2021 ANNUAL REPORT
We believe in
a green energy
future.
ACKNOWLEDGEMENTS
We acknowledge the Traditional Owners of the land on
which we operate and on which we work. We recognise
their connection to land, waters and culture, and pay our
respects to their Elders past, present and emerging.
We would like to thank Neil Warburton who retired from
the IGO Board in FY21 for his significant contribution
to IGO over the last five years.
We are also pleased to welcome two new appointments
to the Board, Xiaoping Yang as a Non-executive Director
and Michael Nossal as a Non-executive Director who
transitioned to the Chair role on 1 July 2021.
We would also like to take this opportunity to thank Peter
Bilbe, who was appointed to the IGO Board in 2009, for his
substantial contribution to the Company. Over his tenure,
Peter has overseen the positive transformation of IGO,
culminating in the announcement on 30 June 2021 of the
completion of the transaction with Tianqi Lithium Corporation.
IGO will continue to benefit from Peter’s input as a Non-
executive Director until the 2021 AGM.
IGO is proud to report the Australasian Reporting Awards
(ARA) awarded IGO’s 2020 Annual Report a Gold Award
in the 2021 ARA General Award.
IGO Limited is an ASX 100 listed
Company focused on creating a
better planet for future generations by
discovering, developing, and delivering
products critical to clean energy.
WHO WE ARE
IGO Limited is an ASX 100 listed Company focused on
creating a better planet for future generations by discovering,
developing, and delivering products critical to clean energy.
As a purpose-led organisation with strong, embedded values
and a culture of caring for our people and our stakeholders,
we believe we are Making a Difference by safely, sustainably
and ethically delivering the products our customers need
to advance the global transition to decarbonisation.
Through our upstream mining and downstream processing
assets, IGO is enabling future-facing technologies including
the electrification of transport, energy storage and renewable
energy generation.
IGO owns and operates 100% of the Nova nickel-copper-cobalt
operation in Western Australia and is invested in a lithium
focused joint venture (Lithium JV) with our partner, Tianqi
Lithium Corporation, which comprises a 51% stake in the
Greenbushes Lithium Mine and 100% interest in a downstream
processing refinery at Kwinana in Western Australia to produce
battery grade lithium hydroxide.
IGO is also focused on discovering the mines of the future
and has an enduring commitment to investing in exploration
to ensure the world has a sustainable supply of clean energy
metals into the future.
About This Report
This annual report is a summary of IGO and its subsidiary companies’ operations, activities and financial position as at 30 June 2021.
All dollar figures are expressed in Australian dollars unless otherwise stated.
You will notice in this years’ report we have introduced our sustainability model, see page 28. This model is built on seven pillars
to drive engagement and outcomes across the Company. This is centred around our purpose, Making a Difference. We recognise
environmental, social and governance (ESG) and commercial issues are often connected; they are part of a system that is constantly
evolving. This model highlights the interconnectedness of each of these pillars in achieving our overall business strategy.
These seven pillars are summarised in this report, however more detail on each pillar can be found in our 2021 Sustainability Report.
Non-IFRS: This report includes certain non-IFRS financial measures, including underlying measures of EBITDA and free cash flow.
The meanings of individual non-IFRS measures used in this report are set out in the glossary on page 140. Non-IFRS measures should
not be considered as alternatives to an IFRS measure of profitability, financial performance or liquidity.
OPERATIONS & EXPLORATION
Operational Scorecard & Outlook
Key Operations & Projects
Nova Operation
Tropicana Operation
Lithium Joint Venture
14
15
16
19
20
Regional Exploration & Development 22
Mineral Resources & Ore Reserves
26
OVERVIEW
FY21 Snapshot
Chair & CEO Message
CFO Report
Financial Summary
Our Purpose
Our Strategy
Executive Leadership Team
02
04
06
07
08
10
12
OUR SUSTAINABLE
BUSINESS
CORPORATE GOVERNANCE
& FINANCIAL REPORT
Our People
Safety & Wellbeing
Communities & Traditional Owners
Our Response to Climate Change
Environment
Our Financial Contributions
Business Integrity
29
29
30
30
31
31
32
Corporate Governance
Board Profile
Directors’ Report
Remuneration Report
Financial Report
Additional ASX Information
Shareholder Reporting Timetable
Glossary
Company Directory
33
36
38
50
73
138
139
140
142
IGO ANNUAL REPORT 2021 — 1
Overview
FY21 Snapshot
In FY21, IGO successfully completed its
strategic transformation into a business
100% focused on clean energy metals.
The lithium joint venture agreement with Tianqi Lithium
Corporation was a watershed moment for IGO which,
combined with the divestment of the Company’s 30% interest
in the Tropicana Gold Mine, has resulted in IGO being uniquely
positioned with world-class upstream and downstream assets
exposed to nickel, copper, cobalt and lithium. It is this suite of
metals which IGO believes will benefit most from the rapidly
accelerating demand for electric vehicles, stationary energy
storage and renewable energy technologies.
FY21 saw robust operational performance from Nova, which
achieved above guidance metal production in FY21, and also
Tropicana, which delivered record financial results for the
full year. Total revenue and other income of A$919M1 and
underlying free cash flow of A$363M has placed IGO’s balance
sheet in an enviable position following the completion of the
two major transactions, with group net cash of A$529M.
The success of FY21 could not have been achieved
without the hard work and commitment of our people.
Our people have risen to the challenge of operating through
COVID-19 and have delivered outstanding outcomes and
importantly, have remained committed to our purpose
of Making a Difference.
Financial Summary
GROUP REVENUE
AND OTHER INCOME
A$919M1
3%
NET PROFIT AFTER TAX
A$549M2
254%
UNDERLYING FREE
CASH FLOW
A$363M
17%
2 — IGO ANNUAL REPORT 2021
At a Glance
EXCELLENT FINANCIAL
PERFORMANCE
OUTSTANDING PERFORMANCE
FROM NOVA
IGO delivered record financial
results for FY21, reporting total
revenue and other income of
A$919M1, underlying EBITDA
of A$475M and underlying free
cash flow of A$363M
TRANSFORMATIONAL
LITHIUM INVESTMENT
IGO invested in a new lithium
focused joint venture with
Tianqi Lithium Corporation.
Through the new joint venture,
IGO has gained exposure to
the world-class Greenbushes
Lithium Mine and the Kwinana
Lithium Hydroxide Refinery,
both located in Western
Australia
DIVESTMENT OF TROPICANA
In May 2021, IGO divested its
30% stake in the Tropicana
Gold Mine to Regis Resources
Limited for proceeds of
A$889M
ASX 100 INCLUSION
In recognition of IGO’s growth,
the Company was admitted
to the S&P/ASX 100 Index
in February 2021
Nova production exceeded
guidance for all metals, and
confirmed its position as the
lowest cost nickel operation in
Australia with cash costs of
A$1.85/lb
Ni (payable)
RECOGNITION OF
COMMITMENT TO ESG
IGO was recognised for its
strong ESG performance with
admission to the Dow Jones
Sustainability Index Australia
for the second year running.
IGO was also included in the
S&P Sustainability Yearbook
for 2021
IMPROVED FEMALE GENDER
DIVERSITY
27%
( 3% vs FY20)
of our overall workforce are
female, with a significant
improvement across all
disciplines at our Nova Operation
1. Revenue and other income from continuing and discontinued
operations (excluding profit on sale of Tropicana of A$557M)
2. Profit after tax includes gain on sale of Tropicana after tax
of A$385M. Profit after tax excluding this gain was A$164M
IGO ANNUAL REPORT 2021 — 3
Chair & CEO Message
Focusing on a
sustainable future
strong technology development and
innovation skills. With a deep passion
for clean energy, and direct experience
with solar, hydrogen and energy storage
technologies, and significant experience
in doing business in China, Xiaoping
adds critical skills to the Board especially
following our transaction with Tianqi.
Michael is a highly regarded senior
mining executive who brings strong
strategy and business development
skills, and a deep knowledge in the areas
of exploration, project development
and operations. Michael transitioned
to the Chair position with effect from
1 July 2021 and we look forward to his
contribution to our growing business.
PRIORITISING OUR PEOPLE
The continued success and growth
of our business would not be possible
without our incredible team of people
who continue to be bold, passionate,
fearless and fun – a smarter, kinder,
more innovative team.
As our greatest asset, our first
responsibility is to keep our people
safe, and we have continued to work
on improving our safety performance
throughout FY21 with our Total
Reportable Injury Frequency Rate
down from 16.9 in FY20 to 13.2. There
is always more to do, but key lead and
lag indicators have demonstrated an
improvement over FY21.
In addition, it is important we recognise
that protecting our people goes beyond
physical safety. IGO takes a holistic view,
to include programs that support our
team’s physical, mental and financial
wellbeing. The support we provide in
this area has been particularly important
throughout FY21 as the COVID-19
pandemic continued to impact the
way in which we all lived and worked.
Thankfully, Western Australia, where the
majority of our operations are located,
has been relatively unaffected by the
pandemic, however we acknowledge the
additional pressure this unprecedented
event has placed on our people and
their families over the last 18 months.
Our resilience as an organisation is
a direct reflection of our strong culture
and we are proud with the continued
progress that has been made over FY21.
Our recent 2021 Engagement Survey
demonstrated the continued pride our
people have for working for IGO and
highlighted our culture, defined by our
people as friendly, flexible, happy and
ambitious. The culture we have built is
Peter Bradford, Managing Director & CEO and Peter Bilbe,
Non-executive Director (Chair July 2011-June 2021)
It is our joint pleasure
to summarise IGO’s
achievements for the
2021 financial year.
A TRANSFORMATIONAL YEAR
As the impact of climate change on
our planet becomes undeniable, global
decarbonisation has become a political,
financial and human imperative. To that
end, advances in technology are now
enabling the efficient and cost-effective
generation, storage and consumption
of clean energy, resulting in exponential
growth in demand for electrified transport
and grid-scale energy storage systems.
In 2017, and in recognition of this
emerging revolution, we redefined our
purpose and strategy to become a
globally relevant producer of metals
critical to clean energy, and to do so in
a manner which is ethical, responsible
and sustainable. We believe that what
we do, and how we do it, can really
Make a Difference.
has resulted in IGO gaining exposure
to a world-class lithium resource at
Greenbushes and becoming co-owners
of a lithium hydroxide downstream
processing refinery at Kwinana – a fully
integrated supply chain delivering high
quality battery grade products to end
users.
In addition, we completed the successful
divestment of our 30% stake in
Tropicana, which we held in partnership
with AngloGold Ashanti since discovery.
While Tropicana is an outstanding asset,
divestment offered us the opportunity to
deleverage the balance sheet following
the Tianqi transaction, while completing
our strategic transition to become a truly
diversified clean energy metals company
with high quality nickel, copper, cobalt
and lithium exposure.
In recognition of the continuing growth
of our business, IGO was admitted to
the S&P/ASX 100 Index during FY21. This
important milestone elevates IGO into the
top-ranking listed companies in Australia
and increases our global relevance to the
investment community.
In FY21, our focus on clean energy metals
took a significant step forward with the
transformational transaction to form a
new lithium focused joint venture (Lithium
JV) with Tianqi Lithium Corporation
(Tianqi). This exciting transaction
BOARD SUCCESSION
We were delighted to welcome Xiaoping
Yang and Michael Nossal to the Board
during December 2020. Xiaoping brings
an impressive range of skills including
4 — IGO ANNUAL REPORT 2021
one of our competitive advantages, our
people want to be part of our future and
we receive consistent feedback from our
people that they are excited about our
purpose and strategy and enjoy being
part of the IGO community.
A SUSTAINABLE BUSINESS
How we go about our business is
as important as what we do. Our
sustainability as a business relies on us
ensuring we consistently deliver value
and care to all of our stakeholders.
During FY21, we refined our sustainability
model, which is now built around seven
key pillars. This model, which is included
in this report, will help guide IGO’s future
sustainability practices and reporting and
provide a consistent framework against
which our performance can be measured.
Some of the areas we focus on most are
the reduction of our carbon emissions
and impact on the environment, as
well as the engagement with our local
communities and ensuring the integrity
of our supply chain.
In FY21, our solar farm at Nova continued
to deliver a significant reduction in
diesel usage and consequently, carbon
emissions. In addition, we have made
substantial progress in reducing non-
recyclable waste streams from both
operations and remote exploration
activities – yet another way we are
ensuring we minimise our impact
on the planet.
We also continued to support the
local communities in which we operate
through both financial and non-financial
support for organisations focused on
child health and education. As well as
providing over A$904,000 of funding
through our Corporate Giving Program,
IGO supports a range of organisations
through employee volunteering programs
and in-kind contributions that deliver
positive outcomes in our community.
We also produced our first Modern
Slavery Statement, which outlines the
steps that IGO has taken to assess
modern slavery risks within our operations
and supply chains, and the actions we
have taken to address those risks.
IGO takes great pride in the transparency
with which we report on sustainability
measures. Our 2021 Sustainability
Report, which can be read in conjunction
with this document, is a comprehensive
record of our performance over FY21
and we encourage you to review this
document in due course.
Our commitment to sustainability
continues to be recognised by third-
party agencies. For the second year
running, IGO is a constituent in the Dow
Jones Sustainability Index Australia, with
a ranking in the 85th percentile and being
one of just nine mining companies in the
Index. In addition, IGO was included in
the S&P Global Sustainability Yearbook
for 2021, being one of 13 mining
companies globally and one of two
Australian mining companies who were
admitted. This is a record we are proud
of and one we intend to maintain.
SUCCESSFUL OPERATIONS
FY21 was another highly successful year
at our Nova Operation, while Tropicana
also delivered strong outcomes before
our divestment in May 2021.
At Nova, our FY21 production for all
metals exceeded our guidance range,
with cash cost performance benefiting
from both the higher nickel volumes and
higher by-product metal prices. The
strong results for FY21 confirm Nova’s
position as one of the highest margin
nickel operations globally.
Our continuing strong delivery from Nova
was made possible by our onsite team
who maintained a consistent focus on
operational excellence and continuous
improvement. Key achievements in FY21
included significant progress in areas
of recovery improvement, paste plant
optimisation and mine optimisation. This
focus will continue into FY22.
Tropicana, which was divested in May
2021, also delivered to expectation
with solid gold production and
costs within guidance. We take this
opportunity to thank AngloGold Ashanti
for their partnership at Tropicana
over many years, and wish them and
Regis Resources, the new partner,
a prosperous future.
The continued strong operational
performance resulted in equally strong
financial performance, and we are proud
to have recorded record revenue, net
profit and free cash flow generation in
FY21. We have also ended FY21 with an
exceptionally strong balance sheet, with
A$529M in cash and no debt.
GROWTH
While we have witnessed significant
transformation in the business over FY21,
IGO remains focused on further growth
opportunities.
Exploration remains a critically important
part of our business and a key area of
competence and capability. Chronic
underinvestment in exploration by the
mining industry will impact on the ability
to deliver the mines of the future and the
products needed for the next generation
of technology. With a large but highly
prospective exploration portfolio, IGO
is making a significant and enduring
commitment to reverse this trend
and is investing in some of the most
prospective land positions in Australia
for both nickel and copper. We believe
we have the portfolio of tenements,
the team and the tenacity to deliver
transformational discovery and value
creation for our shareholders.
In addition, we continue to assess
further opportunities to grow via
accretive mergers and acquisitions.
THANK YOU
The work we do would not be possible
without the commitment and support
of our people and their families, and
we thank you all for your ongoing
commitment to Making a Difference.
We also take this opportunity to thank
our host communities, suppliers,
contractors, industry associations and
regulators for their continued support.
Finally, we thank our shareholders for
your continuing support and trust in the
Board and Leadership team.
Peter Bilbe
Non-executive Director
(Chair between July 2011 and June 2021)
Peter Bradford
Managing Director
& Chief Executive Officer
MESSAGE FROM PETER BILBE
This is the last Annual Report I will
be involved with at IGO before I retire
from the Board in November 2021.
Over the 12 years I have been with IGO,
the business has matured and grown
tremendously and the opportunity
ahead for the business is incredibly
exciting. I would like to thank my
fellow Board members and the broader
IGO team, past and present, for their
support over the years, and wish
Michael Nossal all the best as Chair.
IGO ANNUAL REPORT 2021 — 5
CFO Report
Record Financial
Performance
particularly during the second half
of FY21, positively impacted cash
cost performance and resulted in
a downward revision of cash cost
guidance in the March 2021 Quarterly
Report. Cash cost guidance was
adjusted to A$1.80 – A$2.10/lb nickel
(payable) from earlier guidance of
A$2.40 – A$2.80/lb nickel (payable),
and it was pleasing to finish FY21 at the
lower end of this new guidance range.
This outstanding cash cost performance
led to Nova generating a record A$393M
of free cash flow over FY21, with full year
EBITDA and free cash flow margins of
65% and 59% respectively.
Production from Tropicana, prior to
our divestment on 31 May 2021, was
364,751oz (100% basis) at an all-in
sustaining cost of A$1,720/oz. Free cash
flow generation from Tropicana over this
same period was A$68M equating to
a free cash flow margin of 28%.
From a cash perspective, FY21 saw
significant movements in Group cash as
we completed the two transformational
transactions. Significant cash inflows
included A$862M attributable to the
Tropicana divestment (net of costs),
and the equity raising conducted to
support the lithium transaction netted
an additional A$749M contribution from
shareholders. The Tropicana divestment
and equity raise delivered a combined
A$1,611M to IGO, which enabled
us to settle the lithium transaction
consideration of A$1,855M without the
need to draw on new debt facilities.
This was an outstanding achievement
for IGO and positions the business with
A$529M net cash at 30 June 2021.
As a result of the then pending lithium
transaction and associated recent equity
raise, the Board did not declare an
interim dividend during FY21.
However, IGO maintains its commitment
to deliver returns to shareholders via
dividends and has declared a payment
of 10 cents per share, fully franked, for
its FY21 final dividend. In line with this
commitment, IGO’s shareholder returns
policy has been modified to target
returns of 15 to 25 percent of underlying
free cash flow when liquidity is less than
A$500M, and when liquidity is in excess
of A$500M, further discretion will be
applied to return a greater proportion of
cash to shareholders. The policy remains
at the discretion of the Board.
Scott Steinkrug
Chief Financial Officer
Fraser Range, Western Australia
FY21 has been another
highly successful and
transformative year for
IGO and I am delighted to
provide a summary of our
key financial results.
6 — IGO ANNUAL REPORT 2021
The year was characterised by two
significant transactions involving the
divestment of our interest in Tropicana
and our investment into the new lithium
focused joint venture. Importantly,
operational performance from both Nova
and Tropicana also remained strong
throughout FY21, delivering excellent
margins and free cash flow to IGO.
In FY21, IGO set new records across
key financial measures. Group revenue
of A$915M was 3% higher than the
FY20 result, with higher metals prices
more than offsetting marginally lower
year-on-year production volumes. Group
underlying free cash flow of A$363M
was 17% higher than the FY20 result,
while net profit after tax of A$549M
was significantly higher than FY20 due
to the gain booked on the successful
divestment of our 30% stake in the
Tropicana Gold Mine to Regis Resources
of A$385M. Profit after tax excluding
the gain on Tropicana was A$164M.
The robust financial results reflect
the consistently strong operational
performance over FY21.
Production from Nova exceeded
guidance (29,002t nickel, 13,022t
copper, 1,084t cobalt) at cash costs of
A$1.85/lb nickel (payable). Strong
prevailing copper and cobalt prices,
Share Price Performance
$12.00
$10.00
E
R
A
H
S
/
$
A
$8.00
$6.00
$4.00
$2.00
$0.00
Jul 2 0
MAX:
A$9.89
MIN:
A$4.03
A ug 2 0
S ep 2 0
O ct 2 0
N ov 2 0
D ec 2 0
Jan 21
Fe b 21
M ar 21
A pr 21
M ay 21
Jun 21
Jul 21
A ug 21
As at 20 August 2021
Volume
Share Price
FY21 Financial Summary
Total revenue and other income
Underlying EBITDA2
Profit after tax
Net cash flow from operating activities
Underlying free cash flow2
Total assets
Cash
Marketable securities
Total liabilities
Shareholders’ equity
Net tangible assets per share (A$ per share)
Dividends (cents per share)
FY21
A$M
9191
475
5493
446
363
3,609
529
111
409
3,200
4.30
10
FY20
A$M
892
460
155
398
311
2,293
510
108
367
1,926
3.26
11
FY19
A$M
793
341
76
372
278
2,190
348
28
341
1,849
3.13
10
FY18
A$M
781
339
53
278
138
2,175
139
24
396
1,779
3.03
3
1. Revenue and Other Income from continuing and discontinued operations (excluding profit on sale of Tropicana of A$557M).
2. See Glossary on page 140 for definition.
3. Profit after tax includes gain on the sale of Tropicana after tax of A$385M. Profit after tax excluding this gain was A$164M.
E
M
U
L
O
V
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
FY17
A$M
422
151
17
78
(113)
2,208
36
15
476
1,733
2.95
2
Historical Payable Production1
The historical payable metal charts represent five years of contribution from IGO’s current operations and historical contributions
from the Long, Jaguar and Tropicana operations that are no longer in the IGO portfolio2.
In FY21 all nickel, copper and cobalt was derived from the Nova Operation, with all gold contributed from the Tropicana Joint
Venture (IGO: 30% share).
NICKEL (t)
COPPER (t)
COBALT (t)
GOLD (oz)3
25,000
20,000
15,000
10,000
5,000
0
7
1
Y
F
8
1
Y
F
9
1
Y
F
0
2
Y
F
1
2
Y
F
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
7
1
Y
F
8
1
Y
F
9
1
Y
F
0
2
Y
F
1
2
Y
F
500
450
400
350
300
250
200
150
100
50
0
8
1
Y
F
9
1
Y
F
0
2
Y
F
1
2
Y
F
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
7
1
Y
F
8
1
Y
F
9
1
Y
F
0
2
Y
F
1
2
Y
F
1 Historic metal production of nickel, copper and cobalt includes metal units produced in concentrate (Nova and Jaguar) and metal in ore (Long).
2 The Long and Jaguar Operation’s were divested in May 2019 and May 2018 respectively.
3 Gold production for FY21 was lower than FY20 due to the divestment of Tropicana on 31 May 2021.
IGO ANNUAL REPORT 2021 — 7
Our Purpose
We believe in a world
where people power makes
amazing things happen
Where technology opens up new
horizons and clean energy makes the
planet a better place for generations
to come.
Our people are bold, passionate, fearless
and fun – we are a smarter, kinder and
more innovative company.
Our work is making fundamental changes to the way
communities all over the world grow, prosper and stay
sustainable. Our teams are finding and producing the specialist
metals that will make energy storage mobile, efficient and
effective enough to make long-term improvements to the
lifestyle of hundreds of millions of people across the globe.
How? New battery storage technology is finally unleashing the
full potential of renewable energy by allowing power produced
from the sun, wind and other sources to be stored and used
when and where it’s needed. This technology will impact future
generations in ways we cannot yet imagine, improving people’s
quality of life and changing the way we live.
We believe in a green energy future and by delivering the
metals needed for new age batteries, we are making it happen.
We are the IGO Difference.
Diversified (gold & base metals) focus
Clean energy metals focus
Nova
Acquisition
Ni, Cu & Co
Rebuilding
Exploration Team
and Portfolio
Divestment of
Jaguar Operation
Zn, Cu & Ag
Tianqi
Investment
Li
FY15
FY16
FY17
FY18
FY19
FY20
FY21
Rationalised
Exploration Team
and Portfolio
Nova Commercial
Production
Ni, Cu & Co
Divestment
of Long Nickel
Operation
Ni
Divestment of
stake in Tropicana
Au
Divestment of
Stockman Project
Cu & Zn
8 — IGO ANNUAL REPORT 2021
IGNITE THE
SPARK
We seek, question, innovate
and create.
We know that without a
burning curiosity and bright
thinking, we risk missing the
really big opportunities.
Our
Values
NEVER STAND
STILL
We are bold, adventurous
and excited for the future.
We imagine new
opportunities
and seek new horizons.
BE BETTER
TOGETHER
We empower, support and
respect each other.
We act safely and with
care, to the strengths
of our people.
SEE BEYOND
We know that our actions today
will impact the world of tomorrow.
We believe our people,
community and the environment
really matter.
RUN THROUGH
THE SPRINKLERS
We find the fun in what we do.
When our workplaces
are healthier and happier,
we are better.
Our Culture
Provides an environment where our people
feel a strong sense of pride in the difference
that they can make to future generations
Values diversity, supports inclusion and cares
about the safety and wellbeing of each other
Provides learning and development opportunities
for people to grow their career and thrive
Is unique and strong because our people have
been active in the creation of it
Over time our culture has inspired and connected our
people to continue to achieve and to perform through
our celebrations and challenges.
Our people’s response and strong performance through
the challenges of COVID-19 is directly attributable to our
strong culture and sense of shared purpose.
Our culture has also enabled us to adapt and change
– our clean energy strategy was embraced by our people
who could see the opportunities for change and the
difference they could make to the world.
In a world where the one constant is change, our culture
is our point of difference, something that can’t be copied
and is our ultimate competitive advantage.
IGO ANNUAL REPORT 2021 — 9
Our Strategy
Our aspiration is to contribute
to a better planet by being a globally
relevant supplier of products critical
for enabling clean energy
Our strategy has evolved as our business has transformed. For many years, IGO’s strategy was to be a diversified mining
Company with upstream assets exposed to nickel, copper, cobalt and gold. In 2017, the IGO Board and leadership team
recognised the significant opportunity resources businesses, such as IGO, had to play in the decarbonisation of our planet.
From this point, we realigned our strategy to focus on metals critical to clean energy, which includes renewable energy
generation, energy storge and the electrification of transport.
Emboldened by the conviction to our strategy, we first rationalised our portfolio through the divestment of non-core assets
while rebuilding and aligning our exploration team and portfolio. Most recently, in FY21 we completed the transformation
of the portfolio through the sale of our stake in the Tropicana Gold Mine, and also by our investment in the Lithium JV with
Tianqi. Our transition to become a future facing business is now complete with our business 100% focused on producing
products critical for enabling clean energy.
This transformation and our strong strategic conviction provide an ideal platform from which we will continue to grow
a sustainable business and deliver strong returns for our shareholders long into the future.
The IGO Strategy
Our winning aspiration is to be a globally relevant supplier of products
that are critical to clean energy, to create a better planet.
Diverse Suite of Products
Customer Focused
Carbon Neutral
Made safely, ethically,
sustainably and reliably
Connecting with end users
through vertical integration
Committing to carbon neutrality
across our business
People
People who are bold, passionate, fearless and fun
– a smarter, kinder, more innovative team
10 — IGO ANNUAL REPORT 2021
Key Strategic Imperatives
IGO has identified 11 Key Strategic Imperatives to deliver against if we are to achieve
our strategy. As a purpose-led organisation, our purpose of Making a Difference and our
culture of care is embedded in everything we do. These imperatives address how we are
seeking to create shared value for all of our stakeholders.
