2019 MONACO RESOURCES HALF-YEAR REPORT · Monaco Resources is an international and diversified natural resources group. Our business is organised within five divisions. Our metals

MONACO RESOURCES HALF-YEAR REPORT2019

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MONACO RESOURCES GROUP HALF-YEAR REPORT 2019. 3

MONACO RESOURCESCONTENT

4 At a Glance

6 Business Performance

7 Outlook

10 Risks & Uncertainties

STRATEGIC REPORT

13 Consolidatedstatementofprofitorloss

14 Consolidated statement of other comprehensive income

15 Consolidatedstatementoffinancialposition

16 Consolidatedstatementofcashflows

17 Consolidated statement of changes in equity

18 Notestothefinancialstatements

CONSOLIDATED FINANCIAL STATEMENTS

OTHER INFORMATION

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REVENUESHY 2019

403M

GROSS PROFITHY 2019

54M

OPERATINGPROFITHY 2019

29M

EQUITYHY 2019

403M

EBITDAHY 2019

29M

MONACO RESOURCESKEY DATA

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MONACO RESOURCES GROUP HALF-YEAR REPORT 2019. 54 . MONACO RESOURCES GROUP HALF-YEAR REPORT 2019

METALS & MINERALS DIVISION

1GROUP

+ 2000EMPLOYEES

40COUNTRIES

MONACO RESOURCESAT A GLANCE

Monaco Resources is an international and diversified natural resources group. Our business is organised within five divisions.

Ourmetalsandmineralsdivision,ownsadiversifiedportfolioofproductionandprocessingassets,whichhasbeencombinedwithglobalmarketingandtradingactivities.

FERROUS NON-FERROUS

AGRIBUSINESS DIVISION

Theagribusinessgrows,processesanddeliversessentialagriculturalandfoodproductstolocalconsumermarketsinAfricaandinternationalsuppliersacrosstheglobe.

AGRICULTURE FOOD

TheEnergydivisionisfocusedonmatureoilfieldsandoninvestmentsintogasandstorageopportunities.

GAS / OIL MARKETING

ENERGY DIVISION

Weprovide logisticsand technological solutionswithin thenatural resources sector includingport and terminalmanagement,bulkhandlingoperationsandtransportation,aswellasmaintenanceandprocurement.

LOGISTICS TECHNOLOGY

LOGISTICS & TECHNOLOGY DIVISION

OurFinanceand Investmentsdivisionprovidesstructured tradefinancesolutionsandmakes investments in thenaturalresourcessector.

FINANCE INVESTMENTS

FINANCE & INVESTMENTS DIVISION

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MONACO RESOURCESBUSINESS PERFORMANCE01 BUSINESS PERFORMANCE

In 2019, the Group continued to develop opportunities andnewactivitiesineachofitsfivebusinessstreams,withafocusonexpandingnichemarketsandverticalintegration.

TheGroupappliesarisk-aversestrategythroughwhichthegrossprofitondeals is locked in, independentofthemarketprices.

Metals and Minerals

The Group has leveraged on the developments of the past years and was again able to furthergrow its business irrespective of the challengingmarkets. The fundamentals of growth that theGroup shows year after year lie in the risk-aversestrategy that Metalcorp Group applies: the gross profit on deals is locked in independent of themarket prices, whilst other market participantstake positions that lead ultimately to a price risk. TheGroupfurthertappeditsexisting2017-2022bondbyEUR40million,whichwasplacedontheGermanmarketin2019. On the Ferrous side, the Group continued to organicallygrow itsEuropeansupply-chainbusinessin 2019 as well as its special steel business. On the Non-Ferrous side, Metalcorp Group has further developed existing and initiated new multi-yearofftakeagreementsinspecificmarketssuchaszinc.

Agribusiness

The Group has continued to develop the land under managementandoperateslandsinGhana,RepublicofCongo,RepublicofGuineaandMadagascar.

Energy

The Group continues to seek out opportunities in the energy sector, and looks to take advantage of a decline in energy prices. It has identified and conductedin-depth appraisals of opportunities in North and West Africa and Europe, with a focus on oil andgas production assets as well as long-term tradinginitiatives.

Logistics and Technology

In2019asignificantacquisitiontookplace-R-Logitechwith its investment partners, the Belgian sovereignwealthfundsFPIMandPMVacquiredamajoritystakein Ports& Terminals operator Euroports. R-Logitechtook control of the company from 1st July 2019 onwards.AccordinglyEuroportswillbeconsolidatedfrom1stofJuly2019.

The group has established several structures topromote and manage investment vehicles dedicated to the resources industry. These structures areenvisaged to give returns to investors who seekalternative investment products to traditional deposit schemes.TheGroupcontinuestodevelopitsactivitiesincommodityfinance.

Despiteavolatileenvironment,theGroupwasabletoincreaseitstradedvolumes.

Furthermore, the business model of our group isfocused on “locking in” the Gross Margin. This isachieved by structuring deals on a back-to-backbasistoeliminatepricerisk.Thissignificantlyreducesthe dependency of our profitability towards marketprices.OnlyinthesituationthattheGroup’smarginsareexpressedinapercentageofthemarketprice,the

effect of fluctuationspartly influenceour results.Alldivisions increased their volumes, gross margins and results.

Thesolvency(totalgroupequitydividedbythebalancesheet total) at the balance sheet date increasedfrom38.5%in2018to39.7%in2019.ThisincludesselfliquidatingTradeFinance,whichisaddedtothecurrentliabilities.

BUSINESS REVIEW

GENERAL

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MONACO RESOURCESOUTLOOK01

TheCompanywillfurtherexploreanddevelopnichemarketsandexpectstorealizefurthergrowthin2019.

TheGroupistargetinganincreaseinitsmetalsandmineralsproductionactivities,andalsoinitstradingbusiness,andsomesignificantacquisitionsareunderdiscussions.

Further growth is expected from the expansion of the food commodity business and resources developmentinitiativesintheGroup’sAgribusinessdivision.

TheCompanywill continue to furtherdevelop the synergiesbetween thedifferentdivisions, aswell as verticalintegrationthroughcreatingvaluethroughitssupplychainandharnessingitsglobalnetwork.

Thelongtermfinancingandshorttermbankfacilitiesareinplaceandtherelationshipswiththesebankswillbemaintained.

Inordertofurthergrowthetradingactivities,additionaltradefinancecapacityisbeingdevelopedwiththegroup’scurrentandnewbankingrelationships.

R-Logitech’sbondwastapedontheFrankfurtstockexchangeby€100Miotosecureitslongtermfinancing.

Asoverthelastyears,theCompanywillensurethatthegroupremainsleanintermsofheadcount.

Keymanagementpositionsarefilledbypersonnelwiththerequiredexperience,background,andentrepreneurialspiritanddrivetocontributetoourgrowthandsuccess.

Additionalpersonnelwillonlybeemployed,whenthegrowthinouractivitiesrequiresso.

GENERAL

FINANCING

EMPLOYEES

OUTLOOK

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MONACO RESOURCESRISKS & UNCERTAINTIES01

Monaco, August 31st 2019

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.TheserisksandthemitigatingmeasuresaremonitoredandmanagedbytheCompanyonaregularbasisandappropriateactionistakenwheneverthisisrequired.

