Mining, Minerals & Metals plc Regulatory News (MMM)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014.

24 November 2020

For Immediate Release

Mining, Minerals & Metals plc

("MMM" or the "Company")

Interim Results

MMM, which operates as a special purpose acquisition company ("SPAC") to undertake an acquisition of one or more businesses (either shares or assets) that has operations involved in natural resource exploration, announces its unaudited half year report for the six months ended 31 July 2020. 

Highlights

· MMM joined the Official List of the London Stock Exchange (by way of a Standard Listing) and raised gross proceeds of approximately £0.52 million (gross of expenses) through a subscription for new ordinary shares;

· The Board has been active in its search for acquisition opportunities and reviewed a number of potential candidates in the mining and oil & gas sectors;

· Total Comprehensive Loss of £147,379 has been recorded for the period ended 31 July 2020, all historical losses are primarily related to one-off costs associated with the IPO and expenditure on the implementation of the Company's acquisition strategy; and

· At 31 July 2020, the Company had cash of £389,146.

Enquiries

Chairman's Statement and Management Report

I am pleased to present the maiden interim report of MMM for the six month period ended 31 July 2020 and following our listing on the London Stock Exchange in March 2020.

Since Admission, the Board has been active in its search for acquisition opportunities. The Directors have reviewed a number of opportunities in the mining and oil & gas sectors; there have not been any satisfactory opportunities so far, however the Directors have been encouraged by the breadth of potential acquisition candidates. Discussions are at an exploratory stage and we have not yet entered into advanced negotiations with any parties.

Whilst it continues its assessment of potential acquisition opportunities, the Board will prudently manage the Company's remaining cash reserves and minimise its operating expenses in order to put the Company in the best position possible to complete a possible acquisition. The Board looks forward to updating the market, as applicable, in due course.

Financial Review

The loss for the period to 31 July 2020 was £147,379. This reflects the transaction costs associated with the Company's Main Market Listing and fundraising as well as day-to-day administration expenses.

The loss per share was 0.46 pence.

At 31 July 2020, the Company had cash of £389,146, derived both from the subscription and admission to the Standard Listing segment of the London Stock Exchange.

Principal Risks and Uncertainties

The Company is subject to a number of risk factors. The Directors have identified the following key risk in the second six months of this financial year. Other risk factors not presently known or currently deemed immaterial may also apply.

The Company is dependent on its directors to manage the Company and its future strategy. If the Company were to lose the services of the directors, it could have a material adverse effect on the Company and its ability to implement its future strategy.

Responsibility Statement

The Directors are responsible for preparing the Interim Report in accordance with the Disclosure and Transparency Rules ('DTR') of the United Kingdom's Financial Conduct Authority and with International Accounting Standard 34 on Interim Financial Reporting (IAS 34).

The Directors being Matthew Bonner, Andrew Monk, Roy Pitchford, Kay Asare-Bediako and Mike Stewart confirm that to the best of their knowledge:

· the interim financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

· the interim financial statements have been prepared in accordance with IAS 34 and that as required by DTR 4.2.7 and DTR 4.2.8, the Interim Report gives a fair review of:

- important events that have occurred during the first six months of the year;

- the impact of those events on the financial statements;

- a description of the principal risks and uncertainties for the remaining six months of the financial year; 

- details of any related party transactions that have materially affected the Company's financial position

or performance in the six months ended 31 July 2020; and

- any changes in the related parties' transactions described in the last annual report that could have a

material effect on the financial position or performance of the enterprise in the first six months of the

current financial year.

Going Concern

These financial statements are prepared on the going concern basis. The going concern basis assumes that the Company will continue in operation for the foreseeable future and will be able to realise its assets and discharge its liabilities and commitments in the normal course of business.

The Company has limited administrative expenses associated with its continuing operations and its liabilities are limited to trade payables associated with the administrative expenditure. The Directors have prepared budgetary forecasts for the period ended 31 July 2022, considering operating cashflows and expenditure requirements for the Company.

The Directors are of the opinion that the Company will be able to undertake its planned activities through to the period ended 31 July 2022 and have prepared the financial statements on the going concern basis. The financial statements do not include any adjustments that would result if the Group was unable to continue as a going concern.

Dividend Policy and Dividends

The Company's current intention is to retain any earnings for use in its business operations, and the Company does not anticipate declaring any dividends in the foreseeable future. The Company will only pay dividends to the extent that to do so is in accordance with all applicable laws.

The Directors do not propose a dividend for the period ended 31 July 2020.

Matthew Bonner

Non-Executive Chairman

24 November 2020

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION

The notes to the financial statements form an integral part of these financial statements.