People and Culture
We value our people and the importance
of culture. We are bold, passionate, fearless
and fun – a smarter, kinder, more innovative
team
Operations
We are in control, deliver on our promises,
and continuously strive to do better
Safety and Wellbeing
We keep ourselves safe and healthy and
care about each other
Environment and Decarbonisation
We make a positive contribution towards
decarbonisation and a better planet
Community and Traditional Owners
We are a valued part of our communities
and make a positive contribution
Systems, Processes and Technology
We are enabled with systems, processes
and technology to drive success
Financial
We enable our growth through the optimal
allocation of capital and funding solutions
Lithium Business
We optimise and maximise our lithium
assets and partnership(s)
Innovation
We unlock, share and act on ideas to
transform our business at all levels
Growth
We drive transformation through M&A,
vertical integration and discovery
Customers
We deliver quality products safely, ethically,
sustainably and reliably
IGO ANNUAL REPORT 2021 — 11
Overview
Executive
Leadership
Team
PETER
BRADFORD
MANAGING DIRECTOR
& CHIEF EXECUTIVE
OFFICER
KATE
BARKER
GENERAL COUNSEL
AND HEAD OF RISK
& COMPLIANCE
BAppSc Extractive Metallurgy, FAusIMM
LLB, BA
Peter is accountable to the Board of Directors for the
day-to-day management of the Company.
Peter was appointed Managing Director & CEO of IGO in
2014. Peter is a metallurgist and has significant experience
in senior leadership roles with exploration, project development
and mining companies in Australia and internationally. Peter
is President of the Association of Mining and Exploration
Companies Inc (AMEC) and Chair of the Curtin University
Brighter Futures Scholarship Program.
Kate’s role is to provide guidance to the Company on all
legal, risk and compliance, and land access and heritage
matters. She provides oversight on the Company’s growth
strategy and M&A activities, supports the Exploration and
Operational teams, and is directly involved in the Company’s
key stakeholder relationships and negotiations.
Kate joined IGO in 2011 and was appointed General Counsel
in 2017. Kate has 20 years’ experience as a practising lawyer
specialising in large scale resources litigation, corporate law
and native title. In addition to her corporate work, Kate has
been a legal member of WA’s Mental Health Review Board
and the sitting lawyer on WA Health’s Human Research Ethics
Committee and is currently a member of the board of Ronald
McDonald House Charities (WA).
MATT
DUSCI
CHIEF OPERATIONS
OFFICER
ANDREW
EDDOWES
HEAD OF CORPORATE
DEVELOPMENT
BAppSc (Geology) (Hons), MAIG
B.Sc (Earth Science) (Hons), MAusIMM, FGeolSoc
Andrew’s role is accountable for the growth of the IGO
portfolio through partnering, acquisition and divestment
of advanced assets aligned with the Company strategy.
Andrew is a geologist with over 25 years’ experience in the
exploration and mining industry. He has worked on major
projects within Australia and internationally, in a variety of
corporate and technical roles. Andrew joined IGO in 2003
and in February 2018, was appointed Head of Corporate
Development with a focus on advancing IGO’s growth and
improvement of the asset portfolio through acquisitions
and strategic partnerships.
Matt’s role is accountable for the day-to-day operational
delivery and performance of the Company. This includes
the Nova and Tropicana Operations, Exploration, Health and
Safety, Environment and Climate Change, Technical Services,
Technology and Innovation, and Information Technology. Matt
is also a Non-executive Director of the Lithium Joint Venture.
Matt joined IGO in 2014 and was appointed Chief Operating
Officer in early 2018, and prior to that was Chief Growth
Officer. Matt has over 25 years’ experience in all facets of the
industry including exploration, resource development, technical
studies, corporate development, public markets, operations,
and executive leadership. Matt has previously held senior
management positions within PMI Gold, Gold Fields and WMC
Resources. Matt has extensive global experience, having
worked in Australia, South America, Africa and Asia.
12 — IGO ANNUAL REPORT 2021
JOANNE
MCDONALD
COMPANY SECRETARY
AND HEAD OF CORPORATE
AFFAIRS
SAM
RETALLACK
HEAD OF PEOPLE
& CULTURE
MSc (Corporate Governance), MSc (Professional Accounting), FGIA, GAICD
Dip App Science, B. Health Science, CAHRI, GAICD
Joanne’s role is to support the Board as well as advising
and implementing good governance practices across the
organisation. Joanne also provides leadership and oversight
of Corporate Affairs, including stakeholder engagement,
communications, investor relations and IGO’s Corporate
Giving Program.
Joanne joined IGO in 2015 and has over 17 years’ experience as a
company secretarial professional working for listed companies in
Australia and the UK. Prior to joining IGO, Joanne held positions
with Paladin Energy Ltd, Summit Resources Ltd and Unilever plc.
Joanne is currently a WA State Councillor for the Governance
Institute of Australia and a Director of the Leeuwin Ocean
Adventure Foundation.
Sam’s role is to provide leadership and oversight of all People
and Culture activities, including diversity, equity and inclusion
initiatives, learning and talent development and reinforcing
the organisation’s culture, purpose and values. Sam is also
responsible for the corporate office administration and operation.
Sam joined IGO in 2013 as Human Resources Manager and
was appointed Head of People & Culture in 2017. Sam has
over 25 years’ experience in senior management, human
resources, consulting and operational roles working for a range
of organisations. Prior to joining IGO, Sam led large workforce -
based businesses within Aherns Department Stores and Ansett
Airlines, before turning to roles in Human Resource management
across the mining, finance, legal and biomedical sectors.
IAN
SANDL
GENERAL MANAGER
– EXPLORATION
SCOTT
STEINKRUG
CHIEF FINANCIAL
OFFICER
BSc (Geology, Geophysics) (Hons)
F.C.A. B.Comm, BSc., GAICD
Ian’s role is to lead and develop a best-in-class exploration
team, driving technical and operational excellence, and
ensuring an enduring high-quality pipeline of projects to
deliver material discoveries to IGO.
Ian joined IGO in 2017 as General Manager – Exploration.
Ian has over 30 years’ experience in mineral exploration and
associated geoscience, including near-mine and greenfields
exploration for a wide range of commodities. He has previously
held senior management and technical positions within Teck
Resources, BHP Minerals and Geo Discovery Group, and has
significant international experience having worked across
Australia, Africa and Asia.1
Scott’s role includes responsibility for statutory financial
compliance and reporting, taxation, treasury, budgeting and
forecasting, sales and marketing, and Group procurement.
Scott joined IGO in 2011 as Chief Financial Officer. Scott is
a Fellow of Chartered Accountants Australia and New Zealand
having gained over 20 years’ experience in the resources
industry including Consolidated Minerals, Perilya, Sons of
Gwalia and Hamersley Iron (Rio Tinto). Positions held over this
period include Chief Financial Officer, Manager - Treasury
& Finance and Financial Controller.
1.
Ian Sandl stepped down from the ELT with effect from 1 July 2021 to
ensure greater focus on the delivery of day-to-day Exploration operations
IGO ANNUAL REPORT 2021 — 13
Operations
Operational Scorecard
& Outlook
MINING OPERATION
Nova (IGO 100%)
Nickel in concentrate
Copper in concentrate
Cobalt in concentrate
UNITS
FY21
GUIDANCE RANGE
FY21
ACTUAL
FY22
GUIDANCE RANGE
t
t
t
27,000 to 29,000
29,002
25,000 to 27,000
11,000 to 12,500
13,022
11,500 to 12,500
850 to 950
1,084
900 to 1,000
Cash cost (payable)
A$/Ib Ni
2.40 to 2.801
18 to 20
2 to 4
1.85
8.4
3.7
2.00 to 2.40
19 to 22
5 to 7
Sustaining & improvement capex
Development capex
Tropicana (IGO 30%)2
Gold produced (100% basis)
Gold sold (IGO’s 30% share)
A$M
A$M
oz
oz
348,333 to 394,167
364,751
104,500 to 118,250
110,402
Cash cost
A$/oz Au
1,040 to 1,120
All-in Sustaining Costs
A$/oz Au
1,730 to 1,860
Sustaining & improvement capex (30%)
Capitalised waste stripping (30%)
Underground capex (30%)
A$M
A$M
A$M
10 to 15
60 to 64
9 to 13
1,081
1,720
6.1
56.1
8.9
Exploration Expenditure
Total Exploration Expenditure
A$M
65
63.3
1. Revised to A$1.80 to A$2.10/lb Ni (payable) in 3Q21 Quarterly Activities Report.
2. 100% attributable Tropicana production and pro-rata guidance are to 31 May 2021, being the date of completion of the Tropicana
divestment to Regis Resources Limited.
14 — IGO ANNUAL REPORT 2021
N/A
N/A
N/A
N/A
N/A
N/A
N/A
65
Key Operations
& Projects
Kimberley Project
IGO 100% and various JVs
Paterson Project
IGO 100% and various JVs
Kwinana (LiOH)
IGO 49%
Greenbushes (Li)
IGO 24.99%
Nova Operation (Ni-Cu-Co)
Fraser Range Project
IGO 100%
IGO 100% and various JVs
Head Office Perth
Operations
Exploration Activities
Ni/Cu/Co
Cu/Au
Li/LiOH (Tianqi JV Assets)
D
N
A
L
N
E
E
R
G
Frontier Project
IGO up to 80%
Raptor Project
IGO 100%
Lake Mackay Project
IGO up to 70%
Copper Coast Project
IGO 100%
IGO ANNUAL REPORT 2021 — 15
Operations
Nova Operation
NICKEL-COPPER-COBALT
Nova continued to deliver
outstanding operational
performance in FY21, with
production exceeding
guidance for all metals.
LOCATION & HISTORY
STRONG PERFORMANCE IN FY21
The Nova Operation is located
in the Great Western Woodlands,
approximately 140km by road east
northeast of Norseman in Western
Australia. The Ngadju are the Traditional
Owners and custodians of this area and
their native title was recognised by the
Federal Court on 21 November 2014.
The Nova deposit was discovered
in July 2012, with development
of the current operation commencing
in January 2015. Following a successful
construction and commissioning phase,
the Operation commenced commercial
production in July 2017, and reached
its nameplate production rate in the
September 2017 quarter.
Nova continued to deliver outstanding
operational performance in FY21, with
production exceeding guidance for all
metals, while cash costs of A$1.85 per
payable pound of nickel confirmed the
Operation’s position as the lowest cost
nickel producer in Australia.
Mining performance continued
to be excellent, with mined grades
remaining higher than reserve grade
as we continued to prioritise high grade
stopes. To provide an opportunity
to increase mining rates in the future,
a workstream focused on optimisation
of the paste fill system was successfully
completed. Completion of this
program will remove a key constraint
to increasing mining and processing
rates in the future.
16 — IGO ANNUAL REPORT 2021
Processing operations also continued
to perform well, with 1.6Mt of ore
processed during the year. We also
further optimised recoveries over
the course of the year, with full year
recoveries for nickel and copper
at 87.9% and 88.6% respectively.
CONTINUED FOCUS
ON OPTIMISATION
Our team at Nova continue to seek
opportunities to operate more safely,
efficiently and sustainably. We do
this through critically evaluating our
operating philosophy, the adoption of
new technology and fostering a culture
of excellence through innovation.
In FY21, this included:
• Vendor engagement to modify
process components to increase
safety and maintainability
• Implementing remote drone
technology to survey and measure
Run of Mine (ROM) ore stockpiles,
improving safety and accuracy
• Reducing raw water consumption
through the use of recycled process
water
• Refinement of process control systems
to improve metal recoveries; and
• Peer-to-peer data transfer on all
mining equipment.
IGO also completed further work
on the potential electrification of the
mining fleet to deliver improved safety
outcomes for our people, lower costs
and reduce carbon emissions.
A SUSTAINABLE OPERATION
As is the case all across our business,
operating as sustainably as possible
is a key focus at Nova. In FY21,
we continued to ensure we minimised
the impact of our operations on the
environment and communities though
the application of best practice
process, systems and engagement.
At the core of sustainability at Nova
is our progress toward the reduction
of greenhouse gas emissions through
the use of renewable energy. The Nova
solar farm has been operational since
2019 and in FY21 delivered over 11%
of Nova’s total power consumption,
replacing ~2,444kL of diesel and
eliminating 6,600t of carbon.
Additionally in FY21, IGO made
substantial progress in reducing
non-recyclable waste streams. The
complexity of segregation and recycling
waste streams from remote and isolated
areas is significant, however IGO’s
commitment to doing everything we can
to reduce our impact on the planet has
meant this program has been effectively
and enthusiastically embraced by our
people – another way we choose to
Make a Difference.
COMMITMENT TO EXPLORATION
IGO considers the near-Nova
exploration potential to be significant
and has delivered an exploration
program which aims to maximise the
chances of successfully identifying
resources which would be within ore
trucking distance from the existing
Nova Operation infrastructure.
Over recent years, various programs
including soil geochemistry, air core (AC)
drilling, moving loop electromagnetics
and 3D seismic surveys have generated
a detailed geological and stratigraphic
model which has helped guide our
targeting programs.
In FY21, many of these near-Nova
targets were tested with diamond drilling
(DD), including the Hercules, Double
Dipper, Chimera and Orion prospects.
The Orion prospect, just 3km
northeast of Nova, is of significant
interest with drilling confirming the
existence of nickel-copper-sulphide
mineralisation. This mineralisation,
hosted within a chonolith intrusion,
extends off the Nova Mining Lease and
into an adjacent exploration licence
which IGO has optioned from Boadicea
Resources. More drilling at Orion
is planned in FY22.
At a Glance
Location
140km by road, east northeast
of Norseman, Western Australia
Product
Nickel (Ni), Copper (Cu), Cobalt (Co),
produced as a concentrate
Mining
Underground mining utilising our
primary contractor, Barminco
Processing
Owner-operated processing operation,
using conventional crushing, grinding,
flotation and filtration
Sales/Offtake
Nickel concentrate product is sold
in equal volumes to BHP Nickel West
Pty Ltd and Trafigura Pte. Ltd.
100% of copper concentrate is
contracted to Trafigura Pte. Ltd.
FY21 Production
29,002t Ni
13,022t Cu
1,084t Co
FY21 Cash Costs
A$1.85/lb Ni (payable)
Resources1
208,000t Ni
84,000t Cu
7,000t Co
Reserves1
163,000t Ni
69,000t Cu
6,000t Co
Estimated Mine Life1
5.5 years (approx.)
1. As at 31 December 2020. See Resources
and Reserves section on pages 26 and 27
of this report
IGO ANNUAL REPORT 2021 — 17
Operations
Case Study: Nova Paste Backfill Improvement
Nova’s Operations Team
Cemented paste backfill (paste fill
or paste) is used at Nova to fill the
open underground voids after the
ore from each stope is mined. This
provides support for the overlying rock
and allows complete extraction of the
orebody. The Nova paste backfill plant
takes the wet tails slurry from the Nova
processing plant after the valuable
minerals are extracted. Cementitious
binder material is mixed in, and the
resultant paste is piped underground
into the mined voids where it cures
into a solid block.
During the annual update of the Life
of Mine (LOM) schedule in 2020 it was
identified that paste backfill production
rate was a potential mining process
bottleneck that, if improved, would
allow a more consistent grade and
mine production profile and yield large
benefits to the project Net Present
Value (NPV). The Nova paste backfill
plant at the time was running at
design nameplate capacity of 30,000-
35,000m³ of paste fill per month. The
optimum rate was determined to be
45,000m³ per month, with an initial
target of 40,000m³ established.
The project ‘Paste 45k’ was born.
A cross functional team was assembled,
comprising of mining, metallurgy,
engineering and maintenance
representatives, guided by the Nova
business improvement team. The task
was to identify areas of opportunity
and use a business improvement
methodology to understand and
ultimately make improvements
to the most valuable areas.
18 — IGO ANNUAL REPORT 2021
Broadly the improvements fell into three
categories: increasing plant throughput,
increasing plant availability/reliability,
and reducing operational delays.
By design, the Nova paste plant was
configured to use only the non-sulphide
tailings stream, of which the majority
was already being used. Test work
was completed which showed that a
percentage of the sulphide tails stream
could be added into the mix without
compromising the strength of the
final product. This additional material
enabled a significant improvement
to the throughput volume.
Analysis of plant downtime
identified an array of opportunities
in preventative maintenance and
reliability. Notably, improvements
were made to the maintenance
strategy and, in some cases, design
changes to the major components
such as the paste mixer, binder augers
and conveyors. A concerted effort was
made to efficiently utilise the planned
mill outages and any opportune
outages to conduct maintenance
and improvement activities.
Reductions in operational delays have
centred around scheduling to ensure
that multiple fill sites are always
available and enhanced by enabling
quick changing between fill sites
through the installation of efficient
mechanical pipe switching equipment
underground.
To date, the project has yielded an
improvement of over 20%, exceeding
the 40,000m³ target and reliably
achieving 45,000m³ per month when
required. The resultant rates were
included in the FY22 LOM plan with
a significant improvement in the
LOM mine profile.
Tropicana Operation
GOLD
HISTORY
FY21 PERFORMANCE
The Tropicana Gold Operation is located
on the western edge of the Great
Victoria Desert, with the Wongatha
and Spinifex people recognised as the
Traditional Owners and custodians.
IGO identified the prospectivity of the
Tropicana tenure prior to the Company’s
ASX listing in 2002. Shortly after,
AngloGold Ashanti and IGO formed
a joint venture (IGO: 30% / AngloGold
Ashanti: 70%) over what was at that
stage, an exploration project.
The initial discovery at Tropicana
was made with the identification
of the Tropicana deposit in 2005.
This success led to the completion of
feasibility studies prior to development
approval by the joint venture in 2011.
Following the successful construction
and commissioning process, mining
and processing operations commenced
in 2012. Since that time, more than
three million ounces of gold has
been mined from Tropicana.
Gold production attributable to IGO
during FY21 included all production
between 1 July 2020 and 31 May 2021
when the sale was made to Regis.
Production during this period was
364,751oz Au (100% basis), in line with
pro-rata guidance, with IGO’s share of
gold sold (30% basis) of 110,402oz Au.
Cash costs for the period 1 July 2020
to 31 May 2021 were A$1,081/oz, while
all-in sustaining costs for the same
period were A$1,720/oz. Compared
to the prior year, production was lower
and costs higher due to an investment
in a large cut back at the Havana
open pit during FY21, which resulted
in lower milled grades and higher
waste movements.
DIVESTMENT TO REGIS
RESOURCES
In April 2021, IGO announced the
sale of its 30% stake in Tropicana
to Regis Resources Limited (Regis)
for a headline A$903M in cash
consideration, thereby ending a long
partnership with AngloGold Ashanti and
completing the shift in IGO’s strategy.
The divestment followed the completion
of a strategic review which was
designed to assess how IGO could
maximise the value of its stake in
Tropicana. This review considered both
the organic growth opportunities at
Tropicana as well Tropicana’s alignment
to strategy and relevance in the IGO
portfolio. Having concluded that a
divestment was the best outcome for
IGO shareholders, a highly competitive
global sales process commenced and
concluded in the divestment to Regis.
The sale of Tropicana, combined with
the investment into the Lithium JV
with Tianqi, completes IGO’s strategic
transition to become a globally relevant,
pure-play clean energy metals producer
and developer, with unique exposure
to nickel, copper, cobalt and lithium.
We would like to extend our thanks
to AngloGold Ashanti, our joint venture
partner at Tropicana over the past
18 years, for their collaborative and
collegiate approach to operating the
Tropicana asset. We wish AngloGold
Ashanti and Regis all the best for
the future.
IGO ANNUAL REPORT 2021 — 19
Operations
Lithium Joint Venture
In December 2020,
IGO announced a
transformational transaction
to invest into the Australian
lithium assets of Tianqi,
comprising a 51% interest
in the Greenbushes Lithium
Mine (Greenbushes), and
100% interest in the Kwinana
Lithium Hydroxide Plant
(Kwinana), both located
in Western Australia.
By virtue of its 49% interest in
the Lithium JV with Tianqi Lithium
Corporation (Tianqi), IGO has an
indirect 24.99% stake in Greenbushes
and a 49% stake in Kwinana.
Western Australia. Greenbushes
is operated as an incorporated joint
venture, Talison Lithium, which is
owned by the Lithium JV (51%)
and Albemarle Corporation (49%).
The A$1,855M investment into the
lithium joint venture was funded
via A$749M of new equity raised
(net of costs) following the transaction
announcement, A$862M proceeds (net
of costs) from the divestment of the
Company’s 30% stake in Tropicana and
existing cash reserves. The transaction
was completed on 30 June 2021.
The investment is strongly aligned
to IGO’s strategic focus on those metals
critical to enabling clean energy and
delivers both increased global relevance
to IGO as well as downstream lithium
exposure and greater connectivity
to end users.
GREENBUSHES LITHUM MINE
AND PROCESSING OPERATION
Greenbushes is the world’s largest,
lowest cost and highest grade hard
rock lithium deposit and is located
approximately 250km south of Perth,
Greenbushes has a long and successful
history as a mining operation and was
one of the first mines established in
Western Australia. Tin mining from
Greenbushes first commenced in 1888,
with lithium mining commencing in 1983.
Spodumene ore is mined from a single,
large open pit using traditional drill
and blast mining methods and sent for
processing by one of three established
processing plants. Two of these
plants, Chemical Grade Plant (CGP)1
and CGP2, produce chemical grade
lithium concentrates (6.0% Li2O) with a
combined installed production capacity
of 1.2Mtpa. The single Technical Grade
Plant (TGP) produces low-iron technical
grade concentrates (5.0 – 7.2% Li2O)
at a production rate of 150ktpa for
the ceramics, glass and metallurgical
markets. Greenbushes is one of only
two operations globally which have
the ore quality to produce technical
grade concentrates.
20 — IGO ANNUAL REPORT 2021
Spodumene concentrate produced
in excess of Kwinana’s requirements
will be sold by the Lithium JV to Tianqi
at benchmark pricing, for export
to China where Tianqi has existing
lithium conversion capacity.
SIGNIFICANT BROWNFIELDS
GROWTH OPPORTUNITIES
With the rapidly expanding demand
for both spodumene concentrate
and lithium hydroxide, the Lithium JV
plans to expand production capacity
at Greenbushes and to successfully
bring both lithium hydroxide trains at
Kwinana online over the coming years.
At Greenbushes, the immediate priority
is to recommence production from
CGP2 during 2021, adding an additional
600ktpa of production capacity. In 2022,
the Tailings Retreatment Plant (TRP) is
expected to be commissioned resulting
in a further 280ktpa of concentrate
from the existing tailings facility
at Greenbushes.
Combined concentrate production
capacity is expected to reach 1.5Mtpa
by the end of 2022, making it one of the
largest single suppliers of spodumene
concentrate in Australia. Longer term,
two additional chemical grade plants,
CGP3 and CGP4 are planned.
At Kwinana, commissioning of Train 1
is underway, with ramp up to the full
24ktpa production level expected by the
end of 2022. With the learnings gained
from Train 1 commissioning, the Lithium
JV will recommence construction of
Train 2 in 2022, with commissioning
in 2024.
The Lithium JV also has an option
to expand Kwinana by adding an
additional two trains (Train 3 and 4)
in the future to bring total potential
capacity to 96ktpa LiOH. A decision
on Trains 3 and 4 will be subject
to further studies.
KWINANA LITHIUM
HYDROXIDE PLANT
Kwinana is one of the first fully
automated battery grade lithium
hydroxide facilities globally and the
first to be built in Australia. Kwinana
is approximately 35km south of Perth,
Western Australia, and only 200km
north of Greenbushes, adjacent
to major supply chain logistics.
The plant consists of two individual
production trains which will produce
48ktpa of lithium hydroxide in aggregate
once in full production (24ktpa
per Train). Construction of Train 1
is complete and commissioning is
currently underway, with first production
expected during 1H22. Train 2 is partly
complete and the Lithium JV expects to
recommence construction in 2022 and
to start commissioning in 2024.
Lithium hydroxide from Kwinana will be
sold under long-term offtake contracts
to leading battery manufacturers in South
Korea and Europe who are demanding
high quality, ethically produced product
for their latest generation of high-
performance lithium-ion batteries.
ENABLING THE LATEST
LITHIUM-ION BATTERIES
Global demand for lithium is growing
rapidly as battery and energy storage
technologies become more efficient
and cost effective, and the global push
toward decarbonisation accelerates
at pace.
The Lithium JV’s fully integrated lithium
business will play a key role in satisfying
demand for high quality, ethically
produced lithium for the battery industry.
The Lithium JV’s 51% share of
spodumene concentrate produced
from Greenbushes will be preferentially
transferred to the Kwinana Lithium
Hydroxide Refinery for conversion into
battery grade lithium hydroxide, the
chemical form of lithium required to
produce high performance lithium-ion
batteries. This lithium hydroxide will
be exported and sold directly to tier-1
battery manufacturers in South Korea
and Europe under long-term offtake
contracts. Offtake partners include
LG Chem, SK Innovation, EcoPro
and Northvolt.
Highlights
Aligned with IGO’s strategic focus
on clean energy metals, with lithium
set to be a key beneficiary of the
increased demand for lithium-based
battery technology
High quality assets with scale and
long life, both located in a Tier-1
jurisdiction, and with excellent ESG
credentials
Adds downstream exposure to
increase connectivity with end-users
Significant growth optionality at both
Greenbushes and Kwinana
Compelling value for IGO and its
shareholders, with the transaction
agreed at a cyclical low in the
lithium market
IGO ANNUAL REPORT 2021 — 21
Exploration
Regional Exploration
& Development
FY21 YEAR IN REVIEW
As the global transition
to clean energy
progresses and the advent
of new technologies
drives demand for critical
raw materials, the mining
industry must invest to
identify the mines of the
future needed to meet
that demand.
IGO is playing an important role in
this challenge through our enduring
commitment to both greenfield and
brownfields exploration and discovery.
IGO considers the discovery of new
clean energy metals deposits as a key
driver of transformational value creation
and sustainable growth for our business.
Our exploration strategy mirrors our
broader corporate strategy by focusing
on identifying new, high value nickel,
copper and lithium deposits across our
highly prospective portfolio. Our strategy
is highly disciplined and backed by
the best geoscience to maximise the
chances of success, and hence create
superior value for our shareholders.
Our commitment to exploration over
recent years has allowed us to build an
exceptional portfolio of belt-scale projects
and, importantly, a world class exploration
team who are truly excited about the
prospectivity of our portfolio. Our team,
which has been strengthened over the
course of FY21, comprises passionate
and highly talented geoscientists,
ably supported by a dedicated and
energetic field logistics team.
In FY21, our portfolio includes projects
in Western Australia, Northern Territory,
South Australia and Greenland. Our
primary focus for the year was on
the Fraser Range nickel-copper and
Paterson copper projects, which IGO
prioritised based on the prospectivity
and potential value a discovery
would deliver to IGO.
Over FY22, our exploration strategy
will remain focused on the discovery
of metals critical to clean energy.
Reflecting IGO’s investment in the
Lithium JV, our team will also actively
seek opportunities to target lithium
discovery, whilst still retaining a
significant focus on high value nickel
and copper deposits. Further, our team
will continue to assess opportunities
to secure more advanced assets that
can add resources to IGO’s portfolio.