OTHER RISKS

Thepresentationoffinancial statements requires themanagement tomakeestimationsandassumptionswhichaffectthereportedamountsofassetsandliabilities,andthedisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandreportedamountsofrevenuesandexpensesduringtheperiod.Actualresultscoulddifferfromthoseestimatesimpactedbythefollowingrisks:

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MONACO RESOURCES GROUP HALF-YEAR REPORT 2019 . 1312 . MONACO RESOURCES GROUP HALF-YEAR REPORT 2019

MONACO RESOURCESCONSOLIDATEDFINANCIAL STATEMENTS

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ConsolidatedstatementofprofitorlossConsolidated statement of other comprehensive incomeConsolidatedstatementoffinancialpositionConsolidatedstatementofcashflowsConsolidated statement of changes in equityNotestothefinancialstatements

CONSOLIDATED STATEMENT OF PROFIT OR LOSS(beforeappropriationofresult)

EUR 1.000 Note HY 2019 HY 2018

Continuing Operations

Revenue 2 402 395 394 001Revenuefromcontract-basedassets 2 876 914Cost of sales 2 -349 123 -342 094

Gross profit 2 54 148 52 822

Operating income and expensesSellingexpenses 3 -2 030 -2 551 Administrativeexpenses 3 -22 713 -23 024

-24 743 -25 575

Operating profit 29 405 27 248

Depreciation and similar -3 860 -3 331

Non-operating expensesUnrealizedfairvaluechanges 11 -68 - Financialincomeandexpense 4 -10 662 -9 819

Profit before tax 14 815 14 099

Incometaxexpense 5 -2 674 -3 072

Profit from continuing operations 12 141 11 027

Profit 12 141 11 027

Profit attributable to:EquityholdersofMonacoResourcesGroupS.A.M. 8 795 7 312 Non-controlling interests 3 346 3 715

12 141 11 027

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CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

EUR1.000 HY2019 HY2018

Profit 12 141 11,027Other comprehensive incomeRevaluationtangiblefixedassets - 7,676Other Movements - 7,173Translation differences foreign companies -522 -1,717

Total comprehensive income 11 619 24,159

Total comprehensive income atrributable to:EquityholdersofMonacoResourcesGroupS.A.M. 7 986 20,308Non-controlling interests 3 633 3,851

Total result 11 619 24,159

CONSOLIDATED STATEMENT OF FINANCIAL POSITION(beforeappropriationofresult)

EUR1.000 Note 30/06/2019 30/12/2018

Assets

Non-current assetsProperty plant and equipment 6 344 322 328 000 Intangiblefixedassets 7 63 508 59 671 Financialfixedassets 8 5 231 13 544 Total non-current assets 413 061 401 215

Current assetsInventories 9 42 363 46 073 Receivables,prepaymentsandaccruedincome 10 459 033 267 417 Securities 11 29 97 Cash and cash equivalents 12 102 127 75 609 Total current assets 603 552 389 196

Total assets 1 016 613 790 411

Equity and liabilities

EquitySharecapital 30 000 30 000 Reserves and retained earnings 314 117 205 070

Equity attributable to the owners of the company 13 344 117 235 070 Non-controlling interest 13 59 350 69 165 Total equity 403 467 304 235

Non-current liabilitiesLoansandborrowings 14 438 480 254 976 Deferredtaxliabilities 5 4 139 4 079 Total non-current liabilities 442 620 259 055

Currentliabilitiesandaccruals 14 170 528 227 122 Total current liabilities 170 528 227 122

Total equity and liabilities 1 016 613 790 411

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CONSOLIDATED STATEMENT OF CASH FLOWS(beforeappropriationofresult)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(beforeappropriationofresult)

EUR1.000 HY2019

Operating profit 29 405 Adjustmentsfor:- Depreciation (and other changes in value) 3 860 -Leasepaymentsaccountedasexpense 147

4 007

Working capital changes-Movementstradereceivables 53 995 - Movements inventories 3 710 -Movementsonloansreceivable -15 972 -Movementstradepayables -47 004 -Movementsotherpayablesandliabilities 7 889 -Movementstradefinance -5 927

-3 309

InterestpaidaftercorporateincometaxCorporateincometaxexpenseonoperatingactivities -2 674

-2 674

Cash flow from operating activities 27 429

Investmentsinintangiblefixedassets -3 955 Investments in property, plant and equipment -26 732 Disposals of property, plant and equipment -57 Acquisitions of group companies -145 237 Disposalsofotherfinancialfixedassets 8 314

Cash flow from investment activities -167 667

Receiptoflong-termliabilities 185 510 Repaymentofshorttermliabilities -19 073 Movementsonloansreceivable -750Leasepaymentsaccountedasexpense -147LeasepaymentsIFRS16 -1 240MovementsIFRS16liabilities 10 295Otherfinanceincome 11 635 Otherfinanceexpense -2 706 Interest received 994 Interest paid -17 239

Cash flow from financing activities 167 278

Exchangerateandtranslationdifferencesonmovementsincash -522

Movements in cash 26 518

EUR1.000 Issued share capital

Sharepremium

Revaluation reserve

Translation reserve

Other reserves

Result for the year

Legalentity

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 period

Profit/(loss)fortheperiod - - - - - 15 727 15 727 2 473 18 200 Revaluationoffixedassets - - 1 266 - 5 032 - 6 298 1 378 7 676 Foreign currency translation differences

- - - -1 717 - - -1 717 - -1 717


- - 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 - - -

Acquisitions - - - - 561 - 561 417 978 CapitalContribution - 20 094 - - - - 20 094 - 20 094 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

HY2019Opening Balance 30 000 20 094 16 481 1 547 151 220 15 727 235 069 69 165 304 234


Profit/(loss)fortheperiod - - - - - 8 795 8 795 3 346 12 141 Revaluationoffixedassets - - - - - - - - - CapitalContribution - - - - - - - - - Foreign currency translation differences

- - -136 -126 -547 - -809 287 -522

Total comprehensive in-come and expense for the period

- - -136 -126 -547 8 795 7 986 3 633 11 619

Other movements in equityAllocation of prior year result

- - - - 15 727 -15 727 - - -

Acquisitions - - - - 87 614 - 87 614 - 87 614 Other movements in equity - - 13 449 - - - 13 449 -13 449 - Disposals - - - - - - - - - CapitalContribution - - - - - - - - - Total other movements in equity

- - 13 449 - 103 341 -15 727 101 063 -13 449 87 614

Total 30 000 20 094 29 794 1 421 254 014 8 795 344 118 59 349 403 467

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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 and production of metals and minerals, the trading and production of agricultural commodities, thetradingofenergycommodities,providingfinancial,technicalandlogisticalservices.TheCompanyhasitslegalseatat2,ruedeLujerneta,98000Monaco,andisregisteredwiththenumber11S05525.

TheCompanywas incorporated as a limited liabilitycompanyunder the lawsofMonacoon5September2011 for the purpose of establishing an industrialholdingcompany.ItsmajorshareholderisCycorpFirstInvestment Ltd. In Cyprus the financial statementsof Cycorp First Investment Ltd. are available at theChamberofCommerceofCyprus.

The Company has its corporate headquarters in Monaco,which isalsotheheadof thegroupof legalentities. The consolidated annual accounts comprisethe financial information of the Company and ofits investments in which it exercises a controllinginterest. These investments are fully included in theconsolidation.

1.2 Statement of compliance

The consolidated financial statements have beenprepared in accordance with International FinancialReporting Standards (IFRS) and interpretations asadoptedbytheEuropeanUnioneffectivefortheyearbegining 1st January 2019, and its interpretations as issued by the International Accounting StandardsBoard(IASB) effective for the year begining 1st January2019 The above Standards and Interpretations arecollectively referred to as “IFRS” in these financialstatements.

1.3 Basis of preparation

These unaudited condensed interim consolidated financialstatementshavebeenpreparedinaccordancewithIAS34InterimFinancialReportingissuedbytheInternationalAccountingStandardsBoard(IASB)andinterpretationsoftheIFRSInterpretationsCommittee(IFRIC),IAS34InterimFinancialReportingasadoptedby the European Union (EU), and the Disclosureand Transparency Rules of the Financial Conduct Authority effective for Monaco Resources Group´sreporting for the six months ended 30 June 2019.

These unaudited condensed interim consolidated financial statements should be read in conjunctionwith the financial statements and the notes theretoincluded in the audited 2018 Annual Report of Monaco Resources S.A.M. and subsidiaries (2018 AnnualReport) available at www.monacoresources.com.Thesefinancialstatements for thesixmonthsended30June2019and2018,andfinancialinformationfortheyearended31December2018donotconstitutestatutoryaccounts.Certainfinancial informationthatisincludedintheauditedannualfinancialstatementsbutisnotrequiredforinterimreportingpurposeshasbeencondensedoromitted.

The 2019 Half Year Report and audited financialstatements for the year ended 31 December 2018havebeenpublishedat www.monacoresources.com.Companies and the audit report on those financialstatements was not qualified. The interim financialreportforthesixmonthsended30June2019hasbeenprepared on a going concern basis as the directorsbelieve there are nomaterial uncertainties that leadto significant doubt that the Group can continue asa going concern in the foreseeable future, a periodnotlessthan12monthsfromthedateofthisreport.FurtherinformationisincludedintheDirectorsreport.AllamountsareexpressedinthousandsofEuro,unlessotherwise stated, consistent with the predominantfunctional currency of Monaco Resources Group's operations. The impact of seasonality or cyclicalityon operations is not regarded as significant to theunaudited condensed interim consolidated financialstatements.

