Reports

We have audited the accompanying Consolidated financial statements of Minerals Income Investment
Fund (MIIF) its Subsidiary for the year ended 31 December 2022. These financial statements
comprise the Consolidated statement of comprehensive income, statement of Consolidated financial
position, statement of Consolidated changes in equity, statement of Consolidated cash flows for the
year that ended, and a summary of significant accounting policies and other explanatory notes set out
on pages 15 to 32.
In our opinion, the Consolidated accompanying financial statements present fairly, in all material
respects, the financial position of the Group as of 31 December 2022, and the financial performance
and Cash flows of the Group for the year then ended in accordance with International Financial
Reporting Standards (IFRS) and a manner required by the Minerals Income Investment Act, 2018 (Act
978), the Companies Act 2019 (Act 992) and Public Financial Management Act 2016 (Act 921) and
Public Financial Management Regulations 2019, (LI 2378).

(a) The Minerals Income Investment Fund (MIIF or the Fund) Investment Risk Management and Liquidity Policy (IRMLP or the Policy) is primarily aimed at providing controls for risk minimization in the investment operations of the Fund and ensuring that investable funds are sufficiently available to meet the cash flow needs of the Investment Department on a timely basis. The assumption of risk by the Fund is designed in line with the Minerals Income Investment Fund Act, 2018 (Act 978), as amended (MIIF Act) and the Investment Policy and Guidelines (IPG), which provide a framework and procedures for the investment activities of the Fund.

(b) Investment risk management at MIIF, is largely a shared responsibility of the Board, Risk Management Committee (RMC), Investment Advisory Committee and Management. Matters in relation to risk is collectively reviewed to provide effective guidance for risk reduction and mitigation, if not complete prevention with reference to capital preservation and returns on investment in the short, medium to long term.

(c) One of MIIF’s flagship goals is to provide capital, capacity building and an enabling environment for growth and innovation in the Ghanaian mining sector by undertaking short to long term investments. Risks associated with the Fund’s investments must therefore be effectively identified, assessed, measured, monitored, evaluated and reported on regular basis to stakeholders, mainly the Board and the Ministry of Finance.

(d) The Fund’s risk appetite framework in this Policy sets out the general principles for the management of risks, covering notably, credit risk, market risk, liquidity risk, operational risk, climate and environmental risk, portfolio risk, reputational risk and compliance risk.

(e) MIIF has also adopted Environmental, Social and Governance Policy (ESG) guidelines with the goal of ensuring that the Fund’s actions meet environmental sustainability guidelines and are predictable, transparent and accountable in its quest to optimize returns. The ESG Policy ensures that projects and investments undertaken by the Fund promotes sustainable developments in line with best practices locally and internationally.

(f) Ensuring long term stable earnings from the MIIF capital base (mineral royalties and dividends) is highly prioritized by the Fund. A strong capital base helps build buffers to absorb probable losses and unforeseen risks. The Board and Management of MIIF believe that the fundamental element of ensuring good governance is to have a sound framework of risk assessment and internal controls. The fundamental premise of this Policy is to achieve this. 

(a) The Minerals Income Investment Fund (“MIIF” or the “Fund”) recognizes the importance of good corporate governance and Corporate Social Responsibility (CSR) in promoting the MIIF brand, good community relations, and strengthening the trust of its stakeholders. The Fund believes that integrating social, environmental, and ethical responsibilities into its operations would ensure long term success of its operations, promote stakeholder engagement and community relations which are crucial to the competitiveness and sustainability of the Fund and its investments.

(b) The Fund defines Corporate Social Responsibility as follows:

▪ Conducting business in a socially responsible and ethical manner;
▪ Protecting the environment, livelihood and the safety of people;
▪ Ensuring that investments benefit the community through responsible and economically sustainable initiatives;
▪ That all activities by the Fund supports the 17 social development goals (SDGs); and
▪ Engaging, learning from, respecting and supporting the communities and cultures within which the Fund operates and have its assets invested.

(c) The CSR Policy shall be guided by the Fund’s core values, vision and commitment to stakeholders, employees and community.

(d) The CSR Policy shall apply to all CSR activities undertaken by the Fund and to a limited extent, any organizations, institutions, companies, or foundations in which the Fund holds a significant stake.

(e) The Fund’s CSR Policy has been framed pursuant to the Minerals Income Investment Fund Act, 2018 (Act 978) as amended by the Minerals Income Investment Fund (Amendment) Act, 2020 (Act 1024) (the “Fund Act”).

(f) The CSR policy will be aligned with existing MIIF policies and regulations in particular the Investment Policy guidelines, ESG guidelines and any other relevant government social responsibility and environmental protection policies.

We have audited the accompanying Consolidated financial statements of Minerals Income Investment Fund (MIIF)its Subsidiary forthe year ended 31 December 2021. These financial statements comprise the Consolidated statement of comprehensive income, statement of Consolidated financial position, statement of Consolidated changes in equity, statement of Consolidated cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes set out on pages 15 to32. In our opinion, the Consolidated accompanying financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2021, and the financial performance and Cash flows of the Group for the year then ended in accordance with International Financial Reporting Standards (IFRS) and in a manner required by the Minerals Income Investment Act, 2018 (Act 978), the Companies Act 2019(Act992) and Public Financial Management Act2016(Act921) and Public Financial Management Regulations 2019, (LI 2378).

In 2020, the Parliament of the Republic of Ghana passed the Anti-Money Laundering Act, 2020 (Act 1044) (the AML Act). The AML Act repealed the Anti-Money Laundering Act, 2008 (Act 749) as amended. To provide practical guidance to the application of the AML Act, the Anti-Money Laundering Regulations 2011 (L.I. 1987) (the AML Regulations) was passed (together, the AML Laws).

In April 2019, the Securities and Exchange Commission (SEC) and the Financial Intelligence Centre (FIC) developed a manual to guide Capital Market Operators (CMOs) to enhance their monitoring and surveillance systems with a view to preventing, detecting and responding appropriately to money laundering and financing of terrorism risks and similar risks in the financial market (the SEC/FIC manual).

In order to ensure that adequate policies and procedures are available to guide the Minerals Income Investment Fund (MIIF or the Fund) and staff in complying with the provisions of the AML Laws and the SEC/FIC manual, this Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) Policy Procedures and Programme Manual (the Manual) has been developed to provide an abridged version of the above-mentioned documents.

The business of MIIF may require it to directly receive funds from other parties or invest funds into projects, utlise funds for trade purposes or engage in trade and financing transactions which could expose the Fund to money laundering and terrorism financing risks. The purpose of this Manual is to manage the risks associated with the laundering of the proceeds of crime and provide protection against fraud, reputational and other risks associated with same.

Consequently, all MIIF Staff are required to adopt a risk-based approach in the identification and management of the AML/CFT risks in line with the requirements of this Manual, the AML Laws and the SEC/FIC manual.

Additionally, this Manual is MIIF’s means of stating its commitment to comply with AML/CFT obligations under the law and regulatory directives and to actively prevent any transaction that otherwise facilitates criminal activity or terrorism. This Manual is structured in three (3), namely Part A, Part B and Part C.