This report was approved by the board and authorised for issue on 24 November 2020 and signed on its behalf by:

Matthew Bonner

Non-Executive Chairman

NOTES TO FINANCIAL STATEMENTS

1. GENERAL INFORMATION

The Company was incorporated on 28 January 2013 in England and Wales as a limited company, limited by shares and with Registered Number 08377465 under the Companies Act 2006. The Company's registered office address is: New Liverpool House, 15-17 Eldon Street, London EC2M 7LD. The Company has not yet commenced business. The company re-registered as a public limited company on 22 October 2018.

The Company's objective is to undertake an acquisition of a target company or business in the natural resources sector.

The Company does not have a defined life as it has no fixed time limit to conduct the Acquisition

Other than the Directors the company did not have any staff.

2. ACCOUNTING POLICIES

Basis of preparation

The principal accounting policies adopted by the Company in the preparation of the Company Financial Information are set out below.

The Company Financial Information has been presented in Pounds Sterling, being the functional currency of the Company.

The Company Financial Information has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union, including interpretations made by the International Financial Reporting Interpretations Committee (IFRIC) issued by the International Accounting Standards Board (IASB). The standards have been applied consistently.

Standards and interpretations issued but not yet applied

A number of new standards and amendments to standards and interpretations have been issued but are not yet effective and, in some cases, have not yet been adopted by the EU. The Directors do not expect that the adoption of these standards will have a material impact on the Company Financial Information.

Going concern

These financial statements have been prepared on a going concern basis as the Directors have reasonable expectation that the Company has adequate resources to continue in operational existence. The Company is a start-up company and does not currently have any service offering or customer base, however, it has successfully been admitted to the London Stock Exchange ("LSE") - Main Market where it has already raised £514,000 to fund its business plans.

The Directors consider there to be uncertainty over the timing and occurrence of a potential acquisition, however given the proceeds raised to the date of this report and having regard to forecast operating costs there is sufficient headroom to remain in operational existence for a period of at least 12 months from the date the financial statements were approved. .

Share capital

Proceeds from issuance of ordinary shares are classified as equity. Amounts in excess of the nominal value of the shares issued is recognised as share premium. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against share capital.

Financial assets and liabilities

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of a financial instrument. Financial assets and financial liabilities are offset if there is a legally enforceable right to set off the recognised amounts and interests and it is intended to settle on a net basis.

Financial assets

Financial liabilities

The company does not currently have any financial liabilities measured at fair value through profit or loss, therefore all the financial liabilities are initially measured at fair value net of transaction costs and are subsequently measured at amortised cost.

Use of assumptions and estimates

In preparing the Company Financial Information, the Directors have to make judgments on how to apply the Company's accounting policies and make estimates about the future. The Directors do not consider there to be any critical judgments or sources of estimation uncertainty that have been made in arriving at the amounts recognised in the Company Financial Information.

3. DIRECTORS' EMOLUMENTS

No amount was paid or become payable to any of the Directors of the Company and there were no staff costs as no staff was employed by the Company during the period ended 31 July 2020 (2019: NIL).

4. FINANCIAL RISK MANAGEMENT

The Company uses a limited number of financial instruments, comprising cash and various items such as trade payables, which arise directly from operations. The Company does not trade in financial instruments.

Financial risk factors

The Company's activities expose it to a variety of financial risks: credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial performance.

a) Credit risk

The Company does not have any major concentrations of credit risk related to any individual customer or counterparty.

b) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the Company ensures it has adequate resource to discharge all its liabilities. The directors have considered the liquidity risk as part of their going concern assessment. (See note 2).

Fair values

Management assessed that the fair values of cash trade payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

5. CAPITAL MANAGEMENT POLICY

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the Company consists of equity attributable to equity holders of the Company, comprising issued share capital and reserves.

6. FINANCIAL INSTRUMENTS

The Company's principal financial instruments comprise cash and cash equivalents and other payable. The Company's accounting policies and method adopted, including the criteria for recognition, the basis on which income and expenses are recognised in respect of each class of financial assets, financial liability and equity instrument are set out in Note 2. The Company does not use financial instruments for speculative purposes.

The principal financial instruments used by the Company, from which financial instrument risk arises, are as follows:

There are no financial assets that are either past due or impaired. The financial liabilities are due for payment in 1 to 3 months.

7. LOSS PER SHARE

The loss per share has been calculated using the loss for the year and the weighted average number of ordinary shares entitled to dividend rights which were outstanding during the year. There were no potentially dilutive ordinary shares at the year end.

8. RELATED PARTY TRANSACTIONS

Key management are considered to be the directors and the key management personnel compensation has been disclosed in note 7.

During the period, VSA Capital Limited provided financial advisory and broker services to the Company. Andrew Monk is a director and shareholder of VSA Capital Limited. The total amount of the services provided was £10,000.

9. POST BALANCE SHEET EVENT

No notable post-balance sheet events have occurred. The Company continues to monitor the changes to the global business conditions and overall global business environment resulting from COVID-19 lockdowns and restrictions.

10.  ULTIMATE CONTROLLING PARTY

At 31 July 2020, there was no ultimate controlling party.