Sumo Resources : Accounts 2020

Registered number: 08330294

SUMO RESOURCES PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

	SUMO RESOURCES PLC
	COMPANY INFORMATION
Directors	AB Odendaal
	HA Claassen
Company secretary	@Ukplc Client Secretary Ltd
Registered number	08330294
Registered office	Winnington House 2
	Woodberry Grove
	Finchley
	London N12 0DR
	United Kingdom
Independent auditors	Fisher Michael Chartered Accountants
	The Old Grange
	Warren Estate
	Lordship Road
	Chelmsford
	CM1 3WT

SUMO RESOURCES PLC

CONTENTS

	Page
Group Strategic Report	1 - 2
Directors' Report	3 - 4
Consolidated Profit and Loss Account	5
Consolidated Statement of Comprehensive Income	6
Consolidated Statement of Financial Position	7
Company Statement of Financial Position	8
Consolidated Statement of Changes in Equity	9
Company Statement of Changes in Equity	10
Consolidated Statement of Cash Flows	11
Notes to the Financial Statements	12 - 22

SUMO RESOURCES PLC

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Introduction

Sumo Resources is a group of companies focused on the trade and extraction of rare minerals like Tantalum, Niobium and Gold. These minerals, specifically Tantalum, are essential in the manufacture of electronic components for mobile devices, medical equipment, specialised steel alloys, lenses and engineering supplies to name a few. The group targets geographical areas that are rich in high value low volume minerals but with an underdeveloped mining sector typically due to a lack of infrastructure.

Business review

Business Structure

The group structure includes a holding company, a trading company and geographical subsidiaries. Sumo Resources Plc, incorporated in England, is the holding company for the group and is listed on the Euronext Paris Access segment. Sumo Resources FZC, incorporated in the United Arab Emirates, is one hundred percent owned by Sumo Resources Plc and is the trading company for the group. All sales outside the group are done via this entity. Subsidiaries are entities incorporated in the geographical areas where the group chooses to operate and establish projects to source rare minerals. These entities are typically majority owned by Sumo Resources. The balance of shareholding belongs to locals that add value through local knowledge of the geographical region. Currently the group has a subsidiary, SR Tanmin Sarl, established in the Democratic Republic of Congo of which it owns seventy five percent.

Business Model

In our business model Sumo Resources Plc is used to attract capital for the group operations. Sumo Resources FZC is the central trading company in the group. It may source and sell a wide variety of resources to external customers. In order to provide a dedicated flow of resources Sumo Resources Plc establishes its own mining and trading operations in geographical areas that meet its criteria.

The typical projects that the subsidiaries get involved in is high value rare minerals, like Tantalum, that can be extracted by small scale surface mining operations that do not require large investments. The group provides funding for the projects and in return the subsidiaries supply all production to Sumo Resources FZC at a predetermined margin on cost.

Business Activities

During the reporting period the activities of the company were focused on research for its exploration plans and to reduce operating costs. The further development of the business was severely impacted by the pandemic cause by Covid-19.

The travel restrictions due to the pandemic limited access to most of our operating areas as the majority of senior staff are foreigners in these countries. As such all our trading activities have been suspended to reduce overhead costs.

There is a high level of uncertainty about how long the restrictions will last for some intercontinental travel an as such there is uncertainty regarding the future of the business in its current format.

Next Steps

There is uncertainty about when the situation with the pandemic will have sufficiently stabilised to recommence operations. In the men time the directors are actively looking for alternatives which may include being acquired or merging with another entity. Any progress will be shared via news publications.

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SUMO RESOURCES PLC

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Principal risks and uncertainties

The impact of the pandemic is the biggest risk for the business at present. Travel restrictions and uncertainty about the demand for minerals has a knock-on effect and impacts operations and capitalisation of projects.

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