1.4 Adoption of new and revised standards

These unaudited condensed interim consolidated financial statements are prepared using the sameaccounting policies as applied in the audited 2018 AnnualReport, except for theadoptionof anumberofnewandrevisedaccountingpronouncements,thatbecameeffectiveasof1January2019andhavebeenadoptedbytheGroup.

IFRS 16 – Leases supersedes IAS 17 „Leases“ andcovers recognition, measurement, presentation and disclosureofleases.IFRS16modifiesthepriorlesseeaccountingtoasinglelesseeaccountingmodel,whichrequires lessee to recognise assets and liabilitiesfromcontractwithinscopeofIFRS16.Thestandardprovidesexemptionsforleaseterms12monthorlessor underlying assets have low value. Lessors leaseaccountingsubstantiallyisunchangedinIFRS16.

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. ACCOUNTING POLICIES

Changes in accounting policies resulting from IFRS16havebeenappliedasat1 January2019,withnorestatement of comparative information for prior year following the transition requirements of IFRS 16 C5b). Consequently, any effect of initial applicationof IFRS 16 has been recognized cumulative as anadjustmentintheopeningretainedearningsasatdateofinitialapplication.ThiswillbereflectedintheOtherComprehensiveIncome(OCI).

The following summarises the impact fromadoptionofIFRS16:

• Presentation changes in the statement of Cash Flows

• Presentational changes in the property, plant andequipment(Note6),Liabilities(Note14)andcorresponding supplementary note disclosures to reflect the business model and cash flowcharacteristicsof theseassetsand liabilitiesandgroupthemintotheirrespectiveIAS16andIFRS9categories.

• Additional disclosures regarding classification,presentation,cashflowimpactsandmeasurementofleases(Note15andtable1below)

• The weighted average incremental borrowingrate of interest used in the calculation of the presentvalueonfirstadoptionwas3%-8,5%(depending on division)

• The company used the portfolio transition relief forright-of-useassetswithsimilarcharacteristics.

Table1:Summaryofchangesinclassification,presentationandmeasurementofleasesunderIFRS16andIAS17atthe date of initial application, 1 January 2019:

EUR 1.000 Note Original meaasurment

under IAS 17

New measurement

under IFRS 16

Original carrying amounts

under IAS 17

Effect of IFRS 9

adoption

New carrying amount

under IFRS 9

Non-current assets

Property, plant and equipment

15 Operating leases

Right of use assets

0 4.373 4.373

Property, plant and equipment

15 Financial leases

Right of use assets

0 0 0

Financial liabilities

Current liabilities and accruals

15 Operating leases liabilities

Leasingliability

Off-balancesheet4.176

4.373 4.373

Current liabilities and accruals

15 Financial leases liabilities

Leasingliability

0 0 0

http://www.metalcorpgroup.com

http://http://www.metalcorpgroup.com

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2.1 General

TheCompanyisorganizedinfivedivisions,MetalsandMinerals, Agribusiness, Energy, Logistics and Tech-nologyandInvestmentandFinance.ThisstructureisusedbymanagementtoassesstheperformanceoftheCompany.

The Metals and Minerals division, headed by Me-talcorp Group S.A., based in Luxembourg, has twobusinessareas–ferrousandnon-ferrousoperations.Theferrousbusinesssegmentisfocusedonproducingsteelpipesand tubesaswell as tradinga varietyofsteel products and steel- related rawmaterials. Thenon-ferrous business segment specializes in produ-cingaluminiumslabs,coppergranulateandtradingavarietyofnon-ferrousmetals,anddeliveringabauxiteandaluminacomplex.

TheAgribusinessdivisionconsistsoftwodistinctbu-siness streams – agriculture and food processing. Intheagribusiness,theGroupisdevelopinganumberofagriculturalfarmingprojectsinAfrica.Inthefoodpro-cessingbusiness,theGrouphasacquiredanexistingfoodproductionfacility.

IntheEnergydivision,theGroupisanalyzinginvest-mentopportunitiesresultingfromthedownturninthepetroleummarket.

In the Logistics and Technology division, the Groupisdevelopingfurtheritslogisticscapabilitiesandhasestablishedatechnicalservicesbusinessunitandhasacquiredaportfolioofcompaniesconducting itsbu-sinessactivitiesinportandairportoperations.

The Investment and Finance division is focused on de-velopinginvestmentstructuresandfinancestructuresrelatedtonaturalresources.

2.2 Segment Revenues and Results

ThefollowingisananalysisoftheGroup’srevenue,grossprofit(“GM”)fromcontinuingoperationsbyreportablesegment.

Segmentrevenuereportedaboverepresentsrevenuegenerated from external customers. Apart fromservice fees charged between entities for servicesprovided, there were no inter-segment sales in thecurrentyear.

TheaccountingpoliciesofthereportablesegmentsarethesameastheGroup’saccountingpoliciesdescribedinnote1.

NOTE 2. SEGMENT INFORMATION

Revenue GM Profit Before Tax

EUR1.000 HY2019 HY2018 HY2019 HY2018 HY2019 HY2018

- Metals and minerals 306 316 330 957 24 254 23 671 11 853 9 937-Logisticsandtechnicalservices 86 880 56 414 28 695 27 152 8 707 8 487

-Agribusinessandother 10 075 7 544 1 199 1 999 -5 745 -4 325

Total 403 271 394 915 54 148 52 822 14 815 14 099

2.3 Segment Assets and Liabilities

ThefollowingisananalysisoftheGroup’sassetsandliabilitiesbyreportablesegment.

The additions to non-current assets in the divisions also include theadditionsoffinancial instrumentsasreportedinNote8FinancialFixedAssets.

It is included in this overview, as it is a significantposition that is reported to management on a regular basis.

NOTE 2.

Assets Liabilities

EUR1.000 HY2019 2018 HY2019 2018- Metals and minerals 478 961 464 745 322 771 317 391 -Logisticsandtechnicalservices 291 696 98 074 179 325 65 312 -Agribusinessandother 245 956 227 592 111 051 103 474 Total 1 016 613 790 411 613 147 486 177

Depreciation and Amortization

Additions to non-current assets

EUR1.000 HY2019 2018 HY2019 2018- Metals and minerals 1 018 593 6 799 35 388 -Logisticsandtechnicalservices 1 612 - 8 348 5 829 -Agribusinessandother 1 230 2 738 -3 301 25 028 Total 3 860 3 331 11 846 66 245

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NOTE 3. EXPENSES

TheaveragenumberofemployeesoftheGroupduringtheyear,convertedtofull-timeequivalentswas2.098(2018:2.098)ofwhich47areemployedinMonaco.

In the personnel expenses an amount of EUR2.817thousand (2018: 5.083 thousand) related to socialsecurity premiums and an amount of EUR 180 thousand (2018: EUR 333 thousand) related to pensionpremiumsareincluded.

EUR1.000 HY2019 HY2018

Selling expensesPersonnel 1 876 2 384 Salesandmarketingexpenses 154 167 Total selling expenses 2 030 2 551

Administrative expensesPersonnel 9 008 9 259 Professional services fees 4 250 3 607 Facilitiesandoffices 4 561 5 197 Otheroperatingexpenses 4 893 4 962 Total administrative expenses 22 713 23 024

Operating expenses 24 743 25 575

Breakdown: depreciation and amortizationProperty Plant and Equipment 3 777 2 521 Intangibleassets 82 756 Allocated to production costs - 55 Total depreciation and amortization 3 860 3 331

NOTE 4. FINANCIAL INCOME AND EXPENSES

Incometaxesconsistofthefollowing:

NOTE 5. TAXATION

EUR1.000 HY2019 HY2018

Financial income and expenseOther interest income and similar income 994 789 Interestexpensesandsimilarcharges -17 239 -11 705 Interest income associated companies - 65 Otherfinancingincome 10 705 2 375 Otherfinancingexpenses -2 706 -1 579 Total financial income and expense -11 593 -10 055

Income from foreign exchangeForexgains 1 121 2 404 Forexlosses -190 -2 168 Total income from foreign exchange 931 236

Total financial income and expense -10 662 -9 819

EUR1.000 HY2019 HY2018

Currentincometaxexpense -2 674 -3 072

Total income tax expense -2 674 -3 072 EUR1.000 HY2019 HY2018

% EUR % EUR

Taxableresult 14 815 14 099

TaxburdenbasedonLuxembourgnominalrate 33,3% 4 933 33,3% 4 695

Taxratedifferences. -15,3% -2 260 -11,5% -1 623

Taxation on result on ordinary activities 18,0% 2 674 21,8% 3 072

TheeffectivetaxrateontheGroupresultsratediffersfromthestatutoryMonacoincometaxrateapplicable

to the company mainly due to increased activity in EuropeandotherRegions.