22 — IGO ANNUAL REPORT 2021
FY21 Exploration Summary
FRASER RANGE
Ni, Cu, Co
IGO various interest levels
up to 100%
PATERSON
Cu, Co, Au
IGO earning up to 70%
Targeting magmatic nickel-copper-cobalt deposits in the Albany Fraser Orogen. Activities
included:
• Diamond drilling of specific targets
• Air core drilling follow-up of regional air core anomalies; and
• Continuation of geophysics program.
Targeting sediment-hosted copper-cobalt and copper-gold deposits in a highly prolific
mineral province. Activities included:
• Diamond drilling of specific targets
• Air core drilling of mineralised trends; and
• Regional soil geochemical surveys.
KIMBERLEY
Ni, Cu, Co
IGO earning up to 85%,
Targeting magmatic nickel-copper-cobalt deposits along the Halls Creek and
Wunaamin-Miliwundi Ranges. Activities included:
• Airborne magnetic and radiometric survey
extensive IGO 100% tenements
• Diamond drilling of specific targets; and
• Down-hole EM surveys.
LAKE MACKAY
Cu, Au, Ni, Co
IGO earning up to 70%
Targeting copper-gold deposits in an unexplored emerging mineral province.
Activities included:
• Reverse circulation drilling and diamond drilling of targets and prospects
• Regional soil geochemical sampling; and
• Down-hole EM surveys.
COPPER COAST
Cu
IGO 100%
Targeting sediment-hosted copper mineralisation in the Adelaide Rift basin and onto
the Stuart Shelf. Activities included:
• Diamond stratigraphic drilling of conceptual target areas; and
• Ground gravity and magneto-telluric geophysical surveys.
RAPTOR
Ni, Cu, Co
IGO 100%
FRONTIER
Cu
IGO 51%, earning up to 80%
DE BEERS DATABASE
IGO 100%
Targeting nickel-copper deposits along the Willowra Gravity Ridge in the Northern Territory.
Activities were limited to the completion of an aeromagnetic-radiometric survey, with most
tenements still in application.
Targeting sediment-hosted copper deposits in a geological setting analogous to the Central
African Copper Belt. No work programs were possible in FY21 due to COVID-19 related
travel restrictions.
Analysis of unique heavy mineral concentrate samples for project and target generation
across Western Australia and Australia.
IGO ANNUAL REPORT 2021 — 23
Exploration
Regional Exploration & Development
PATERSON
The Paterson Project comprises four
key tenement positions held either 100%
by IGO or via joint venture rights with
Encounter Resources Limited, Antipa
Minerals Limited and Cyprium Metals
Limited (previously Metals X Limited).
The combined granted tenements cover
about 6,300km2 in area, second only in
size in the region to exploration major
Rio Tinto. The Paterson Project presents
a belt-scale opportunity to find and
develop Tier-1 sediment-hosted copper-
cobalt and intrusion-related copper-gold
deposits.
IGO recognises the significant potential
for discovery in the Paterson region, and
in FY21 increased its level of activity and
expenditure to advance the various land
holdings toward potential discovery.
On the Antipa Minerals JV tenements,
encouraging results from AC drilling
have extended the strike length of
the Poblano gold-copper-silver trend,
while DD on the Encounter JV tested
electromagnetic (EM) geophysical
targets, soil geochemical anomalies and
favourable stratigraphy.
In FY22, IGO plans to undertake
significant work programs on the
Cyprium and Encounter Resources
JV tenements, including extensive soil
geochemical and electrical geophysical
surveys, as well as funding AC drilling
over key areas on all three JVs.
KIMBERLEY
The Kimberley Project in Western
Australia is a belt-scale project
spanning nearly 2,500km2 of granted
tenements which are highly prospective
for high value magmatic nickel-copper
sulphide discoveries. The project
covers a Proterozoic belt that has
proven magmatic nickel-copper-cobalt
sulphide mineralisation that includes the
Savannah Mine in the East Kimberley,
and the more recent Merlin nickel-
copper discovery in the West Kimberley
(within the Buxton Resources JV).
In FY21, IGO commenced its first
field exploration program in the East
Kimberley comprising geological,
geochemical and EM geophysical
FRASER RANGE
The Fraser Range Project in Western
Australia is a priority search space for
IGO given its proximity to IGO’s existing
Nova Operation and the potential of
this area to host another Nova-style
magmatic nickel-copper-cobalt orebody.
The Fraser Range Project granted
tenement package totals some
10,300km2 and extends over a total
distance of some 430km. The tenements
are held by IGO 100% as well as through
numerous Joint Ventures (JVs) with
IGO holding various levels of majority
ownership.
During FY21, our exploration efforts on
the Fraser Range were concentrated on
the tenement areas located to the south
of the Trans Australian Railway and
included a focus on the Nova near-mine
area, including the Orion and Chimera
targets, tenements along the Nova to
Silver Knight corridor, and the Southern
Hills area. Work programs included
extensive moving-loop electromagnetic
(MLEM) surveys, and over 76,000m of air
core (AC) drilling and close to 10,000m
of diamond drilling (DD) to follow-up
various key targets.
The Copernicus target, located 8km
south of Creasy Group’s Silver Knight
deposit1, was drilled during the year,
with the holes intersecting a prospective
‘chonolith’ (worm-like) mafic-ultramafic
intrusion with disseminated magmatic
Ni and Cu sulphides. Further work is
planned during FY22.
The Southern Hills area, which occurs
southwest and along trend of Nova, has
multiple untested targets which IGO
believes are prospective for Nova-style
mineralisation. Access to Southern Hills
was successfully negotiated during FY21
and work commenced to screen high
priority geophysical, geochemical and
geological anomalies with MLEM surveys.
In FY22, the drill testing of high-quality
targets will continue, with a significant
focus around Nova and across the
southern Fraser Range, including the
Southern Hills area, the Boadicea
JV tenements and the Nova-Silver
Knight corridor.
1.
IGO announced an agreement to acquire Silver Knight on 27 July 2021.
24 — IGO ANNUAL REPORT 2021
surveys in the Osmond Valley
area. In the West Kimberley, DD
was conducted at the Merlin and
Quick Shears targets.
In FY22, the initial focus will continue
in the East Kimberley, and in the
West Kimberley work will shift to the
Sentinel area (Buxton Resources JV),
where geological, geochemical and EM
geophysical surveys will also commence.
LAKE MACKAY
Lake Mackay is a JV between IGO,
Prodigy Gold NL and Castile Resources
Pty Ltd (in parts), with IGO having earned
up to a 70% interest over a holding of
4,780km2 of granted tenements that
straddle the border between Northern
Territory and Western Australia. The
project has demonstrated potential to
deliver a range of mineralisation styles
including copper-gold-silver, nickel-
cobalt-manganese and gold.
In FY21, the JV made strong progress
toward maturing our understanding
of the Grimlock, Swoop, Goldbug and
Phreaker Prospects. Of note were
high-grade copper-gold intersections
identified late in FY21 by DD at Phreaker,
including 4.5m at 3.03% Cu, 1.78g/t Au,
14g/t Ag from 562m and 17.47m at 2.13%
Cu, 0.21g/t Au, 9g/t Ag from 575.23m in
the second of three holes drilled1. Drilling
at Phreaker has confirmed copper, gold
and silver mineralisation over a 650m
strike length and 430m vertical extent.
At 30 June 2021, the latest results were
still being assessed to determine how
best to progress the project in FY22.
COPPER COAST
The Copper Coast Project is a 100%
owned 7,519km2 tenement package
extending from Port Augusta to Bute
in South Australia, which covers parts
of the Torrens Hinge Zone (THZ),
considered by IGO to be prospective for
sediment-hosted copper mineralisation
in a similar setting to that which hosts
the giant Kamoa-Kakula copper system
in the Democratic Republic of Congo
(DRC).
During FY21, IGO completed 3D
modelling of gravity, magnetic and
magneto-telluric survey data, defined
prospective corridors, and completed
two stratigraphic DD holes (totalling
2,300m) to test the interpreted
stratigraphy for proof-of-process
evidence to support the potential for
significant sediment-hosted copper
mineralisation in the area.
At year end, both DD holes were still
being analysed with a range of methods
to help determine the next steps for
the project.
INNOVATION
IGO has a proud history of developing
and utilising the latest technologies
available to help make our exploration
programs safer, more efficient, and
ultimately to deliver success in the
form of discoveries.
In recent years, our work has focused
on areas including 3D seismic imaging
and designing the next generation of EM
equipment to more effectively conduct
EM geophysical surveys. In FY21, we
also made great progress in advancing
innovation in the area of mineral
geochemistry, with the first rounds
of mineral analysis of IGO’s proprietary
De Beers collection of heavy mineral
concentrate samples.
IGO is applying the latest Tescan
Integrated Mineral Analyzer (TIMA)
technology to understand the
geochemical and mineral properties
of these samples. The TIMA technology
is enabling our team to process
mineral samples on a mass scale at
commercially viable costs, which will
enable us to more efficiently identify
potential new exploration targets from
the extensive Australia-wide De Beers
sample database.
1. ASX Release - PRX: Exceptional high grade copper intersections at the Phreaker Prospect within
Lake Mackay JV, dated 24 May 2021.
Case Study: Improved
Exploration Techniques
for Land Clearing
IGO has extensive tenement holdings
throughout Australia, characterised
by different biological regions and
important cultural heritage. IGO’s
Exploration team operates in accordance
with our Group Environmental Standards
which focus on understanding and
minimising our impacts on the land.
IGO’s Exploration team employ a range
of best practice technologies and
techniques in our search for the next
discovery. Most of our exploration
practices have no, or limited, impact on
the land, which ensures that we limit
the clearing of vegetation and protect
cultural heritage.
When land clearing is required, primarily
for drilling, the Exploration team
conducts all earthmoving activities
in accordance with our land clearing
procedure. In FY21, IGO further
strengthened its clearing protocols to
improve planning and execution of land
clearing operations, including:
• appointment of a dedicated Heritage
Coordinator in Exploration
• bespoke training program for all
personnel involved in the land clearing
process; and
• improvements to our spatial database
to capture all relevant environmental
and heritage information.
IGO Exploration has also integrated
an internal verification process before
any land clearing is undertaken, where
dedicated environment and heritage
specialists review all planned land
clearing.
The updated process is designed to
ensure IGO complies with all regulatory,
native title and other stakeholder
requirements, along with best practice
for the given project before land clearing
is carried out. Through updates to our
land clearing procedure and additional
training for our people, IGO has focused
on greater protection of cultural heritage
and minimisation of environmental
disturbance.
IGO ANNUAL REPORT 2021 — 25
Operations
Mineral Resources
& Ore Reserves
IGO publicly reports its Exploration Results, Mineral Resource
and Ore Reserve estimates in accordance with the Australian
Securities Exchange (ASX) listing rules and the requirements
and guidelines of the prevailing JORC Code (2012 edition of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves). IGO last reported its annual
Mineral Resource and Ore Reserve estimates to the ASX as at
31 December 2020. The next update and reporting of estimates
will be as at the end of 2021.
At the end of 2020, IGO reported Mineral Resources and Ore
Reserves from IGO’s 100%-owned Nova Operation base metal
(nickel-copper-cobalt) mine, and IGO’s 30% interest in the
Tropicana Gold Mine (Tropicana). IGO divested its 30% interest
in Tropicana at the end of May in FY21 and as such, is not
reporting estimates or results for Tropicana for the end of FY21.
The complete JORC Code reports relating to the end of 2020
estimates, including JORC Code Table 1 checklists, which
detail the material assumptions and technical parameters for
each estimate, can be found at www.igo.com.au under the
menu ‘Our Business – Mineral Resources and Ore Reserves’
and also the ASX release 2020 Mineral Resource and Ore
Reserve Statement dated 17 March 2021. Listings of the
respective estimates for the end of 2019 and end of 2020 are
tabulated below for IGO’s Nova Operation. The JORC Code
Competent Persons Statement for IGO’s end of 2020 estimates
are included on page 27 of this Annual Report.
IGO’s public reporting governance for estimates and results
includes several assurance measures. Firstly, IGO ensures that
the Competent Persons responsible for public reporting:
• Are current members of a professional organisation that
is recognised in the JORC Code framework
• Have sufficient mining industry experience that is relevant
to the style of mineralisation and reporting activity, to be
considered a Competent Person as defined in the JORC Code
• Have provided IGO with a written sign-off on the results and
estimates that are reported, stating that the report agrees
with supporting documentation regarding the results or
estimates prepared by each Competent Person; and
• Have prepared supporting documentation for results and
estimates to a level consistent with standard industry
practices – including the JORC Code Table 1 Checklists for
any results and/or estimates reported.
IGO also ensures that any publicly reported results and/or
estimates are prepared using accepted industry methods and
using IGO’s corporate guidance for metal prices and foreign
exchange rates. At its operating mines, IGO additionally
ensures that the estimation precision is reviewed regularly
through comparing the Mineral Resource and Ore Reserve
forecasts to actual mine and process production results. The
reconciliation of these inputs and outputs is then used for
future Ore Reserve updates.
Estimates and results are also peer reviewed internally by IGO’s
senior technical staff before being presented to IGO’s Board for
approval and subsequent ASX reporting. Market sensitive or
production critical estimates may also be audited by suitably
qualified external consultants to ensure the precision and
correctness of the reported information.
TABLE 1 — 31 DECEMBER 2019 AND 31 DECEMBER 2020
Nova Operation — Mineral Resources
2019
2020
Source
JORC Code Class
Underground
Measured
Stockpiles
Total
Indicated
Inferred
Measured
Measured
Indicated
Inferred
Subtotal
Total
Mass
(Mt)
10.9
0.6
<0.1
11.5
0.1
11.0
0.6
<0.1
11.6
Nickel
Copper
Cobalt
(%)
2.07
0.96
1.88
2.01
1.88
2.07
0.96
1.88
2.01
(kt)
226
6
<1
232
<1
227
6
<1
234
(%)
0.83
0.44
0.69
0.81
0.79
0.83
0.44
0.69
0.81
(kt)
90
3
<1
93
<1
91
3
<1
94
(%)
0.07
0.04
0.06
0.07
0.06
0.07
0.04
0.06
0.07
(kt)
7
<1
<1
8
<1
7
<1
<1
8
TABLE 2 — 31 DECEMBER 2019 AND 31 DECEMBER 2020
Nova Operation — Ore Reserves
Source
JORC Code Class
Underground
Proved
Stockpiles
Total
Probable
Proved
Proved
Probable
Subtotal
Total
2019
Mass
(Mt)
9.2
0.2
9.5
0.1
9.3
0.2
9.5
Nickel
Copper
Cobalt
(%)
1.86
1.49
1.85
1.88
1.86
1.49
1.85
(kt)
172
3
176
1
174
3
(%)
0.78
0.58
0.78
0.79
0.78
0.58
176
0.78
(kt)
72
1
74
1
73
1
74
(%)
0.07
0.05
0.07
0.06
0.07
0.05
0.07
(kt)
6
<1
6
<1
6
<1
6
Mass
(Mt)
10.4
1.3
0.1
11.8
<0.1
10.4
1.3
0.1
11.8
Mass
(Mt)
8.7
0.3
9.0
<0.1
8.7
0.3
9.0
Nickel
Copper
Cobalt
(kt)
78
5
<1
84
<1
79
5
<1
84
(%)
0.06
0.03
0.04
0.06
0.06
0.06
0.03
0.04
0.06
(kt)
6
<1
<1
7
<1
6
<1
<1
7
(%)
1.88
0.81
1.26
1.76
1.62
1.88
0.81
1.26
1.76
(kt)
196
10
<1
207
<1
196
10
<1
208
(%)
0.76
0.37
0.47
0.71
0.65
0.75
0.37
0.47
0.71
2020
Nickel
Copper
Cobalt
(%)
1.83
1.41
1.82
1.62
1.83
1.41
1.82
(kt)
159
4
163
1
160
4
163
(%)
0.78
0.58
0.77
0.65
0.78
0.58
0.77
(kt)
67
2
69
<1
68
1
69
(%)
0.07
0.05
0.07
0.06
0.07
0.05
0.07
(kt)
6
<1
6
<1
6
<1
6
26 — IGO ANNUAL REPORT 2021
Competent Persons
Statement
Information in this Mineral Resources and Ore Reserves
section that relates to Exploration Targets, Exploration Results,
Mineral Resources or Ore Reserves is based on the information
compiled by the Competent Persons listed in Table 3, which
includes details of their respective professional memberships,
their relationship to IGO and details of the reporting activity for
which each Competent Person is taking responsibility.
All the Competent Persons have provided IGO with written
confirmation that they have sufficient experience that is
relevant to the style of mineralisation and type of deposit
under their consideration, and to the reporting activity being
undertaken, to qualify as a Competent Person as defined in
the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves –
the JORC Code. They have also provided IGO with a written
consent in the ASX release dated 17 March 2021 to the
inclusion in this report of the respective matters based on each
Competent Person’s information in the form and context in
which they appear in this report, and that there are no issues
that could be perceived as a material conflict of interest in this
public report to the ASX.
TABLE 3 — 31 DECEMBER 2020
IGO Competent Persons for 31 December 2020 Estimates and Results
Professional Association
Activity
Competent
Person
Membership
Number
IGO Relationship
Responsibility Activity
Exploration
Ian Sandl
MAIG/RPGeo
2388
General Manager – Exploration
IGO Perth
IGO Exploration Results
Mineral Resources
Paul Hetherington
MAusIMM
209805
Ore Reserves
Gregory Laing
MAusIMM
206228
Geology Superintendent
IGO Nova Operation
Strategic Mine Planner
IGO Perth
Nova Operation Estimate
Nova Operation Estimate
2020 Report
Mark Murphy
MAIG/RPGeo
2157
Resource Geology Manager
IGO Perth
IGO Annual Report
Notes:
1 MAusIMM = Member of Australasian Institute of Mining and Metallurgy; MAusIMM(CP) = MAusIMM and Chartered Professional; MAIG/RPGeo =
Member of Australian Institute of Geoscientists and Registered Professional Geoscientist.
2 Information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on the information
compiled by the relevant Competent Persons listed above.
3 All personnel listed above are full-time employees of IGO.
4 All the Competent Persons have provided IGO with written confirmation that they have sufficient experience that is relevant to the styles of
mineralisation and types of deposits, and the activity being undertaken with respect to the responsibilities listed against each professional
above, to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves – the JORC Code 2012 Edition.
5 Each Competent Person listed above has provided to IGO by email:
• Proof of their current membership to their respective professional organisations as listed above
• A signed consent to the inclusion of information for which each person is taking responsibility in the form and context in which it appears in this
report, and that the respective parts of this report accurately reflect the supporting documentation prepared by each Competent Person for the
respective responsibility activities listed above; and
• Confirmation that there are no material issues that could be perceived by investors as a conflict of interest in preparing the reported
information.
IGO ANNUAL REPORT 2021 — 27
Our Sustainable Business
Sustainability is central
to IGO’s purpose & strategy
A sustainable business is resilient,
purposeful, agile and competitive. It
looks beyond compliance and integrates
a sustainability framework into all aspects
of the business and value chain.
To be sustainable, we will meet the needs of the present
without compromising the ability of future generations to meet
their own needs. We will deliver the metals needed for a clean
energy future in a safe, ethical, reliable and sustainable manner.
We will create shared value with our employees, communities
and Traditional Owners. We will focus on the decarbonisation
of our business and supply chain and aspire to be carbon
neutral by 2035. Our purpose articulates this well and is united
by a common desire across the Company: Making a Difference
for future generations.
In FY21, we refined our sustainability model, built on seven
pillars, to drive engagement and outcomes across the
Company. This is centred around our purpose of Making a
Difference. We recognise environmental, social, governance
and commercial issues are often connected; they are part
of a system that is constantly evolving. This model highlights
the interconnectedness of each of these pillars in achieving
our overall business strategy. These pillars form the structure
of our sustainability management, reporting, targets and
measurements of progress.
More detail on IGO’s Seven Pillar Sustainability Model can
be found in the 2021 Sustainability Report.
O U R PURPOSE
Our People
Safety &
Wellbeing
S
R
U
O
I
V
A
H
E
B
&
S
E
U
L
A
V
R
U
O
Our Financial
Contributions
Making a
Difference
Communities
& Traditional
Owners
O
U
R
C
U
L
T
U
R
E
Business
Integrity
Our Response to
Climate Change
Environment
OUR STRAT E G Y
28 — IGO ANNUAL REPORT 2021
Our
People
Safety &
Wellbeing
Our purpose and values set us apart from
our industry peers, providing a positive
difference shared by the people that work
across our operations and projects.
We proactively prevent harm by
providing a safe place of work, safe
systems of work and by promoting
a culture of care and wellbeing.
of people said they are proud to work for IGO
22%
decrease in IGO’s Total Reportable Injury
Frequency Rate (TRIFR) from 16.9 in FY20
to 13.2 in FY21
88%
87%
of our people said IGO has a work environment
accepting of diverse backgrounds
27% of our overall workforce are female, with a
( 3% vs FY20)
significant improvement across all disciplines
at our Nova Operation
Fundamentally, the success of our business is driven by our
people who create our unique organisational culture, which is
an important reason why our employees choose to work for us.
Building the strength of our culture year-on-year is vital to our
success and important to us all.
KEY HIGHLIGHTS FOR FY21:
• Stable overall engagement score of 67% (69% in FY20)
• Strong progress on our gender diversity programs
• The launch of the IGO Practical MBA
• Strong participation in the IGO Mentoring Program
• IGO became one of the first ten ASX 200 companies to join
the HESTA 40:40 Vision, pledging to achieve gender balance
of 40:40:20 in executive leadership by 2030
• 95% learning and development plans completed in FY21
with a total spend of A$880k
• Stable turnover of 13% despite an increasingly tight
labour market.
1 ( 2)
Serious Potential Incidents (SPI),
down from 2 in FY20
83% of our people feel IGO is doing enough
to limit potential safety incidents
With our people as our key resource, our first responsibility
is to keep our people safe, and we have continued to work
on improving our safety performance in FY21. There is always
more to do, but key lead and lag indicators have demonstrated
improvement in FY21.
TRIFR was down 22% on FY20 and the results from our Annual
Engagement Survey indicate our people’s strong engagement
and alignment with our safety values and processes.
In FY21, we engaged an Australian independent consultancy
to co-create a robust business safety and wellbeing strategy
and enhance our Safety Programs of Work to further refine our
safety philosophy.
IGO’s annual Employee Engagement Survey allows us to gain
feedback and insights on our safety and wellbeing culture.
Of the 17 safety related questions in the survey this year, all
were rated either equal to FY20 responses or better, indicating
our people’s strong engagement and alignment with our safety
values and processes.
Our Health and Wellbeing Program is based on three
fundamental pillars:
FEMALE REPRESENTATION
Board
Senior Executive roles
Total workforce
FY21
37.5%
37.5%
27%
• supporting our people’s physical health and wellbeing
• supporting our people’s mental and psychological health
and wellbeing; and
• supporting our people’s knowledge and capabilities
in financial health and wellbeing.
In FY22, our aim is to strengthen our Health and Wellbeing
Program in offering greater access to a broader range
of programs through partner organisations.
FY20
29%
33%
24%
IGO ANNUAL REPORT 2021 — 29
Our Sustainable Business
Communities
& Traditional
Owners
Our Response to
Climate Change
Making a Difference is our reason for
being – our purpose. IGO’s long-term
success depends on our ability to build
relationships with our host communities
and related stakeholders.
Climate change is perhaps the most
complex risk facing society today, but
it is this opportunity that is also shaping
IGO as we transitioned into a company
100% aligned to clean energy metals.
A$4.7M
total payments made to Ngadju
during FY21. Of this payment,
production royalty payments
totalled A$3.9M
FY21 refined our response and strategy on
climate change, implementing a number
of work programs to accelerate towards
carbon neutrality
A$904k1
invested in Corporate Giving in
FY21 compared to A$603k in FY20
11% of Nova’s total power consumption delivered
from solar renewable energy in FY21
677 hrs
volunteered by IGO people
donating their time to charitable
causes
We do this by actively engaging with all our stakeholders and
consider the impacts of our business activities at every stage
to co-create shared value projects and build a reputation
of caring and doing what we say we will do.
IGO greatly values its relationships with the Traditional Owners
on whose lands we operate and acknowledges the rights and
interests of Traditional Owners to protect and manage their
cultural heritage. In Western Australia, our operations, including
Nova and the Lithium JV, are located on determined native
title lands with the Ngadju and Noongar Traditional Owners,
respectively. Across our exploration tenure, IGO explores
on lands of many Traditional Owners including the Bunuba,
Dambimangari, Gooniyandi, Martu, Ngadju, Warrwa, Untiri Pulka
and Upurli Upurli Nguratja peoples in Western Australia and the
Walpiri, Luritja and Pintupi peoples in the Northern Territory.
To respect and ensure clarity of rights and responsibilities,
IGO enters into native title agreements where it has land
tenure interests that interact with those rights and interests
of Traditional Owners.
Some of the organisations IGO supported through its Corporate
Giving Program in FY21 include: Clontarf Foundation, CoRE
Learning Foundation, Earbus Foundation of WA, Esperance
Senior High School, Norseman District High School, Ronald
McDonald House Charities, Royal Flying Doctor Service
WA and Teach Learn Grow.
1.
Includes the A$250k donated to the Norseman and Esperance
communities
30 — IGO ANNUAL REPORT 2021
A$60/t CO2-e
IGO’s internal carbon price in FY22 to provide the internal
funding for our decarbonisation projects
Today, more than ever, we know that addressing climate
change effectively requires businesses, governments and
society to work together. As the impacts of climate change
are increasingly being felt around the world, we all understand
our responsibility to act. At IGO, we are focused on creating a
better planet for future generations by discovering, developing
and delivering products critical to clean energy. Climate change
considerations are fully integrated into our strategic and
operational decision-making.
IGO aspires to be leaders in the acceleration to carbon
neutrality. We aspire to be carbon neutral across our direct
operations and activities by 2035 and will continue to develop
a decarbonisation strategy addressing our supply chain and
scope 3 emissions.
IGO have disclosed in line with the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD)
since 2017. Our disclosure is structured around the four
thematic areas of TCFD that represent core elements of how
organisations operate – governance, strategy, risk management
and metrics and targets.
As a Company we are acting and will continue to act
in addressing climate change.
Environment
Our Financial
Contributions
To produce and explore for the metals
supplying a green energy future,
we work in some of Australia’s most
biologically, ecologically and culturally
rich environments.
IGO is proud to contribute to a clean
energy future, and we will continue to
invest in our commitment to being a
sustainable business.
687ha land rehabilitated in FY21, 19% increase
on FY20
A$6.2M total spend on Aboriginal owned
or managed businesses in FY21,
an increase of 29% on FY20
566t
23%
waste and other materials recycled
in FY21
increase in the decant water recycled
at the Nova Operation
81%
of our suppliers of goods and
services are located locally or
within Western Australia
Responsible environmental management plays a significant
role in maintaining our social licence to operate, and our
commitment to doing what is right drives our environmental
stewardship efforts. IGO’s purpose of Making a Difference,
and our strategy demonstrates our commitment to leadership
in environmental stewardship. We endeavour to be proactively
green and sustainable, both in the choice of commodities
we seek to develop and how their development is pursued.
