments have been excluded in the lease liabilities as management is reasonably certain that all the extension options will be exercised.

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2.2 Segment Revenues and Results

ThefollowingisananalysisoftheGroup’srevenueandgrossprofit(“GM”)fromcontinuingoperationsbyreportablesegment.

Segment revenue reported above represents revenue generated from external customers. Apart from service fees charged between entities for services provided,there were no inter-segment sales in the current year.

The accounting policies of the reportable segments are the same as the Group’s accounting policies described in note 1.

Revenue GM EUR 1.000 2019 2018 2019 2018

- Metals and minerals 541.004 620.728 49.577 50.341-InfrastructureandLogisticsservices 427.736 160.902 170.454 57.466- Agribusiness and other 50.786 27.455 30.598 20.372

Total 1.021.103 810.913 250.629 128.179

NOTE 2. SEGMENT INFORMATION

2.1 General

The Company is organized in five divisions, Metalsand Minerals, Agribusiness, Energy, Infrastructure &LogisticsandInvestmentandFinance.Thisstructureisused by management to assess the performance of the Company.

TheMetalsandMineralsdivision,headedbyMetalcorpGroup S.A., based in Luxembourg, has two businessareas – ferrous and non-ferrous operations. The ferrous business segment is focused on producing steel pipes and tubes as well as trading a variety of steel products and steel- related raw materials. The non-ferrous business segment specializes in producing aluminium slabs, coppergranulate and trading a variety of non-ferrousmetals, and delivering a bauxite and aluminacomplex.

The Agribusiness division consists of two distinct business streams – agriculture and food processing. Intheagribusiness,theGroupisdevelopinganumberof agricultural farming projects in Africa. In the food-processingbusiness, theGrouphasacquiredexistingfood production facilities.

The energy division is headed by Bluecorp Energy Group, which focuses on pipeline services and themarketing and sales of hydrocarbon products.

In the Infrastructure & Logistics division, the Groupsignificantly increase its key revenue and earningsfiguresinthefiscalyear2019.Theprorataconsolidationof the Euroports Group, acquired in June 2019, andgrowth in Africa contributed to this. The Group has developed its port infrastructure and logistics service provider capabilities in the natural resources sector by acquiring a majority stake in the Euroports Group and expanding its activities in Africa.

The Finance and Investments Division of Monaco Resources is managed by R-CAP. R-CAP deploys proprietary capital in the form of equity anddebt to fast growing companies in the natural resources sector. R-CAP also provides commodity financesolutions to traders and producers.

NOTE 2.

The additions to non-current assets in the trading division also include the additions of financialinstruments as reported in Note 8 Financial Fixed

Assets.Itisincludedinthisoverview,asitisasignificantposition that is reported to management on a regular basis.

2.4 Geographical Information

The Group operates globally and operations are managed by the following geographical analysis:

The allocation of Revenue is based on the country of incorporation of the sales counterparty. This may not necessarily be the country of the counterparty’s ultimate

parentand/orfinaldestinationofproduct.NoneoftheGroup’s customers contribute over 10% of revenue.

Revenue

EUR 1.000 2019 2018

RegionEurope 886.624 578.188 Middle East - 5.897Asia-Pacific 10.646 41.210Americas - 37.654Africa 123.833 147.964

Total 1.021.103 578.188

GM

2019 2018

223.759 69.128 - 107

1.148 1.826- 1.461

25.722 55.657

250.629 128.179

2.3 Segment Assets and Liabilities

The following is an analysis of the Group’s assets and liabilities by reportable segment.

Assets Liabilities EUR 1.000 2019 2018 2019 2018

- Metals and minerals 522.948 432.601 367.385 285.363-InfrastructureandLogisticsservices 1.629.122 114.020 1.132.771 78.764- Agribusiness and others 254.170 243.790 223.845 122.050

Total 2.406.240 790.411 1.724.001 486.177

Depreciation and amortization Additions to non-current assets

EUR 1.000 2019 2018 2019 2018

- Metals and minerals 1.921 1.746 110.921 35.388-InfrastructureandLogisticsservices 45.704 3.684 1.365.877 5.829- Agribusiness and others 1.370 1.232 17.958 25.028

Total 48.995 6.662 1.469.756 66.245

EBITDA 2019 2018

36.182 34.43761.322 18.693

3.560 820

101.064 53.950

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NOTE 3. INCOME AND EXPENSES

The average number of employees of the Group during theyear,convertedtofull-timeequivalentswas5.473of which 60 are employed in Monaco. In the personnel expenses an amount of EUR 5.532 thousand related to social security premiums and an amount of EUR 273 thousand related to pension premiums are included.

Furthermore expenses for expected loss assurance in amount of EUR 846 thousand are included in the other financialexpenses.

The other operating expense include a gain on recognition of biological assets at fair value less costs to sell with an amount of EUR 57 thousand (reference is made to note 1.15 and note 6).

EUR 1.000 31/12/2019 31/12/2018

Other operating income - 4.401Selling expensesPersonnel 14.930 4.768Sales and marketing expenses 732 334Total selling expenses 15.662 5.102

Administrative expensesPersonnel 68.478 24.517 Professional services fees 14.835 14.013 Facilitiesandoffices 29.116 23.074 Other operating expenses 21.474 11.923

Total administrative expenses 133.903 73.527

Total operating expenses 149.565 74.228

Breakdown: depreciation and amortization

Property Plant and Equipment 14.354 5.042 Intangible assets 4.839 1.511 right-of-use assets 27.663 - Impairment of stock 2.917 110Total depreciation and amortization 49.773 6.662

NOTE 4. FINANCIAL INCOME AND EXPENSES

NOTE 5. TAXATION

The effective Group taxation results from the statutory Monegasque corporate income tax rate applicable to the Company mainly due to its activities in other European countries, the newly acquired logistics operations and the increased activity in the farming operations in Africa.

The movement in the deferred tax liability of is mainly related to value adjustments of assets.

Deferred taxes (total EUR 124.645) were accounted on revaluation of buildings in other comprehensive income (EUR 48.187 thousand), resulting from the purchase price allocation of Euroports (EUR 72.369 thousand) and for other in amount of EUR 4.089 thousand.

Income taxes consist of the following:

EUR 1.000 2019 2018

Financial income and expenseOther interest income and similar income 7.443 1.577 Interest expenses and similar charges -51.868 -22.876 Unrealised fair value changes -5.052 -533Otherfinancingincome 2 4.750 Otherfinancingexpenses -7.774 -5.930

Total financial income and expense -57.250 -22.882

Income from foreign exchangeForex gains 1.128 4.808 Forex losses -973 -4.337 Total income from foreign exchange 155 471

Total financial income and expense -57.095 -22.411

EUR 1.000 2019 2018% EUR % EUR

Taxable result -5.804 24.344

Tax burden based on Monegasque nominal rate 30,0% -1.741 30,0% 7.303 Tax differences. 8.828 -1.159

Taxation on result on ordinary activities 7.086 6.144

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The movements in Property plant and equipment are as follows:

NOTE 6. PROPERTY PLANT AND EQUIPMENT

EUR 1.000 Agricultural Land

Land and buildings

Plant and machinery

Transportation vehicles

Biological assets

Operating assets,

construction & development

Mineral rights

Total

Gross carrying amountIFRS 16 adoption 3.623 1.714 3.032 - - - - 8.3691 January 2019 127.473 37.770 48.098 2.298 125 16.264 94.355 326.383Additions - 6.149 11.218 - 95 71.310 539 89.311Disposals - -1.293 - - - - - -1.293Acquisition - 200.737 440.772 3.040 - 4.746 - 649.295Revaluation 28.835 185.263 - - 57 - - 214.15531 December 2019 156.308 428.626 500.088 5.338 277 92.320 94.894 1.277.851

Accumulated depreciation and impairments1 January 2019 - 1.978 8.647 655 - 5.449 - 16.729Acquisition - - 236.892 - - - - 236.892Depreciation 149 1.143 24.513 178 - 3.572 - 29.55531 December 2019 149 3.121 270.052 833 - 9.021 - 283.176

Net book value at 31 December 2019 156.159 425.505 230.036 4.505 277 83.299 94.894 994.675

EUR 1.000 Agricultural Land

Land and buildings

Plant and machinery

Transportation vehicles

Biological

assets

Operating assets,

construction & development

Mineral rights

Total

Gross carrying amount1 January 2018 118.660 24.329 37.855 5.519 - 8.880 89.156 284.399Reallocations - -2.286 -5.324 - - 7.610 - - Additions - 2.421 9.617 269 125 2.563 30.199 45.194 Disposals - -170 -3.490 - -2.789 - -6.449IAS 8 change - - - - - - -25.000 -25.000 Acquisition - 13.476 2.918 - - - - 16.394 Revaluation 5.190 - - - - - - 5.190 31 December 2018 123.850 37.770 45.066 2.298 125 16.264 94.355 319.728

Accumulated depreciation and impairments1 January 2018 - 143 8.436 445 - 2.663 - 11.687 Depreciation - 1.835 211 210 - 2.786 - 5.042 31 December 2018 - 1.978 8.647 655 - 5.449 - 16.729

Net book value at 31 December 2018 123.850 35.792 36.419 1.643 125 10.815 94.355 303.000

Agricultural land

The agricultural land assets are related to the assets heldinGhana,RepublicofCongo,RepublicofGuineaand Madagascar.

The overview of the assets is as follows:

Ghana:securedlandsforthecultivationofcrops:maize,soybean and poultry breeding. Our operation includes a waterway and grain drying facility.

Republic of Congo: lands for thecultivationofcrops,mainlyrice-50yearsleaseinDolisie/Louvakou.

Republic of Guinea: lands for farming in Moriah for the cultivation of seed rice and Bouliwell - Duration of 35 years.

Madagascar: Secured land for the cultivation of vanilla andspices-Long-termleasesof99years.

Our operation owns processing and storage facilities.

The valuation is executed by internal experts and then reviewed and confirmed by third party experts. Asthere is no direct market or comparable market data available, the fair value is determined in accordancewith the level 3 principles under IFRS. This means that the valuation is based on generally accepted valuation methods(discountedcashflowmodels).

The main parameters used are local sales prices,expenses and investments that are derived from company data or other sources and converted to the applicable situation.The weighted average costs of capital that is used in thecalculationsrangesfrom9%to11,93%.

Thebiologicalassetsare thevanillabeans,whicharenotclassifiedasabearerplantandclearlyidentifiableonthebearerplant,referenceismadetonote1.14.