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ThemovementsinPropertyplantandequipmentareasfollows:

NOTE 6. PROPERTY PLANT AND EQUIPMENT

EUR1.000 Agricultural

Land

Right-of use-Assets

Concessions

Landandbuildings

Right-of use-Assets LandandBuildings

Plant and machinery

Right-of-use

-Plant and machinery

Transportation vehicles

Biological assets

Other operating

assets

Mineral rights

Total

Gross carrying amount1 January 2018 118 660 - 24 329 - 37 855 - 5 519 - 8 880 89 156 284 399 Reallocations - - -2 286 - -5 324 - - - 7 610 - - Additions - - 2 421 - 9 617 - 269 125 2 563 30 199 45 194 Acquisition - - 13 476 - 2 918 - - - - - 16 394 Disposal - - -170 - - - -3 490 - -2 789 - -6 449 Revaluation 5 190 - - - - - - - - - 5 190 31 Dec 2018 123 850 - 37 770 - 45 066 - 2 298 125 16 264 119 355 344 728

Accumulated depreciation and impairments1 January 2018 0 - 143 - 8 436 - 445 - 2 663 - 11 687 Depreciation 0 - 1 835 - 211 - 210 - 2 786 - 5 042 31 Dec 2018 0 0 1 978 0 8 647 0 655 - 5 449 - 16 729

Net book value at 31 Dec 2017 123 850 - 35 792 - 36 419 - 1 643 125 10 815 119 355 327 999

EUR1.000 Agricultural

Land

Right-of use-Assets

Concessions

Landandbuildings

Right-of use-Assets LandandBuildings

Plant and machinery

Right-of-use

-Plant and machinery

Transportation vehicles

Biological assets

Other operating

assets

Mineral rights

Total

Gross carrying amount1 January 2019 123 850 - 37 770 - 45 066 - 2 298 125 16 264 119 355 344 728 Adjustmentsdueto accounting principle change

- - - - -1 890 5 827 - - - - 3 937

Additions - 3 620 6 672 2 866 - - 3 453 - 5 068 1 116 22 795 Acquisition - - - - - - - - - - - Disposals - - - - -6 690 - - - - - -6 690 Revaluation - - - - - - - 57 - - 57 30 June 2019 123 850 3 620 44 442 2 866 36 486 5 827 5 751 182 21 332 120 471 364 827

Accumulated depreciation and impairments1 January 2019 - - 1 978 8 647 - 655 - 5 449 - 16 729 Depreciation - 38 1 157 261 96 1 385 227 - 613 - 3 777 30 June 2019 - 38 3 135 261 8 743 1 385 882 - 6 062 - 20 506

Net book value at 30 June 2019 123.850 3 583 41 307 2 605 27 743 4 442 4 869 182 15 270 120 471 344 322

Agricultural land

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

Theoverviewoftheassetsisasfollows:

Ghana: secured lands for the cultivation of crops: maize, soybean and poultry breeding.Our operationincludes awaterwayandgraindryingfacility.

Republic of Congo: lands for the cultivation of crops, mainlyrice-50yearsleaseinDolisie/Louvakou.

Republic of Guinea: lands for farming in Moriah for the cultivationofseedriceandBouliwell-Durationof35years.

Madagascar:Securedlandforthecultivationofvanillaandspices-Long-termleasesof99years.

Ouroperationownsprocessingandstoragefacilities.

Thevaluationisexecutedbyinternalexpertsandthenreviewed and confirmed by third party experts. Asthere isnodirectmarketor comparablemarketdataavailable, the fair value is determined in accordancewiththelevel3principlesunderIFRS.Thismeansthatthevaluationisbasedongenerallyacceptedvaluationmethods(discountedcashflowmodels).

The main parameters used are local sales prices, expenses and investments that are derived fromcompany data or other sources and converted to the applicablesituation.

Theweightedaveragecostsofcapitalthatisusedinthecalculationsrangesfrom9%to11,93%.

Thebiologicalassetsarethevanillabeans,whicharenotclassifiedasabearerplantandclearlyidentifiableonthebearerplant,referenceismadetonote1.14.

Buildings, Plant and Machinery and Transportation Vehicles

The Buildings as well as the Plant and Machineryas at 30 June 2019 mainly represent the production facilities intheMetalsdivision(BAGR,Stockach,CRIand Nikolaïdis) and the food production facility ofBonumandPeltina.

Theadditionsof2019aremainlyrelatedtoexpansionof the agricultural activities as well as capitalizedmaintenanceexpenses thatextend theeconomic lifeof themetalsproduction facilities,whicharewrittenoffinlinewiththeaccountingprinciplesassetoutinNote1.

The disposals relate to the deconsolidation effect of subsidiaries.Forfurtherdescriptionseenote8.

Other operating assets

This line item is mainly related to offices and officeequipmentallactivitiesaroundtheglobe.Theadditionsconsist of small refurbishments and replacement ofequipment.

Mineral rights

The additions in Mineral rights are related to the further developmentofSocietedesBauxitesdeGuinee(SBG),anintegratedbauxiteandaluminafacilityinGuinea.

For the accounting treatment of Mineral rights referenceismadetonote1.15

Impairment

Theannual impairmenttestdidnot leadtoanywriteoffs. For the accounting treatment of impairments,referenceismadetonote1.16.

Right-Of-Use Assets

Partof theassetsof theGroupare leased forwhichreference is made to Note15–Leasing.

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Asummaryofthemovementsinthefinancialfixedassetsisgivenbelow:

The“Otherreceivables”includesloansgiventovariouscompaniestofinancethestart-upofproductionfacilitiesforwhichwewillreceivepotentialoff-takesinreturn.

All these loans are secured by underlying assets ofthosecompanies.

NOTE 9. INVENTORIES

Manufacturing

The manufacturing inventories consist of finishedproducts and raw materials and consumables ofBAGR, CRI, Stockach and Nikolaïdis. The finishedproducts are already sold and in the course of delivery totheclient.

Logistics

The consumables conists of items of normal logisticoperations,e.g.,gasfortrucks.

Trading

The trading inventories are commodities that are alreadysoldby,butstillheldbytheTradingcompaniesas the Company still retains the principal risks and rewardsofownership.Theseinventoriesarepledgedasasecurityfortradefinancefacilities.

Agricultural

Therawmaterialsandconsumablesaretheacquiredinput resources for the new harvests in the variouscompanies.Thefinishedgoodsaremainly related tothevanillaoperationinMadagascar.Allmaterialispre-sold,whichimpliesthattheCompanydoesnotrunanypricerisk.

This stock is valued at fair value by using the salespricesminuscoststosellandcoststoprocessfurther.

Noimpairmenthasbeenrecordedfortheinventoriesduringtheyear.

Impairments

Noimpairmenthasbeenrecordedfortheinventoriesduringtheyear.

NOTE 8. FINANCIAL FIXED ASSETS

EUR1.000 Associated companies Otherreceivables Total

Book Value

Balance at 1 January 2018 9 102 - 9 102 Additions 2 082 - 2 082 Sales,redemptionsandother - 2 360 2 360 Balance at 31 December 2018 11 184 2 360 13 544

Book ValueBalance at 1 January 2019 11 184 2 360 13 544Sales,redemptions -8 137 -177 -8 314 Balance at 30 June 2019 3 047 2 183 5 231

EUR1.000 30/06/2019 31/12/2018l

Trading & Manufacturing 34 506 40 918

Logisitcs 3 837 3 762

Agriculture 4 020 1 393

Total inventories 42 363 46 073

The Offtake contracts as per 30 June 2019 are related to a portfolio of supply contracts that the Company obtained throughpast acquisitions (in2018 referredtoascontractbasedintangibleassets).Theproductionrelatedtothesecontractshasstartedorisexpectedtocommencewithinonetofouryears.

Thecontractsareexpectedtoproduceoveraperiodbetween 10 and 16 years. The valuation of thesecontracts is assessed by calculating the net presentvalues of the supply that will be provided over thecontract-term using long term price forecast for the metals provided by third parties. As the contractsrelate to operations that are in development, the discountratesaresetatsimilarlevelsusedforprojectdevelopment applicable to the regions in which theoperationsarelocated.