In this area, innovation can be a catalyst. We prioritise
innovation and collaboration to reduce our physical footprint;
improve the way we use our natural resources; and be a catalyst
for establishing the proactively green, carbon neutral mines
of the future. As we progress towards our strategic aspirations,
carbon neutral strategy and sustainability framework, we work
hard to protect the environment and minimise our impacts.
We conduct our environmental management activities
throughout the business life cycle in accordance with our
Environmental Policy and seven publicly available Group
Environmental Management Standards, including rehabilitation
and mine closure; social and environmental impact assessment;
mineral waste management; water management; land use
and biodiversity management; air emissions management;
and general waste management.
While IGO’s environmental impacts are relatively minor, we
have an ongoing commitment to make a real but proportionate
contribution to addressing global environmental challenges.
Success in delivering our strategy enables us to share the
benefits our business creates and help sustain local and
regional economies. It provides our stakeholders with the
confidence that we are sharing value through taxes, royalties,
employment and procurement opportunities, in addition to
building communities by investing in education and training.
Host communities and local governments rightly expect mining
to bring significant economic benefits and our goal is to leave
host communities better than when we arrived. Acting in an
ethical, responsible and transparent manner is fundamental
to local communities and the way we conduct our business
in accordance with our values.
We support economic development in the communities
in which we operate by seeking to invest first locally, then
regionally within Western Australia, then nationally and finally
internationally. IGO’s economic contributions can be measured
by the dividends we pay, salaries and other employment
benefits we provide to our employees, the money we spend
on contractors and consultants, taxes and royalties paid, and
payments made through our Corporate Giving activities.
IGO ANNUAL REPORT 2021 — 31
Our Sustainable Business
Business
Integrity
Business Critical
Risk Management
Risks that have the potential to
materially impact our business
Operational and Project Risk Management
Risks that have the potential to materially
impact individual sites or projects
Personal Risk Management
Risks that are focused solely on the safety
of individuals in the workplace
safely, ethically, sustainably and reliably. In line with our Code
of Conduct, we expect all suppliers to maintain the highest
standard of ethical behaviour in business dealings.
In FY21, IGO released our first Modern Slavery Statement, which
can be found under the Governance section on our website.
HUMAN RIGHTS
IGO is committed to upholding the fundamental human rights
of all people we engage within our business. We aspire to
be a business which recognises and respects the rights and
dignity of all people by putting in place policies and procedures
which aim to stamp out unethical practices in our global supply
chains and by ensuring all our people are free to operate in
an inclusive environment regardless of race, religion, marital
status, political beliefs or experience.
A copy of our Human Rights Policy can be found under the
Governance section on our website.
PRIVACY
At IGO, we are committed to respecting the privacy of personal
information of any individuals who deal with IGO and will limit
the gathering of our people’s personal information to that
required to fulfil our obligations in law and our governance
duties. IGO endeavours to protect personal information and
prohibit unlawful distribution or use of that information and will
use personal information only for the purpose for which it was
originally collected or requested unless it has the consent of
the individual to do otherwise.
TAX TRANSPARENCY
During FY21, we released our Tax Transparency Report for
FY20 which includes details on our approach to tax strategy
and governance, effective tax rates and tax contribution
summaries. The report was prepared in conformance with the
recommendations of the Board of Taxation’s Voluntary Tax
Transparency Code.
Our FY21 Tax Transparency Report will be released in
November 2021 and will be made available on our website.
Further details on IGO’s Corporate Governance Framework
can be found on pages 33 to 35.
At IGO, our clarity of purpose
and strategy is underpinned by a
commitment to conduct business
in accordance with our values.
These, in turn, form our judgements about both desirable and
undesirable behaviour. Important among desirable behaviour
is the expectation that we act with honesty, transparency and
accountability. We seek to do business with others who are
aligned with our values and act accordingly.
To give effect to these expectations, we have established
structures and processes with the intent of ensuring business
integrity. The central elements are IGO’s Code of Conduct,
our governance process, our risk management process, and
our compliance and systems, which have been established
to drive continual improvement.
CODE OF CONDUCT
IGO operates under a Code of Conduct which reflects our
values and represents our commitment to uphold the highest
ethical business practices. Our Code of Conduct provides
guidance on how our values should be put into practice and
guides the standard of behaviour expected from our people.
The Code applies equally to our Board, our employees, our
suppliers and our contractors.
IGO’S MANAGEMENT SYSTEM
IGO maintains a Management System based on AS/NZS ISO
standards and is informed by a hierarchy of processes and is
structured to drive continual improvement prioritised on risk.
IGO has two well-established assurance processes to ensure
the ongoing integrity of our systems. IGO’s corporate assurance
program, which comprises internal and external audit, operational
reviews and inspections, and IGO’s whistleblower process.
RISK MANAGEMENT
We safeguard our people, assets, legal position, reputation and
the environment by understanding and managing risk, as well
as ensuring we identify opportunities to best serve the long-
term interest of all our stakeholders. Risk management at IGO is
overseen by the Board through the Audit and Risk Committee.
IGO’s Risk Management Process is based on a three-level
hierarchy process as depicted by the graphic above.
SUPPLY CHAINS AND MODERN SLAVERY
Our supply chain partners are crucial to IGO’s success. Our
approach to responsible sourcing is aligned to our purpose and
strategy – ensuring the quality products we supply are made
32 — IGO ANNUAL REPORT 2021
Corporate Governance
Corporate
Governance
IGO is committed to implementing and maintaining the highest
standards of corporate governance. We believe that excellence
in corporate governance is essential for the long-term
sustainability of the business and building long-term value for
all our stakeholders in a socially responsible manner.
Whilst the Board is responsible for the Company’s corporate
governance, we do not see governance as just a matter for the
Board. We believe good governance is about doing the right
thing and having the courage to stand up for what is right. It is
the responsibility for all those who work at IGO to act ethically,
with integrity and within the law, and this ethos is embedded
throughout the organisation.
Our governance framework supports our people to deliver
on our strategic objectives and provides an integral role for
responsible and informed decision making. IGO regularly
reviews its governance framework to ensure it reflects current
and emerging legislation and industry best practice. The
following Corporate Governance Codes, Charters and Standards
can be found in the Governance section on IGO’s website: Code
of Conduct, Anti-Bribery and Corruption Standard, Continuous
Disclosure and Information Standard, Dealing in Securities
Standard, Diversity, Inclusion and Equal Opportunity Standard,
Privacy Standard, Whistleblower Standard, Board Charter, Audit
and Risk Charter, Nomination and Governance Charter, People
and Performance Charter and Sustainability Charter.
The Board is responsible for promoting the success of
the Company in a way which ensures that the interests of
shareholders and stakeholders are promoted and protected.
Some of its key functions are setting the long-term corporate
strategy, reviewing and approving business plans and annual
budgets, overseeing the risk management framework that
includes both financial and non-financial risks, approving
material capital expenditure, approving financial statements,
approving and monitoring the adherence to Company policies,
developing and promoting corporate governance, and
demonstrating, promoting and endorsing an ethical culture.
The Board delegate responsibility for the day-to-day operations
and administration of the Company to the Managing Director
& CEO, and with the support of the Executive Leadership
Team (ELT), are responsible for IGO’s business processes and
sustainability performance. The responsibility across IGO’s
Seven Pillars of Sustainability are assigned to various members
of the ELT, including:
• Safety and Wellbeing – Chief Operating Officer
• Being Carbon Neutral – Chief Operating Officer
• Environment – Chief Operating Officer
• Our People – Head of People and Culture
• Communities and Traditional Owners – Company Secretary
and Head of Corporate Affairs and General Counsel and
Head of Risk & Compliance
• Our Financial Contributions – Chief Financial Officer
• Business Integrity – all members of the ELT
STAKEHOLDERS
IGO Board
Audit & Risk
Committee
Nomination &
Governance Committee
People & Performance
Committee
Sustainability
Committee
Independent
Assurance
(External and
Internal Auditors)
Managing Director & CEO
Executive Leadership Team
7 PILLARS OF SUSTAINABILITY
IGO ANNUAL REPORT 2021 — 33
Corporate Governance
BOARD COMMITTEES
BOARD SKILLS MATRIX
The Board has established four Committees that are structured
in accordance with the ASX Recommendations and enable the
Board to effectively discharge its responsibilities. The Committees
report on discussions held and make recommendations to the
Board at the succeeding Board meeting.
Strategy
Executive Leadership
In line with IGO’s ongoing policy and commitment to best
practice corporate governance, in October 2020 the Board
approved the change in the committee structures to transfer
oversight responsibilities in relation to the Company’s Risk
Management System to the Audit Committee.
Each Committee works within a Charter that outlines the roles
and responsibilities of the Committee and its members. All
Charters were reviewed and updated for best practice in FY21.
Further information about governance at IGO as well as copies
of the Board and Committee Charters can be found in the
Governance section of IGO’s website at https://www.igo.com.
au/site/our-business/governance.
STEM
Industry Specific – Upstream
Industry Specific – Downstream
Marketing and Quality Control
Auditing and/or Financial Reporting
2021 CORPORATE GOVERNANCE STATEMENT
Risk Management
The Company’s 2021 Corporate Governance Statement outlines
the Company’s current corporate governance framework,
by reference to the Corporate Governance Principles and
Recommendations contained in the ASX Corporate Governance
Council’s 4th Edition of its Corporate Governance Principles and
Recommendations (ASX Recommendations). During FY21, the
Company’s corporate governance practices complied with all
relevant ASX Recommendations in their entirety.
The Corporate Governance Statement is current as at 31 August
2021 and has been approved by the Board. This statement
can be found in the Governance section of IGO’s website at
http://www.igo.com.au/site/ourbusiness/governance along with
the ASX Appendix 4G, a checklist cross-referencing the ASX
Recommendations to disclosures in the Corporate Governance
Statement and the 2021 Annual Report.
BOARD SKILLS MATRIX
In FY21, a comprehensive board skills review was conducted
as part of the annual Board evaluation to identify the key
skill areas for the Board to discharge its responsibilities in
accordance with the highest standards of governance whilst
executing IGO’s long-term strategy.
The Board and ELT then conducted an assessment of the
optimum mix of these skills on the Board. The results of this
review were evaluated to ascertain whether there were any
skill gaps that would need to be addressed through succession
planning and/or professional development programs. The
combination of skills and experience were chosen due to
the strategic direction of the Company as well as the risks,
opportunities, challenges and developments related to the
mining industry and the Company’s business.
Following the review, it was determined that the Board currently
have a strong combination of desired skills and experience.
Nevertheless, to ensure the Board has the necessary skills
for the future with regard to IGO’s long-term strategy, it was
recognised that there are a number of areas where the ability,
knowledge and diversity of thought could be broadened
through future board renewal and ongoing education sessions.
IGO’s board skills matrix shows how many Directors have a deep
knowledge and experience in each area taking into consideration
their many years of direct experience.
34 — IGO ANNUAL REPORT 2021
Governance
Organisational Culture
People, Wellbeing, Inclusion and Diversity
Health and Safety
Innovation and Clean Energy Technologies
Globalisation, International, China cross border
Strategic Entrepreneurship
M&A and/or Funding
Capital Projects
Technology, Digital Transformation and/or Cyber Security
Environmental and Tailings
Climate and Decarbonisation
Stakeholder Relations and/or Activism
Legal
Regulatory and/or Public Policy
Expert – Deep knowledge / formal qualification
or experience over many years
Moderate – Moderate skills / experience – knowledgeable
but not highly skilled
Aware – Some knowledge and can follow a discussion
MEMBERSHIP
ROLE
KEY RESPONSIBILITIES
Audit & Risk Committee
Kathleen Bozanic
(Chair)
Debra Bakker
Keith Spence
Xiaoping Yang
To assist the Board in
meeting its oversight
responsibilities in relation
to the Company’s Risk
Management System and
to monitor and review the
effectiveness of the control
environment of IGO in the
areas of balance sheet risk,
relevant legal and regulatory
compliance and financial
reporting.
• Monitoring relevant changes in legislation and corporate governance in relation
to financial and risk reporting
• Reviewing key accounting policies and practices and overseeing adequacy
of the Group’s financial controls
• Quarterly reviews of the Group’s Critical Business Risks
• Reviewing the Company’s Risk Management Framework
• Reviewing external and internal audits and approval of audit plans
• Assessing processes to ensure compliance with legal and regulatory
requirements
• Reviewing and making recommendations to the Board on periodic reporting
Nomination & Governance Committee
Peter Buck (Chair)
Kathleen Bozanic
Keith Spence
To assist the Board to review
Board composition (including
identifying candidates
for the Board), director
independence, succession,
performance and relevant
policies and practices.
People & Performance Committee
Debra Bakker (Chair)
Peter Buck
Michael Nossal
To assist the Board
in establishing IGO’s
remuneration framework
and relevant policies and
practices to attract, retain
and motivate employees.
• Reviewing and approving the quarterly activity reports
• Approving external audit plan and fees
• Reviewing independence and performance of external auditor
• Monitoring and reporting to the Board any material reports received under
the Whistleblower and Anti-Bribery and Corruption Standards.
• Monitoring relevant changes in legislation and corporate governance
• Reviewing Corporate Governance Standards
• Reviewing and making recommendations to the Board on the composition
of the Board
• Identifying, evaluating and recommending additional non-executive director
to the Board
• Management of the director induction program
• Reviewing and making recommendations to the Board on director rotation
• Reviewing director skills matrix and conducting gap analysis
• Board succession planning.
• Monitoring relevant changes in legislation and corporate governance in relation
to employment and remuneration
• Reviewing the Company’s remuneration framework and policy
• Non-executive Director, CEO and KMP remuneration
• Equity-based remuneration plans for KMP and other employees
• Organisational development and culture, including IGO’s workplace diversity
and inclusion strategy, policy, practices and performance
• CEO, KMP and other members of management recruitment, selection,
performance management and retention
• Superannuation arrangements for the organisation
• Ensuring remuneration equity for all employees across the Group.
Sustainability Committee
Keith Spence (Chair)
Michael Nossal
Xiaoping Yang
To assist the Board in
meeting its oversight
responsibilities in relation to
the Company’s sustainability
policies and practices.
• Monitoring relevant changes in legislation and corporate governance in relation
to sustainability reporting
• Reviewing the Company’s environmental, health and safety performance as well
as community relations
• Consideration of heritage and land access matters affecting the Company
• Consideration of climate change risk and opportunities relevant to IGO
• Reviewing and recommending to the Board the approval of Company’s
Sustainability Report.
IGO ANNUAL REPORT 2021 — 35
Corporate Governance
Board Profile
MICHAEL
NOSSAL
NON-EXECUTIVE
CHAIR
Age 63
BSc, MBA, FAusIMM
PETER
BRADFORD
DEBRA
BAKKER
PETER
BILBE
MANAGING DIRECTOR &
CHIEF EXECUTIVE OFFICER
NON-EXECUTIVE
DIRECTOR
Age 63
BAppSc (Extractive Metallurgy),
FAusIMM
Age 55
MAppFin., BBus. (Accounting &
Finance), GradDip FINSIA, GAICD
NON-EXECUTIVE
DIRECTOR
Age 71
B.Eng. Mining Hons, MAusIMM
Term of office
Term of office
Term of office
Term of office
Mr. Nossal was appointed as
a Non-executive Director in
December 2020 and Non-
executive Chair in July 2021.
Mr. Bradford was appointed as
Managing Director and Chief
Executive Officer in March
2014.
Ms. Bakker was appointed as
a Non-executive Director in
December 2016.
Board Committees
People & Performance,
Sustainability
Experience
Mr. Nossal is a senior mining
executive with 35 years’
experience in gold, base
metals and industrial minerals.
His executive career focused
on strategy and business
development, and he led
significant M&A and internal
growth initiatives for several
companies, most recently
Newcrest Mining Limited and
MMG Limited. He has broad
international experience
and his executive and non-
executive roles have included
companies listed on the ASX,
LSE, HKEX and TSX.
As a non-executive, he has
further developed his strong
interest in the ESG agenda and
believes mining companies
can and should be a force
for positive change in the
countries and communities
they operate.
Board Committees
None
Experience
Mr. Bradford is a senior
executive with over 40 years’
experience in senior leadership
roles in the mining industry.
This includes significant
operational (both upstream
and downstream), corporate
and board experience in
Australia and overseas in
mineral sands, nickel, copper
and gold. Mr. Bradford is a
strong advocate of the mining
industry as well as the need
to promote greater diversity
and inclusion, and the next
generation of mining leaders.
Mr. Bradford is President of
the Association of Mining and
Exploration Companies Inc
(AMEC) and Chair of the Curtin
University Brighter Futures
Scholarship Program.
Other current directorships
Other current directorships
None
Board Committees
Audit & Risk, People &
Performance (Chair)
Experience
Ms. Bakker is an experienced
financier and investment
banker to the resources
industry, with 10 years’
experience working in London,
Chicago and New York in
senior roles with Barclays
Capital and Standard Bank
London Group. Subsequently,
Ms. Bakker established the
natural resources team for
Commonwealth Bank of
Australia and held a number
of senior roles over a 10-year
period culminating as Head of
Mining and Metals Origination.
Other current directorships
Non-executive Director –
Carnarvon Petroleum Limited
Former directorships
in the last 3 years
Non-executive Director –
Capricorn Metals Ltd
Non-Executive Chair
– Nordgold plc1
Former directorships
in the last 3 years
Lundin Gold
Former directorships
in the last 3 years
None
Mr. Bilbe was appointed as
a Non-executive Director in
March 2009 and served as
Non-executive Chair between
July 2011 and June 2021.
Board Committees
None
Experience
Mr. Bilbe is a mining engineer
with 45 years of diverse
experience in the mining
industry in Australia and
overseas with a background
in gold, base metals and iron
ore. In particular, Mr. Bilbe
has significant experience
in feasibility studies and
project development, open
pit and underground mining
and processing operations,
provision of contract mining
services and public company
stewardship as senior
executive, Director and Chair.
Other current directorships
Non-executive Director of
Adriatic Metals Plc and Horizon
Minerals Limited
Former directorships
in the last 3 years
None
1. Nordgold plc is unlisted however in terms of time commitment and size of role, the time commitment is comparable to a listed company
36 — IGO ANNUAL REPORT 2021
KATHLEEN
BOZANIC
PETER
BUCK
KEITH
SPENCE
NON-EXECUTIVE
DIRECTOR
Age 47
BCom (Accounting & Finance),
ANZCA, GAICD
NON-EXECUTIVE
DIRECTOR
Age 72
M.Sc. (Geology), MAusIMM
NON-EXECUTIVE
DIRECTOR
Age 67
BSc. (Geophysics) (Hons)
XIAOPING
YANG
NON-EXECUTIVE
DIRECTOR
Age 62
PhD ChemE, MBA
Term of office
Term of office
Term of office
Term of office
Ms. Bozanic was appointed as
a Non-executive Director in
October 2019.
Mr. Buck was appointed as
a Non-executive Director in
October 2014.
Mr. Spence was appointed as
a Non-executive Director in
December 2014.
Ms. Yang was appointed as
a Non-executive Director in
December 2020.
Board Committees
Board Committees
Board Committees
Board Committees
Audit & Risk (Chair),
Nomination & Governance
Nomination & Governance
(Chair), People & Performance
Experience
Experience
Ms. Bozanic has over 25
years of experience as a
finance professional including
as Chief Financial Officer/
General Manager of listed
and private mining and
contracting companies. Ms.
Bozanic has previously held
senior positions with BGC
Contracting, Atlas Iron and
Mt Gibson and was a Partner
of professional services firm,
Deloitte.
Other current directorships
Non-executive Director – Great
Southern Mining Ltd and DRA
Global Limited
Former directorships
in the last 3 years
None
Mr. Buck is a geologist with
over 40 years’ experience in
the mineral exploration and
mining industry. Mr. Buck has
worked with WMC Resources,
Forrestania Gold, LionOre
and Breakaway Resources in
executive management and
director positions. He has been
a Non-executive Director of
Gallery Gold Ltd and PMI Gold.
Mr. Buck was also a board
member of the Centre for
Exploration Targeting at The
University of Western Australia
and Curtin University and is a
life member of the Association
of Mining and Exploration
Companies (AMEC). Mr. Buck
brings a strong background in
discovery, development and
mining of nickel, gold and base
metal deposits in Australia and
overseas.
Other current directorships
Non-executive Director –
Antipa Minerals Limited
Former directorships
in the last 3 years
None
Audit & Risk, Nomination
& Governance, Sustainability
(Chair)
Experience
Mr. Spence has over 40
years’ experience in the oil
and gas industry in Australia
and internationally, including
18 years with Shell and 14
years with Woodside. He has
served as a Non-executive
Director and Chair for listed
companies since 2008,
working in energy, oil and gas,
mining, and engineering and
construction services and
renewable energy. He chaired
the board of the National
Offshore Petroleum Safety and
Environmental Management
Authority for seven years.
Mr. Spence has significant
experience in exploration
and appraisal, development,
project construction,
operations and marketing.
Audit & Risk, Sustainability
Experience
Ms. Yang is a chemical
engineer with 30 years’
experience in the energy
and petrochemical industry
with a variety of executive
management and board
positions at BP. Ms. Yang
has a diverse breadth of
experience in technology
development and innovation
with direct experience in solar,
hydrogen and energy storage
technologies. Ms. Yang also
has experience working in
the US and Asia and has held
general manager roles of joint
ventures and Chair positions
including downstream and new
energy frontier businesses.
Other current directorships
None
Former directorships in the
last 3 years (listed only)
Other current directorships
None
Non-executive Chair – Santos
Limited and Base Resources
Limited
Former directorships
in the last 3 years
Murray & Roberts Holdings
Limited and Oil Search Limited
IGO ANNUAL REPORT 2021 — 37
Directors’ Report
30 JUNE 2021
Your Directors present their report on the consolidated entity
(Group) consisting of IGO Limited (IGO or the Company) and
the entities it controlled during the year ended 30 June 2021.
DIRECTORS
The following persons held office as Directors of IGO during
the whole of the financial year and up to the date of this report,
unless otherwise noted:
Peter Bilbe
Michael Nossal1
Peter Bradford
Keith Spence
Debra Bakker
Neil Warburton2
Kathleen Bozanic
Xiaoping Yang3
Peter Buck
1. Michael Nossal was appointed a Non-executive Director on 18 December
2020. On 1 July 2021, the Company announced the appointment of
Michael to the role of Chair, while Peter Bilbe transitioned to a Non-
executive Director role.
2. Neil Warburton was a Non-executive Director from the beginning of the
financial year until his resignation on 28 October 2020.
3. Xiaoping Yang was appointed a Non-executive Director on 1 December
2020.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year
were nickel, copper and cobalt mining and processing at the
Nova Operation, and up until its divestment on 31 May 2021,
non-operator gold mining from the Company’s 30% interest
in the Tropicana Operation, and ongoing mineral exploration
in Australia and overseas.
DIVIDENDS
Dividends paid to members during the financial year were
as follows:
Final ordinary dividend for the year ended 30
June 2020 of 5.0 cents (2019: 8.0 cents) per fully
paid share
2021
A$’000
2020
A$’000
29,540
47,264
Interim ordinary dividend for the year ended 30
June 2021 of nil cents (2020: 6.0 cents) per fully
paid share
-
35,448
29,540
82,712
In addition to the above dividends, since the end of the
financial year the Company has announced the payment
of a fully franked final ordinary dividend of A$75,727,000
(10 cents per fully paid share) to be paid on 23 September 2021.
OPERATING AND FINANCIAL REVIEW
This review should be read in conjunction with the financial
statements and the accompanying notes.
38 — IGO ANNUAL REPORT 2021
COMPANY OVERVIEW
IGO Limited is a leading ASX-listed mining and exploration
company with a strategic focus on metals that are critical to
energy storage and renewable energy. Headquartered in Perth,
Western Australia, IGO owns and operates 100% of the Nova
nickel-copper-cobalt operation in Western Australia’s Fraser
Range. On 30 June 2021, IGO also completed a transaction
to invest into the Australian lithium assets of Tianqi Lithium
Corporation.
Until its divestment on 31 May 2021, the Company also
owned 30% of the Tropicana Gold Mine, a joint venture
(JV) with AngloGold Ashanti Australia in Western Australia’s
goldfields region.
The Company is actively pursuing growth through
a combination of exploration – to discover the mines
of the future – and disciplined corporate activity to secure
opportunities via mergers and acquisitions.
Further details of business activities of the Group are
outlined here:
• The Nova Operation, 100% owned, was acquired as
a development stage project via the acquisition of Sirius
Resources NL in September 2015. The Nova Operation
is located in the Fraser Range, approximately 140km east
northeast of Norseman, 360km southeast of Kalgoorlie and
380km from the Port of Esperance in Western Australia.
The Ngadju People are the Traditional Owners of the land.
The Nova Operation comprises an underground mine
consisting of two orebodies, Nova and Bollinger. The Nova-
Bollinger magmatic nickel-copper deposits are hosted within
the lower granulite facies mafic rocks of the Fraser Zone
of the Albany-Fraser Orogen. The host rocks of the Nova-
Bollinger deposit consist of a suite of meta-gabbroic to
meta-picrite cumulates which have been metamorphosed
to a high metamorphic grade. These units are interpreted
to have been emplaced as a layered sill in an extensional
sedimentary basis. The deposit is situated on the north-
western side of an eye-like structural feature which
is best seen in regional and ground magnetics.
In addition, the Nova Operation consists of a processing
facility with nameplate production capacity of 1.5 million
tonnes per annum that produces both nickel and copper
concentrates, and associated non-processing infrastructure.
Commercial production was declared at the Nova Operation
on 1 July 2017, with nameplate production capacity reached
shortly thereafter. Nova has since demonstrated steady state
production at or above the nameplate 1.5 million tonnes per
annum rate.
• On 30 June 2021, the Company announced the completion
of the transformational transaction to form a new lithium JV
with Tianqi over its Australian lithium assets of which IGO
has a 49% interest. The Lithium JV will initially focus on the
existing upstream and downstream lithium assets located
in Western Australia, which include a 51% share of the
Greenbushes Lithium Mine (a JV with global lithium company
Albemarle Corporation who hold 49%) and the 100% owned
and operated Kwinana Lithium Hydroxide Refinery (Kwinana).
Directors’ Report 30 June 2021 Greenbushes is a large-scale, long life, low cost, hard rock
lithium mine with spodumene concentrate plants, located
approximately 250km south of Perth, Western Australia.
Greenbushes has the highest Ore Reserve grade of any hard
rock lithium mine globally and is a well-established operation
with mining operations spanning over many years, with
lithium operations commencing in 1983. The site comprises a
large open pit mine, three processing plants – two producing
chemical grade lithium concentrates (CGP1 and CGP2) and
one producing technical grade lithium concentrates (TGP),
and associated infrastructure.
Kwinana is one of the first fully automated battery
grade lithium hydroxide facilities globally and the only
constructed lithium hydroxide plant in Australia. The
refinery is approximately 35km south of Perth, Western
Australia, and only 200km north of Greenbushes, adjacent
to major supply chain logistics. The completed plant will
comprise two individual production trains with an aggregate
nameplate capacity of 48ktpa of premium battery-grade
lithium hydroxide. The first production train (Train 1) is
fully constructed and currently being commissioned, with
production expected to commence in the second half
of 2021 and complete ramp up by the end of 2022. The
second production train (Train 2) is under construction and
is expected to commission in 2024.