Buildings, Plant and Machinery, Transportation Vehicles and operating assets, construction & development

The acquisitions of 2019 are mainly related to acquisition of a majority stake in Euroports Group.

The additions of 2019 are mainly related to expansion of the agricultural activities, the investments in thealuminumbusinessatBAGR,AluStockach,investmentsin the bauxite activities and some smaller investments. Furthermore maintenance expense that extend the economic life of the production and port facilities were capitalized and will be written of in line with the accounting principles as set out in Note 1.

AnothermajorpartresultsfromfirsttimeapplicationofIFRS 16 as per 1 January 2019. A breakdown is given by table below and reference is made to Note 17.

Revaluations are related to adjustments related from accounting alignments between Euroports and the Groups accounting policies and accounted through other comprehensive income.

Mineral rights

The additions in mineral rights are related to further bauxite activities of the Group in development of Societe des Bauxites de Guinee (SBG) and connected mining activities in Guinee, where the Group is developingintegrated bauxite and alumina facilities.

TheIAS8changeisrelatedtoareclassificationbetweenReceivables, prepayment and accrued income for theyear ended 2018. For further information reference is made to Note 1.4.

For the accounting treatment of Mineral rights reference is made to note 1.15

Impairment

The annual impairment test did not lead to any write offs. For the accounting treatment of impairments,reference is made to note 1.16.

NOTE 6.

EURAgricultural land & related Concessions 3.623Buildings 30.784 Plant & machinery 60.664

95.071

Included in the above line items are right-of-use assets over the following:

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Asummaryofthemovementsofintangiblefixedassetsisgivenbelow:

NOTE 7. INTANGIBLE FIXED ASSETS

Offtake contracts

The offtake contracts as per 31 December 2019 relate to contracts obtained through past acquisitions (referred to as contract based intangible assets before 2019). Since adoption of IFRS 15 “Revenue from Contracts with Customers” the portfolio of Offtakes correlates to the contract-base assets of the group. The Group writes off the portfolio at the same value the Groupbuildsupcontract-baseasset,as thecontract-based asset is derived from the commission on offtakes over the lifetime of the offtake until the offtake matures. TheportfolioincludesOfftakecontractsinSouthAfrica,Indonesia and Australia.

The production related to these contracts has started or is expected to commence within one to four years. The contracts are expected to produce over a period between 10 and 16 years. Any potential impairment is assessed by calculating the net present values of the supply that will be provided over the contract-term using long term price forecast for the metals provided by third parties. As the contracts relates to operations thatare indevelopment, thediscount ratesaresetatsimilar levels for project development applicable to the regions on which the operations are located.

EUR 1.000 Concessions Offtake contracts

Goodwill Other intangible assets

Total

Gross carrying amount1 January 2019 - 14.608 53.100 2.625 70.333Acquisitions 705.983 - - 21.644 727.627Additions - - - 4.299 4.299Purchase price allocation adjustment - - 256.124 - 256.12431 December 2019 705.983 14.608 309.224 28.568 1.058.383

Accumulated amortization and impairments1 January 2019 - 527 8.151 1.984 10.662Acquisitions 193.895 - - 776 194.671Amortization 12.462 1.577 - 5.354 19.39331 December 2019 206.357 2.104 8.151 8.114 224.726

Net book value at 31 December 2019 499.625 12.504 301.073 20.454 833.656

EUR

Concessions 161.614

EUR 1.000 Offtake contracts Goodwill Other intangible assets

Total

Gross carrying amount1 January 2018 16.646 42.596 2.345 61.587 Additions - 10.504 354 10.858 Disposals / Write-Off's -1.828 - -74 -1.902 Exchange rate differences -210 - - -210 31 December 2018 14.608 53.100 2.625 70.333

Accumulated amortization and impairments1 January 2018 - 8.151 1.000 9.151 Amortization 527 - 984 1.511 31 December 2018 527 8.151 1.984 10.662

Net book value at 31 December 2018 14.081 44.949 641 59.671

Concessions

Concessions in intangible assets contain terminal operationrights,thatrepresentcontractualentitlementsto operate certain terminals of ports recognized as part of previous business combinations. Furthermore thereare concessions,whichcontainoperation rightstooperateairportsandterminals, thatare recognizedatcostofacquisitions. Theseconcessionsarelocatedamongst others in the following states: Finland,Germany,Spain,China,Belgium,Italy. For concessions relating to IFRS 16 adoption reference is made to note 16.

The rights are amortised on a straight-line basis over the estimated economic life of the concessions of 0-39 years.

Goodwill

The increase in Goodwill in 2019 with an amount of EUR252,6million results from the acquisition of themajority stake in Euroports Group through its subsidiary R-LogitechS.A.M.ThereportedGoodwillresultsfromthe difference between the consideration and the equity of 100% of the shares in Euroports Group as of 1June2019,referenceismadetoNote17.

Goodwill is related to the investments in the production activities (2019: EUR 24.024 thousand; 2018: EUR 24.024 thousand) and the trading activities (2019: EUR 1.814 thousand; 2018: EUR 1.814 thousand).

The recoverable amount of each cash-generating unit, used in the annual impairment tests performedin the fourth quarter, is based on its value in use.Key assumptions used in the impairment tests for the cash-generated units were sales growth rates,operating result and the rates used for discounting the projectedcashflows.Thesecashflowprojectionsweredetermined using management’s internal forecasts that coveraperiodof5years,basedonthefinancialplansas approved by the Company’s management.

Impairment

The recoverable amount of each cash-generating unit, used in the annual impairment tests performedin the fourth quarter, is based on its value in use.Key assumptions used in the impairment tests for the cash-generated units were sales growth rates,operating result and the rates used for discounting the projectedcashflows.Thesecashflowprojectionsweredetermined using management’s internal

forecaststhatcoveraperiodofmultipleyears,basedonthefinancialplans.Theannualimpairmenttestdidnotlead to any impairments of goodwill. The present value of estimated cash flows has been calculated using apre-tax discount rate that reflects the currentmarketassessmentofthetimevalueofmoneyandthespecificrisks of the cash-generating unit.

NOTE 7.

NOTE 8. FINANCIAL FIXED ASSETS

EUR 1.000 Deferred tax assets

Associated companies

Other receivables

Total

Book ValueBalance at 1 January 2018 - 9.102 9.102 Additions - 2.082 2.360 4.442

Balance at 31 December 2018 - 11.184 2.360 13.544

Book ValueBalance at 1 January 2019 - 11.184 2.360 13.544Additions 21.245 2.050 5.802 29.097

Balance at 31 December 2019 21.245 13.234 8.162 42.641

Included in the above line items are right-of-use assets over the following:

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NOTE 9. INVENTORIES

The “Associated companies” mainly consist of investments in port operations in the Philippines, aninvestment in a precious metals project in Australia,as well as the shares and participations in the deconsolidated subsidiaries.

Additions in 2019 relate to the acquisition of Euroports Group as per June 2019. For further description see note 15.

The “Other receivables” are mainly related to deposits that have been provided to service providers for utilities of port operation facilities and includes loans given to variouscompaniestofinancethestart-upofproductionfacilities for which we will receive potential off-takes in return.

All these loans are secured by underlying assets of those companies.

Manufacturing

The manufacturing inventories consist of finishedproductsandrawmaterialsandconsumablesofBAGR,CRI,StockachandNikolaïdis.Thefinishedproductsarealready sold and in the course of delivery to the client.

Logistics

The consumables consists of items of normal logistic operations,e.g.,gasfortrucks.

Trading

The trading inventories are commodities that are alreadysoldby,butstillheldbytheTradingcompaniesas the Company still retains the principal risks and rewards of ownership. These inventories are pledged asasecurityfortradefinancefacilities.

Agricultural

The raw materials and consumables are the acquired input resources for the new harvests in the various companies. The finished goods are mainly related tothe vanilla operation in Madagascar. All material is pre-sold,whichimpliesthattheCompanydoesnotrunanyprice risk.

This stock is valued at fair value by using the sales prices minus costs to sell and costs to process further.

No impairment has been recorded for the inventories during the year.

ImpairmentsNo impairment has been recorded for the inventories during the year.

EUR 1.000 31/12/2019 31/12/2018

ManufacturingRaw materials and consumables 6.263 10.320 Finished products 5.274 10.603

LogisticsConsumables 6.092 3.762

TradingFinished products 25.738 17.063

AgricultureRaw materials and consumables 4.122 1.442 Work in process 271 377 Finished products 3.597 2.506 Total inventories 51.356 46.073

NOTE 8. NOTE 10. RECEIVABLES, PREPAYMENTS AND ACCRUED INCOME

Regarding the trade receivables the Group applies a simplifiedapproachtomeasurethelossallowancefortradereceivablesclassifiedasamortisedcostusingthelifetime expected loss provision. The expected credit loss on trade receivables is estimated using a provision

matrix by reference to past default experience and credit rating,adjustedasappropriate for currentobservabledata.ThefollowingtabledetailstheriskprofileoftradereceivablesbasedontheGroups´sprovisionmatrix:

EUR 1.000 31/12/2019 31/12/2018

Trade receivables 229.726 220.834 Shareholder - - Associated companies - 3.313 Related parties - - Trade receivables (Factoring) 15.145 24.340 Contract-based assets 13.922 12.345 Other receivables 61.945 29.833 Taxation 11.810 1.753

Total receivables, prepayments and accrued income 332.548 292.417

EUR 1.000 expected default rate

Gross carrying amount Credit Loss allowance

Current 0,66% 165.834 1.095

1-30 days past due 0,68% 42.577 28931-60 days past due 1,21% 10.474 12761-90 days past due 1,57% 2.799 44more than 90 days past due 2,08% 9.802 204

231.485 1.759

The provision for doubtful receivables as at 31 December 2019 amounts to a total of EUR 1.910 thousand (2018: 2.571). The difference between the Credit loss allowance as per 31 December 2018 and 31 December 2019 amounts to EUR 846 thousand and is recognized as other expenses.

Part of the trade receivables are pledged as collateral for trade financed loans. The credit risk of the Tradereceivablesisinsuredatrenownedinsurancefirmsandall related due trade receivables were collected in the firstquarterof2020.

Trade receivables (Factoring) are valued at fair value through profit and loss and show the value as per31 December 2019. They correspond with the trade payables(Factoring),seenote14.

The contract based assets correspond to the Offtake contracts as described in note 7.