Goodwillisrelatedtotheinvestmentsintheproductionactivities (2019: EUR 24.024 thousand; 2018: EUR24.024thousand)andthetradingactivities(2019:EUR1.814thousand;2018:EUR1.814thousand).

Further addition in Goodwill is related to theinvestments in the logistics activities (EUR 3.955thousand)

Impairment

The recoverable amount of each cash-generatingunit, used in the annual impairment tests performed in 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 theprojectedcashflows.Thesecashflowprojectionsweredeterminedusingmanagement’sinternal

Forecaststhatcoveraperiodofmultipleyears,basedonthefinancialplans.Theannualimpairmenttestdidnotleadtoanyimpairmentsofgoodwill.Thepresentvalue of estimated cash flows has been calculatedusingapre-taxdiscountratethatreflectsthecurrentmarket assessment of the time value of money and the specificrisksofthecash-generatingunit.

Asummaryofthemovementsofintangiblefixedassetsisgivenbelow:

NOTE 7. INTANGIBLE FIXED ASSETS

EUR1.000 Off-take contracts

Goodwill Otherintangibleassets

Total

Gross carrying amount1 January 2018 16 646 42 596 2 345 61 587 Acquisitions - 10 504 354 10 858 Disposals/WriteOff´s -1 828 - -74 -1 902 Exchangeratedifferences -210 - - -21031 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

EUR1.000 Off-take contracts

Goodwill Otherintangibleassets

Total

Gross carrying amount1 January 2019 14 608 53 100 2 625 70 333 Acquisitions - 3 955 - 3 955 Disposals - - -36 -36 Exchangeratedifferences - - - - 30 June 2019 14 608 57 055 2 589 74 252

Accumulated amortization and impairments1 January 2019 527 8 151 1 984 10 662 Amortization - 13 70 82 30 June 2019 527 8 164 2 054 10 744

Net book value at 30 June 2019 14 081 48 891 535 63 508

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The unlisted securities include a portfolio of shares oftheCompany’sparentcompany,whichareheldfortrading in relation with future business acquisitions

(referenceismadetonote18).Both listed and unlisted securities are revalued through othercomprehensiveincome.

NOTE 11. SECURITIES

EUR1.000 01/01/2018 Acquisition Disposal Revaluation 31/12/2018

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

Total 630 - - -533 97

EUR1.000 01/01/2019 Acquisition Disposal Revaluation 30/06/2019

Unlisted securities 97 - -68 29 Listedsecurities - - - - -

Total 97 - - -68 29

A part of the Cash and Cash Equivalents is restricted asthiscashismainlydepositedatmultiplerenownedtrade finance banks and serve as cash collateral fortrade finance transactions at 30 June 2019. Trade

financehasaself-liquidatingcharacter,whichmeansthat thecashbecomesunrestricteduponcompletionofthetradefinancetransaction.

NOTE 12. CASH AND CASH EQUIVALENTS

NOTE 13. SHARE CAPITAL AND RESERVES

Isued Share Capital

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

Share Premium

The share capital amounts to EUR 20,1 million and representsacapitalcontributionoftheshareholder.

Revaluation Reserve

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

Translation Reserve

The translation reserve comprises of all foreign exchange differences arising from the translationof the financial statements of foreign operations aswellasfromthetranslationof intercompanyloansofpermanentnature.

NOTE 10. RECEIVABLES, PREPAYMENTS AND ACCRUED INCOME

Regarding the trade receivables theGroupappliesasimplifiedapproachtomeasurethelossallowancefortrade receivables classified as amortised cost usingthe lifetime expected loss provision (see note 1.4regardingthenewIFRS9).Theexpectedcreditlosson

tradereceivablesisestimatedusingaprovisionmatrixby reference to past default experience and creditrating,adjustedasappropriateforcurrentobservabledata.ThefollowingtabledetailstheriskprofileoftradereceivablesbasedontheGroups´sprovisionmatrix:

Theprovision for doubtful receivables as at 30 June2019 amounts to a total of EUR 2 345 thousand (2018: 2.571)andcontainsotherdoubtfulreceivableswithanamountofEUR243thousand.ThedifferencebetweentheCredit loss allowanceasper31December2018and 30 June 2019 amounts to EUR 460 thousand and isrecognizedasotherfinancialexpenses.

Partofthetradereceivablesarepledgedascollateralfor tradefinanced loans.Thecredit riskof theTradereceivables is insured at renowned insurance firms

andallrelatedduetradereceivableswerecollected.

The trade receivables (Factoring) are valued at fairvalue throughprofitand lossandshow thevalueasper 30 June 2019. They correspond with the tradepayables(Factoring),seenote14.ThecontractbasedassetscorrespondtotheOfftakecontractsasdescribedinnote7.

Prepayments and accrued income include prepayments formaterialpurchasedanddownpayments receivedfromcustomers.

EUR1.000 30/06/2019 31/12/2018

Tradereceivables 237 407 183 412 Shareholder 0 - Associated companies - 3 313 Related parties 750 - ofthatTradereceivables(Factoring) 22 995 24 340 Contract-basedassets 12 345 12 345 Otherreceivables 37 784 29 833 Taxation 2 213 1 753 Prepayments and accrued income 168 532 12 422 Total receivables, prepayments and accrued income 459 033 267 417

EUR 1.000expected

default rateCarrying amount Credit Loss

allowance(included)

Current 0,72% 145 396 1 047

1-30 days past due 1,93% 33 197 309

31-60 days past due 1,02% 5 141 52

61-90 days past due 1,07% 3 231 34

more than 90 days past due 3,32% 20 133 669207 097 2 111

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NOTE 14. LIABILITIES

Long Term Liabilities

The Long term liabilities are those bank loans andleaseobligationswhicharedue inmore than1year.Noneofthesearedueinmorethan5years.

Bonds represent the 2017-2022 bonds which werelaunched in2017on theNorwayExchange (EUR70million)andtheFrankfurtExchange(EUR120million)–includingthetapofEUR40millionduring2019.Thetermofbothbondsis5yearswithaninterestof7,00%perannum.TheFairvalueofthebondsamounttoEUR192,5millionat30June2019.WithregardstoLongtermleasing,referenceismadetoNote15.

TheAgricorp bond is included thatwas launched in2016ontheFrankfurtExchange.Thetermis5years(maturityon17June2021)withaninterestof8%perannum. The Fair value of the bonds amount to EUR14.6milionat30June2019.

The R-Logitech 2018 – 2023 bond which werelaunchedin2018ontheFrankfurtExchange(EUR150million) is included. The term of the bond is 5 yearswithaninterestof8,50%perannum.TherFairvalueofthebondamountstoEUR152.9millionat30June2019.

The MRG Finance UK plc 2018 / 2023 bond whichwerelaunchedin2018ontheLondonExchange(EUR50million)isincluded.Thetermofthebondis5yearswithaninterestof8,75%perannum.TherFairvalueof thebondamounts toEUR50,7millionat30 June2019.

WithregardstoLongtermleasing,referenceismadetoNote15.

Otherlong-termliabilitiesrepresenttheloangivenbyaGreekbanktooursteelproductionfacility,Nikolaïdis.The loan has a term of 10 yearswith an interest ofEuriborplus3,75%andvariouslongtermbankloans.

EUR1.000 30/06/2019 31/12/2018

Long-term liabilitiesBonds 417 390 235 654 LeasingLiabilitiesIFRS16 12 301 - LongTermleasingIAS17 - 2 006 OtherLong-termLiabilities 8 789 17 316

438 480 254 976

Current liabilities and accrualsBank loans (< 1 year) 69 355 73 814 Shorttermportionofbonds - 13 425 ShorttermportionofleasingLiabilityIFRS16 6 - Tradepayables 82 005 129 009 ofthatTradepayables(Factoring) 22 995 24 340 Associated companies - - Relatedpartiespayable 2 306 1 905 Otherpayables - - Taxesandsocialsecuritychargespayable 5 021 861 Othercurrentliabilities 4 404 2 461 Accruedliabilitiesanddeferredincome 7 430 5 645

170 528 227 122

Allliabilitiesdueinlessthanayearplusbankcreditrelatedtotradefinanceareclassifiedascurrentliability.Inventoryanddebtorshavebeenpledgedascollateral.Thefollowingrateswithrespectiveamountsapplytothebankloans:

Current Liabilities and Accruals

NOTE 15. LEASING

NOTE 14.