• During the year, IGO divested its share of the Company’s
30% interest in the Tropicana Gold Mine. On 13 April
2021, the Company announced that it had entered into a
binding agreement with Regis Resources Limited (Regis)
for the sale of IGO’s 30% interest in the Tropicana Gold
Mine. The execution of the binding sale agreement marked
the completion of the Tropicana strategic review which
was announced in September 2020. On 31 May 2021, the
Company announced the completion of the divestment
transaction.
In addition to its Nova mining operation and interest in the
Lithium JV, the Company is pursuing aggressive growth
through its portfolio of high-quality belt scale exploration
projects across Australia and overseas that prioritise nickel
and copper exploration and discovery.
EXPLORATION OVERVIEW
IGO has an enduring, long-term commitment to exploration
targeting transformational value creation and sustainable growth
through the discovery of clean energy metals. Our disciplined
approach to greenfield exploration and discovery is designed
to maximise the chance of step-change success by:
• focusing on high value magmatic nickel-copper-cobalt (PGE)
deposits and sediment-hosted copper (±cobalt/gold/silver)
deposits aligned with our clean energy metals strategy
• applying leading generative geoscience, prospectivity
assessments and ranking to identify the most prospective
underexplored belts within Australia and elsewhere, that
have the potential to deliver Tier 1 and Tier 2 discoveries
of our preferred commodities and deposit styles
• leveraging the technical excellence of our world class
exploration team, with our innovative geophysics and
geochemistry capabilities where leading technologies are
deployed, and this, coupled with our proprietary in-house
databases, are key enablers for discovery success; and
• in addition to our systematic belt-scale exploration, IGO
is also seeking advanced exploration opportunities, typically
through partnering with complimentary junior explorers,
where IGO can bring its unique skills and technologies
to bear on projects to enhance the probability of success
for all parties.
To this end, the Group has continued to build and develop its
unique portfolio of highly prospective brownfields opportunities
and belt scale greenfield projects.
Key work activities completed during this period include:
BROWNFIELDS EXPLORATION
Nova near-mine (nickel-copper-cobalt) – Diamond drilling
(DD) near the Nova Operation continued to follow-up on 3D
seismic targets that had previously been drilled and intersected
prospective mafic-ultramafic intrusions with polyphase
magmatic Fe-Ni-Cu sulphides. All remaining underground
targets were tested with only minor mineralisation encountered.
Encouraging results were received from several prospects
tested by surface drilling. DD programs are planned to further
test the highly prospective Orion intrusion on the Boadicea JV
(E28/1932) and to follow-up encouraging air core (AC) drilling
results at the Chimera target.
GREENFIELDS EXPLORATION
• Fraser Range (nickel-copper-cobalt) - IGO continued
to strengthen its position in the prospective Fraser Range
through new JV agreements, new tenement applications and
the relinquishment of non-core tenements, and at year end
had total tenement holdings of approximately 12,225km2.
During the year, IGO continued to explore along the Fraser
Range, focusing on infill AC drilling at specific targets,
completing moving-loop electromagnetic (MLEM) surveys
over coincident geophysical, geochemical and/or geological
anomalies, and DD testing of compelling targets, typically
based on the presence of electromagnetic (EM) conductors
and geochemical anomalies generated through AC drilling.
Regional AC drilling programs commenced south of the
Trans Access Road early in the June 2021 quarter. MLEM
surveys are planned for the Boadicea JV (E28/1932) where
the Orion, Elara and Hercules prospects are interpreted
to strike, and the Southern Hills area to the southwest
of the Nova Operation.
• Paterson (copper) – the Paterson Project is targeting
sediment-hosted copper deposits with potential gold, silver
and/or cobalt credits. The project comprises four key ground
positions, consisting of three earn-in and JV Agreements
with Cyprium Metals Limited, Encounter Resources Limited
and Antipa Minerals Limited respectively, and tenements
staked by IGO.
On the Cyprium JV tenements managed by IGO,
a relogging and resampling program of historical drill
cores and reverse circulation (RC) chips was completed
to gain a better understanding of stratigraphy, basin
architecture, mineralisation styles, alteration halos
and geochemical footprints.
On the Encounter JV tenements, assay results from an infill
soil sampling program in late-2020 identified four priority-1
multi-element anomalies that require follow up. Several
DD holes targeted a combination of EM geophysical and
geochemical anomalies. As of 1 April 2021, the Encounter
JV transitioned to IGO management.
On the Antipa Minerals JV tenements, assay results were
received for 79 wide spaced shallow AC holes drilled in
late-2020. Highly anomalous drill samples of gold and silver
mineralisation have extended the strike length of the Poblano
gold‐copper-silver mineralised trend by approximately 500m.
A 133-hole AC program commenced in mid-June 2021 that
aims to test geophysical, structural and stratigraphic targets
across a broader area of the JV tenements.
IGO ANNUAL REPORT 2021 — 39
• Kimberley (nickel-copper-cobalt) – the Kimberley Project
is targeting Nova-style nickel-copper-cobalt sulphide
mineralisation in the Paleoproterozoic belts of the West
and East Kimberley. During the year, the next JV earn-in
stage was reached for the West Kimberley Regional JV with
Buxton Resources, with IGO now holding an 80% interest in
these tenements. In the East Kimberley, the compilation and
reprocessing of open file geophysical data was completed
and the digitising of open file geochemical data continued.
In late FY21, on-ground exploration commenced in the
Osmond Valley area.
• Lake Mackay (copper-nickel-cobalt-gold) – Lake Mackay is a
JV between IGO, Prodigy Gold NL and Castile Resources Pty
Ltd (in parts) covering 15,630km2 of tenements straddling the
Northern Territory and Western Australian border. During the
year, RC and DD programs were completed at the Phreaker
Prospect. One DD hole intersected significant copper-gold-
silver mineralisation which may require follow-up in FY22.
FINANCIAL OVERVIEW
FY21 was another successful year for IGO both from an
operational and financial perspective, with performance from
the operations combined with strong commodity prices and
positive industry sentiment. Robust performance at the Nova
Operation continued, and up until its divestment Tropicana
was also a key contributor to the Company’s financial success
for the period.
From a financial performance perspective, the Group’s Board
and management monitor underlying EBITDA (calculated as
profit before tax adjusted for finance costs, interest income,
gain on sale of investments and subsidiaries, acquisition and
transaction costs, foreign exchange and hedging gains/losses
attributable to the acquisition of Tianqi and depreciation and
amortisation). This measure represents a useful proxy for
measuring an operation’s cash generating capabilities.
The Company achieved record revenue and underlying
EBITDA for the third year in a row, generating total revenue
and other income of A$918.7 million and underlying EBITDA
of A$474.6 million. Due to the divestment of Tropicana, we
report revenue from continuing and discontinued operations.
Revenue from continuing operations (comprising primarily the
Nova Operation) of A$671.7 million was a 12% increase on the
prior year result of A$598.9 million. This was predominantly due
to stronger base metal prices and higher payabilities following
the renegotiation of Nova Operation’s concentrate offtake
agreements during FY20. Nova continued strong operational
performance, exceeding guidance range on all metals. Revenue
from discontinued operations (Tropicana) was A$243.3 million,
a 16% decrease primarily due to lower grade mined and milled
during the period.
Profit from discontinued operations for the current year of
A$431.9 million reflects the results of the Tropicana Operation
up to its divestment on 31 May 2021, including the gain on the
sale of the Operation. The Group recognised a gain on the sale
of Tropicana after income tax of A$384.8 million. All results
referred to in this Director’s Report reflect Tropicana’s results
up to 31 May 2021.
Underlying EBITDA increased relative to the previous financial
year, as can be seen in the following chart:
500
450
400
350
300
250
200
150
100
0
(50)
(100)
(150)
M
$
A
436
351
256
175
122
Nova
Operation
Tropicana
Operation
40 — IGO ANNUAL REPORT 2021
Underlying EBITDA
FY21 A$475M
FY20 A$460M
33
10
(25)
(22)
Corporate and
other expenses
Investment
revaluation
(64)
(73)
Exploration
and evaluation
expense
(5)
(4)
Share-based
payments
expense
(non-cash)
Directors’ Report 30 June 2021 Nova’s underlying EBITDA was higher on the previous year,
primarily due to the higher revenue from stronger base metal
prices and higher payabilities on metal sold. Tropicana’s
underlying EBITDA was lower compared to the previous year
primarily due to lower mined and milled grades, together with
its divestment earlier in the year on 31 May 2021.
and higher IT systems costs. The Company’s corporate giving
spend was also higher compared to the prior year, driven
by additional payments to the Dundas Shire and Esperance
Shire for bushfire and Covid-19 relief. Lastly, the investment
revaluation of A$10.0 million recognises mark-to-market gains
on listed investments.
Exploration and evaluation expenditure decreased by 11%
mainly due to lower corporate development expenditure with
costs relating to the acquisition of the Company’s 49% interest
in the Lithium JV with Tianqi recorded as acquisition costs.
Corporate expenditure was up slightly compared to FY20 due
to higher group insurance premiums, an increased investment
in the Company’s graduate recruitment and training program
Net profit after tax (NPAT) for the year was A$548.7 million,
compared to A$155.1 million in the previous financial year.
This included the recognition of a gain on the sale of Tropicana
after income tax of A$384.8 million (A$556.8 million before tax).
NPAT for the group excluding the gain on the sale of Tropicana
was A$163.8 million. The year-on-year variance in NPAT is
detailed in the chart below.
NPAT VARIANCE FY21 VS FY20
553
1
(25)
(168)
549
155
(84)
113
4
(2)
16
8
(23)
800
700
600
500
M
$
A
400
300
200
100
0
s
a l e o
a i r m e
s
f A s
t o
n
s
t
e
f e
p l o
x
n
t i o
t f i n
a
r
N e
s
t
s
o
e c
o m e t
c
c
n
a
I n
p
x
x e
a
e
s
n
e
1
N P A T F Y 2
557
(232)
549
N P A T F Y 2 0
o l u m e v
S a l e
s v
e
c
t i o
n
c
r i a
u
d
e
c
P r i c
s o
e V a
o
f P r
n
r i a
a
t
s
C o
e
c
n
r i a
a
n v
p
r
C o
e
t
a
r
o
D & A
t i o
a
e
s
f i n
n
e
p
x
n e
M T M o
t
n
t m e
s
e
v
n s
G a i n o
I m p
a l u
v
n & e
t i o
a
r
p l o
x
E
Below is a reconciliation of Underlying EBITDA to NPAT for FY21.
M
$
A
1,000
900
800
700
600
500
400
300
200
100
0
475
(24)
(227)
(5)
5
Underlying
EBITDA
Net finance
costs
Depreciation
& amortisation
Acquisition
& transaction
costs
Forex gains
on Tianqi
transaction
Gain on sale
of Tropicana
Income tax
expense
Net profit
after tax
Depreciation and amortisation expense of A$227.3 million (FY20: A$243.6 million) was lower than the prior year driven by lower
amortisation of mine properties following lower reserve depletion for FY21 and the divestment of Tropicana on 31 May 2021.
Net finance costs of A$24.2 million relate to loan establishment and commitment fees incurred during the year, which includes
A$17.7 million of establishment fees for the new financing facilities entered into during the year.
From a cash flow perspective, cash flows from operating activities for the Group were A$446.1 million, compared to the FY20 year
of A$397.5 million, predominantly due to stronger base metal prices positively impacting product revenue.
IGO ANNUAL REPORT 2021 — 41
The Nova Operation generated A$404.9 million cash flows from operating activities, which was a result of 22,051 tonnes of payable
nickel sold (FY20: 22,260 tonnes), 10,752 tonnes of payable copper sold (FY20: 13,115 tonnes) and 454 tonnes of payable cobalt
sold (FY20: 390 tonnes) sold during the year. Tropicana Operation generated cash from operating activities of A$139.7 million
following the sale of 110,402 ounces of gold. Cash flow from operating activities also included A$63.8 million cash outflow for
exploration and evaluation expenditure and A$29.9 million cash outflow for corporate, net borrowing and other costs.
Cash outflows from investing activities increased to A$1,065.0 million for the year, up from A$115.3 million in FY20. Total payments
of A$1,855.4 million were made by the Group for its investment in the new Lithium JV with Tianqi over its Australian lithium assets,
while proceeds, net of costs, of A$862.3 million were received on the sale of the Group’s 30% interest in the Tropicana JV. Cash
outflows for development expenditure related predominately to waste stripping and underground development at the Tropicana
Operation (A$68.2 million). Proceeds from financial assets include the sale of shares in New Century Resources Limited for
A$27.0 million. During the year, IGO also received deferred consideration totalling A$16.1 million for the third and final instalment
of the divestment of the Jaguar Operation in FY18.
Cash flows from financing activities during the financial year included proceeds from the issue of ordinary shares, totalling
A$765.8 million, with corresponding share issue costs of A$16.7 million. Furthermore, cash outflows from financing activities included
repayment of outstanding borrowings totalling A$57.1 million and transaction costs of A$17.5 million relating to the establishment
of the new financing facilities during the year. Finally, the Company paid dividends totalling A$29.6 million during the year.
At the end of the financial year, the Group had cash and cash equivalents of A$528.5 million and marketable securities of A$110.9
million (FY20: A$510.3 million and A$107.8 million respectively). The Company has undrawn debt facilities of A$450.0 million.
The Group’s future prospects are dependent on a number of external factors that are summarised towards the end of this report.
NOVA OPERATION
The Nova deposit was discovered in July 2012, with the Operation reaching nameplate ore production in the September 2017
quarter. Nova continued to deliver strong operational performance in FY21, exceeding production guidance for all metals. In FY21,
a total of 1,594kt of ore was mined at an average grade of 2.04% nickel and 0.86% copper.
The Nova process plant milled 1,602kt of ore at an average nickel and copper grade of 2.06% and 0.87% respectively for the year,
to produce 29,002t of nickel and 13,022t of copper. Nickel metallurgical recoveries in the processing plant generally performed
in line with modelled recoveries at 87.9%, while copper recoveries were 88.6% for the year.
Nova revenue for the period was A$668.8 million, compared to A$593.3 million for the prior year. This was generated through
concentrate sales during the period sold to BHP Nickel West Pty Ltd and Trafigura Pte Ltd, with sales amounting to 22,051 tonnes
of payable nickel, 10,752 tonnes of payable copper and 454 tonnes of payable cobalt. Nickel cash costs per payable pound, which
comprises the costs of producing and selling nickel concentrates from the mine site and includes credit adjustments for copper
and cobalt sales, were A$1.85 per payable pound for the year.
Below is a summary of the key physical and financial information relating to the Nova Operation.
NOVA OPERATION
Total revenue
Segment operating profit before tax
Total segment assets
Total segment liabilities
Ore mined
Nickel grade
Copper grade
Cobalt grade
Ore milled
Metal in concentrate
- Nickel
- Copper
- Cobalt
Metal payable - in concentrate produced
- Nickel
- Copper
- Cobalt
Nickel cash costs and royalties*
Nickel All-in Sustaining Costs**
* Includes credits for copper and cobalt
** Includes cash costs, royalties and sustaining capex
42 — IGO ANNUAL REPORT 2021
A$'000
A$'000
A$'000
A$'000
tonnes
%
%
%
2021
2020
668,841
593,274
262,945
182,173
1,086,380
1,181,867
100,306
92,862
1,593,975
1,546,308
2.06
0.87
0.08
2.31
0.98
0.09
tonnes
1,602,443
1,514,268
tonnes
tonnes
tonnes
tonnes
tonnes
tonnes
A$/lb total Ni metal payable
A$/lb total Ni metal payable
29,002
13,022
1,084
22,711
12,026
461
1.85
2.16
30,436
13,772
1,142
22,049
12,606
389
2.41
2.74
Directors’ Report 30 June 2021 TROPICANA OPERATION
As discussed above, on 31 May 2021, IGO announced the completion of the divestment of its 30% interest in the Tropicana Gold
Mine to Regis. Accordingly, the results and commentary below reflect the year-to-date to 31 May 2021.
During the year, total material mined was 29.4M bank cubic metres, which comprised of 2.6 million tonnes of the open cut ore
(>0.6 grams per tonne Au), 0.76 million tonnes of the underground ore and 72.0 million tonnes of waste material. The average
grade mined for full grade ore (>0.6 grams per tonne Au) was 1.85 grams per tonne Au for the year. Ore milled was 8.3 million
tonnes while mill feed grade and recovery were 1.50 grams per tonne and 90.5% for the year, respectively.
The development of the Boston Shaker underground mine commenced in May 2019. The mine transitioned into commercial
production in the September 2020 quarter on schedule, below the A$105.7 million budget and importantly, with no recordable
safety incidents.
Revenue from the Tropicana Operation for the period was A$243.3 million. The Company’s share of gold refined and sold was
110,402 ounces.
Cash costs per ounce produced, which comprises the costs of producing gold at the mine site and includes credit adjustments
for waste stripping costs, capitalised mine development costs and inventory build and draw costs, were A$1,081 per ounce, while
all-in sustaining costs (AISC) per ounce sold were A$1,720 per ounce. AISC comprises cash costs and capitalised sustaining
deferred waste stripping costs, capitalised mine development costs, sustaining exploration costs, sustaining capital and non-cash
rehabilitation accretion costs. AISC excludes improvement capital expenditure and greenfield exploration expenditure.
The table below outlines the key results and operational statistics during the current year to 31 May 2021 and prior year.
TROPICANA OPERATION
Total revenue
Segment operating profit before tax
Total segment assets
Total segment liabilities
Open Cut: Gold ore mined (>0.6g/t Au)
Open Cut: Gold ore mined (>0.4 and 0.6g/t Au)
Underground: Ore mined
Waste mined
Open Cut: Gold grade mined (>0.6g/t)
Underground: Au Grade Mined
Ore milled
Gold grade milled
Metallurgical recovery
Gold recovered
Gold produced
Gold refined and sold (IGO share)
Cash Costs
All-in Sustaining Costs (AISC)*
A$'000
A$'000
A$'000
A$'000
'000 tonnes
'000 tonnes
'000 tonnes
'000 tonnes
g/t
g/t
2021
2020
243,257
290,078
67,264
98,282
-
-
2,642
157
760
357,643
57,785
10,640
1,898
-
71,867
79,796
1.85
3.14
1.59
-
'000 tonnes
8,283
8,684
g/t
%
ounces
ounces
ounces
A$ per ounce produced
A$ per ounce sold
1.50
90.5
1.84
90.1
362,129
463,717
364,751
463,118
110,402
141,169
1,081
1,720
806
1,171
* All-in Sustaining Costs is a measure derived by the World Gold Council. On 27 June 2013, the Council released a publication
outlining definitions of both Cash Costs and All-in Sustaining Costs.
IGO ANNUAL REPORT 2021 — 43
External factors and risks affecting the Group’s results
The Group operates in an uncertain economic environment and its performance is dependent upon the result of inexact and
incomplete information. As a consequence, the Group’s Board and management monitor these uncertainties and, where possible,
mitigate the associated risk of adverse outcomes. The following external factors are all capable of having a material adverse effect
on the business and will affect the prospects of the Group for future financial years.
COVID-19
The COVID-19 pandemic continues to pose a global socio-political, economic and health risk. The potential for the pandemic to
have both lasting and unforeseen impacts is high. As a Group, we changed the way we work to protect the wellbeing of our people,
safeguard the communities in which we operate and ensure business continuity. We continue to maintain a heightened state of
response readiness commensurate with the risk and in accordance with Government recommendations and health advice.
COMMODITY PRICES
Up to the end of FY21, the Group’s operating revenues were sourced from the sale of base metals and precious metals that
are priced by external markets and, as the Group is not a price maker with respect to the metals it sells, it is, and will remain,
susceptible to adverse price movements. The Group mitigates its exposure to commodity prices through a financial risk
management policy in which a percentage of anticipated usage may be hedged.
The Company has also in place limited diesel hedging in order to protect against increases in oil prices, and as at year end, the
Company had hedged approximately 50% of anticipated usage at the Nova operation for FY22.
From the beginning of FY22, the Group remains exposed to fluctuating base metals prices from the sale of nickel and copper
concentrates produced at the Nova operation. IGO also expects to benefit from its investment in the Lithium JV through dividend
cash flows receivable from the JV. Dividends received from the Lithium JV will be impacted by variable lithium prices, reflected
in chemical and technical grade spodumene prices paid to the Greenbushes mine JV, and Lithium Hydroxide prices paid to the
Lithium JV.
CURRENCY EXCHANGE RATES
The Group is exposed to exchange rate risk on sales denominated in United States dollars (USD) whilst its Australian dollar (AUD)
functional currency is the currency of payment to the majority of its suppliers and employees. This exposure was amplified while
USD funds were held as acquisition proceeds ahead of the Lithium JV with Tianqi on 30 June 2021. To protect against adverse
movements in the foreign exchange rate, the Group entered into various hedging agreements, which have all since been closed out
following the transaction completion date on 30 June 2021.
DOWNSTREAM PROCESSING MARKETS
The price of sea freight, smelting and refining charges are market driven and vary throughout the year. These also impact on the
Group’s overall profitability. The price paid for the sale of the Company’s metal contained in concentrates is subject to payability
factors under contractual offtake agreements. The Company actively tendered its Nova concentrate in the market in FY20 and,
driven by the strong demand for Nova’s concentrate, was able to enter into new offtake agreements with materially improved
commercial terms compared to the previous contracts they replaced.
INTEREST RATES
Interest rate movements affect both returns on funds on deposit as well as the cost of borrowings. Furthermore, AUD and USD
interest rate differentials are intimately related to movements in the AUD/USD exchange rate.
NATIVE TITLE
With regard to tenements in which the Group has an existing interest in, or will acquire an interest in the future, there are areas
over which native title rights exist, or may be found to exist, which may preclude or delay exploration, development or production
activities. Risk also arises from the potential presence of and disturbance to archaeological and ethnographic sites.
The Company engages suitably qualified personnel to assist with the management of its exposure to native title and heritage risks,
including appropriate legal, heritage and community relations experts. These risks are discussed in more detail in the Company’s
Sustainability Report which can be found on the Company’s website.
EXPOSURE TO ECONOMIC, ENVIRONMENT AND SOCIAL SUSTAINABILITY RISKS
The Group has material exposure to economic, environmental and social sustainability risks, including changes in community
expectations, and environmental, social and governance legislation (including, for example, those matters related to climate
change).
The Group employs suitably qualified personnel to assist with the management of its exposure to these risks. These risks are
discussed in more detail in the Company’s Sustainability Report which can be found on the Company’s website.
44 — IGO ANNUAL REPORT 2021
Directors’ Report 30 June 2021 CLIMATE CHANGE
The Group recognises the importance of providing timely and business-specific information on our approach to managing
climate change related risks and opportunities to stakeholders and investors. In FY21, our reporting was once again aligned with
the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and consolidated our carbon neutral
strategy. Work programs completed during the financial year included a decarbonisation roadmap for the Nova Operation, the
implementation of an internal carbon price, and the development of IGO’s carbon storage and offsets strategy. The full TCFD
disclosure and further information regarding our management of climate-related risks and opportunities can be found in the 2021
Sustainability Report.
OTHER EXTERNAL FACTORS AND RISKS
• Operational performance including uncertain mine grades, seismicity, geotechnical conditions, grade control, in fill resource
drilling, mill performance and skills and experience of the workforce
– Contained metal (tonnes and grades) are estimated annually and published in resource and reserve statements, however
actual production in terms of tonnes and grade vary as the orebody can be complex and inconsistent
– Active underground mining operations can be subjected to varying degrees of seismicity. This natural occurrence can
represent safety, operational and financial risk and is actively monitored
• Business risk associated with the Lithium JV. IGO is able to exert significant influence over the Lithium JV and its operations
by virtue of its equity accounted investment into the Lithium JV, however IGO will remain subject to the alignment of JV party
decision making which may impact earnings and cashflow
• Exploration success or otherwise due to the nature of an ever-depleting reserve/resource base, the ability to find or replace
reserves/resources presents a significant operational risk
• Operating costs including labour markets, skills availability and productivity. The availability of labour and specific skillsets is
one of the main cost drivers in the business and as such can materially impact the profitability of an operation
• Changes in market supply and demand of products. Any change in supply or demand impacts on the ability to generate
revenues and hence the profitability of an operation
• Changes in the technological advancement of the energy storage market, and the discovery and adoption of alternate product
streams
• Changes in government taxation legislation; and
• Assumption of estimates that impact on reported asset and liability values.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 9 December 2020, the Company announced that it had entered into a binding agreement with Tianqi to form a JV over Tianqi’s
Australian lithium assets. Total consideration for the transaction was US$1,395.3 million (A$1,855.4 million). The Company funded
the transaction through a combination of an equity raising, proceeds from the sale of Tropicana and existing cash reserves.
Completion of the transaction was announced by the Company on 30 June 2021.
In December 2020, the Company conducted a fully underwritten institutional placement (Placement) and a 1 for 8.5 accelerated
pro-rata non-renounceable entitlement offer (Institutional Entitlement Offer) of new fully paid IGO shares. The Placement
comprised the issue of 96,960,219 shares in the Company at a price of A$4.60 per share (Offer Price), and the Institutional
Entitlement Offer the issue of 57,195,061 shares in the Company at the Offer Price, resulting in proceeds of A$696.1 million, net of
costs.
On 19 January 2021, the Company announced the successful completion of the retail component of its 1 for 8.5 accelerated pro-
rata non-renounceable entitlement offer (Offer), resulting in the issue of 12,315,499 shares. The Offer raised A$53.4 million, net of
costs, at an offer price of A$4.60 per share.
On 13 April 2021, the Company announced that it had entered into a binding agreement with Regis for the sale of its 30% interest
in the Tropicana Gold Mine. The execution of the binding sale agreement marked the completion of the Tropicana strategic
review which was announced in September 2020. On 31 May 2021, the Company announced the completion of the divestment
transaction.
On 23 December 2020, the Company entered into a new Syndicated Facility Agreement (Facility Agreement) totalling A$1,100
million, which was originally established to fund the acquisition of the 49% interest in the Lithium JV. Following the divestment of
the Company’s interest in the Tropicana JV, the facility was not required as a source of funds to fund the Lithium JV acquisition. As
at the date of this report, the facility has been restructured to consist of a A$450 million amortising revolving credit facility, expiring
in June 2024.
There have been no other significant changes in the state of affairs of the Group during the year.