The position Trade receivables, prepayment andaccrued income as per 31 December 2018 included an IAS8 change of a reclassification. The IAS8 changeis related to a reclassification between Receivables,prepayment and accrued income and property, plantand equipment for the year ended 2018. For further information reference is made to Note 1.4 and Note 6.

WithinotherreceivablesanamountofEUR3,1 million is included concerning products already delivered and to be invoiced to a customer. FurthermoreVATrefundclaims are an important part of the other receivables.

Prepayments and accrued income include prepayments for material purchased and down payments received from customers. The increase in prepayment is mainly related to trading activities based on cut-off at year-end. This cut-off is depending on the incoterms and refers to where the goods in transit are at the moment of 31.12.2019 and will ultimately translate in to trade receivables. The remainder is prepayment to suppliers concerning investments intoBAGR,AluStockach,CRISpain and other Group companies.

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NOTE 12. CASH AND CASH EQUIVALENTS

NOTE 13. SHARE CAPITAL AND RESERVES

The movement in Equity is provided in E. Consolidated statement of changes in equity.

Isued Share Capital

The share capital amounts to EUR 30 million divided into 30 million ordinary shares with a nominal value of EUR 1,00 each, owned 100% by Cycorp FirstInvestmentLtd.

Share Premium

ThesharepremiumamountstoEUR20,1millionandrepresents a capital contribution of the shareholder.

Other reserves

Within other reserves an amount of EUR 25 million is designated as a capital reserve to the company and at later stage the Company will transform the provided funds into share premium.

The translation reserve comprises of all foreign exchange differences arising from the translation of the financial statements of foreign operations aswell as from the translation of intercompany loans of permanent nature.

Translation Reserve

Revaluation Reserve

This reserve is related to the result that applies to the revaluations of assets is non-distributional and allocated to the revaluation reserve.

NOTE 11. SECURITIES

Thesesecuritiesareheld,mainlytosecureOfftakecontractsandarevaluedatmarketvalue.

EUR 1.000 01/01/2018 Acquisition Disposal Revaluation 31/12/2018

Unlisted securities 630 - - -533 97 Listedsecurities - - - - -

Total 630 - - -533 97

EUR 1.000 01/01/2019 Acquisition Disposal Revaluation 31/12/2019

Unlisted securities 97 - - -97 -Listedsecurities - - - - -

Total 97 - - -97 -

NOTE 14. LIABILITIES

EUR 1.000 31/12/2019 31/12/2018

Long-termliabilitiesBank loans (> 1 year) 540.332 - Bonds 399.163 235.654 IFRS16LeasingLiability 215.460 2.006 OtherLong-termLiabilities 6.915 17.316

1.161.870 254.976

Current liabilities and accrualsBank loans (< 1 year) 102.887 73.814 Short term portion of bonds - 13.425 ShorttermportionofIFRS16LeasingLiability 29.989 - Trade payables 100.377 104.669 Trade payables (Factoring) 15.145 24.340 Related parties payable 17.100 1.905Taxes and social security charges payable 6.782 861Other current liabilities 92.099 2.461Accrued liabilities and deferred income 73.105 5.645

437.486 227.122

Long-termborrowings

Short-term borrowings

Leaseliabilities

Total

1 January 2018 124.726 214.924 1.594 341.244Cash-flows -Repayment - -36.315 - -36.315 -Proceeds 128.244 57.829 412 186.485Non-cash -Foreign exchange movements - - - - -Addition to right-of use asset in exchange for increased lease liabilities

- - - -

-Movement in accruals - -9.316 - -9.31631 December 2018 252.970 227.122 2.006 482.098

Long-termborrowings

Short-term borrowings

Leaseliabilities

Total

1 January 2019 252.990 227.122 2.006 482.098Adoption of IFRS 16 - - 8.446 8.446Revised 1 January 2019 252.970 227.122 10.452 490.544Cash-flows -Repayment - -26.912 -20.650 -47.562 -Proceeds 693.440 139.828 255.566 1.088.834Non-cash -Foreign exchange movements - - 81 81 -Addition to right-of-use asset in exchange for increased lease liabilities

- - - -

-Movements in accruals - 67.459 - 67.45931 December 2019 946.410 407.497 245.449 1.599.356

EUR 7,4 million of the Cash and Cash Equivalents is restricted as this cash is mainly deposited at multiple renowned trade finance banks and serve as cash collateral for trade finance transactions at 31 December 2019. Trade finance has a self-liquidating character, which means that the cash becomes unrestricted upon completion of the trade finance transaction.

The position includes subsidiaries and joint ventures.

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TheLongtermliabilitiesarethosebankloansandleaseobligations which are due in more than 1 year. For maturity reference is made to note 16.

Bonds represent the several Bond issued by the Group ;

The Metalcorp 2017-2022 bonds which were launched in 2017 on the Norway Exchange (EUR 70 million) and the Frankfurt Exchange (EUR 120 million). The term ofbothbondsis5yearswithaninterestof7,00%perannum. The Fair value of the bonds amount to EUR 179,55millionat31December2019.

The Agricorp bond was launched in 2016 on the Frankfurt Exchange. The term is 5 years (maturity on 17 June 2021) with an interest of 8% per annum. The Fair value of the bonds amount to EUR 16.051 thousand at 31 December 2019.

The R-Logitech 2018 – 2023 bond which werelaunched in 2018 on the Frankfurt Exchange (EUR 125 million) is included. The term of the bond is 5 years with aninterestof8,50%perannum.TheFairvalueofthebondamountstoEUR117,79 million at 31 December 2018.

The MRG Finance UK plc 2018 / 2023 bond which werelaunchedin2018ontheLondonExchange(EUR50 million) is included. The term of the bond is 5 years withaninterestof8,75%perannum.TheFairvalueofthe bond amounts to EUR 45 million at 31 December 2019.

WithregardstoLongtermleasing,referenceismadeto Note 15.

Other long-term liabilities represent various long term bank loans.

Long Term Liabilities

NOTE 14.

EUR 1.000 Amount Amount2019 2018

Trade finance 75.196 49.637

Working capital facilitiesMetals: Euribor + markup 3% - 7% 7.088 10.993 Metals7,9%-9,3%variable 7.144 5.403 Logistics:7,5%-9%fixed 4.500 6.291 others: Euribor + markup 3% - 7% 8.959 1.491 Total bank loans and other financing 102.887 73.815

Allliabilitiesdueinlessthanayearplusbankcreditrelatedtotradefinanceareclassifiedascurrentliability.Inventoryand debtors have been pledged as collateral. The following rates with respective amounts apply to the bank loans:

Current Liabilities and Accruals

Theprovisionscompriseofemploymentbenefitrelatedmatters as well as legal matters that have resulted from the acquisition of the former Necotrans companies. No legal provision exceeds EUR 200 thousand except for a provision related to a dispute that dates back to the year 2000. In 2000 the former Necotrans company also deployed trading activities and did not deliver properly

under one of the contracts. The claim has been fully provided for. No trading activities are deployed by any former Necotrans company. In the specialized trading companies of the group risk mitigating measures are covered either through the back-to-back principle or the coverage by an adequate insurance.

NOTE 15. PROVISIONS

NOTE 16. LEASING

TheGrouphas leases forportoperationconcessions,land, warehouses and related facilities, offices, plantandmachinery,someITequipmentandsomevehicles.With the exception of short- term leases and leases of low-valueunderlyingassets,eachleaseisreflectedonthe balance sheet as a right-of-use asset and a lease liability. Leases of the Group do not contain variablelease payments.

The Group classifies its right-of-use assets in aconsistentmannertoitsproperty,plantandequipment(see Note 6), with the exemption of leases for portoperation concessions which are classified separatewithin intangible assets .

Concessions, warehouses and related facilities havegenerally a long lease term of 15+ years.

Leases of vehicles and IT equipment are generallylimited to a lease term of 2 to 5 years.

Leasesofpropertygenerallyhavealeasetermof2to5 years.

LeasepaymentsoftheGrouparegenerallyfixed.

Eachleasegenerallyhasrestrictionsthat,unlessthereis a contractual right for the Group to sub-rent the asset to another party, the right-of-use asset can only beusedby theGroup.Leasesareeithernon-cancellableor may only be cancelled by incurring a substantive termination fee.

Some leases contain an option to purchase the underlyingassetattheendofthelease,ortoex-tendthe lease for a further term. The Group is prohibited from selling or pledging the underlying leased assets assecurity.For leasesoverofficeandotherbuildingsthe Group must keep those properties in a good state of repair and return the properties in their original conditionattheendofthelease.Further,theGrouphasto insure itemsofproperty,plantandequipmentandincur maintenance fees on such items in accordance with the lease contracts.

The table below describes the nature of the Group’s leasing activities by type of right-of-use asset recognised on balance sheet:

Right-of-use asset No. of right of use assets leased

Range of remaining term

Average remaining term

No. of leases with extension options

No. of leases with options to purchase

No. of leases with termination options

Concessions (intangible) 136 39 Years 15 Years 134 0 121

Concessions (tangible) 4 47 Years 47 Years 4 0 0

Buildings,warehousesand related facilities 39 40 Years 18 Years 34 2 34

Plant and machinery 470 3-10 Years 7 Years 62 166 46Tradepayables(Factoring)arevaluedatfairvaluethroughprofitandlossandshowthevalueasper31December2019.Theycorrespondwiththetradereceivables(Factoring),seenote10.

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NOTE 16.

Right-of-use assets

Additional information on the right-of-use assets by class of assets is as follows:

EUR Carrying Amount Additions Depreciation Disposal

Concessions (intangible) 170.518 3.308 12.212 -

Concessions (tangible) 3.700 - 77 -

Buildings,warehousesandrelatedfacilities 30.787 7.144 7.276 -

Plant and machinery 50.764 20.750 14.216 6.911

The right-of-use assets are included in the same line item as where the corresponding underlying assets would be presented if they were owned.

Lease liabilities

Leaseliabilitiesarepresentedinthestatementoffinancialpositionasfollows:

31/12/2019 31/12/2018

Current 29.989 -

Non-current 215.460 10.452

TheGrouphasnopossiblefutureleaseterminationoptions,thereforeadditionalinformationontheleaseliabilitiesand amounts in respect of possible future lease termination options not recognised are given.

At 31 December 2019 the Group had not committed to leases which had not commenced.The lease liabilities are secured by the related underlying assets. The undiscounted maturity analysis of lease liabilities at 31 December 2019 is as follows:

NOTE 16.