EUR1.000 Max.Facility Amount AmountHY2019 2018

Trade financeUncommitted facilities - interest applied dealbydealbasedonframeworkagreements

Deal-by-dealbasis 45 766 49 636

Working capital facilitiesMetals:Euribor+markup3%-7% 14 500 10 993 10 993 Metals4%-10%fixed 5 455 5 403 5 403 Logisitcs:7,5%-9%fixed 13 589 5 403 6 291 others:Euribor+markup3%-7% 2 000 1 791 1 491 Total bank loans (< 1 year) 69 355 73 814.

The lease obligations contain lease liabilities ofconcessions, land& building and plant &machinery.TheassetsleasedunderIFRS16havebeenaccountedforinthebalancesheetundertherespectivecategoriesatEUR12.306thousandat30June2019(2018:EUR

2.006 thousand). The Group is not the legal ownerof these assets. The duration of these contracts isbetweenoneandfiveyears.

Theobligationsforleasesenteredintoareshownbelow:

EUR 1.000 HY 2019 HY 2018

Lease installments < 1 year 6 - Lease installments 1 - 5 years 12 301 2 006 Total lease installments 12 306 2 006

Thetradepayables(Factoring)arevaluedatfairvaluethroughprofitandlossandshowthevalueasper30June2019.Theycorrespondwiththetradereceivables(Factoring),seenote10.

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NOTE 16. FINANCIAL INSTRUMENTS

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

Fair Value Measurements

Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs where available and arepresentedtoreflecttheexpectedgrossfuturecashin/outflows.MonacoResourcesGroupS.A.M. classifiesthefairvaluesofitsfinancialinstrumentsintoathreelevelhierarchybasedonthedegreeofthesourceandobservabilityoftheinputsthatareusedtoderivethefairvalueofthefinancialassetorliabilityasfollows:

Level 1 - Inputs are quoted prices (unadjusted) inactive markets for identical assets or liabilities thatMonaco Resources Group S.A.M. can assess at themeasurement date; orLevel 2 - Inputs other than quoted inputs included in Level1thatareobservablefortheassetsorliabilities,either directly or indirectly; orLevel 3 - Unobservable inputs for the assets orliabilities, requiringMonacoResourcesGroupS.A.M.tomakemarketbasedassumptions.

2018EUR1.000

note amortised cost FVTPL total

Financialfixedassets(otherreceivables) 8 2 360 - 2 360 Tradereceivables 10 207 752 - 207 752 Tradereceivables(Factoring) 10 - 24 340 24 340 Receivables,prepaymentsandaccruedincome 10 56 353 - 56 353 Securities 11 - 97 97 Cash and cash equivalents 12 75 609 - 75 609

Total financial assets 342 074 24 437 366 511

Sub-ordinatedborrowing 14 10 680 - 10 680 Borrowings(>1year) 14 254 976 - 254 976 Tradepayables 14 129 009 - 129 009 Tradepayables(Factoring) 14 - 24 340 24 340 Tradefinance 14 51 693 - 51 693 Currentliabilitiesandaccruals 14 46 398 20 46 418

Total financial liabilities 482 076 24 360 506 437

HY2019EUR1.000

note amortised cost FVTPL total

Financialfixedassets(otherreceivables) 8 2 183 - 2 183 Tradereceivables 10 237 407 - 237 407 Tradereceivables(Factoring) 10 - 22 995 22 995 Receivables,prepaymentsandaccruedincome 10 221 625 - 221 625 Securities 11 - 29 29 Cash and cash equivalents 12 102 127 - 102 127

Total financial assets 563 342 23 024 586 366

Borrowings(>1year) 14 438 480 - 438 480 Tradepayables 14 82 005 - 82 005 Tradepayables(Factoring) 14 - 22 995 22 995 Tradefinance 14 45 766 - 45 766 Currentliabilitiesandaccruals 14 42 757 - 42 757

Total financial liabilities 609 008 22 995 632 003

NOTE 16.

TheFairValuehierarchyoftheseitemsareprovidedinthetablebelow:

DuringtheyearnoamountsweretransferredbetweenLevel1,Level2andLevel3ofthefairvaluehierarchy.Asat30June2019nofinancialassetsand liabilitiesweresubjecttooffsetting.The level 3 securities are mainly related to unlisted

shares. In circumstances where Monaco ResourcesGroupS.A.M.cannotverifyfairvaluewithobservablemarket inputs (Level3 fairvalues), it ispossible thata different valuation model could produce a materially differentestimateoffairvalue.

2018EUR 1.000 Level 1 Level 2 Level 3 Total

Financial fixed assets (other receivables) - - - -Trade receivables - - - -Trade receivables (Factoring) 24 340 - - 24 340Receivables, prepayments and accrued income - - - -Securities - - 97 97Cash and cash equivalents - - - -

Total financial assets 24 340 - 97 24 437

Borrowings (> 1 year) - - - -Trade payables - - - -Trade payables (Factoring) 24 340 - - 24 340Trade finance - - - -Current liabilities and accruals - - - -

- -Total financial liabilities 24 340 - - 24 340

2019EUR 1.000

Level 1 Level 2 Level 3 Total

Financial fixed assets (other receivables) - - - -Trade receivables - - - -Trade receivables (Factoring) 22 995 - - 22 995Receivables, prepayments and accrued income - - - -Securities - - 29 29Cash and cash equivalents - - - -

Total financial assets 22 995 29 23 024

Borrowings (> 1 year) - - - -Trade payables - - - -Trade payables (Factoring) 22 995 - - 22 995Trade finance - - - -Current liabilities and accruals - - - -

Total financial liabilities 22 995 22 995

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NOTE 16.

Financial and Capital Risk Management

TheGrouphasexposuretothefollowingrisksarisingfromfinancialinstruments:

Credit risk Liquidity risk Market risk

This note presents information about the Group’sexposure to each of the above risks, the Group’sobjectives,policiesandprocesses formeasuringandmanagingrisk,andtheGroup’smanagementofcapital.

Credit risk

Credit risk is the riskoffinancial loss to theGroup ifa customeror counterparty to afinancial instrumentfails to meet its contractual obligations, and arisesprincipally from the Group’s receivables fromcustomersandloansrelatedtorawmaterials:

• The financial fixed assets are secured byunderlying assets of those companies. Reference ismadetonote8.

• Thereceivables,prepaymentsandaccruedincomemainlyconsistsoftradereceivableswhichissecuredbyadequatecreditinsurance.

The Group’s exposure to credit risk is influencedmainly by the individual characteristics of eachcustomer. However, management also considers thedemographicsoftheGroup’scustomerbase,includingthedefault riskof the industryandcountry inwhichcustomers operate, as these factors may have an influenceoncreditrisk.During2019and2018noneoftheGroup’srevenueattributabletosalestransactionswithasinglemultinationalcustomerexceeded10%ofthetotalrevenue.

The Group has established a credit policy underwhicheachnewcustomer is analyzed individuallyforcreditworthinessbeforetheGroup’spaymentanddeliverytermsandconditionsareoffered.ThisisdoneinclosecooperationwiththeTradeFinancebanksandCreditinsurancecompanies.Nevertheless,inprincipleinsurancecoverageisobtainedforalltradereceivables.

FurthermoretheGroupappliesasimplifiedapproachto measure the loss allowance for trade receivablesusingthe lifetimeexpected lossprovision(referenceismadetonote1.4regardingthenewIFRS9andnote10).

Liquidity risk

LiquidityriskistheriskthattheGroupwillencounterdifficultiesinmeetingtheobligationsassociatedwithits financial liabilities that are settled by deliveringcashoranotherfinancialasset.TheGroup’sapproachtomanaging liquidity is toensure,as faraspossible,thatitwillalwayshavesufficientliquiditytomeetits

liabilitieswhendue,underbothnormalandstressedconditions, without incurring unacceptable lossesor risking damage to the Group’s reputation. Withregards to its hedging activities, that primarily take place inthe trading activities, the Company implemented a policythathedgingisonlyallowedunderatri-partiteagreementinordertoavoidmargincalls.

Market risk

Market risk is the risk that results out of changes in marketprices,suchasforeignexchangerates,interestrates,marketpricesandequitypricesandwillaffecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimizingthereturn.The Group buys and sells derivatives in order tomanagemarketrisks.AllsuchtransactionsarecarriedoutwithintheguidelinessetbytheGroup.Inprincipleall derivatives are accounted at FVTPL; if requiredand appropriate, the Group seeks to apply hedge accounting in order to manage volatility in profit orloss.