IGO ANNUAL REPORT 2021 — 45
EVENTS SINCE THE END OF THE FINANCIAL YEAR
On 1 July 2021, the Company announced the appointment of Mr Michael Nossal to the role of Chair, while Mr Peter Bilbe
transitioned to a Non-executive Director role. Michael Nossal was appointed a Non-executive Director of the Company on
18 December 2020.
On 27 July 2021, the Company announced that it had entered into a binding agreement with entities owned and controlled by
Mark Creasy (Creasy Group) to i) acquire 100% of the Silver Knight nickel-copper-cobalt sulphide deposit (Silver Knight), and ii)
form a JV with Creasy Group (IGO 65%: Creasy Group 35%) over a portfolio of exploration tenements around Silver Knight, for
a total cash consideration of A$45.0 million (Transaction). Documentation for the Transaction is expected to be completed by
30 September 2021, with completion of the Transaction occurring within five business days thereafter.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and, while it has had limited impact on the Group up to
30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation
continues to develop and is dependent on measures imposed by the Australian Government and other countries, such as
maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
On 31 August 2021, the Company announced that a final dividend for the year ended 30 June 2021 would be paid on 23
September 2021. The dividend is 10 cents per share and will be fully franked.
Other than the above, there has been no other transaction or event of a material and unusual nature likely, in the opinion of the
Directors, to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group,
in future financial years.
COMPANY SECRETARY
Ms Joanne McDonald was appointed to the position of Company Secretary on 5 October 2015.
Ms McDonald is a qualified Chartered Secretary with over 17 years’ experience working for listed companies in Australia and
the UK. Prior to joining IGO, Ms McDonald held positions with Paladin Energy Ltd, Summit Resources Ltd and Unilever plc.
Ms McDonald is currently a WA State Councillor for the Governance Institute of Australia.
Ms McDonald is a Fellow of the Governance Institute Australia and a Graduate of the Australian Institute of Company Directors.
MEETINGS OF DIRECTORS
The numbers of meetings of the Directors and of each Board Committee held during the year ended 30 June 2021, and the
numbers of meetings attended by each Director were:
Full meetings
of directors
People & Performance
Committee
Audit & Risk
Committee
Nomination
& Governance
Committee
Sustainability
Committee
Meetings of committees
A
11
11
11
11
11
6
11
3
7
B
11
11
11
11
11
6
11
3
7
A
4
1
**
**
4
3
1
**
**
B
4
1
**
**
4
3
1
**
**
A
5
3
5
**
1
**
2
**
1
B
5
3
5
**
1
**
2
**
1
A
**
1
3
**
2
**
2
1
**
B
**
1
3
**
2
**
2
1
**
A
5
**
**
**
4
1
6
4
1
B
5
**
**
**
4
1
6
4
1
Name
Debra Bakker
Peter Bilbe
Kathleen Bozanic
Peter Bradford
Peter Buck
Michael Nossal1
Keith Spence
Neil Warburton2
Xiaoping Yang3
A = Number of meetings attended
B = Number of meetings held during the time the Director was a member of the committee during the year
** = Not a member of the relevant committee
1. Mr Nossal was appointed a Non-executive Director effective 18 December 2020
2. Mr Warburton resigned as a Non-executive Director effective 28 October 2020
3. Ms Yang was appointed a Non-executive Director effective 1 December 2020
Note: Directors who are not members of a specific committee have a standing invitation to attend committee meetings with the consent of the relevant
committee chair and in practice generally attend all committee meetings. Their attendance is only included in the table if they are a member of the committee.
46 — IGO ANNUAL REPORT 2021
Directors’ Report 30 June 2021 DIRECTORS INTEREST IN SHARES AND SHARE RIGHTS OF THE COMPANY
At the date of this report, the interests of the Directors in the shares, performance rights and service rights of IGO Limited were
as follows:
Name
Debra Bakker
Peter Bilbe
Kathleen Bozanic
Peter Bradford
Peter Buck
Michael Nossal
Keith Spence
Xiaoping Yang
Total
Ordinary fully paid shares
Performance rights
Service rights
30,800
47,059
13,859
-
-
-
-
-
-
1,320,052
345,390
205,2621
26,118
40,000
24,728
14,200
-
-
-
-
-
-
-
-
1,516,816
345,390
205,262
1. 113,581 service rights have vested due to service conditions being achieved and, subject to being exercised, will convert into ordinary shares.
IGO ANNUAL REPORT 2021 — 47
Letter from Chair of People
& Performance Committee
DEAR SHAREHOLDER
On behalf of the People & Performance Committee, I am pleased to share with you our FY21 Remuneration Report.
The FY21 year has been an outstanding year for IGO with our people driving the achievement of significant value for our
shareholders and the communities in which we live and work.
Executive Remuneration and Reward
Over the past year, we have experienced a significant increase in the demand for talent across the business, with the labour
market continuing to reflect the effects of the COVID-19 pandemic on employee mobility and availability. To combat this, the Board
has focused on the safety, engagement and retention of our people in this competitive talent market. Retaining key talent is vital
to maintaining and achieving business development outcomes and we are proud of the continued engagement, contributions and
loyalty of our people.
To that end, the Board remains focused on providing Executive key management personnel (KMP) with fixed remuneration that is
competitive and recognises the value that their skills, experience and expertise deliver to IGO, balanced with an appropriate level of
variable reward to incentivise the achievement of key strategic initiatives. The Board believes that this balanced approach ensures
that the Company:
• Attracts and retains key talent through a balance of support and challenge for each individual; and
• Remains an employer of choice.
Each year the Board takes care to ensure that Executive KMP remuneration is an appropriate combination of cash and equity, such
that over time Executive KMP are aligned with the long-term interests of shareholders through their personal shareholding in IGO.
Short-Term Incentive (STI)
The Board and the Leadership team review and update the Company’s strategic and culturing plan annually. As part of this
planning process, the Board sets and monitors a series of demanding performance targets to drive the achievement of the annual
business plan and the longer term strategic plan throughout the year. In FY21, these performance targets drove the achievement
of the following combination of financial and non-financial focused successes:
• the improvement of our safety performance across the business through the completion of a significant body of work
at an organisational and business unit level;
• the transformational transaction with Tianqi Lithium Corporation (Tianqi) to form a new joint venture (JV) to acquire 49%
of its Australian lithium assets (Lithium JV), reshaping the IGO portfolio to solely focus on clean energy resources, and important
to growing longer term shareholder value;
• the divestment of the Tropicana Joint Venture;
• improved gender diversity to 27% (up from 25% in FY20) with a significant improvement in our results at the Nova Operation
across all disciplines;
• no significant environmental or community incidents;
• continued to build on strong relationships with Traditional Owners and clear paths to alignment of interests in our exploration
portfolio;
• the furthering of programs of work in the Fraser Range and other exploration programs that are key to delivering future
discoveries;
• delivery of operational metrics, with consistent production performance that is a key enabler to funding the achievement
of the Company’s strategic plan; and
• strong financial performance to underpin the funding of future growth initiatives designed to grow shareholder value.
A detailed description of the Key Performance Indicators (KPIs) that determined the payment of STIs, the performance achieved
and the resulting STI payments can be found in our Remuneration Report in the following pages.
Board Discretion - STI Payment Award
FY21 was an outstanding year across the business, with the Company delivering better production and costs than guidance
at Nova, resulting in record performance across all key financial metrics for the Company. This outcome was delivered despite
the continued challenges presented by COVID-19 to the business and, once again, would not have been possible without the
commitment and energy of our people.
48 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 In recognition of these efforts by employees, the Board approved a discretionary award via the STI program for all employees who
demonstrated support for the Company’s values and behaviours by way of an uplift in STI payments for FY21. For further details on
this see page 55 and 56.
FY21 Discretionary Bonus
The transaction with Tianqi to form the new Lithium JV was announced on 9 December 2020, following a nine month negotiation
and due diligence period which involved the collaboration of many people across the business. The transaction was completed
on 30 June 2021. The current and future significance of this transaction cannot be underrated for IGO and its shareholders. This
transaction was completed by the IGO team in tandem with the body of work required to also complete the divestment of the
Tropicana JV on 31 May 2021 to Regis Resources Limited.
Strong shareholder support since the announcements, and a significant lift in the IGO share price, is evidence of market support
for IGO’s strategy to align its focus to those metals critical to enabling clean energy and the long-term value that the global societal
shift to clean energy will deliver.
In addition to the upwards discretion applied via the STI program, the Board also approved an additional payment, in the form of a
cash bonus, to those individuals who contributed to the delivery of the transformational Tropicana and Tianqi transactions, and the
debt and equity funding. The total additional cost of this award was $2,000,000. Awards made to Executive KMP are outlined in
section 3 and shown separately as a Discretionary Bonus.
Long-Term Incentives (LTI)
No changes were made to the LTI plan for FY21. The performance period for the 2017 Series Performance Rights ended on 30 June
2020 with vesting of 85.22% of this award for IGO employees in July 2020.
Planned Remuneration Changes for FY22
In a competitive market, the Board has confidence that the IGO Reward Framework provides employees with an appropriate mix
of fixed and variable reward to focus Executive KMP on achieving the short and long-term interests of shareholders. As such, the
suite of changes for FY22 are minimal and are discussed in Section 5 of this Report. The main points are:
• An increase in the CEO and Executive KMP total fixed remuneration (TFR) in line with market benchmarking to ensure the TFR
for Executive KMP remains competitive with the comparator and broader industry groups for similar roles;
• No changes are planned to the quantum or delivery mechanisms of the STI for the CEO or Executive KMP;
• No changes are planned to the quantum of LTI grants for the CEO or Executive KMP, however the Board approved a number
of changes to the LTI performance measures to acknowledge the changes in the business associated with the Lithium JV and to
better drive and assess long-term progress on key strategic drivers i.e. Decarbonisation and People and Culture. These changes
will be outlined more fully in the FY22 Remuneration Report; and
• An increase in base Board fees and also Committee chair fees in line with market benchmarking.
Each year we try to improve our reporting transparency and clarity for shareholders and I trust that our shareholders will find the
2021 Remuneration Report clearly explains our current remuneration philosophy and executive outcomes for the period. I welcome
your feedback in FY22 in our endeavour to continuously improve all that we do.
DEBRA BAKKER
CHAIR – PEOPLE & PERFORMANCE COMMITTEE
IGO ANNUAL REPORT 2021 — 49
Remuneration Report
(audited)
Key Management Personnel (KMP) of the Group are detailed in the table below and are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any
Director, whether executive or otherwise of the Company.
SECTION 1
FY21 OVERVIEW
Section 1 details organisational developments and outcomes in FY21.
SECTION 2
REMUNERATION AT IGO
Section 2 provides an overview of key elements of the Company’s remuneration
governance and philosophy.
Section 3 details remuneration arrangements in FY21 for the following
Executive KMP:
Keith Ashby - Head of Safety, Health, Environment, Quality (SHEQ) and Risk
(from 1 July 2020 until his resignation on 27 November 2020)
Kate Barker - General Counsel and Head of Risk & Compliance
Peter Bradford - Managing Director and CEO
Matt Dusci - Chief Operating Officer
Andrew Eddowes - Head of Corporate Development
Joanne McDonald - Company Secretary and Head of Corporate Affairs
Sam Retallack - Head of People & Culture
Ian Sandl - General Manager - Exploration
Scott Steinkrug - Chief Financial Officer
Section 4 details remuneration and benefits for the Company’s Non-executive
Directors (see pages 36 to 37 for details about each Director) including:
Peter Bilbe - Non-executive Chair
Debra Bakker - Non-executive Director
Kathleen Bozanic - Non-executive Director
Peter Buck - Non-executive Director
Michael Nossal - Non-executive Director (appointed 18 December 2020)
Keith Spence - Non-executive Director
Neil Warburton - Non-executive Director (from 1 July 2020 until his resignation
on 28 October 2020)
Xiaoping Yang - Non-executive Director (appointed 1 December 2020)
Section 5 provides an overview of the planned changes in remuneration and reward
for FY22 for Executive KMP and the wider organisation.
Section 6 provides an update for all relevant statutory remuneration disclosures
as required by the Corporations Act 2001.
SECTION 3
EXECUTIVE KMP REMUNERATION
IN FY21
SECTION 4
NON-EXECUTIVE DIRECTOR
REMUNERATION
SECTION 5
PLANNED REMUNERATION
CHANGES FOR FY22
SECTION 6
STATUTORY REMUNERATION
DISCLOSURES
50 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 SECTION 1.
FY21 OVERVIEW
The Company’s Total Rewards Philosophy is designed to provide Executive KMP and employees with a combination of
remuneration and non-financial benefits to drive performance and, since its implementation, has provided a holistic approach
to the IGO employee value proposition and connected the IGO strategy and purpose to remuneration.
To this end, along with Company-wide salary benchmarking and the award of a group wide CPI increment (or consideration of)
for all roles, the following remuneration initiatives were implemented at a Board and Executive KMP level for FY21:
• No increases in Total Fixed Remuneration (TFR) for FY21, with the exception of Ms Barkers’ TFR which increased from $350,000
to $400,000 to reflect the broadened nature of her role.
• No further increases to Executive KMP remuneration following a mid-year parity review of remuneration. The review was
conducted to ensure that market expectations for Executive KMP remuneration, given the external economic conditions as a
result of the ongoing influence of COVID-19, was balanced with a combination of competitive pay for retention of Executive KMP
in an extremely competitive market.
• No changes were made to total short-term and long-term incentive opportunities for Executive KMP in FY21.
• To improve the mechanism by which the Board can make adjustments to Company Scorecard Gating, and hence to Executive
KMP variable reward in an unpredictable environment, the Board introduced an additional level of discretion to the gating
of KPIs as follows:
– The discretion to reduce KPI outcomes by up to 100% of the cash component of variable incentives in the event
of occurrence of any event that is classified as “catastrophic” in the Company’s Risk Matrix; and
– The discretion to reward outstanding performance that falls outside of the existing KPI program for teams or individuals
that have created significant additional value for shareholders and/or employees.
• No changes were made to Board Chair, Committee Chair or Non-executive Director fees as a result of market benchmarking of
the IGO peer group for FY21.
IGO ANNUAL REPORT 2021 — 51
SECTION 2.
REMUNERATION AT IGO
REMUNERATION GOVERNANCE OVERVIEW
The Board recognises that the continued success of the business depends upon the quality of its people. To ensure the Company
continues to innovate and grow, it must attract, motivate and retain highly skilled Directors, Executive KMP and employees. To
deliver this, the Company has an active People & Performance Committee to ensure that people, performance and culture are a
priority.
The Committee, chaired by Debra Bakker, held four meetings during FY21. Messrs Buck and Nossal are also Committee members.
The Managing Director was invited to attend all meetings which considered the remuneration strategy of the Group and
recommendations in relation to Executive KMP. The structure of the relationship between the Board, Committee and remuneration
principles is explained in the following table:
BOARD
The Board delegates responsibility in relation to remuneration
to the People & Performance Committee (Committee)
which operates in accordance with the Company’s People &
Performance Committee Charter and the requirements of the
Corporations Act 2001 and its regulations.
PEOPLE & PERFORMANCE COMMITTEE
IGO REMUNERATION PRINCIPLES
The Committee is made up entirely of independent Non-
executive Directors. The Committee is charged with assisting
the Board by reviewing, on an annual basis, and making
appropriate recommendations on the following:
Remuneration policy is transparent with information
communicated to all employees to create a high level of
understanding of the link between pay, performance and delivery
against Company objectives and values.
• The Company’s remuneration framework and policy, to ensure
that it remains aligned to business needs and meets the
Company’s remuneration principles
• Non-executive Director, CEO and Executive KMP
remuneration
• Equity-based remuneration plans for Executive KMP and
other employees
• Organisational development and culture, including IGO’s
workplace diversity and inclusion strategy, policy, practices
and performance
• CEO, Executive KMP and other key members of management
recruitment, selection, performance management and
retention
• Superannuation arrangements for the organisation; and
• Remuneration equity for all employees across the Group.
At risk components are designed to motivate and incentivise
for high performance and are aligned with the Company’s
strategic and business objectives to create short and long-term
shareholder value.
Learning and development is a quantifiable and essential
component of all roles.
Career planning is a valued component of the total reward
philosophy and forms part of all development plans.
Health and wellbeing programs aim to provide balance and
additional value for people at all levels of the organisation.
Equity in the business is important for all employees and
prioritised when setting and reviewing remuneration policy
and practice.
EXTERNAL ADVICE AND BENCHMARKING
The Committee undertakes a broad review of data derived from
remuneration consultants who track industry levels to ensure it
is fully informed when making remuneration decisions.
During the year ended 30 June 2021, no remuneration
recommendations, as defined by the Corporations Act 2001
(Act), were provided by remuneration consultants. However,
the Committee did utilise general benchmarking data provided
by KPMG ($27,000), Aon Australia ($7,500) and Mercer
Consulting ($5,475) regarding salaries and benefits across the
organisation.
Further information on the Committee’s role, responsibilities and membership can be found under the Governance section on the
Company’s website: www.igo.com.au.
52 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021
SECTION 3.
EXECUTIVE KMP REMUNERATION IN FY21
COMPONENTS OF EXECUTIVE KMP REMUNERATION AT IGO
Executive KMP remuneration at IGO is comprised of a mix of fixed and at risk components, as an integrated package, the purpose
of which is to align Executive KMP reward with shareholder outcomes, Executive KMP performance and the retention of key talent.
TFR and at risk remuneration is benchmarked at least annually by the People & Performance Committee. The table below provides
an overview of the different remuneration components within the IGO framework.
Objective
Attract and retain
the best talent
Reward current year
performance
Reward long-term sustainable
performance
Performance-related remuneration (at risk)
Remuneration
Component
Total Fixed Remuneration
(TFR) – includes salary and
superannuation
Short-Term Incentive (STI)
– paid as cash and the issue
of service rights
Long-Term Incentive (LTI)
– provided through the issue
of performance rights
Purpose
TFR provides competitive
‘guaranteed’ remuneration with
reference to:
• Size and complexity of the role
• Individual responsibilities and
performance; and
• Experience and skills.
The STI ensures appropriate
differentiation of pay for
performance, for achievement
of a combination of Company
and Individual KPIs to drive
achievement of near-term
strategic objectives and
retention of Executive KMP.
The LTI is focused on the
achievement of stable long-term
shareholder returns through the
Company’s long-term strategic
objectives and retention
of Executive KMP.
TOTAL REALISED EARNINGS FOR EXECUTIVE KMP IN FY21
The table below provides details of the actual remuneration earned during FY21 for Executive KMP. Amounts include:
• Total fixed remuneration received
• The cash component of the STI earned as a result of business and individual performance for FY21
• The discretionary cash bonus for FY21 performance
• Ordinary shares received as a result of service rights that vested during the year; and
• Ordinary shares received as a result of performance rights that vested during the year.
Peter Bradford
$870,000
$435,000
$300,000
$184,433
$1,011,279
Keith Ashby
$334,163
$39,508 $201,109
Kate Barker
$400,000
$100,000 $185,000 $34,996 $65,874
Matt Dusci
$630,000
$252,000 $120,000 $81,893 $459,675
Andrew Eddowes
$380,000
$92,150 $160,000 $41,150 $83,927
Joanne McDonald
$350,000
$85,750 $50,000 $35,163 $67,575
Sam Retallack
$370,000
$90,650 $50,000 $39,127 $201,109
Ian Sandl
$400,000
$94,000 $37,861 $84,121
Scott Steinkrug
$460,000
$115,000 $185,000 $71,083 $413,705
TFR
STI Cash
Discretionary cash bonus
Service Rights vested
Performance Rights vested
IGO ANNUAL REPORT 2021 — 53
EXECUTIVE KMP AT RISK REMUNERATION IN FY21
The at risk components of Executive KMP remuneration at IGO are intended to drive performance and long-term stability
in shareholder returns without encouraging undue risk-taking.
The mix of fixed and at risk remuneration varies depending on the role and reward grading of Executive KMP and employees.
It also depends on the performance of both the Company and the individual.
The following is an overview of the total fixed and at risk remuneration for Executive KMP in FY21:
Managing Director and CEO
TFR – 33%
STI – 33%
Chief Operating Officer
TFR – 38%
STI – 31%
Chief Financial Officer
TFR – 43%
STI – 22%
Other Executive KMP
TFR – 50%
STI – 25%
LTI – 33%
LTI – 31%
LTI – 35%
LTI – 25%
MALUS AND CLAWBACK PROVISION
IGO has a malus and clawback provision that allows the Board to reduce or clawback unvested and vested entitlements
in certain circumstances, including in the case of fraud, dishonesty, gross misconduct, bringing the Group into disrepute, breach
of obligations to the Group, material financial misstatements, where warranted due to risk behaviour, or other circumstances under
law or Group policy. The Employee Incentive Plan (EIP) also allows the Board to reduce unvested awards where vesting is not
justified or supportable for performance or other specified reasons.
IGO STIP OUTLINE FOR FY21
The key elements of the Short-Term Incentive Program (STIP) as it relates to the Company’s Executive KMP is provided below:
STIP Opportunity The STIP opportunity offered to each Executive KMP as a percentage of TFR is defined by the individual’s role and reward
grade. The STIP opportunity is market benchmarked and reviewed by the Board annually.
STIP payments are awarded 50% cash and 50% equity (service rights) on or above threshold performance against a range
of business objectives (Company KPI) and individual performance objectives (Individual KPI).
Performance
Targets
The payment of a short-term incentive to Executive KMP is an at risk component of the individual’s total remuneration given
that a set of performance targets must be met prior to payment. Each year these targets are based on metrics that are
measurable, transparent and achievable, and are designed to motivate and incentivise the Executive KMP to drive to achieve
high levels of performance aligned with Company objectives and near-term shareholder value creation.
In FY21, the performance targets for KPI assessment reflected the following financial and non-financial components:
• Health, Safety, Environment and Community
• People and Culture
• Production Optimisation and Financial Performance
• Growth and Strategy
Performance
Assessment
Measurement
Period
The Company employs a system of continuous performance feedback to drive Executive KMP performance, which
is regularly reviewed by the Board throughout the financial year against the defined KPIs. A final performance assessment
occurs annually following the completion of the financial year for each Executive KMP. Executive KMP are assessed on
their contribution to the achievement of Company KPIs (80%), individual KPIs (20%) and their demonstrated support for the
Company’s values and behaviours.
The STIP is an annual program and operates from 1 July to 30 June each year.
STIP Deferral
Component
Service rights issued pursuant to the STIP vest in two tranches, with the first tranche of 50% vesting on the 12 month
anniversary of the award date, and the second tranche of 50% on the 24 month anniversary of the award date.
Vesting of the service rights is based on a continuous service condition being met and is designed to act as a driver
of retention and continuity of medium-term value creation.
Termination of
Employment
In the event that an Executive KMP’s employment terminates prior to the end of a financial year, the Executive KMP may or
may not receive a pro-rata payment, depending on the circumstances of the cessation of employment. Outstanding unvested
service rights will also be reviewed by the Board and may or may not vest, depending on the circumstances of the Executive
KMP’s cessation of employment.
Board Discretion
The payments of all STIs are subject to Board approval. The Board has the discretion to adjust remuneration outcomes
higher or lower to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any
STI payment.
54 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 HOW PERFORMANCE WAS LINKED TO STIP OUTCOMES IN FY21
As part of the annual business planning process, the Board determines the KPIs to reflect targets for the key strategic drivers
of the business for the following year. In FY21, significant progress was made in achieving Company KPIs and a range of other
related programs of work, however the final result was not achieved for several Key Result Areas (KRAs).
Company Scorecard Gating
• No Production Optimisation or Financial Performance component in the event of Company NPAT being negative before
abnormals
• No Growth and Strategy component in the event of a material downward restatement of the previous year’s Reserves
• No Health, Safety, Environment and Community or People and Culture component in the event of a fatality, permanent disabling
injury and/or material environmental breach
• The discretion to reduce KPI outcomes by up to 100% of the cash component of variable incentives in the event of occurrence of
any event that is classified as “catastrophic” in the Company’s Risk Matrix; and
• The discretion to reward outstanding performance that falls outside of the existing KPI program for teams or individuals that have
created significant additional value for shareholders and/or employees.
Individual KPI Gating
No individual component in the event of a material breach of the Company’s Code of Conduct by the individual.
FY21 Scorecard
The KPI Scorecard for Executive KMP and performance achieved against the specific KPIs for each KRA for FY21 are listed in the
table below.
Company Key Result Area (KRA)
Rationale for inclusion
Performance and commentary
Health, Safety, Environment
and Community
• TRIFR
• Critical Control Verification
• Closeout of Corrective Actions
• Safety related Engagement Survey
items; and
• Safety Management programs.
15% weighting
56% achieved (8.4% outcome)
The application of a range of forward
and backward looking measures
focus effort on culture and system
improvements to better manage the
workplace health and safety risks
inherent to the Company’s operations.
The Company is focused on providing a work environment that
supports and cares for our people and the communities and
environment in which we work. In FY21, significant improvements were
made in all business units achieving the following results:
• TRIFR = 16.0 (Threshold = 17.5, Target = 16.6);
• Critical Control Verification = 80% (Threshold = 90%, Target = 100%);
• Closeout of Corrective Actions = 92% (Threshold = 90%,
Target = 100%);
• Safety related Engagement Survey items = 89% (Threshold = 78%,
Target = 82%); and
• Safety Management programs = 95% (Threshold = 90%,
Target = 100%)
People and Culture
15% weighting
70% achieved (10.5% outcome)
• Annual Engagement Survey Score
• Diversity and Inclusion Score
• Diversity metrics for female and
Aboriginal employment across the
business; and
• Learning and development plan
completion.
Engagement, diversity and
development metrics are designed to
focus achievement on key strategic
people enablers and programs of
work that result in a workforce that
has the balance of diversity of skills
and capabilities to drive the delivery
of the Company’s strategic plan.
Improvements were made across the business with programs of work
to strengthen the culture and to improve the diversity and inclusion of
all business units achieving the following performance levels:
• Engagement Survey score 67% (Threshold = 69%, Target = 72%)
• Diversity and inclusion score 86% (Threshold = 82%, Target = 86%)
• 27% Female employees (Threshold = 24%, Target = 27%)
• 13% Aboriginal employees (Threshold = 10%, Target = 14%)
• 95% Learning and development plans completed
(Threshold = 80%, Target = 90%)
Production Optimisation and
Financial Performance
Achieve consolidated production
targets for Nova on a nickel metal
equivalent basis.
Achieve consolidated operating
costs (production and non-
production) for the Group (excluding
non-controlled operations).
30% weighting
78% achieved (23.3% outcome)
Delivery of strong production and
financial performance is a key
enabler to funding the achievement
of the Company’s strategic plan.
The production outcome achieved at Nova represented a solid
operational result with improvements in a range of operational
metrics, including:
Nickel metal production from Nova of 29.0kt
(Threshold = 27.3kt, Target = 29.3kt)
Controllable payable nickel unit costs of $2.32
(Threshold = $2.51, Target = $2.38)
Group operating and capital costs of $334M
(Threshold = $349M, Target = $332M)
IGO ANNUAL REPORT 2021 — 55
Growth and Strategy1
40% weighting
74% achieved (29.6% outcome)
Complete nominated number
of agreed strategic priorities.
Assesses performance achieved
to deliver a suite of strategic
initiatives, brownfields/greenfields
opportunities and value accretive
M&A opportunities important to
growing shareholder value.
Planned progress was achieved on a range of other strategic priorities
and timelines along with the progression of the Company’s greenfields
and brownfields exploration programs, and inorganic growth program.
Board Discretion
28.2% outcome
Outstanding operating and financial
performance.
COVID-19 Response/Business
continuity.