Minimum lease payment due

Within 1 year 1-5 years Over 5 years Total

31.12.2019

Leasepayments 40.958 102.043 195.622 338.623

Finance charges 8.260 25.269 59.720 93.249

Net present value 32.953 76.716 135.780 245.449

31.12.2018

Leasepayments 1.079 4.031 15.122 20.232

Finance charges 125 312 9.344 9.781

Net present value 1054 3.803 5.595 10.452

Lease payments not recognised as a liability

The group has elected not to recognise a lease liability for short term leases (leases of expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. Inaddition,certainvariableleasepaymentsarenotpermittedtoberecognisedasleaseliabilitiesandareexpensedas incurred.

The expense relating to payments not included in the measurement of the lease liability is as follows:

EUR

Variablecosts 1.124.108

Short-term leases 7.153.401

Leasesoflowvalueassets 249.663

Lease payments not recognised as a liability 8.527.172

At 31 December 2019 the Group was committed to short term leases and the total commitment at that date was EUR 1.384.

Additionalprofitorlossandcashflowinformation

TotalcashoutflowinrespectofleasesintheyearEUR 23.673.541

Forinterestexpenseinrelationtoleasingliabilities,leasinginterestamounttoEUR5.669thousand.

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NOTE 17. ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES

2019 Acquisitions

In2019,themostsignificanttransactionwasthatMonacoResourcesacquireda53,35%interestinEuroportandotherbusinesses.Duetothegeneralproximityoftransactionstothereportingdate,thefairvaluesareprovisionalandexpectedtobefinalisedwithin12monthsoftheacquisition.Itisexpectedthatadjustmentscouldbemadetotheallocationofvaluebetweenacquiredcurrentandnon-currentassets,deferredtaxesandprovisions.

The consideration of acquisition of subsidiaries and the provisional fair value of assets acquired and liabilities assumed on the acquisition date are detailed below:

EUR 1.000 Euroports

Non-current assets 773,2

Current assets 170,5

Non-controlling interest 22

Non-current liabilities 718,6

Current liabilities 159,2

Total fair value of net assets acquired 43,9

Net consideration 296,5

Goodwill 252,6

Euroports

EffectiveinJune2019R-LogitechacquiredamajoritystakeinEuroportsHoldinginFebruary2019,whichcontributesignificantlytothegrowthoftheGroup.ThegroupisrequiredtoaccountforEuroportsusingthefullconsolidationmethod in accordance with IFRS 10.

2019 Disposals

Monaco Resources Group only disposed businesses which are individually and aggregated not material in 2019.

NOTE 18. FINANCIAL INSTRUMENTS

Fair Value Measurements

2019EUR 1.000

note FVTPL amortised cost

total

Financialfixedassets(otherreceivables) - - 42.641 42.641Trade receivables 9 - 229.726 229.726Trade receivables (Factoring) 15.145 - 15.145Otherreceivables,prepaymentsandaccruedincome 9 - 73.755 73.755Cash and cash equivalents 10 - 151.365 151.365

Total financial assets 15.145 497.487 512.632

Borrowings (> 1 year) 12 - 1.161.870 1.161.870Trade payables - 100.377 100.377Trade payables (Factoring) 15.145 - 15.145Tradefinance - 75.196 75.196Current liabilities and accruals 12 - 246.768 246.768

Total financial liabilities 15.145 1.584.211 1.599.356

ThetablebelowprovidesanoverviewofthefinancialinstrumentsoftheGroupdividedintotheclassesamortisedcostand fairvalue throughprofitand loss (“FVTPL”).Financial instrumentsof theclass fairvalue throughothercomprehensiveincome(“FVTOCI”)arenotapplicable.

Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs where available and are presentedtoreflecttheexpectedgrossfuturecashin/outflows. Monaco Resources Group S.A.M. classifiesthefairvaluesof itsfinancial instruments intoathreelevel hierarchy based on the degree of the source and observability of the inputs that are used to derive the fairvalueofthefinancialassetorliabilityasfollows:Level 1 - Inputs are quoted prices (unadjusted) in

active markets for identical assets or liabilities that Monaco Resources Group S.A.M. can assess at the measurement date; orLevel2 - Inputsother thanquoted inputs included inLevel1thatareobservablefortheassetsorliabilities,either directly or indirectly; orLevel 3 - Unobservable inputs for the assets orliabilities,requiringMonacoResourcesGroupS.A.Mtomake market based assumptions.

2018EUR 1.000

note FVTPL amortised cost

total

Financialfixedassets(otherreceivables) 8 - 2.360 2.360 Trade receivables 10 - 207.752 207.752 Trade receivables (Factoring) 10 24.340 - 24.340 Securities 11 97 - 97 Otherreceivables,prepaymentsandaccruedincome 10 - 59.665 59.665 Cash and cash equivalents 11 - 75.609 75.609

Total financial assets 24.437 345.386 369.823

Borrowings (> 1 year) 12 - 254.976 254.976 Trade payables 12 - 129.009 129.009 Trade payables (Factoring) 12 24.340 - 24.340 Tradefinance 12 - 49.637 49.637 Current liabilities and accruals 12 375 48.101 48.476

Total financial liabilities 24.715 481.722 506.437

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NOTE 18.

The table below provides a summary :

2019EUR 1.000

Financialfixedassets(otherreceivables)Trade receivablesTrade receivables (Factoring)Receivables,prepaymentsandaccruedincomeSecuritiesCash and cash equivalents

Total financial assets

Borrowings (> 1 year)Trade payablesTrade payables (Factoring)TradefinanceCurrent liabilities and accruals

Total financial liabilities

Level1 Level2 Level3 Total

- - - -- - - -

15.145 - - 15.145- - - -- - - -- - - -

15.145 - - 15.145

- - - -- - - -

15.145 - - 15.145- - - -- - - -

15.145 - - 15.145

During the year no amounts were transferred between Level1,Level2andLevel3ofthefairvaluehierarchy.

As at 31 December 2019 no financial assets andliabilities were subject to offsetting.

The level 3 securities are mainly related to unlisted shares. In circumstances where Monaco Resources Group S.A.M. cannot verify fair value with observable marketinputs(Level3fairvalues),itispossiblethatadifferent valuation model could produce a materially different estimate of fair value.

2018EUR 1.000

Financialfixedassets(otherreceivables)Trade receivablesTrade receivables (Factoring)Receivables,prepaymentsandaccruedincomeSecuritiesCash and cash equivalents

Total financial assets

Borrowings (> 1 year)Trade payablesTrade payables (Factoring)TradefinanceCurrent liabilities and accruals

Total financial liabilities

Level1 Level2 Level3 Total

- - - -

19.377 - - 19.377- - - -

- - 630 630 - - - -

19.377 - 630 20.007

- - - -

19.377 - - 19.377 - - - -

19.377 - - 19.377

NOTE 18.

Financial and Capital Risk Management

The Group has exposure to the following risks arisingfromfinancialinstruments:

Credit risk Liquidity risk Market risk

This note presents information about the Group’s exposure to each of the above risks, the Group’sobjectives, policies and processes for measuring andmanagingrisk,andtheGroup’smanagementofcapital.

Credit risk

CreditriskistheriskoffinanciallosstotheGroupifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfrom the Group’s receivables from customers and loans related to raw materials:

• Thefinancialfixedassetsaresecuredbyunderlyingassets of those companies. Reference is made to note 8.

• The receivables, prepayments and accrued incomemainly consists of trade receivables which is secured by adequate credit insurance.

The Group’s exposure to credit risk is influencedmainly by the individual characteristics of each customer. However, management also considers thedemographicsoftheGroup’scustomerbase,includingthe default risk of the industry and country in which customers operate, as these factors may have aninfluenceoncreditrisk.During2019and2018noneofthe Group’s revenue attributable to sales transactions with a single multinational customer exceeded 10% of the total revenue.

The Group has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’s payment and delivery terms and conditions are offered. This is done in close cooperation with the Trade Finance banks and Credit insurancecompanies.Nevertheless, inprincipleinsurance coverage is obtained for all trade receivables.

FurthermoretheGroupappliesasimplifiedapproachtomeasure the loss allowance for trade receivables using the lifetime expected loss provision (reference is made to note 1.4 regarding the new IFRS 9 and note 10).

Liquidity risk

Liquidity risk is the risk that theGroupwillencounterdifficulties inmeeting the obligations associatedwithits financial liabilities that are settled by deliveringcashoranotherfinancialasset.TheGroup’sapproachtomanaging liquidity is to ensure, as far as possible,

that itwill alwayshave sufficient liquidity tomeet itsliabilitieswhen due, under both normal and stressedconditions, without incurring unacceptable losses orrisking damage to the Group’s reputation. With regards toitshedgingactivities,thatprimarilytakeplaceinthe trading activities, the Company implemented apolicy that hedging is only allowed under a tri-partite agreement in order to avoid margin calls.

Market risk

Market risk is the risk that results out of changes in marketprices,suchasforeignexchangerates,interestrates,marketpricesandequitypricesandwillaffecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments. The objective of market risk management is to manage and control market risk exposures within acceptableparameters,whileoptimizingthereturn.The Group buys and sells derivatives in order to manage market risks. All such transactions are carried out within the guidelines set by the Group. In principle allderivativesareaccountedatFVTPL;ifrequiredandappropriate,theGroupseekstoapplyhedgeaccountinginordertomanagevolatilityinprofitorloss.

Currency risk

The Production facilities mainly enter in to euro agreements and therefore, the currency risk isinsignificant.The Trading activities are mainly exposed to the USD/ EURexchangerate,asthetradesarepredominantlyinUSD and the reporting currency is in EUR.However,the currency risk is limited as contract deals are denominated in USD for both purchases and sales. Purchases are financed bymeans of trade finance inUSDaswell.Asthepurchase,saleandfinancingareallinUSD,andastradingoccursinprincipleonaback-to-backbasis,thedealsarenaturallyhedged.

Interest rates

Tolimittheinterestraterisk,theCompanydecidedtoonlygiveoutandobtainloanswithafixedinterestrate.For overdraft facilities the risk is limited due to the short term of these facilities.

Market price risk

The production facilities mainly produce on the basis of tolling agreements. In these agreements the purchase of material is related to the sale and the price risk is mitigated.