Currency risk

The Production facilities mainly enter in to euro agreements and therefore, the currency risk is insignificant.TheTradingactivitiesaremainlyexposedtotheUSD/EURexchangerate,asthetradesarepredominantlyinUSDandthereportingcurrency is inEUR.However,the currency risk is limited as contract deals are denominated in USD for both purchases and sales.Purchasesarefinancedbymeansof tradefinance inUSDaswell.Asthepurchase,saleandfinancingareallinUSD,andastradingoccursinprincipleonaback-to-backbasis,thedealsarenaturallyhedged.

Interest rates

To limit the interest rate risk, the Company decided toonlygiveoutandobtainloanswithafixedinterestrate.Foroverdraftfacilitiestheriskislimitedduetotheshorttermofthesefacilities.

Market price risk

Theproductionfacilitiesmainlyproduceonthebasisoftollingagreements.Intheseagreementsthepurchaseof material is related to the sale and the price risk is mitigated.

The Group mainly enters into back-to-back deals,which means that the market price risk is naturallyhedged. In case that a trade is subject to price risk,this ishedged throughadequate instruments.Wheninstruments are required, the Company prepares a sensitivityanalysiswithregardstotheimpactofthechanges incommoditypriceand (if applicable) thechanges

NOTE 17. REMUNERATION OF KEY MANAGEMENT

Theremunerationofkeymanagement(directorandCEO)ofthelegalentityisasfollows:

NOTE 16.

EUR1.000 HY2019 HY2018

short-termemployeebenefits 1 201 2 201 post-employmentbenefits - - otherlong-termbenefits - - Total 1 201 2 201

Equity price risk

The Company invested into listed and unlisted shares of juniorminingcompanies tosecure its (future)off-takecontracts.ThesesecuritiesarepresentedinNote11Securities.TheCompanyiscloselyinvolvedinthese

mining companies and monitors the progress on an on-goingbasis.Managementisoftheopinionthat,bynature, themarket index of juniormining companiesincreaseswhenproductionstarts.

The total impact in the consolidated statement of income amounts to EUR 10 thousand (2018: EUR 478 thousand).Allderivativesmaturewithinthefirstthree

months.TheCompanyhadinstrumentsforatotalofEUR 180 thousand at 30 June 2019 (2018: EUR 375 thousand).

HY2019 EUR1.000

Commodity related contractsFutures 180Options -

Total Current liabilities FVTPL 180

in foreign currency risks. Based on this analysis anadequatenonspeculativehedgingstrategyisapplied.

At30June2019,theCompanyhasalimitednumberof hedging instruments, which are presented underCurrent liabilities and accruals. These instrumentsare designated as FVTPL and include trade relatedfinancial and physical forward purchase and salecommitments. Fair values are primarily determinedusing quoted market prices or standard pricing models using observablemarket inputswhere available and

are presented to reflect the expected gross futurecashin/outflows.

ItistheGroup’spolicythattransactionsandactivitiesintraderelatedfinancialinstrumentsarenetted.NotethattheCompanyonlypurchasesfuturesandoptions.Inprinciple theCompanydoesnotwrite futuresandoptions.

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NOTE 18. TRANSACTIONS WITH RELATED PARTIES

NOTE 20. CONTINGENT ASSETS AND LIABILITIES

In2019,theCompanyconductedvarioustransactionswithrelatedparties.

Inthecourseofbusiness,thecompanyis involvedindiscussionswithbusinesspartnersfromtimetotime.These discussions may include the interpretation and compliance with the terms and conditions ofagreements and may also include claims made by

thecompany,aswellasagainstthecompany.Atyearend,noclaimsagainstthecompanyexisted-ifany-thatwereassessedtobeprobable,norpossibletobesuccessful.

The related party receivables of 2019 are related toloansprovided toassociatedcompanies.The relatedparty liabilities of 2018 are mainly related to loansprovidedbyminorityshareholdersorpartiesrelatedto

theseminorityshareholders.Thoseloansareprovidedatmarketconditions.

The Company has provided several corporate guarantees tosubsidiariesandrelatedpartiesand inprincipletheseareallrelatedtotradefinance.

The possibility of any cash outflowwith regards totheseguaranteesisremote.

NOTE 19. GUARANTEES

EUR1.000 Note 30/06/2019 2018

Shareholder>1yr 10 - - Shareholder<1yr - - Related parties (associated Companies) <1yr 10 750 3 313

Total Receivables 750 3 313

SubordinatedShareholder>1yr 13 - - Related parties <1yr 14 2 306 1 905

Total Liabilities 2 306 1 905

Netreceivable(-liability) -1 556 1 407

NOTE 21. LIST OF PRINCIPAL OPERATING, FINANCIAL AND INDUSTRIAL SUBSI-DIARIES AND INVESTMENTS

Name Country of incorporation Ownership interest2019 2018

Consolidated (direct)Agricorp S.A.M. Monaco 100,0% 100,0%M2i S.A.M. Monaco 100,0% 100,0%Gasoil Energy Group Ltd Cyprus 100,0% 100,0%Lunala Investments S.A. Luxembourg 100,0% 100,0%MRG Finance S.A.R.L. Luxembourg 100,0% 100,0%R-Logitech S.A.M. Monaco 100,0% 100,0%Resources Management Services GmbH Switzerland 100,0% 100,0%M2i UK Ltd. United Kingdom 100,0% 100,0%MRG Finance UK Plc United Kingdom 100,0% 100,0%EP FundCo SA Luxembourg 53,35% 100,0%

Consolidated (indirect)

Metals & MineralsMetalcorp Group S.A. Luxembourg 100,0% 100,0%BAGR Non-Ferrous Group mbH Germany 100,0% 100,0%Tennant Metals Group S.A.R.L. Luxembourg 100,0% 100,0%Metalcorp Finance B.V. The Netherlands 100,0% 100,0%Metalcorp Services UK Ltd. United Kingdom 100,0% 100,0%Steelcorp Industries S.A.R.L. Luxembourg 100,0% 100,0%Steelcom Group S.A.R.L. Luxembourg 100,0% 100,0%A&A Metals S.A. Switzerland 100,0% 100,0%Stockach Aluminium GmbH Germany 94,0% 94,0%BAGR Berliner Aluminiumwerk GmbH Germany 94,0% 94,0%Cable Recycling Industries S.L. Spain 94,0% 94,0%MCG-SRR B.V. The Netherlands 100,0% 100,0%Norwich S.A.R.L. Luxembourg 100,0% 100,0%NB Investments B.V. The Netherlands 100,0% 100,0%Nikolaidis Th. Bros. S.A. Greece 70,0% 70,0%Orlyplein Investment B.V. The Netherlands 100,0% 100,0%Société des Bauxites de Guinée S.A. Republic of Guinea 73,1% 73,1%Steelcom Austria GesmbH Austria 100,0% 100,0%Steelcom USA LLC USA 100,0% 100,0%Steel and Commodities S.A.M. Monaco 100,0% 100,0%Steel and Commodities Iberica S.L. Spain 100,0% 100,0%Steelcom Steel and Commodities GmbH Germany 100,0% 100,0%Tennant Metals GmbH Germany 100,0% 100,0%Tennant Metals (Pty) Ltd. Australia 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%SBG Bauxite and Alumina N.V. The Netherlands 94,0% 94,0%Tennant Metals Trade B.V. The Netherlands 100,0% 100,0%TMR Resources S.A. Luxembourg 26,0% 0,0%

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NOTE 21. LIST OF PRINCIPAL OPERATING, FINANCIAL AND INDUSTRIAL SUBSIDIARIES AND INVESTMENTS