The Board has discretion to adjust
KPI awards when internal or external
events materially impact KPI
performance and/or achievement.
To reflect the delivery of outstanding operating and financial results
within the context of a challenging operating environment due to
the COVID-19 pandemic, which required a consistent and cohesive
response from Executive KMP, the COVID-19 response team and all
employees, the Board decided to apply upwards discretion to increase
the company STI score to 100% for FY21.
Total outcome 100%
1. Due to the sensitive nature of some corporate KPIs the full detail on measures and achievement is confidential.
2. Total weighting increased to 125% with the addition of the Board Discretion KRA.
In addition to the achievement of the KRAs on the scoreboard above, the CEO also had a number of individual KPIs to drive the strategic and culturing
outcomes, which the Board rated at 100%.
FY21 Discretionary Bonus
In addition to the upwards discretion applied via the STIP, the Board also approved an additional payment, in the form of a cash bonus, to those
individuals who contributed to the delivery of the transformational Tropicana and Tianqi transactions and the debt and equity funding. The total
additional cost of this award was $2,000,000. Awards made to Executive KMP are outlined below.
FY21 STIP OUTCOMES1
Executive KMP
Position
FY21
Potential
STI2
%
FY21
STI
Declared3
$
FY21
Discretionary
Bonus4
$
FY20
Potential
STI5
%
FY20
STI
$
Peter Bradford
Managing Director & CEO
100
870,000
300,000
100
635,000
Keith Ashby6
Head of SHEQ & Risk
Kate Barker
General Counsel and Head
of Risk & Compliance
Matt Dusci
Chief Operating Officer
Andrew Eddowes
Head of Corporate Development
Joanne McDonald
Company Secretary and Head
of Corporate Affairs
Sam Retallack
Head of People & Culture
Ian Sandl
General Manager - Exploration
Scott Steinkrug
Chief Financial Officer
-
50
80
50
50
50
50
50
-
-
200,000
185,000
504,000
120,000
184,300
160,000
171,500
50,000
181,300
50,000
188,000
-
230,000
185,000
50
50
80
50
50
50
50
50
130,000
129,000
373,000
139,000
127,000
137,000
138,000
170,000
1. The service rights component of the FY20 STI were classified as an LTI in the FY20 Remuneration Report. These service rights have been reclassified and
included in FY20 STI in the table above for comparative purposes.
2. % of TFR (base salary plus superannuation).
3. To be paid in August 2021 - 50% in cash and 50% in service rights (vesting in equal parts in September 2022 and September 2023).
4. Discretionary bonus as approved by the Board for FY21 performance to be paid in August 2021.
5. FY20 STI comprises 50% in cash (paid in August 2020) and 50% in service rights (vesting in equal parts in September 2021 and September 2022).
6. Mr Ashby resigned effective 27 November 2020 therefore is not entitled to an STI for FY21.
56 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021
IGO LTIP OUTLINE FOR FY21
An outline of the key elements of the Company’s Long-Term Incentive Program (LTIP), as it relates to the Company’s Executive
KMP, is provided below:
LTIP Opportunity
The LTIP opportunity is determined by the Executive KMP’s role and reward grade within the business and is awarded
by the offer of a number of performance rights based on a percentage of TFR.
The LTIP opportunity for each individual Executive KMP is outlined on page 63.
Performance Rights
Hurdles
For performance rights issued in FY21, there are four equally weighted (25%) performance hurdles utilising the following
measures:
1. Relative TSR
2. Absolute TSR
3. Reserve growth per share; and
4. EBITDA average margin.
Vesting of
Performance Rights
Vesting of the performance rights granted to Executive KMP is based on a continuous service condition and performance
conditions as detailed below.
Service Conditions
for Performance
Rights
Performance rights are subject to a service condition. This condition is met if the Executive KMP’s employment with IGO
is continuous for three years commencing on or around the grant date and is aimed at the retention of key personnel and
to promote long-term stability in shareholder returns.
Performance
Conditions for
Performance Rights
Relative TSR
The TSR scorecard for the three year measurement period is determined based on a percentile ranking of the Company’s
TSR results relative to the TSR of each of the companies in the peer group over the same three year measurement period.
The Board considers that relative TSR is an appropriate performance hurdle because it ensures that a proportion of each
participant’s remuneration is linked to the return received by shareholders from holding shares in a company in the peer
group for the same period.
Absolute TSR
The increase in the Company’s absolute TSR will be measured over the three year measurement period.
The Board considers that absolute TSR is an appropriate performance hurdle because it ensures Executive KMP
performance is rewarded when a year-on-year improvement in shareholder value is achieved.
Reserve growth per share
Reserve growth per share is defined as ore reserve growth in excess of depletion over the three year measurement
period.
The Board considers that reserve growth per share is an appropriate performance hurdle to align senior leaders of the
business on the achievement of programs of work that achieve the Company’s strategic initiatives for brownfields/
greenfields opportunities and value accretive M&A opportunities important to growing shareholder value.
EBITDA Average Margin
EBITDA average margin is defined as a measure of the Company’s EBITDA as a percentage of its revenue averaged over
the measurement period.
The Board considers that EBITDA average margin is an appropriate performance hurdle to align senior leaders on ensuring
the sustained operating profitability of the business over time and transparency for shareholders on the Company’s
performance in comparison to the IGO peer group.
IGO ANNUAL REPORT 2021 — 57
Performance Rights
Vesting Schedules
Relative TSR
The vesting schedule of the 25% of performance rights subject to relative TSR testing is as follows:
Relative TSR performance
Less than 50th percentile
Between 50th and 75th percentile
Level of vesting
0%
50% plus pro-rata straight line percentage between
50% and 100%
75th percentile or better
100%
Absolute TSR
The vesting schedule of the 25% of performance rights subject to absolute TSR testing is as follows:
Absolute TSR performance
% of Performance Rights that will vest
10% per annum return
33%
Above 10% per annum and below 20% per annum return
Pro-rata straight line percentage between 33%
and 100%
Above 20% per annum return
100%
Reserve growth per share
The vesting schedule of the 25% of performance rights subject to Reserve growth per share testing is as follows:
Reserve growth in Ore Reserves per share
performance
Level of vesting
<90% of Baseline Ore Reserves
90% of Baseline Ore Reserves
0%
33%
Above 90% of Baseline Ore Reserves and below 100%
Straight-line pro-rata between 33% and 66%
100% Baseline Ore Reserves
66%
Above 100% of Baseline Ore Reserves and below 120%
Straight-line pro-rata between 66% and 100%
120% and above Baseline Ore Reserves
100%
EBITDA average margin
The vesting schedule of the 25% of performance rights subject to EBITDA average margin testing is as follows:
Group EBITDA Margin
Level of vesting
<20%
≥ 20%
≥ 30%
≥ 40%
0%
33%
66%
100%
Performance Rights
Measurement Period
Testing occurs three years from 1 July of the relevant financial year.
Cessation of
Employment
In the event that the Executive KMP’s employment with IGO terminates prior to the vesting of all performance rights,
outstanding unvested rights will be reviewed by the Board and may or may not vest, depending on the circumstances
of the Executive KMP’s cessation of employment.
Board Discretion
The Board has absolute discretion to adjust performance rights vesting if, on assessment, absolute TSR is negative over
the performance period.
Peer Group
The Company’s relative TSR performance for performance rights issued during FY21 will be assessed against a peer group
comprised of members of the S&P ASX 300 Metals and Mining Index, as well as several mining companies listed on the
Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).
LTI - Non-executive
Directors
The overarching Employee Incentive Plan (EIP) permits Non-executive Directors to be eligible employees and therefore to
participate in the plan. It is not currently intended that Non-executive Directors will be issued with share rights under the
EIP and any such issue would be subject to all necessary shareholder approvals.
58 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 FY21 LTIP OUTCOMES1
Executive KMP
Position
Performance
rights issued for
FY21 period2
Number
Performance
rights issued for
FY20 period3
Number
Peter Bradford
Managing Director & CEO
182,7734
162,617
Keith Ashby5
Head of SHEQ & Risk
Kate Barker
General Counsel and Head of Risk & Compliance
Matt Dusci
Chief Operating Officer
Andrew Eddowes
Head of Corporate Development
Joanne McDonald
Company Secretary and Head of Corporate Affairs
Sam Retallack
Head of People & Culture
Ian Sandl
General Manager - Exploration
Scott Steinkrug
Chief Financial Officer
-
42,016
105,882
39,915
36,764
38,865
42,016
77,310
34,579
32,710
83,738
35,514
32,710
34,579
37,383
68,785
1. The service rights component of the FY20 STI were classified as an LTI in the FY20 Remuneration Report. These service rights have been reclassified and
included as an STI for FY20 for comparability purposes. Refer to the table on page 56.
2. Performance rights awarded at 20-day VWAP to 24 August 2020 of $4.76.
3. Performance rights awarded at 20-day VWAP to 26 August 2019 of $5.35.
4. Approved by shareholders at the 2020 Annual General Meeting, in accordance with ASX Listing Rule 10.14.
5. Mr Ashby resigned effective 27 November 2020 therefore was not entitled to performance rights for FY21.
APPROVED BY SHAREHOLDERS AT THE 2019 ANNUAL GENERAL MEETING
The IGO Limited Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting in November 2019.
The number of eligible products able to be issued under the EIP is limited to 5% of the issued capital of the Company. The
5% limit includes grants under all plans made in the previous three years (with certain exclusions under the Corporations Act
2001). At the end of FY21 this percentage stands at 0.53%. There are no voting or dividend rights attached to the share rights.
COMPANY PERFORMANCE
A key and continued focus for the Board and Company is to align Executive KMP remuneration to the achievement of strategic
and business objectives of the Group and the creation of shareholder value. The table below illustrates a summary of the Group’s
financial performance over the last five years as required by the Corporations Act 2001.
Revenue ($ millions)
2021
2020
2019
915.0*
888.9
784.5
Profit for the year attributable to owners ($ millions)
548.7*
155.1
Dividends (cents per share)
Share price at year end ($ per share)
* Includes continuing and discontinued operations.
10
7.63
11
4.87
76.1
10
4.72
2018
777.9
52.7
3
5.14
2017
421.9
17.0
2
3.15
IGO ANNUAL REPORT 2021 — 59
SECTION 4.
NON-EXECUTIVE DIRECTOR REMUNERATION
The remuneration of Non-executive Directors is determined by the Board within the maximum amount approved by shareholders
in general meeting. Non-executive Directors are not entitled to retirement benefits other than statutory superannuation or other
statutory required benefits. Non-executive Directors do not participate in share or bonus schemes designed for Executive Directors
or employees.
TOTAL REALISED EARNINGS
Name
Debra Bakker
Peter Bilbe
Kathleen Bozanic1
Peter Buck
Geoffrey Clifford2
Michael Nossal3
Keith Spence
Neil Warburton4
Xiaoping Yang5
Total Non-executive Director remuneration
Year
2021
2020
2021
2020
2021
2020
2021
2020
2020
2021
2021
2020
2021
2020
2021
2021
2020
Cash fees
$
Superannuation
$
127,854
127,854
237,442
239,545
118,721
81,397
127,854
128,288
49,721
58,765
127,854
127,854
36,530
109,589
70,000
905,020
864,248
12,146
12,146
22,558
21,690
11,279
7,733
12,146
11,712
4,723
5,583
12,146
12,146
3,470
10,411
-
79,328
80,561
Total
$
140,000
140,000
260,000
261,235
130,000
89,130
140,000
140,000
54,444
64,348
140,000
140,000
40,000
120,000
70,000
984,348
944,809
1. Ms Bozanic was appointed a Non-executive Director effective 3 October 2019.
2. Mr Clifford retired as a Non-executive Director effective 20 November 2019.
3. Mr Nossal was appointed a Non-executive Director effective 18 December 2020.
4. Mr Warburton resigned as a Non-executive Director effective 28 October 2020.
5. Ms Yang was appointed a Non-executive Director effective 1 December 2020.
60 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 The remuneration of Non-executive Directors is fixed to encourage impartiality, high ethical standards and independence on the
Board. The available Non-executive Directors’ fees pool is $1,500,000 which was approved by shareholders at the Annual General
Meeting on 16 December 2015, of which $1,050,000 was being utilised at 30 June 2021 (2020: $930,000).
Non-executive Directors may provide additional consulting services to the Group, at a rate approved by the Board. No such
amounts were paid to Directors during the current or prior year.
Following small adjustments to the remuneration of the Board and Committee Chairs in FY20, and based on market data from both
the IGO peer group and the market more broadly, changes to Board or Committee Chairs’ or Non-executive Directors remuneration
have been approved by the Board for FY22. Details of Non-executive Director fees are as follows:
Approved 2022
$
30 June 2021
$
30 June 2020
$
Non-executive Director base fees
Board Chair
Board Member
Committee Chair Fees
Chair Audit & Risk Committee
Chair People & Performance Committee
Chair Sustainability Committee
Chair Nomination & Governance Committee
Committee Members
260,000
250,000
250,000
140,000
120,000
120,000
25,000
25,000
25,000
25,000
Nil
20,000
20,000
20,000
20,000
Nil
20,000
20,000
20,000
20,000
Nil
IGO ANNUAL REPORT 2021 — 61
SECTION 5.
PLANNED REMUNERATION CHANGES FOR FY22
Throughout FY21, IGO has observed significant and increased pressure on the demand for general and executive talent.
Observations of the local Western Australia labour market also indicate a trend for comparator and other companies planning to
increase senior salaries to retain their talent in a competitive labour market and/or to attract the talent they require. Ensuring IGO
remuneration attracts and retains key talent in the current market is a key challenge for IGO at all levels of the business.
The Company reviews Executive KMP remuneration practices annually. In uncertain times, the Board and Executive team
appreciate the importance of competitive remuneration to support our employees to deliver the sustained and enduring
performance that drives value for our shareholders and community partnerships.
In determining any changes to remuneration for Executive KMP in FY22, the Board considered a broader dataset of benchmarked
information to reflect the Company’s changed status in FY21 into the ASX 100 group of companies. Benchmarked data on TFR,
STI and LTI against a comparator group of 30 ASX companies was compared to IGO’s mining and resources industry comparator
group to provide a more expansive examination of the remuneration paid to Executive KMP across a range of businesses. Across all
Executive KMP roles, IGO TFR was observed to be at the low to mid-range of both the ASX comparator group and IGO peer group.
For the ASX comparator group this may be understandable given a substantial portion of the Company’s market capitalisation
growth has been attained recently and remuneration structures had not yet been adjusted for the change in business or role
complexity. As such, increases in TFR in FY22 are justified based on a consideration of the current and future scope of the
Executive KMP roles and the low to mid-starting point compared to IGO peers.
The Board continues to adopt a balanced approach that supports the achievement of the strategic plan and the uncertain
economic environment anticipated into FY22, however are mindful that the demand for talent will drive a level of retention risk that
will require careful consideration for all Executive KMP and employee remuneration decisions. The Board will continue to monitor
remuneration levels in the context of the broader market and appropriate remuneration levels will be put in place for any new
appointments or changes of roles and responsibilities.
Completed changes and/or progress towards remuneration objectives will be reported in more detail in the FY22 Remuneration
Report, however a summary of the key elements of the proposed FY22 program are provided below:
KMP TFR
• The TFR for the Managing Director will increase by 15% from $870,000 to $1,000,000 to reflect the change
in complexity of the role and in market movement in CEO fixed remuneration.
• The TFR for the COO will increase from $630,000 to $700,000 and the TFR of the CFO will increase from $460,000
to $525,000.
• Other increases in TFR for Executive KMP are in line with market benchmarking and are structured to ensure that
Executive KMP fixed remuneration remains competitive with the comparator and broader industry groups for similar
roles (page 63)
KMP Short-Term
Incentive
Following an extensive benchmarking process in FY21, the Board believes that the current levels of short-term,
at risk incentives are appropriately competitive for all Executive KMP. As a result, there will be no changes made to
the quantum or weighting (as a percentage of TFR) of the STI program for Executive KMP in FY22.
KMP Long-Term
Incentive
Following an extensive benchmarking process in FY21, the Board believes that the current levels of long-term,
at risk incentives are appropriately competitive for all Executive KMP.
As a result, there will be no changes made to the quantum, delivery mechanisms or weighting (as a percentage
of TFR) of the LTI program for Executive KMP in FY22.
LTI Measures
The completion of the transaction with Tianqi has been transformative for the IGO business, fulfilling the transition
of the Company to the clean energy metals sector and providing IGO with access to downstream battery metals
opportunities.
In recognition of the changing nature of the IGO business, the Board has approved the following changes to the
performance measures and their weighting for the LTI program from FY22:
• Relative TSR – 20%
• Absolute TSR – 20%
• Reserve Growth Per Share – 20%
• EBITDA average margin – 20%
• Climate Change Response Progress – 10% (new for FY22)
• People and Culture – 10% (new for FY22)
These changes reflect a set of measures that will more accurately track the progress made, and value delivered
to shareholders, on a range of key strategic initiatives and long-term programs of work.
62 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 LTI Measures
The Board has also approved changes to the way in which the level of vesting will be calculated for:
Reserve growth per share
Reserve Growth per Share will be broadened to include assets that are both managed and unmanaged by IGO to
reflect the up and downstream focus of the business and the changing nature of the assets within the IGO portfolio
that unlock value for shareholders. The level of vesting will also be simplified to include a straight-line pro-rata vesting
schedule over the achievement of 100% of baseline ore reserves.
Reserve Growth per Share is defined as IGO share of ore reserve growth (managed and unmanaged) in excess of
depletion over the time period per share.
Growth in Ore Reserves per share performance
Level of vesting
Less than 100% of Baseline Ore Reserves
0%
Above 100% of Baseline Ore Reserves
Straight-line pro-rata between 33% and 100%
110% and above Baseline Ore Reserves
100%
EBITDA average margin
The vesting schedule will change to a straight-line vesting schedule to provide a simpler and fairer assessment of the
actual value created for shareholders over the performance period.
Group EBITDA Margin
<20%
Level of vesting
0%
Above 20% per annum and below 40% per annum return
Pro-rata straight line percentage between 33% and 100%
≥ 40%
100%
The Board will also seek approval from shareholders at the 2021 AGM to make the changes noted above
retrospectively for the Reserve Growth per Share and EBITDA Average Margin for the assessment of the FY19
and FY20 Performance Rights series for all participants of the program, including the Managing Director and
CEO, Peter Bradford.
Board Remuneration
Following an extensive benchmarking process in FY21, the Board has approved changes to the Board fees for FY22.
In FY22, the Board Chair fee will increase from $250,000 to $260,000 and the Non-executive Director fees will
increase from $120,000 to $140,000. Committee chair fees will also increase from $20,000 to $25,000.
Retention
Retention of employees across the business, including Executive KMP, is of critical importance to the achievement
of IGO’s strategic priorities. As such, key programs of work will continue in FY22 to focus sourcing and engagement
strategies on recruitment and retention of local talent.
Remuneration Review
FY22
Prior to the FY23 recommendations for CEO and Executive KMP remuneration, a further analysis will be commissioned
from a global remuneration specialist to provide the People & Performance Committee with additional information to
align IGO Executive KMP remuneration to relevant global peers for FY23 and beyond.
The following table reflects remuneration changes available to Executive KMP for FY22, effective 1 July 2022:
Executive KMP
Position
Total Remuneration FY22
Total Remuneration FY21
TFR $
STI %
LTI %
TFR $
STI %
LTI %
Peter Bradford
Managing Director & CEO
1,000,000
Kate Barker1
General Counsel and Head
of Risk & Compliance
450,000
Matt Dusci
Chief Operating Officer
700,000
Andrew Eddowes
Head of Corporate Development
400,000
Joanne McDonald
Company Secretary and Head
of Corporate Affairs
Sam Retallack
Head of People & Culture
Scott Steinkrug
Chief Financial Officer
400,000
400,000
525,000
100
50
80
50
50
50
50
100
50
80
50
50
50
80
870,000
400,000
630,000
380,000
350,000
370,000
460,000
100
50
80
50
50
50
50
100
50
80
50
50
50
80
1. The Board approved an increase in Ms Barker’s TFR from $350,000 to $400,000 effective 1 July 2020, to reflect the broadened nature of her role.
Note: Due to an internal restructure Mr Sandl ceased to be an Executive KMP on 30 June 2021.
IGO ANNUAL REPORT 2021 — 63
SECTION 6.
STATUTORY REMUNERATION DISCLOSURES
EXECUTIVE KMP CONTRACTS
Remuneration and other terms of employment for Executive KMP are formalised in service agreements. The service agreements
specify the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the Board’s
discretion. Other major provisions of the agreements relating to remuneration are set out below.
Executive KMP
Position
Term of
Agreement
Base Salary
including
Superannuation
at 1 July 2022
$
Notice Period
Termination
Benefit
Peter Bradford
Managing Director & CEO
No fixed term
1,000,000
6 months
Kate Barker
General Counsel and Head of Risk
& Compliance
No fixed term
450,000
3 months
Matt Dusci
Chief Operating Officer
No fixed term
700,000
3 months
Andrew Eddowes
Head of Corporate Development
No fixed term
400,000
3 months
Joanne McDonald Company Secretary and Head
No fixed term
400,000
3 months
of Corporate Affairs
Sam Retallack
Head of People & Culture
No fixed term
400,000
3 months
Scott Steinkrug
Chief Financial Officer
No fixed term
525,000
3 months
6 months1
6 months
6 months
6 months
6 months
6 months
6 months
1. In addition to the above, Mr Bradford is entitled to a maximum termination benefit payable of up to 12 months of average annual base salary should the
Company terminate the employment contract without cause, but only if such payment would not breach ASX Listing Rules. A termination benefit of three
month’s remuneration is payable to Mr Bradford should the Company terminate the employment contract due to illness, injury or incapacity.
(I) Remuneration expenses for Executive KMP
The following table shows the value of earnings realised by Executive KMP during FY21. The value of earnings realised includes
cash salary, superannuation and cash bonuses earned during the year, plus the intrinsic value of service rights and performance
rights vested during the financial year.
This is in addition and different to the disclosures required by the Corporations Act and Accounting Standards, particularly
in relation to share rights. As a general principle, the Accounting Standards require a value to be placed on share rights based on
probabilistic calculations at the time of grant, which may be reflected in the Remuneration Report even if ultimately the share rights
do not vest because performance or service hurdles are not met. By contrast, this table discloses the intrinsic value of share rights,
which represents only those share rights which actually vest and result in shares issued to an Executive KMP. The intrinsic value is
the Company’s closing share price on the date of vesting.
Remuneration received during the period
Executive KMP
TFR
$ Value1
STI Cash
Component
$ Value2
Discretionary Cash
Bonus
$ Value
Vested Service
Rights Component
$ Value
Vested Performance
Rights Component
$ Value
Total Actual
Remuneration
$ Value
Peter Bradford
870,000
435,000
300,000
Keith Ashby3
Kate Barker
Matt Dusci
Andrew Eddowes
Joanne McDonald
Sam Retallack
Ian Sandl
334,163
-
400,000
100,000
630,000
252,000
380,000
350,000
370,000
400,000
92,150
85,750
90,650
94,000
Scott Steinkrug
460,000
115,000
-
185,000
120,000
160,000
50,000
50,000
-
185,000
1. Includes base salary and superannuation.
2. Represents the amounts to be paid in August 2021 for performance in FY21.
184,433
39,508
34,996
81,893
41,150
35,163
39,127
37,861
71,083
1,011,279
2,800,712
201,109
65,874
459,675
83,927
67,575
201,109
84,121
413,705
574,780
785,870
1,543,568
757,227
588,488
750,886
615,982
1,244,788
3. Mr Ashby resigned effective 27 November 2020. TFR amount includes amounts paid on termination but excludes pay out of annual leave balances.
64 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 The following table shows details of the remuneration expense recognised for the Group’s KMP for the current and previous
financial year measured in accordance with the requirements of the Accounting Standards.
Executive KMP
Year
Cash salary1
Cash
bonus2
Super-
annuation
Long
service
leave3
Share
rights4
Total Performance
Related
Executive Directors
Peter Bradford
Other Executive KMP
Keith Ashby5
Kate Barker
Matt Dusci
Andrew Eddowes
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
$
$
$
$
$
$
871,240
735,000
25,000
34,478
892,073
2,557,791
856,309
317,500
25,000
37,619
895,207
2,131,635
345,180
-
17,309
(36,099)
90,350
416,740
354,117
65,000
25,000
11,302
180,150
635,569
387,543
285,000
25,000
18,313
187,878
903,734
328,493
64,500
25,000
9,673
141,763
569,429
609,826
372,000
25,000
24,905
485,779
1,517,510
617,429
186,500
25,000
28,183
413,922
1,271,034
371,486
252,150
25,000
8,898
199,849
857,383
351,893
69,500
25,000
11,949
159,658
618,000
Joanne McDonald
2021
336,345
135,750
25,000
11,547
183,256
691,898
Sam Retallack
Ian Sandl
Scott Steinkrug
Total Executive
Directors and
other Executive KMP’s
Total NED
remuneration
(see page 60)
Total KMP
remuneration
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
320,401
63,500
25,000
9,280
142,239
560,420
365,000
140,650
25,000
8,652
194,687
733,989
350,609
68,500
25,000
10,399
179,887
634,395
377,995
94,000
25,000
10,544
203,767
711,306
367,261
69,000
25,000
7,061
157,382
625,704
440,977
300,000
25,000
10,907
345,069
1,121,953
451,409
85,000
25,000
12,984
344,649
919,042
4,105,592
2,314,550
217,309
92,145
2,782,708
9,512,304
3,997,921
989,000
225,000
138,450
2,614,857
7,965,228
905,020
864,248
-
-
79,328
80,561
-
-
-
-
984,348
944,809
5,010,612
2,314,550
296,637
92,145
2,782,708
10,496,652
4,862,169
989,000
305,561
138,450
2,614,857
8,910,037
%
64
57
22
39
52
36
57
47
53
37
46
37
46
39
42
36
57
47
1. Cash salary and fees includes movements in annual leave provision during the year.
2. Cash bonus represents bonuses that were awarded to each Executive KMP in relation to FY21 performance and will be paid in August 2021 (2020: Related
to FY20 and paid in August 2020).
3. Long service leave relates to movements in long service leave provision during the year.
4. Rights to shares granted under the EIP are expensed over the performance period, which includes the vesting period of the rights, in accordance with AASB
2 Share-based Payment. Refer to note 28 for details of the valuation techniques used for the EIP.
5. Mr Ashby resigned effective 27 November 2020. An amount of $58,693 accrued for annual leave was paid out on termination, this amount has been offset
against the movement in the provision for FY21.
IGO ANNUAL REPORT 2021 — 65
ADDITIONAL STATUTORY INFORMATION
(II) Performance based remuneration granted and forfeited during the year
The table below shows for each Executive KMP how much of their STI cash bonus and service rights were awarded and how much
was forfeited. It also shows the value of performance rights that were granted, vested and forfeited during FY21. The number
of performance rights and percentages vested/forfeited for each grant are disclosed in the table on page 68.