TheGroupmainlyentersintoback-to-backdeals,whichmeans that the market price risk is naturally hedged. In casethatatradeissubjecttopricerisk,thisishedgedthrough adequate instruments. When instruments are required, theCompanypreparesa sensitivityanalysiswith regards to the impact of the changes in commodity price and (if applicable) the changes

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NOTE 19. REMUNERATION OF KEY MANAGEMENT

NOTE 18.

The remuneration of key management is as follows:

EUR 1.000 2019 2018

short-termemployeebenefits 3.000 2.201

Total 3.000 2.201

Equity price risk

The Company invested into listed and unlisted shares of junior mining companies to secure its (future) off-take contracts. These securities are presented in Note 11 Securities. The Company is closely involved in these

mining companies and monitors the progress on an on-goingbasis.Managementisoftheopinionthat,bynature, the market index of junior mining companiesincreases when production starts.

The total loss in the consolidated statement of income amounts to EUR 78 thousand (2018: EUR 478 thousand).Allderivativesmaturewithinthefirstthree

months of 2020. The Company had instruments for a total of EUR 243 thousand at 31 December 2019 (2018: EUR 375 thousand).

2019 EUR 1.000

Futures 243

Total Current liabilities FVTPL 243

in foreign currency risks. Based on this analysis an adequate non speculative hedging strategy is applied.

At 31 December 2019, the Company has a limitednumberofhedging instruments,whicharepresentedunder Current liabilities and accruals. These instruments are designated as FVTPL and include trade relatedfinancial and physical forward purchase and salecommitments. Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs where available and

arepresentedtoreflecttheexpectedgrossfuturecashin/outflows.

It is the Group’s policy that transactions and activities in traderelatedfinancial instrumentsarenetted.Notethat the Company only purchases futures and options. In principle the Company does not write futures and options.

NOTE 20. TRANSACTIONS WITH RELATED PARTIES

In2019,theCompanyconductedvarioustransactionswithrelatedparties.

NOTE 22. CONTINGENT ASSETS AND LIABILITIES

NOTE 21. GUARANTEES

In thecourseofbusiness, thecompany is involved indiscussions with business partners from time to time. These discussions may include the interpretation and compliance with the terms and conditions of agreements and may also include claims made by the

company, as well as against the company. At yearend,noclaimsagainstthecompanyexisted- ifany-thatwereassessedtobeprobable,norpossibletobesuccessful.

The Company has provided several corporate guarantees to subsidiaries and related parties and inprinciple theseare all related to tradefinance.Thepossibility of any cash outflowwith regards to these

guaranteesisremote.Furthermore,MonacoResourcesGroup is the guarantor for the Bond issued by MRG Finance UK plc in 2018.

Those loans are provided at market conditions.

NOTE 23. AUDITOR'S REMUNERATION

EUR 1.000 2019 2018

Auditofthefinancialstatements 105 107 Other Audit engagements 1.547 630

Total professional service fees 1.652 737

EUR 1.000 Note 2019 2018

Associated companies - 3.313

Total Receivables - 3.313

Shareholder >1yr 13 17.100 - Related parties <1yr 12 - 1.905

TotalLiabilities 17.100 1.905

Net receivable (- liability) -17.100 1.408

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NOTE 24. LIST OF PRINCIPAL OPERATING, FINANCIAL AND INDUSTRIAL SUBSIDIARIES AND INVESTMENTS

Name Country of incorporation Ownership interest

2019 2018

MONACO RESOURCES GROUP S.A.M.

Consolidated (direct)Agricorp S.A.M. Monaco 100,00% 100,00%BC Bluecorp Energy Group Ltd. Cyprus 100,00% 95,00%EP FundCo S.A. Luxembourg 53,36% 0,00%Lunala Investments S.A. Luxembourg 100,00% 100,00%M2i S.A.M. Monaco 100,00% 100,00%MRG Finance S.A.R.L. Luxembourg 100,00% 100,00%MRG Finance UK Plc United Kingdom 100,00% 100,00%Resources Management Services GmbH Switzerland 100,00% 100,00%R-Logitech S.A.M. Monaco 100,00% 100,00%

Consolidated (indirect)

Metals & MineralsA&A Metals S.A. Switzerland 0,0% 100,0%BAGR Berliner Aluminiumwerk GmbH Germany 94,0% 94,0%BAGR Non-Ferrous Group GmbH Germany 100,0% 100,0%C.S. Tetrano Ltd. Cyprus 100,0% 0,0%Cable Recycling Industries S.L. Spain 94,0% 94,0%IMP Invest S.A. Luxembourg 100,0% 0,0%MCG SRR B.V. Netherlands 100,0% 100,0%Metalcorp Group S.A. Luxembourg 100,0% 100,0%Metalcorp Services UK Ltd. United Kingdom 100,0% 100,0%NB Investments B.V. The Netherlands 100,0% 100,0%Nikolaidis Th. Bros. S.A. Greece 70,0% 70,0%Norwich SARL Luxembourg 100,0% 100,0%Orlyplein Investment B.V. Netherlands 100,0% 100,0%Riviera Marine S.A.M. Monaco 29,6% 0,0%SBG Bauxite and Alumina N.V. Netherlands 94,0% 94,0%Société des Bauxites de Guinée SARL Republic of Guinea 73,1% 73,1%Steel and Commodities Iberica S.L. Spain 100,0% 100,0%Steel and Commodities S.A.M Monaco 100,0% 100,0%Steelcom Austria GmbH Austria 100,0% 100,0%Steelcom Group S.A.R.L. Luxembourg 100,0% 100,0%Steelcom Steel and Commodities GmbH Germany 100,0% 100,0%Steelcom USA LLC USA 100,0% 100,0%Steelcorp Industries S.A.R.L. Luxembourg 100,0% 100,0%Stockach Aluminium GmbH Germany 94,0% 94,0%TCC Coke Ltd. United Kingdom 51,0% 0,0%Tennant Metals (Pty) Ltd. Australia 100,0% 100,0%Tennant Metals GmbH Germany 100,0% 100,0%Tennant Metals Group S.A.R.L. Luxembourg 100,0% 100,0%Tennant Metals S.A.M Monaco 100,0% 100,0%Tennant Metals South Africa (Pty) Ltd. South Africa 100,0% 100,0%Tennant Metals Trade B.V. Netherlands 100,0% 100,0%



2019 2018

Infrastructure & LogisticsAbidjan Port Gestion SAU Ivory Coast 100,00% 0,00%Absolit NV Belgium 42,69% 0,00%Albemarle Investments Limited United Kingdom 53,36% 0,00%Antwerp Port Shuttle N.V. Belgium 53,36% 0,00%Aragata Port Holding Company Limited Cyprus 53,36% 0,00%ATS (Handling) Congo 0,00% 50,00% Barging Solutions N.V. Belgium 53,36% 0,00%BPH International Forwarding (Shanghai) Corporation LTD China 53,36% 0,00%BPH Westerlund Holdings N.V. Belgium 53,36% 0,00%Changsu Westerlund Warehousing Co, Ltd. China 40,02% 0,00%CIBEN S.A.S. France 53,36% 0,00%Citraco SARL Togo 65,00% 64,40%Conquest Asia China 53,36% 0,00%Corex SARL Gabon 50,00% 50,00%EP BCo SA Luxembourg 53,36% 0,00%EP PaCo SA Luxembourg 53,36% 0,00%Eurofruitports N.V. Belgium 27,21% 0,00%Euroports Beteiligungsholdings GmbH Germany 53,36% 0,00%Euroports Asia Holdings Ltd. Signapore 53,36% 0,00%Euroports Belgium N.V. Belgium 53,36% 0,00%Euroports Benelux S.à r.l. Luxembourg 53,36% 0,00%Euroports Bulk Terminal Rostock GmbH Germany 53,36% 0,00%Euroports Containers 524 N.V. Belgium 50,91% 0,00%Euroports Düngemittel Dienstleitstung Rostock GmbH Germany 53,36% 0,00%Euroports Ferry Stevedoring Rostock GmbH Germany 53,36% 0,00%Euroports Finland Oy Finland 53,36% 0,00%Euroports France SAS France 53,36% 0,00%Euroports General Cargo Terminal GmbH Germany 53,36% 0,00%Euroports Germany Verwaltungs GmbH Germany 53,36% 0,00%Euroports Germany GmbH & Co. KG Germany 53,36% 0,00%Euroports Getreide Service Rostock GmbH Germany 53,36% 0,00%Euroports Group BV Belgium 53,36% 0,00%Euroports Holdings S.à.r.l. Luxembourg 53,36% 0,00%Euroports Iberica TPS SL Spain 53,36% 0,00%Euroports Inland Terminals S.A. Belgium 53,36% 0,00%Euroports investment (Changshu) Co. Ltd China 53,36% 0,00%Euroports Italy S.p.A. Italy 53,36% 0,00%Euroports Logijstik AS Turkey 27,21% 0,00%Euroports Logistics Oy Finland 53,36% 0,00%Euroports Papier – Lager- und Umschlaggesellschaft mbH Germany 53,36% 0,00%Euroports Pietarsaari Oy Ab Finland 53,36% 0,00%Euroports Port Acquisitions Luxembour S.à r.l. Luxembourg 53,36% 0,00%Euroports Rauma Oy Finland 53,36% 0,00%Euroports SHRU Holdings S.à r.l. Luxembourg 53,36% 0,00%Euroports Storage Antwerp N.V. Belgium 53,36% 0,00%Euroports Terminals Antwerp N.V. Belgium 53,36% 0,00%