Logistics & TechnologyNectar Holdings Ltd. United Kingdom 30,0% 30,0%Riviera Marine S.A.M. Monaco 29,6% 29,6%R-Logitech UK Ltd. United Kingdom 100,0% 100,0%R-Logisitc Group Ltd. Cyprus 100,0% 100,0%Southern Mediterranean Logistics S.A.M. Monaco 100,0% 100,0%Citraco Togo 65,0% 64,4%Handling Partner Gabon Gabon 39,0% 39,0%Corex Gabon 50,0% 50,0%Dakar Oil Base Senegal 99,0% 99,0%NAT Shipping Bagging Services Limited Bermuda 30,0% 30,0%Nectar (East Africa) Limited United Kingdom 30,0% 30,0%Nectar (West Africa) Limited United Kingdom 30,0% 30,0%Nectar (West Africa) Nigeria Limited Nigeria 30,0% 30,0%Nectar Coal Handling (Mozambique) Ltda Mozambique 22,5% 22,5%Nectar Ghana Limited Ghana 30,0% 30,0%Nectar Group Limited United Kingdom 30,0% 30,0%Nectar Mozambique Ltda Mozambique 22,5% 22,5%Nectar Sierra Leone Bulk Terminal Limited Sierra Leone 24,0% 24,0%Oakguild Limited United Kingdom 30,0% 30,0%R-Logistic Africa Mauritius 100,0% 100,0%R-Logistic Algerie Algeria 100,0% 100,0%R-Logistic Benin Benin 99,8% 99,8%R-Logistic Burkina Faso Burkina Faso 70,0% 70,0%R-Logistic Afrique Ivory Coast 75,0% 75,0%R-Logistic Gabon Gabon 99,0% 99,0%R-Logistic Niger Niger 80,0% 100,0%R-Logistic Terminals Mauritius 100,0% 100,0%R-Logistic Togo Togo 99,0% 99,0%R-Logistic Mali Mali 100,0% 100,0%R-Logistic Senegal Senegal 75,0% 0,0%R-Logistic Congo Republic of Congo 80,0% 0,0%R-Logistic Guinée Republic of Guinea 100,0% 0,0%Société de Gestion Fluviale Republic of Guinea 100,0% 0,0%KP Gestion Portuaire Republic of Guinea 100,0% 0,0%R-Logistic S.A.S. France 100,0% 100,0%R-Logistic France S.A.S. France 100,0% 100,0%RL Holding S.A. Luxembourg 100,0% 0,0%THAUMAS NV Belgium 53,35% 0,0%R-Logitech S.A. Luxembourg 100,0% 100,0%EP PaCo S.A. Luxembourg 53,35% 100,0%EP BCo S.A. Luxembourg 53,35% 100,0%Euroports Holdings S.à.r.l Luxembourg 53,35% 0,0%Euroports Port Acquisition Holdings S.à.r.l. Luxembourg 53,35% 0,0%Euroports Benelux S.à.r.l Luxembourg 53,35% 0,0%Euroports SHRU Holdings S.à.r.l Luxembourg 53,35% 0,0%

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


EnergyGasoil Integrated Gas Ltd. Cyprus 100,0% 100,0%Gasoil Integrated UK Ltd. United Kingdom 100,0% 100,0%Gasoil Petroleum Ltd. Cyprus 0,0% 100,0%Energies du Sud S.A.M. Monaco 100,0% 100,0%Four Trees Energy Ltd. United Kingdom 0,0% 55,0%Technipipe Solutions SAS France 48,0% 48,0%Technipipe Development SAS France 92,7% 92,7%

Finance & InvestmentsR-Cap Advisory Ltd. United Kingdom 100,0% 100,0%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 Finance Invest S.A. Luxembourg 100,0% 100,0%R-Cap Trade Consulting Ltd. United Kingdom 100,0% 100,0%Structured Resource Finance B.V. the Netherlands 0,0% 100,0%SRF Financial Services GmbH Germany 0,0% 100,0%

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Non-consolidated (Associates)Rescap Investments Pty Ltd. Australia 19,0% 19,0%ATS Handling Republic of Congo 50,0% 50,0%Necotrans Asia Ltd. Hong Kong 0,0% 50,0%Necotrans Korea South Korea 0,0% 33,3%Necotrans Myanmar Myanmar 0,0% 35,0%Seasia Nectar Port Services Inc. Philippines 12,0% 12,0%TPK Cameroon 60,0% 60,0%ICS Procurement Solutions S.A.M. Monaco 0,0% 60,0%ICS Transmine Nigeria 0,0% 70,0%ICS Algerie SARL Algeria 0,0% 29,4%

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MONACO RESOURCESOTHERINFORMATION

03SUBSEQUENT EVENTS

Theprofitearned inafinancialyear isat thedisposalof thegeneralmeeting.TheCompanymaypaydividendsonly insofaras itsequityexceedsthepaid-inandcalled-upcapitalplusthereservesthecompany isrequiredbylawtomaintain.Dividendsarepaidafteradoptionoftheannualaccounts,iftheannualaccountsdemonstratethatdividendpaymentsarepermissible.Dividendsaredueandpayableimmediatelyaftertheyaredeclared,unlessthegeneralmeetingfixesanotherdateintherelevantresolution.Ashareholder’sclaimtoadividendwilllapsefiveyearsafterthedividendbecomesdueandpayable.ThegeneralmeetingmayresolvetopayinterimdividendsandtopaydividendsfromareservethattheCompanyisnotrequiredbylawtomaintain.Thegeneralmeetingmayresolvetopaydividendsinkind.ThesharesheldbytheCompanyinitsowncapitalaretobedisregardedinthecalculationoftheamountofdividendtobepaidonshares.

APPROPRIATION OF RESULTS

The Company-only annual report of 2018was approved in the GeneralMeeting of Shareholders. The GeneralMeetingofShareholdershasdeterminedthattheappropriationofresultinaccordancewiththeproposalbeingmadetoaddtheresultof2018totheotherreserves.

APPROPRIATION OF RESULT FOR THE FINANCIAL YEAR 2018

OTHER INFORMATION

In2019asignificantacquisitiontookplace-R-Logitechwithitsinvestmentpartners,theBelgiansovereignwealthfundsFPIMandPMVacquiredamajoritystakeinPorts&TerminalsoperatorEuroports.R-Logitechtookcontrolofthecompanyfrom1stJuly2019onwards.AccordinglyEuroportswillbeconsolidatedfrom1stofJuly2019.R-LogitechtapeditsbondlistedontheFrankfurtexchangeby€100Miotosecureitslongtermfinancing.

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Thefactsandinformationcontainedinthisreportcontainsinformationasknowntothereportingdateandissubjectto future changes. Neither the MONACO RESOURCES GROUP S.A.M. (the “Company”) or related companies,affiliates,subsidiariesormanagement,supervisoryboardmembers,employeesoradvisorsnoranyotherpersoncanbeheldliableforanymisrepresentationsanddonotprovideanywarrantieswithregardstothecompletenessofthisreport.

NeithertheCompanyorrelatedcompany,affiliates,subsidiariesnoranyofthepreviousmentionedpersonsshallhaveanyliabilityforanylossarisingfromtheuseofthisreport,neitherdirectnorindirectnorconsequentialdamages.Whilstallreasonablecarehasbeentakentoensurethatthefactsstatedhereiniscorrectandtheviewsexpressedhereinarefairandreasonable,noguaranteecanbeprovided.Withregardstoquoted informationfromexternalsources,thisinformationisnottobeinterpretedasiftheyhavebeenacceptedorconfirmedbytheCompany.

Thisdocumentcontainsforward-lookingstatements.Forward-lookingstatements includeallstatementsthatdonotdescribehistoricfacts,butcontainstermssuchas“believe”,“assume”,“expect”,“anticipate”,“estimate”,“plan”,“intend”,“could”orsimilarwording.However,thesestatementsarebynaturesubjecttoriskanduncertainties,astheyarerelatedtofutureeventsandarebasedonassumptionsandestimates,whichcouldnotoccuratallordonotoccurasanticipatedinthefuture.Therefore,noguaranteeisprovidedforanyfutureresultsortheperformanceoftheCompany,theactualfinancialsituationandtheactualresultsoftheCompanyaswellastheoveralleconomicdevelopmentandlegalframeworksthatmaydiffermateriallyfromtheexpectationsreflectedintheforwardlookingstatementsthatareexpressedorimpliedandmaynotfulfill.

InvestorsarethereforecautionednottobasetheirinvestmentdecisionsregardingtheCompanyontheexpressedforwardlookingstatements.

DISCLAIMER

MONACO RESOURCESCONTACT

HEADQUARTERSMONACORESOURCESGROUPS.A.M.Athos Palace2,ruedelaLüjerneta98000 Monacowww.monacoresources.com

+ 377 97 98 65 [email protected]

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2019 MONACO RESOURCES HALF-YEAR REPORT · Monaco Resources is an international and diversified natural resources group. Our business is organised within five divisions. Our metals