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2019 2018

Infrastructure & LogisticsEuroports Terminals Gent N.V. Belgium 53,36% 0,00%Euroports Terminals Leftbank N.V. Belgium 53,36% 0,00%Euroports Terminals Rostock GmbH Germany 53,36% 0,00%Euroports TPS Port Spain S.L., Sociedad Unipersona Spain 53,36% 0,00%Euroports Turkey B.V. Netherlands 27,21% 0,00%Fast Customs N.V. Belgium 53,36% 0,00%Fra-Fret Aerienne Cote d'Ivoire Ivory Coast 100,00% 0,00%Garafiri Konta Infrastructure SAU Guinea 50,00% 0,00%Gesamthafenbetriebsgesellschaft Rostock mbH Germany 53,36% 0,00%HPG SA Gabon 39,00% 39,00%IVK Manuport Logistics LLC United Arab Emirates 14,94% 0,00%KP Gestion Portuaire SA Guinea 100,00% 0,00%Liquid Solutions BVBA Belgium 53,36% 0,00%Logsys Bulgaria Bulgaria 53,36% 0,00%Manuport Logistics Asia Pte. Ltd. Signapore 32,02% 0,00%Manuport Logistics Chile SPA Chile 20,41% 0,00%Manuport Logistics do Brasil Ltda Brazil 40,02% 0,00%Manuport Logistics Engelbrecht S.A.S. France 53,36% 0,00%Manuport Logistics Germany GmbH Germany 40,02% 0,00%Manuport Logistics Malta (Holding) Limited Malta 53,36% 0,00%Manuport Logistics Malta Limited Malta 53,36% 0,00%Manuport Logistics Marseille S.A.S. France 53,36% 0,00%Manuport Logistics N.V. Belgium 53,36% 0,00%Manuport Logistics Netherlands BV Netherlands 53,36% 0,00%Manuport Logistics USA LLC USA 53,36% 0,00%Manuport Participações LTDA Brazil 39,49% 0,00%Manuport Road Transport Belgium N.V. Belgium 53,36% 0,00%Manuport Road Transport France SAS France 53,36% 0,00%Manuport Services N.V. Belgium 53,36% 0,00%Mauritanienne & Oceans SA Mauritanie 51,00% 0,00%NAT Shipping Bagging Services LTD United Kingdom 40,00% 30,00%Nectar (East Africa) LTD United Kingdom 40,00% 30,00%Nectar (West Africa) LTD United Kingdom 0,00% 30,00%Nectar (West Africa) Nigeria LTD Nigeria 40,00% 30,00%Nectar Ghana LTD Ghana 40,00% 30,00%Nectar Group LTD United Kingdom 40,00% 30,00%Nectar Holdings LTD United Kingdom 40,00% 30,00%Nectar Mozambique LTDA Mozambique 30,00% 22,50%Nectar Sénégal SARL Senegal 40,00% 30,00%Nectar Sierra Leone Bulk Terminal LTD Sierra Leone 32,00% 24,00%Oakguild LTD United Kingdom 40,00% 30,00%Oy Timberpark Ab Finland 40,24% 0,00%Polywest N.V. Belgium 53,36% 0,00%Promar Agencies N.V. Belgium 26,68% 0,00%Riviera Marine S.A.M. Monaco 0,00% 29,60%RL Holding SA Luxembourg 100,00% 0,00%R-Logistic Africa PVE LTD Mauritius 100,00% 100,00



2019 2018

Infrastructure & LogisticsR-Logistic Afrique SA Cote d'Ivoire 75,00% 75,00%R-Logistic Algerie EURL Algerie 100,00% 100,00%R-Logistic Benin SA Benin 99,80% 99,80%R-Logistic Burkina Faso SA Burkina Faso 70,00% 70,00%R-Logistic Cameroun SA Cameroun 60,00% 60,00%R-Logistic Congo SA Congo 100,00% 0,00%R-Logistic France S.A.S. France 100,00% 100,00%R-Logistic Group LTD Cyprus 100,00% 100,00%R-Logistic Guinée SA Guinea 100,00% 0,00%R-Logistic Mali SA Mali 75,00% 0,00%R-Logistic Niger SA Niger 100,00% 100,00%R-Logistic S.A.S. France 100,00% 100,00%R-Logistic Terminals PVE LTD Mauritius 100,00% 100,00%R-Logistic Togo SA Togo 99,00% 99,00%R-Logitech LTD United Kingdom 100,00% 100,00%R-Logitech SA Luxembourg 100,00% 100,00%Rostock Trimodal GmbH Germany 34,58% 0,00%Saint-Louis Port Gestion Senegal 100,00% 0,00%SALS AD Bulgaria 35,58% 0,00%Société de Gestion Fluviale SA Guinea 100,00% 0,00%Societe des Ports Fluviaux de Congo Congo 100,00% 0,00%Southern & Mediterranean Logistics S.A.M. Monaco 100,00% 100,00%Tank Transit Consulting SA Senegal 75,00% 0,00%Technipipe SAS France 0,00% 46,00%Technipipe Solutions SAS France 0,00% 50,00%Terminal Rinfuse Venezia S.P.A. Italy 53,36% 0,00%Thaumas N.V Belgium 53,36% 0,00%Westerlund Bulk Terminals N.V. Belgium 53,36% 0,00%Westerlund Group N.V. Belgium 53,36% 0,00%Zhuhai Galoan Euroports Terminals Co. Ltd. China 26,68% 0,00%

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AgribusinessAgri Fruits and Vegetables S.A. Luxembourg 100,0% 100,0%Agri Resources Group S.A. Luxembourg 100,0% 100,0%Agri Resources International S.A.R.L. Luxembourg 100,0% 100,0%Agri Resources Madagascar S.A. Madagascar 99,0% 99,0%Agri Vanilla and Spices Asia Pte. Ltd. Singapore 100,0% 100,0%Agricorp Invest S.A. Luxembourg 100,0% 100,0%Agro Resources Congo S.A. Republic of Congo 99,6% 80,0%Agro Resources Mauritius Ltd. Mauritius 80,0% 80,0%Agro Resources S.A.M. Monaco 100,0% 100,0%Agro Resources UK Ltd. United Kingdom 100,0% 100,0%Bonum D.O.O.E.L. Republic of North Macedonia 51,0% 51,0%Bonum M D.O.O.E.L. Republic of North Macedonia 51,0% 51,0%Ghana Agri S.A. Luxembourg 100,0% 100,0%Integrated Food S.A.R.L. Luxembourg 100,0% 98,0%Karma Produce International S.A.R.L. Luxembourg 51,0% 51,0%Karma Produce S.L. Spain 100,0% 100,0%Peltina O.O.D. Bulgaria 60,0% 51,0%Prang Agro Resources Ltd. Ghana 90,0% 90,0%PT Agri Resources Indonesia Indonesia 75,0% 75,0%Societe Agricole de Guinee S.A. Republic of Guinea 75,0% 75,0%

Name Country of incorporation Ownership interest2019 2018

EnergyEnergies du Sud S.A.M Monaco 100,0% 100,0%Gasoil Energy Group Ltd. Cyprus 100,0% 100,0%Gasoil Energy UK Ltd. United Kingdom 100,0% 100,0%Gasoil Integrated Gas Ltd. Cyprus 100,0% 100,0%Gasoil Integrated UK Ltd. United Kingdom 100,0% 100,0%

Finance & InvestmentsR-Cap Advisory (UK) Ltd. United Kingdom 100,0% 0,0%R-Cap Resources Capital S.A. Luxembourg 100,0% 100,0%R-Cap Resources GP S.A. Luxembourg 100,0% 100,0%R-Cap Trade Consulting Ltd. United Kingdom 100,0% 0,0%R-Cap Trade Finance Invest S.A. Luxembourg 100,0% 100,0%


Name Country of incorporation Ownership interest2019 2018

Non-consolidated (Associates)Beira Grain Terminal Mozambique 3,75% 2,81%Container Depot München GmbH Germany 38,00% 0,00%Container Depot München GmbH & Co. Service KG Germany 43,31% 0,00%Grosstanklager – Ölhafen Rostock GmbH Germany 50,00% 0,00%Ibarge N.V. Belgium 45,00% 0,00%Manuport Assessoria Aduaneira e Logistica LTDA Brazil 19,50% 0,00%R-Logistic Sénégal SA Senegal 75,00% 0,00%SEASIA Nectar Port Services INC Philippines 9,60% 12,00%Servei Mancomunat de Prevencio del Port de Tarrago Spain 13,95% 0,00%Sociedad de Estiba y Desestiba del Puerto de Tarra Spain 27,25% 0,00%Sucre Oceane SAS France 50,00% 50,00%Sugarlab 518 N.V. Belgium 50,00% 0,00%Rescap Investments Pty Ltd. Australia 19,00 % 19,00 %

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SIGNING OF THE FINANCIAL STATEMENTS

Monaco,April30th 2020

Pascale YounèsDirector

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MONACO RESOURCESOTHERINFORMATION

03INDEPENDENT AUDITOR’S REPORT

Reference is made to the independent auditor’s report on page 100.

SUBSEQUENT EVENTS

Theprofitearned inafinancialyear isat thedisposalof thegeneralmeeting.TheCompanymaypaydividendsonly insofar as its equity exceeds the paid-in and called-up capital plus the reserves the company is required by lawtomaintain.Dividendsarepaidafteradoptionoftheannualaccounts,iftheannualaccountsdemonstratethatdividendpaymentsarepermissible.Dividendsaredueandpayableimmediatelyaftertheyaredeclared,unlessthegeneralmeetingfixesanotherdateintherelevantresolution.Ashareholder’sclaimtoadividendwilllapsefiveyearsafter the dividend becomes due and payable. The general meeting may resolve to pay interim dividends and to pay dividends from a reserve that the Company is not required by law to maintain. The general meeting may resolve to pay dividends in kind. The shares held by the Company in its own capital are to be disregarded in the calculation of the amount of dividend to be paid on shares.

APPROPRIATION OF RESULTS

The Company-only annual report of 2018 was approved in the General Meeting of Shareholders. The General Meeting of Shareholders has determined that the appropriation of result in accordance with the proposal being made to add the result of 2018 to the other reserves.

APPROPRIATION OF RESULT FOR THE FINANCIAL YEAR 2018

OTHER INFORMATION

TheBoardofDirectorsproposestotransfertheresultoverthefinancialyear2019totheotherreserves.Thefinancialstatementsdonotyetreflectthisproposal.

PROPOSED APPROPRIATION OF RESULT FOR THE FINANCIAL YEAR 2019



The Group remains focused on the strategy to sustainably grow while operating in a responsible manner across all aspects of ourbusiness.Clearly in the shorter term, the impact to theGroup couldbenegativebut remainsuncertain. The Group is closely watching coronavirus developments and potential scenario impacts on global growth andmarketsandwhatadjustments,ifany,areappropriateforourbusinessplanning.

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MONACO RESOURCESINDEPENDENTAUDITOR'S REPORT

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OUR OPINION

WHAT WE HAVE AUDITED

THE BASIS FOR OUR OPINION

KEY AUDIT MATTERS

To: the General Meeting of Shareholders of Monaco Resources Group S.A.M.

InouropiniontheaccompanyingconsolidatedfinancialstatementsgiveatrueandfairviewofthefinancialpositionofMonacoResourcesGroupS.A.M.asat31December2019andof itsresultsandcashflowsfortheyearthenended in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS).

INDEPENDENT AUDITOR’S REPORT

Wehaveauditedtheaccompanyingfinancialstatementsfortheyearending2019ofMonaco Resources Group S.A.M. Monaco(‘theCompany’).ThefinancialstatementsincludetheconsolidatedfinancialstatementsofMonaco Resources Group S.A.M.anditssubsidiaries(together:‘theGroup’)andthecompanyfinancialstatements.

Theconsolidatedfinancialstatementscomprise:

• Consolidatedstatementofprofitorloss• Consolidated statement of other comprehensive income• Consolidatedstatementoffinancialposition• Consolidatedstatementofcashflows• Consolidated statement of changes in equity• Notestothefinancialstatements

Thefinancialreportingframeworkthathasbeenappliedinthepreparationoftheconsolidatedfinancialstatementsare International Financial Reporting Standards as adopted by the European Union.

Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceintheauditofthefinancialstatements.WehavecommunicatedthekeyauditmatterstothegeneralmeetingofMonaco Resources Group S.A.M.,butthesearenotacomprehensivereflectionofallmattersthatwereidentifiedbyourauditandthatwe discussed. We described the key audit matters and included a summary of the audit procedures we performed on those matters.

Thekeyauditmatterswereaddressed in thecontextofourauditof thefinancialstatementsasawhole,and informingouropinionthereon.Wedonotprovideaseparateopiniononthesemattersoronspecificelementsofthefinancialstatements.Anycommentswemakeontheresultsofourproceduresshouldbereadinthiscontext.

We conducted our audit in accordance with International Standards on Auditing. Our responsibility under those standards isfurtherdescribed inthesection ‘Ourresponsibilitiesfortheauditofthefinancialstatements’ofourreport.We are independent of Monaco Resources Group S.A.M. in accordance with the IFAC Code on independence requirements.Furthermore,wehavecompliedwiththe§§43,49,55WPO(GermanAuditor’sRegulations),§§2f,20ff(statueforGermanAuditors)and§319HGB(GermanCommercialCode).Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

ACQUISITIONS, DISPOSALS AND VALUATIONS

In2019,newacquisitionsandadisposalwerecompleted.Therewasan investigationon thevaluationof theseacquisitions and the disposal of 2019 following the requirements of IFRS 3 and the measurement period of business combinations as well as regarding the disposal the requirements of IFRS 10 and IFRS 12.

Our audit procedures related to determination ofwhether the transaction represented a business combination,andreasonablenessofthekeyinputsusedinthevaluationofassetsacquiredandliabilitiesassumed,includedthefollowing,amongothers:

• We tested the effectiveness of controls over management’s accounting assessment for the transaction and determinationof thekey inputsused in thevaluationofassetsacquired, includingfixedassets,and liabilitiesassumed.

• We evaluated the terms of the Agreement to determine whether the transaction qualified as a businesscombination.

• We performed a detailed analysis on the valuations and audited the validity and completeness of the stated positions.

• Furthermore,weassessedwhetherthedisclosuresweremadeinaccordancewithIAS7andIFRS3businesscombinations.

How the Key Audit Matter Was Addressed in the Audit

Key Audit Matter Description

IMPAIRMENT OF MINERAL RIGHTS, GOODWILL AND OTHER INTANGIBLE ASSETS

TheGrouphasdisclosedassetsassumedtobemineralrightsunderpropertyplantandequipment,Furthermorethegroupreportedintangibleassets.Thecorrespondinggoodwills,Offtakecontractsandmineralrightsaresubjecttothefutureperformancesofthecompanies,industries,commodityprices,projectsaswellasforeignexchangerates.

This requires management to closely monitor the carrying values.


Ourauditproceduresrelatedtotheimpairmentofmineralrights,goodwillandotherintangibleassetsincludedthefollowing,amongothers:

• Wereviewedmanagement'sassessmentoftheindicatorsofanyimpairmentandchallengedsignificantunderlyingassumptions.

• Weassessedtheappropriatenessofmanagement'srecoverablevaluemodels,whichincludedtheinherentmodelinputsandsignificantassumptions.

• Wechallengedthesignificantinputsandassumptionsusedinimpairmenttestingforintangibleassets.• Wealsoassessedtheadequacyandcompletenessofimpairmentrelateddisclosuresinthefinancialstatements,

including the key assumptions used as well as the sensitivity.• We performed procedures to assess the adequacy and completeness of the valuation of biological assets according

to IAS 41. In addition we performed audit procedures on the existence and presentation of the biological assets.


Fair Value of biological assets

Inthefinancialyear2019significantprogresswasmadeandthereforeitbecameapparentthattheGrouphastoaccount for their biological assets according to IAS 41.

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WewereappointedasauditorsofMonacoResourcesGroupS.A.M.onDecember16th,2019byengagementletterdatedonDecember16th,2019.

Wereportthatthedirectors’report,totheextentwecanassess,isconsistentwiththefinancialstatements.

OUR REPORT ON THE DIRECTORS’ REPORT & THE OTHER INFORMATION

OUR APPOINTMENT

RESPONSIBILITIES OF THE MANAGEMENT BOARD

The management is responsible for:

• the preparation and fair presentation of the financial statements in accordance with EU-IFRS and for thepreparationofthedirectors’report,andfor

• such internal control as themanagement determines is necessary to enable the preparation of the financialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Aspartofthepreparationofthefinancialstatements,themanagementisresponsibleforassessingthecompany’sabilitytocontinueasagoingconcern.Basedonthefinancialreportingframeworksmentioned,themanagementshouldpreparethefinancialstatementsusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatethecompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.Themanagementshoulddiscloseeventsandcircumstancesthatmaycastsignificantdoubtonthecompany’sabilitytocontinueasagoingconcerninthefinancialstatements.

APPLICATION OF NEW IFRS

TheGrouphastocomplywithnewmandatory IFRS in2019,whichcouldhaveamajor impact to itsactualandretroactivefigures.


OurauditproceduresrelatedtothenewmandatoryIFRSincludedthefollowing,amongothers:• We perform procedures check the adequacy and completeness of the application of the new standards. • We perform audit procedures on the disclosures. The correct application and presentation according to IFRS 16.


In addition to what is included in our auditor’s report we have further set out in this appendix our responsibilities for theauditofthefinancialstatementsandexplainedwhatanauditinvolves.

Theauditor’sresponsibilitiesfortheauditofthefinancialstatements

We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordancewith InternationalStandardsonAuditing,ethical requirementsand independence requirements.Ourobjectives are to obtain reasonable assuranceaboutwhether thefinancial statements as awhole are free frommaterialmisstatement,whetherduetofraudorerror.Ourauditconsisted,amongothersof:

• Identifyingandassessingtherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designingandperformingauditproceduresresponsivetothoserisks,andobtainingauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheintentionaloverrideofinternalcontrol.

• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthecompany’s internal control.

• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Concluding on the appropriateness of themanagement’s use of the going concern basis of accounting, andbasedontheauditevidenceobtained,concludingwhetheramaterialuncertaintyexistsrelatedtoeventsand/orconditionsthatmaycastsignificantdoubtonthecompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedon the audit evidence obtained up to the date of our auditor’s report and are made in the context of our opinion onthefinancialstatementsasawhole.However,futureeventsorconditionsmaycausethecompanytoceasetocontinue as a going concern.

• Evaluatingtheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andevaluatingwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthat achieves fair presentation.

Consideringourultimateresponsibilityfortheopiniononthecompany’sconsolidatedfinancialstatementsweareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Inthiscontext,wehavedeterminedthe nature and extent of the audit procedures for components of the group to ensure that we performed enough worktobeabletogiveanopiniononthefinancialstatementsasawhole.Determiningfactorsarethegeographicstructureofthegroup,thesignificanceand/orriskprofileofgroupentitiesoractivities,theaccountingprocessesandcontrols,andtheindustryinwhichthegroupoperates.Onthisbasis,weselectedgroupentitiesforwhichanauditorreviewoffinancialinformationorspecificbalanceswasconsiderednecessary.

Wecommunicatewiththesupervisoryboardregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringour audit.

From the matters communicated with the supervisory board, we determine those matters that were of mostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter orwhen,inextremelyrarecircumstances,notcommunicatingthematterisinthepublicinterest.

APPENDIX TO OUR AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS 2019 OF MONACO RESOURCES GROUP S.A.M.

Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft (Düsseldorf)Charlottenstraße 6810117 Berlin

Berlin,April 30th 2020

Detlef SchröderPartner

Stephan MartensPartner


[Translator's notes are in square brackets]

General Engagement Termsfor

Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften[German Public Auditors and Public Audit Firms]

as of January 1, 2017

1. Scope of application

(1) These engagement terms apply to contracts between German Public Auditors (Wirtschaftsprüfer) or German Public Audit Firms(Wirtschaftsprüfungsgesellschaften) – hereinafter collectively referred to as ”German Public Auditors” – and their engaging parties for assurance services, tax advisory services, advice on business matters and other engagements except as otherwise agreed in writing or prescribed by amandatory rule.

(2) Third parties may derive claims from contracts between German Public Auditors and engaging parties only when this is expressly agreed or results from mandatory rules prescribed by law. In relation to such claims, these engagement terms also apply to these third parties.

2. Scope and execution of the engagement

(1) Object of the engagement is the agreed service – not a particular economic result. The engagement will be performed in accordance with the German Principles of Proper Professional Conduct (Grundsätze ord-nungsmäßiger Berufsausübung). The German Public Auditor does not assume any management functions in connection with his services. TheGerman Public Auditor is not responsible for the use or implementation of the results of his services. The German Public Auditor is entitled to make use of competent persons to conduct the engagement.

(2) Except for assurance engagements (betriebswirtschaftliche Prüfungen),the consideration of foreign law requires an express written agreement.

(3) If circumstances or the legal situation change subsequent to the release of the final professional statement, the German Public Auditor is not obli-gated to refer the engaging party to changes or any consequences result-ing therefrom.

3. The obligations of the engaging party to cooperate

(1) The engaging party shall ensure that all documents and further infor-mation necessary for the performance of the engagement are provided to the German Public Auditor on a timely basis, and that he is informed of all events and circumstances that may be of significance to the performance of the engagement. This also applies to those documents and further information, events and circumstances that first become known during the German Public Auditor’s work. The engaging party will also designate suitable persons to provide information.

(2) Upon the request of the German Public Auditor, the engaging party shall confirm the completeness of the documents and further information provided as well as the explanations and statements, in a written statement drafted by the German Public Auditor.

4. Ensuring independence

(1) The engaging party shall refrain from anything that endangers the independence of the German Public Auditor’s staff. This applies throughout the term of the engagement, and in particular to offers of employment or to assume an executive or non-executive role, and to offers to accept en-gagements on their own behalf.

(2) Were the performance of the engagement to impair the independence of the German Public Auditor, of related firms, firms within his network, or such firms associated with him, to which the independence requirements apply in the same way as to the German Public Auditor in other engage-ment relationships, the German Public Auditor is entitled to terminate the engagement for good cause.

5. Reporting and oral information

To the extent that the German Public Auditor is required to present results in writing as part of the work in executing the engagement, only that written work is authoritative. Drafts are non-binding. Except as otherwise agreed, oral statements and explanations by the German Public Auditor are binding only when they are confirmed in writing. Statements and information of the German Public Auditor outside of the engagement are always non-binding.

6. Distribution of a German Public Auditor‘s professional statement

(1) The distribution to a third party of professional statements of the Ger-man Public Auditor (results of work or extracts of the results of work wheth-er in draft or in a final version) or information about the German Public Auditor acting for the engaging party requires the German Public Auditor’s written consent, unless the engaging party is obligated to distribute or inform due to law or a regulatory requirement.

(2) The use by the engaging party for promotional purposes of the GermanPublic Auditor’s professional statements and of information about the German Public Auditor acting for the engaging party is prohibited.

7. Deficiency rectification

(1) In case there are any deficiencies, the engaging party is entitled to specific subsequent performance by the German Public Auditor. The engaging party may reduce the fees or cancel the contract for failure of such subsequent performance, for subsequent non-performance or unjusti-fied refusal to perform subsequently, or for unconscionability or impossibil-ity of subsequent performance. If the engagement was not commissioned by a consumer, the engaging party may only cancel the contract due to a deficiency if the service rendered is not relevant to him due to failure of subsequent performance, to subsequent non-performance, to unconscion-ability or impossibility of subsequent performance. No. 9 applies to the extent that further claims for damages exist.

(2) The engaging party must assert a claim for the rectification of deficien-cies in writing (Textform) [Translators Note: The German term “Textform” means in written form, but without requiring a signature] without delay. Claims pursuant to paragraph 1 not arising from an intentional act expireafter one year subsequent to the commencement of the time limit under the statute of limitations.

(3) Apparent deficiencies, such as clerical errors, arithmetical errors and deficiencies associated with technicalities contained in a German Public Auditor’s professional statement (long-form reports, expert opinions etc.) may be corrected – also versus third parties – by the German Public Auditor at any time. Misstatements which may call into question the results contained in a German Public Auditor’s professional statement entitle the German Public Auditor to withdraw such statement – also versus third parties. In such cases the German Public Auditor should first hear the engaging party, if practicable.

8. Confidentiality towards third parties, and data protection

(1) Pursuant to the law (§ [Article] 323 Abs 1 [paragraph 1] HGB [German Commercial Code: Handelsgesetzbuch], § 43 WPO [German Law regulat-ing the Profession of Wirtschaftsprüfer: Wirtschaftsprüferordnung], § 203 StGB [German Criminal Code: Strafgesetzbuch]) the German Public Auditor is obligated to maintain confidentiality regarding facts and circum-stances confided to him or of which he becomes aware in the course of his professional work, unless the engaging party releases him from this confi-dentiality obligation.

(2) When processing personal data, the German Public Auditor will observenational and European legal provisions on data protection.

9. Liability

(1) For legally required services by German Public Auditors, in particular audits, the respective legal limitations of liability, in particular the limitation of liability pursuant to § 323 Abs. 2 HGB, apply.

(2) Insofar neither a statutory limitation of liability is applicable, nor an individual contractual limitation of liability exists, the liability of the German Public Auditor for claims for damages of any other kind, except for dam-ages resulting from injury to life, body or health as well as for damages that constitute a duty of replacement by a producer pursuant to § 1 ProdHaftG[German Product Liability Act: Produkthaftungsgesetz], for an individual case of damages caused by negligence is limited to € 4 million pursuant to § 54 a Abs. 1 Nr. 2 WPO.

(3) The German Public Auditor is entitled to invoke demurs and defensesbased on the contractual relationship with the engaging party also towards third parties.

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Lizenziert für/Licensed to: Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft

(4) When multiple claimants assert a claim for damages arising from anexisting contractual relationship with the German Public Auditor due to theGerman Public Auditor’s negligent breach of duty, the maximum amount stipulated in paragraph 2 applies to the respective claims of all claimants collectively.

(5) An individual case of damages within the meaning of paragraph 2 also exists in relation to a uniform damage arising from a number of breaches of duty. The individual case of damages encompasses all consequences from a breach of duty regardless of whether the damages occurred in one year or in a number of successive years. In this case, multiple acts or omissions based on the same source of error or on a source of error of an equivalent nature are deemed to be a single breach of duty if the matters in question are legally or economically connected to one another. In this event the claim against the German Public Auditor is limited to € 5 million. The limitation to the fivefold of the minimum amount insured does not apply to compulsory audits required by law.

(6) A claim for damages expires if a suit is not filed within six months subsequent to the written refusal of acceptance of the indemnity and the engaging party has been informed of this consequence. This does not apply to claims for damages resulting from scienter, a culpable injury to life, body or health as well as for damages that constitute a liability for replace-ment by a producer pursuant to § 1 ProdHaftG. The right to invoke a plea of the statute of limitations remains unaffected.

10. Supplementary provisions for audit engagements

(1) If the engaging party subsequently amends the financial statements or management report audited by a German Public Auditor and accompanied by an auditor's report, he may no longer use this auditor’s report.

If the German Public Auditor has not issued an auditor's report, a reference to the audit conducted by the German Public Auditor in the management report or any other public reference is permitted only with the German Public Auditor’s written consent and with a wording authorized by him.

(2) lf the German Public Auditor revokes the auditor's report, it may no longer be used. lf the engaging party has already made use of the auditor's report, then upon the request of the German Public Auditor he must give notification of the revocation.

(3) The engaging party has a right to five official copies of the report. Additional official copies will be charged separately.

11. Supplementary provisions for assistance in tax matters

(1) When advising on an individual tax issue as well as when providing ongoing tax advice, the German Public Auditor is entitled to use as a correct and complete basis the facts provided by the engaging party –especially numerical disclosures; this also applies to bookkeeping en-gagements. Nevertheless, he is obligated to indicate to the engaging party any errors he has identified.

(2) The tax advisory engagement does not encompass procedures required to observe deadlines, unless the German Public Auditor has explicitly accepted a corresponding engagement. In this case the engaging party must provide the German Public Auditor with all documents required to observe deadlines – in particular tax assessments – on such a timely basisthat the German Public Auditor has an appropriate lead time.

(3) Except as agreed otherwise in writing, ongoing tax advice encompasses the following work during the contract period:

a) preparation of annual tax returns for income tax, corporate tax and business tax, as well as wealth tax returns, namely on the basis of the annual financial statements, and on other schedules and evidence documents required for the taxation, to be provided by the engaging party

b) examination of tax assessments in relation to the taxes referred to in (a)

c) negotiations with tax authorities in connection with the returns and assessments mentioned in (a) and (b)

d) support in tax audits and evaluation of the results of tax audits with respect to the taxes referred to in (a)

e) participation in petition or protest and appeal procedures with respect to the taxes mentioned in (a).

In the aforementioned tasks the German Public Auditor takes into account material published legal decisions and administrative interpretations.

(4) If the German Public auditor receives a fixed fee for ongoing tax advice, the work mentioned under paragraph 3 (d) and (e) is to be remunerated separately, except as agreed otherwise in writing.

(5) Insofar the German Public Auditor is also a German Tax Advisor and the German Tax Advice Remuneration Regulation (Steuerberatungsvergü-tungsverordnung) is to be applied to calculate the remuneration, a greater or lesser remuneration than the legal default remuneration can be agreed in writing (Textform).

(6) Work relating to special individual issues for income tax, corporate tax, business tax, valuation assessments for property units, wealth tax, as well as all issues in relation to sales tax, payroll tax, other taxes and dues requires a separate engagement. This also applies to:

a) work on non-recurring tax matters, e.g. in the field of estate tax, capital transactions tax, and real estate sales tax;

b) support and representation in proceedings before tax and administra-tive courts and in criminal tax matters;

c) advisory work and work related to expert opinions in connection with changes in legal form and other re-organizations, capital increases and reductions, insolvency related business reorganizations, admis-sion and retirement of owners, sale of a business, liquidations and the like, and

d) support in complying with disclosure and documentation obligations.

(7) To the extent that the preparation of the annual sales tax return is undertaken as additional work, this includes neither the review of any special accounting prerequisites nor the issue as to whether all potential sales tax allowances have been identified. No guarantee is given for the complete compilation of documents to claim the input tax credit.

12. Electronic communication

Communication between the German Public Auditor and the engaging party may be via e-mail. In the event that the engaging party does not wish to communicate via e-mail or sets special security requirements, such as the encryption of e-mails, the engaging party will inform the German Public Auditor in writing (Textform) accordingly.

13. Remuneration

(1) In addition to his claims for fees, the German Public Auditor is entitled to claim reimbursement of his expenses; sales tax will be billed additionally.He may claim appropriate advances on remuneration and reimbursement of expenses and may make the delivery of his services dependent upon the complete satisfaction of his claims. Multiple engaging parties are jointly and severally liable.

(2) If the engaging party is not a consumer, then a set-off against theGerman Public Auditor’s claims for remuneration and reimbursement of expenses is admissible only for undisputed claims or claims determined to be legally binding.

14. Dispute Settlement

The German Public Auditor is not prepared to participate in dispute settle-ment procedures before a consumer arbitration board (Verbraucherschlich-tungsstelle) within the meaning of § 2 of the German Act on Consumer Dispute Settlements (Verbraucherstreitbeilegungsgesetz).

15. Applicable law

The contract, the performance of the services and all claims resulting therefrom are exclusively governed by German law.

Lizenziert für/Licensed to: Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft

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MONACO RESOURCESCONTACT

HEADQUARTERSMONACO RESOURCES GROUP S.A.M.Athos Palace2,ruedelaLüjerneta98000 Monacowww.monacoresources.com

+ 377 97 98 65 [email protected]

2019 monaco resources annual report · 2020. 5. 5. · monaco resources group annual report 2019 ....

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