Executive KMP
STI bonus (cash)
STI (service rights)
LTI (performance rights)
Total
opportunity
$
Awarded1
$
Awarded
%
Forfeited
%
Total
opportunity
$
Awarded2
$
Awarded
%
Forfeited
%
Value
granted3
$
Value
vested4
$
Value
forfeited4
$
Peter Bradford
435,000 435,000
100
Keith Ashby5
-
-
-
Kate Barker
100,000
100,000
100
Matt Dusci
252,000 252,000
100
Andrew Eddowes
95,000
92,150
Joanne McDonald
87,500
85,750
Sam Retallack
92,500
90,650
Ian Sandl
100,000
94,000
97
98
98
94
Scott Steinkrug
115,000
115,000
100
1. To be paid in August 2021.
-
-
-
-
3
2
2
6
-
435,000 435,000
100
-
-
-
100,000
100,000
100
252,000 252,000
100
95,000
92,150
87,500
85,750
92,500
90,650
100,000
94,000
97
98
98
94
115,000
115,000
100
-
-
-
-
3
2
2
6
-
626,115
713,536
123,751
-
103,286
17,913
115,132
33,832
5,689
290,137
236,082
40,944
109,375
43,104
7,476
100,740
34,705
6,019
106,498
103,286
17,913
115,132
43,203
7,493
211,844
212,472
36,850
2. Service rights will be issued in September 2021 based on the 5-day VWAP following the release of IGO’s 2021 Financial Statements. The service rights
will vest in equal parts in September 2022 and September 2023.
3. The value at grant date for performance rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share-based
Payment. Refer to note 28 for details of the valuation techniques used for the EIP.
4. The value of performance rights vested and forfeited is based on the value of the performance rights at grant date.
5. Mr Ashby resigned effective 27 November 2020, therefore was not entitled to FY21 STI cash, STI service rights or STI performance rights.
(III) Terms and conditions of the share-based payment arrangements
Performance rights under the Company’s EIP
Performance rights under the Company’s EIP are granted annually. The performance rights vest after three years from the start
of the financial year, subject to meeting certain performance conditions. On vesting, each performance right automatically converts
into one ordinary share. The Executive KMP do not receive any dividends and are not entitled to vote in relation to the performance
rights during the vesting period. If an Executive KMP ceases employment before the performance rights vest, the performance
rights will be forfeited, except in certain circumstances that are approved by the Board.
The value at grant date for performance rights granted during the year as part of remuneration is calculated in accordance with
AASB 2 Share-based Payment. Refer to note 28 for details of the valuation techniques used for the EIP.
Grant date
Vesting date
Grant date value
Performance achieved
18 November 2020
2 October 2020
20 November 2019
14 October 2019
20 November 2018
28 September 2018
24 November 2017
29 September 2017
1 July 2023
1 July 2023
1 July 2022
1 July 2022
1 July 2021
1 July 2021
1 July 2020
1 July 2020
$
3.43
2.74
4.45
4.65
2.17
2.81
3.14
2.29
To be determined
To be determined
To be determined
To be determined
To be determined2
To be determined2
Refer 1 below
Refer 1 below
Vested
%
n/a
n/a
n/a
n/a
n/a
n/a
85.2
85.2
1. The relative and absolute TSR performance conditions of the share rights granted in FY18 resulted in the Company achieving a TSR of 56.0% for the period
1 July 2017 to 30 June 2020, resulting in the vesting of 72.6% of performance rights subject to relative TSR testing and 97.9% of performance rights subject
to absolute TSR testing (with 50% allocation to both relative and absolute TSR). This resulted in an overall vesting of 85.2% of the FY18 Series Performance
Rights, with the balance of the performance rights lapsing and subsequently cancelled.
2. The relative and absolute TSR performance conditions of the share rights granted in FY19 (which were due to vest on 1 July 2021) were tested post 30 June
2021. The Company achieved a TSR of 52.0% for the period 1 July 2018 to 30 June 2021, resulting in the vesting of 78.0% of performance rights subject to
relative TSR testing and 82.2% of performance rights subject to absolute TSR testing (with 50% allocation to both relative and absolute TSR). This resulted in
an overall vesting of 80.1% of the FY19 Series Performance Rights, with the balance of the performance rights lapsing and subsequently cancelled. This will
be accounted for in the FY22 Remuneration Report.
66 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 Service rights under the Company’s EIP
Service rights issued under the Company’s EIP are granted following the determination of the final STI performance result for the
performance year. The service rights component of the STI vest in two tranches, with the first tranche of 50% vesting on the 12
month anniversary of the award date, and the second tranche of 50% vesting on the 24 month anniversary of the award date.
The Executive KMP do not receive any dividends and are not entitled to vote in relation to the service rights during the vesting
period. If an Executive KMP ceases employment before the service rights vest, the service rights will be forfeited, except in limited
circumstances that are approved by the Board on a case-by-case basis.
The fair value of the service rights is determined based on the 5-day VWAP of the Company’s shares after release of IGO’s
annual financial statements.
Grant date
2 October 2020
14 October 2019
5 October 2018
9 October 2017
Vesting
%
50
50
50
50
50
50
50
50
Vesting date
Grant date value
1 September 2021
1 September 2022
1 September 2020
1 September 2021
2 September 2019
1 September 2020
3 September 2018
2 September 2019
$
4.46
4.46
5.88
5.88
4.21
4.21
3.51
3.51
IGO ANNUAL REPORT 2021 — 67
(IV) Reconciliation of performance rights, service rights and ordinary shares held by Executive KMP
Performance rights
The table below shows the number of performance rights that were granted, vested and forfeited during the year.
Financial
year
granted
Balance
at start of
the year
Granted
during
the year
Vested during
the year
Forfeited during
the year
Balance at
the end of
the year
(unvested)
Maximum
value yet
to vest
Number
Number
Number
%
Number
%
Number
$
Executive KMP
Peter Bradford
Keith Ashby2
Kate Barker
Matt Dusci
Andrew Eddowes
2021
2020
2019
2018
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
-
182,7731
162,617
218,475
266,667
34,579
45,727
53,031
-
-
-
-
-
-
-
42,016
32,710
43,187
17,371
-
-
-
-
105,882
83,738
110,161
121,213
-
-
-
-
39,915
35,514
47,251
22,131
-
-
-
Joanne McDonald 2021
-
36,764
Sam Retallack
Ian Sandl
Scott Steinkrug
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
32,710
43,187
17,819
-
-
-
-
38,865
34,579
45,727
53,031
-
-
-
-
42,016
37,383
46,997
22,182
-
-
-
-
77,310
68,785
83,140
109,091
-
-
-
-
-
-
-
-
-
227,254
85.2
-
-
-
-
45,193
85.2
-
-
-
-
-
-
-
-
-
39,413
18,299
8,970
7,838
-
-
-
-
-
-
14.8
-
-
14.8
-
-
-
14,803
85.2
2,568
14.8
-
-
-
-
-
-
-
-
-
-
-
-
103,298
85.2
17,915
14.8
-
-
-
-
-
-
-
-
-
-
-
-
18,860
85.2
3,271
14.8
-
-
-
-
-
-
-
-
-
-
-
-
15,185
85.2
2,634
14.8
-
-
-
-
-
-
-
-
-
-
-
-
45,193
85.2
7,838
14.8
-
-
-
-
-
-
-
-
-
-
-
-
18,904
85.2
3,278
14.8
-
-
-
-
-
-
-
-
-
-
-
-
92,967
85.2
16,124
14.8
182,773
417,791
162,617
241,418
218,475
-
16,280
36,757
-
42,016
32,710
43,187
-
-
-
-
-
-
82,804
54,889
-
-
105,882
208,670
83,738
110,161
-
39,915
35,514
47,251
-
140,516
-
-
78,664
59,594
-
-
36,764
72,454
32,710
43,187
-
38,865
34,579
45,727
-
42,016
37,383
46,997
-
77,310
68,785
83,140
-
54,889
-
-
76,594
58,025
-
-
82,804
62,760
-
-
152,361
115,424
-
-
1. The issue of performance rights to Mr Bradford was approved at the Company’s AGM on 18 November 2020 in accordance with ASX Listing Rule 10.14.
2. Following Mr Ashby’s resignation on 27 November 2020, the Board resolved to allocate the share rights previously granted to him on a period of service
pro-rata basis in the relevant performance period. This resulted in the cancellation of 27,269 share rights previously granted to Mr Ashby.
68 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 Service rights
The table below shows the number of service rights that were granted, vested and forfeited during the year.
Executive KMP
Financial
year
granted
Balance
at start of
the year
Granted
during
the year
Vested during
the year1
Forfeited during
the year
Balance at end
of the year
Maximum
value yet
to vest
Peter Bradford
Keith Ashby4
Kate Barker
Matt Dusci
Andrew Eddowes
Joanne McDonald
Sam Retallack
Ian Sandl
Scott Steinkrug
Number
Number Number
-
71,1883
-
40,986
21,615
-
-
8,759
4,641
-
-
-
14,574
-
-
-
14,461
8,333
3,824
-
-
18,452
9,471
-
-
9,014
4,888
-
-
-
41,816
-
-
-
15,583
-
-
-
14,237
8,333
3,862
-
-
-
15,358
8,759
4,554
-
-
9,014
4,137
-
-
-
15,470
-
-
-
19,058
15,731
8,364
-
-
20,493
21,615
-
-
4,379
4,641
-
4,166
3,824
-
-
9,226
9,471
-
-
4,507
4,888
-
4,166
3,862
-
4,379
4,554
-
-
4,507
4,137
-
7,865
8,364
2021
2020
2019
2018
2021
2020
2019
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2021
2020
2019
2021
2020
2019
2018
2021
2020
2019
2021
2020
2019
%
-
50
100
-
-
-
50
-
50
100
-
-
50
100
-
-
50
100
-
50
100
-
50
100
-
-
50
100
-
50
100
Number
Vested and
exercisable2
%
Unvested
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
71,188
128,290
20,493
43,230
49,858
-
-
-
-
4,166
7,648
9,509
-
9,226
18,942
19,801
-
4,507
-
-
-
-
-
4,379
9,107
10,542
-
-
-
-
-
-
20,493
10,875
-
-
14,574
4,379
-
14,461
4,167
-
-
-
-
-
-
-
26,061
2,211
-
-
41,816
9,226
75,358
4,896
-
-
15,583
4,507
-
14,237
4,167
-
15,358
4,380
-
-
15,470
4,507
-
19,058
7,866
-
-
-
28,803
2,392
-
25,657
2,211
-
27,677
2,324
-
-
27,879
2,392
-
34,345
4,174
-
1. Vesting of the FY20 service rights represents the first tranche of 50% vesting on the 12 month anniversary of the award date and vesting of the FY19 service
rights represents the second tranche of 50% vesting on the 24 month anniversary of the award date.
2. Service rights have vested due to service condition being achieved and, subject to being exercised, will convert into ordinary shares.
3. The issue of service rights to Mr Bradford was approved at the Company’s AGM on 18 November 2020 in accordance with ASX Listing Rule 10.14.
4. Following Mr Ashby’s resignation on 27 November 2020, the Board resolved to allocate the service rights previously granted to him in accordance with the
vesting dates of the service rights issued.
IGO ANNUAL REPORT 2021 — 69
Shareholdings of KMP
The number of ordinary shares in the Company held by each Director and other Executive KMP, including their personally related
entities, are set out below.
Name
Directors
Debra Bakker
Peter Bilbe
Kathleen Bozanic
Peter Bradford
Peter Buck
Michael Nossal
Keith Spence
Neil Warburton
Xiaoping Yang
Executive KMP
Keith Ashby
Kate Barker
Matt Dusci
Andrew Eddowes
Joanne McDonald
Sam Retallack
Ian Sandl
Scott Steinkrug
Total
Balance at the
start of the year
Received during the year
on vesting or exercise of
service rights
Other changes
during the period
Balance at the end
of the year
21,687
40,000
11,780
646,000
22,200
-
22,125
106,034
-
20,339
4,115
41,360
111,083
-
29,662
2,503
74,411
1,153,299
-
-
-
227,254
-
-
-
-
-
54,213
14,803
103,298
28,635
23,213
45,193
31,684
126,962
655,255
9,113
7,059
2,079
271,756
3,918
40,000
2,603
(106,034)
14,200
(74,552)
3,339
21,730
11,047
4,099
6,522
3,779
(93,308)
127,350
30,800
47,059
13,859
1,145,010
26,118
40,000
24,728
-
14,200
-
22,257
166,388
150,765
27,312
81,377
37,966
108,065
1,935,904
Whilst IGO does not have a formal policy stating a minimum shareholding in IGO shares for Non-executive Directors and Executive
KMP, guidelines on this subject have been adopted. These guidelines state, that in order to achieve a greater alignment with
shareholder interests, Non-executive Directors and KMP are encouraged to hold shares in the Company. IGO is committed to
achieving greater diversity throughout the business and this includes the membership of the Board and Executive KMP. To this
end, the Board acknowledges that each current or future Non-executive Director and Executive KMP may have different personal
circumstances.
Accordingly, Non-executive Directors are encouraged to acquire and hold IGO shares to the equivalent value of one years
of director fees within a reasonable period of time that suits their personal circumstances.
Similarly, Executive KMP are encouraged to acquire and hold IGO shares over a reasonable time period, noting that the number of
shares and the time period will be in accordance with each Executive KMP’s personal circumstances.
(V) Other transactions with Executive KMP
During the current financial year, there were no other transactions with Executive KMP or their related parties.
(VI) Voting of shareholders at last year’s annual general meeting
IGO Limited received more than 99% of “yes” votes on its Remuneration Report for the 2020 financial year. The Company sought
feedback throughout the year on its remuneration practices through communications with key shareholders and proxy advisors.
This feedback included advice on continuing to provide the current level of transparency within the Remuneration Report and
ensure remuneration across the business reflects the strategic direction of the Company.
END OF AUDITED REMUNERATION REPORT
70 — IGO ANNUAL REPORT 2021
Directors’ Report — Remuneration report30 June 2021 SHARES UNDER OPTION
At the reporting date, there were no unissued ordinary shares under options, nor were there any ordinary shares issued during the
year ended 30 June 2021 on the exercise of options.
INSURANCE OF OFFICERS AND INDEMNITIES
During the financial year, the Company paid an insurance premium in respect of a contract insuring the Directors and executive
officers of the Company and of any related body corporate against a liability incurred as such a Director or executive officer to
the extent permitted by the Corporations Law. The contract of insurance prohibits disclosure of the nature of the liability and the
amount of the premium.
The Company has not otherwise, during or since the end of the financial year, indemnified or agreed to indemnify any officer of the
Company or of any related body corporate against a liability incurred by such an officer.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of
the Company for all or part of those proceedings.
The Company was not a party to any such proceedings during the year.
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Company and/or the Group are important.
Details of the amounts paid or payable to the auditor (BDO Audit (WA) Pty Ltd) for non-audit services provided during the year are
set out below.
The Directors are satisfied that the provision of the non-audit services is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the auditor
did not compromise the auditor independence requirements of the Corporations Act 2001 nor the principles set out in APES110
Code of Ethics for Professional Accountants.
During the period the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, its
related practices and non-related audit firms:
Other services
BDO Audit (WA) Pty Ltd firm:
Other services in relation to the entity and any other entity in the consolidated Group
Total remuneration for non-audit services
2021
$
2020
$
103,9381
103,938
45,500
45,500
1. Other services relate to review of the 2020 Sustainability Report and Corporate Advisory services relating to the acquisition of Tianqi and divestment
of Tropicana.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 72.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in ASIC Corporation Legislative Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to the ‘rounding off’ of amounts in the Directors’ Report. Amounts in the Directors’ Report have
been rounded off in accordance with that Legislative Instrument to the nearest thousand dollars, or in certain cases, to the nearest
dollar.
This report is made in accordance with a resolution of Directors.
PETER BRADFORD
MANAGING DIRECTOR & CEO
Perth, Western Australia
Dated this 30th day of August 2021
IGO ANNUAL REPORT 2021 — 71
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF IGO LIMITED
As lead auditor of IGO Limited for the year ended 30 June 2021, I declare that, to the best of my
knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of IGO Limited and the entities it controlled during the period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 30 August 2021
72 — IGO ANNUAL REPORT 2021
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Independent Auditors Report
Financial Report
Consolidated statement of profit or loss and
other comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
74
76
77
78
Notes to the consolidated financial statements
79
Directors’ Declaration
Independent Auditor’s Report
133
134
IGO ANNUAL REPORT 2021 — 73
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
For the year ended 30 June 2021
Revenue from continuing operations
Revenue from continuing operations
Other income
Other income
Mining, development and processing costs
Mining, development and processing costs
Employee benefits expense
Employee benefits expense
Share-based payments expense
Share-based payments expense
Fair value movement of financial investments
Fair value movement of financial investments
Depreciation and amortisation expense
Depreciation and amortisation expense
Exploration and evaluation expense
Exploration and evaluation expense
Royalty expense
Royalty expense
Shipping and wharfage costs
Shipping and wharfage costs
Borrowing and finance costs
Borrowing and finance costs
Impairment of exploration and evaluation expenditure
Impairment of exploration and evaluation expenditure
Acquisition and transaction costs
Acquisition and transaction costs
Other expenses
Other expenses
Profit before income tax
Profit before income tax
Income tax expense
Income tax expense
Profit from continuing operations
Profit from continuing operations
Profit from discontinued operation
Profit from discontinued operation
Profit after income tax for the period
Profit after income tax for the period
Other comprehensive income
Other comprehensive income
Items that may be reclassified to profit or loss
Items that may be reclassified to profit or loss
Effective portion of changes in fair value of cash flow hedges, net of tax
Effective portion of changes in fair value of cash flow hedges, net of tax
Exchange differences on translation of foreign operations
Exchange differences on translation of foreign operations
Other comprehensive profit/(loss) for the period, net of tax
Other comprehensive profit/(loss) for the period, net of tax
Total comprehensive income for the period
Total comprehensive income for the period
Profit for the period attributable to the members of IGO Limited
Profit for the period attributable to the members of IGO Limited
Notes
Notes
2
2
3
3
16
16
5
5
23
23
2021
2021
$'000
$'000
671,739
671,739
3,666
3,666
(149,645)
(149,645)
(51,474)
(51,474)
(4,917)
(4,917)
9,958
9,958
(175,621)
(175,621)
(61,495)
(61,495)
(29,532)
(29,532)
(16,311)
(16,311)
(26,448)
(26,448)
-
-
(4,550)
(4,550)
(8,783)
(8,783)
156,587
156,587
(39,821)
(39,821)
116,766
116,766
431,895
431,895
548,661
548,661
1,682
1,682
15
15
1,697
1,697
550,358
550,358
548,661
548,661
2020
2020
$'000
$'000
598,852
598,852
3,567
3,567
(159,916)
(159,916)
(46,786)
(46,786)
(4,489)
(4,489)
33,207
33,207
(171,199)
(171,199)
(69,605)
(69,605)
(26,925)
(26,925)
(17,624)
(17,624)
(4,235)
(4,235)
(1,018)
(1,018)
-
-
(12,599)
(12,599)
121,230
121,230
(34,923)
(34,923)
86,307
86,307
68,786
68,786
155,093
155,093
(95)
(95)
(26)
(26)
(121)
(121)
154,972
154,972
155,093
155,093
Total comprehensive income for the period attributable to the members
Total comprehensive income for the period attributable to the members
of IGO Limited
of IGO Limited
550,358
550,358
154,972
154,972
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
the accompanying notes.
IGO Limited
IGO Limited
2
2
74 — IGO ANNUAL REPORT 2021
Consolidated Statement of Profit or Loss And Other Comprehensive IncomeFor The Year Ended 30 June 2021 Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Consolidated statement of profit or loss and other comprehensive income
(continued)
For the year ended 30 June 2021
(continued)
Cents
Cents
Earnings per share for profit from continuing operations attributable to
the ordinary equity holders of the Company:
Earnings per share for profit from continuing operations attributable to
Basic earnings per share
the ordinary equity holders of the Company:
Diluted earnings per share
Basic earnings per share
Diluted earnings per share
Earnings per share for profit from discontinued operations to the
ordinary equity holders of the Company:
Earnings per share for profit from discontinued operations to the
Basic earnings per share
ordinary equity holders of the Company:
Diluted earnings per share
Basic earnings per share
Diluted earnings per share
Earnings per share for profit attributable to the ordinary equity holders
of the Company:
Earnings per share for profit attributable to the ordinary equity holders
Basic earnings per share
of the Company:
Diluted earnings per share
Basic earnings per share
Diluted earnings per share
6
6
6
6
6
6
6
6
6
6
6
6
Cents
Cents
17.21
17.13
17.21
17.13
63.65
63.38
63.65
63.38
80.86
80.51
80.86
80.51
14.61
14.54
14.61
14.54
11.64
11.59
11.64
11.59
26.25
26.13
26.25
26.13
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
IGO Limited
IGO Limited
3
3
IGO ANNUAL REPORT 2021 — 75
Consolidated Statement of Profit or Loss And Other Comprehensive IncomeFor The Year Ended 30 June 2021 ASSETS
ASSETS
Current assets
Current assets
Cash and cash equivalents
Cash and cash equivalents
Trade and other receivables
Trade and other receivables
Inventories
Inventories
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss
Derivative financial instruments
Derivative financial instruments
Total current assets
Total current assets
Non-current assets
Non-current assets
Investments accounted for using the equity method
Investments accounted for using the equity method
Inventories
Inventories
Property, plant and equipment
Property, plant and equipment
Right-of-use assets
Right-of-use assets
Mine properties
Mine properties
Exploration and evaluation expenditure
Exploration and evaluation expenditure
Deferred tax assets
Deferred tax assets
Derivative financial instruments
Derivative financial instruments
Total non-current assets
Total non-current assets
TOTAL ASSETS
TOTAL ASSETS
LIABILITIES
LIABILITIES
Current liabilities
Current liabilities
Trade and other payables
Trade and other payables
Borrowings
Borrowings
Lease liabilities
Lease liabilities
Current tax liabilities
Current tax liabilities
Provisions
Provisions
Total current liabilities
Total current liabilities
Non-current liabilities
Non-current liabilities
Lease liabilities
Lease liabilities
Provisions
Provisions
Deferred tax liabilities
Deferred tax liabilities
Total non-current liabilities
Total non-current liabilities
TOTAL LIABILITIES
TOTAL LIABILITIES
NET ASSETS
NET ASSETS
EQUITY
EQUITY
Contributed equity
Contributed equity
Reserves
Reserves
Retained earnings
Retained earnings
TOTAL EQUITY
TOTAL EQUITY
Consolidated balance sheet
Consolidated balance sheet
As at 30 June 2021
As at 30 June 2021
Notes
Notes
2021
2021
$'000
$'000
2020
2020
$'000
$'000
7
7
8
8
9
9
10
10
21
21
25
25
9
9
13
13
14
14
15
15
16
16
5
5
21
21
11
11
17
17
14
14
12
12
14
14
12
12
5
5
18
18
19(a)
19(a)
19(b)
19(b)
528,514
528,514
82,375
82,375
34,013
34,013
110,944
110,944
2,751
2,751
758,597
758,597
1,855,939
1,855,939
-
-
34,134
34,134
24,711
24,711
804,103
804,103
100,527
100,527
30,721
30,721
-
-
2,850,135
2,850,135
3,608,732
3,608,732
47,286
47,286
-
-
4,421
4,421
171,952
171,952
8,721
8,721
232,380
232,380
20,627
20,627
47,292
47,292
108,556
108,556
176,475
176,475
408,855
408,855
3,199,877
3,199,877
2,648,574
2,648,574
505,544
505,544
45,759
45,759
3,199,877
3,199,877
510,312
510,312
69,069
69,069
75,670
75,670
107,759
107,759
64
64
762,874
762,874
-
-
67,911
67,911
48,580
48,580
38,996
38,996
1,159,621
1,159,621
95,030
95,030
119,734
119,734
284
284
1,530,156
1,530,156
2,293,030
2,293,030
53,013
53,013
56,937
56,937
6,235
6,235
-
-
7,058
7,058
123,243
123,243
33,550
33,550
68,641
68,641
141,787
141,787
243,978
243,978
367,221
367,221
1,925,809
1,925,809
1,897,126
1,897,126
18,874
18,874
9,809
9,809
1,925,809
1,925,809
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
IGO Limited
IGO Limited
4
4
76 — IGO ANNUAL REPORT 2021
Consolidated Balance SheetFor The Year Ended 30 June 2021 Consolidated statement of changes in equity
Consolidated statement of changes in equity
For the year ended 30 June 2021
For the year ended 30 June 2021
Contributed
Contributed
equity
equity
$'000
$'000
1,895,855
1,895,855
-
-
-
-
-
-
-
-
-
-
-
-
1,271
1,271
1,897,126
1,897,126
Contributed
Contributed
equity
equity
$'000
$'000
1,897,126
1,897,126
-
-
-
-
-
-
-
-
-
-
-
-
(5,764)
(5,764)
-
-
-
-
3,115
3,115
765,766
765,766
(11,669)
(11,669)
2,648,574
2,648,574
Retained
Retained
earnings
earnings
$'000
$'000
(62,572)
(62,572)
155,093
155,093
-
-
-
-
155,093
155,093
(82,712)
(82,712)
-
-
-
-
9,809
9,809
Retained
Retained
earnings
earnings
$'000
$'000
9,809
9,809
548,661
548,661
-
-
-
-
-
-
548,661
548,661
Other
Other
reserves
reserves
$'000
$'000
15,777
15,777
-
-
(95)
(95)
(26)
(26)
(121)
(121)
-
-
4,489
4,489
(1,271)
(1,271)
18,874
18,874
Other
Other
reserves
reserves
$'000
$'000
18,874
18,874
-
-
1,682
1,682
63
63
(48)
(48)
1,697
1,697
(483,171)
(483,171)
483,171
483,171
-
-
(29,540)
(29,540)
-
-
-
-
-
-
-
-
45,759
45,759
-
-
-
-
4,917
4,917
(3,115)
(3,115)
-
-
-
-
505,544
505,544
Total
Total
equity
equity
$'000
$'000
1,849,060
1,849,060
155,093
155,093
(95)
(95)
(26)
(26)
154,972
154,972
(82,712)
(82,712)
4,489
4,489
-
-
1,925,809
1,925,809
Total
Total
equity
equity
$'000
$'000
1,925,809
1,925,809
548,661
548,661
1,682
1,682
63
63
(48)
(48)
550,358
550,358
-
-
(5,764)
(5,764)
(29,540)
(29,540)
4,917
4,917
-
-
765,766
765,766
(11,669)
(11,669)
3,199,877
3,199,877
Balance at 1 July 2019
Balance at 1 July 2019
Profit for the period
Profit for the period
Other comprehensive income
Other comprehensive income
Effective portion of changes in fair value of cash flow
Effective portion of changes in fair value of cash flow
hedges, net of tax
hedges, net of tax
Currency translation differences - current period
Currency translation differences - current period
Total comprehensive income for the period
Total comprehensive income for the period
Transactions with owners in their capacity as
Transactions with owners in their capacity as
owners:
owners:
Dividends paid
Dividends paid
Share-based payments expense
Share-based payments expense
Issue of shares - Employee Incentive Plan
Issue of shares - Employee Incentive Plan
Balance at 30 June 2020
Balance at 30 June 2020
Balance at 1 July 2020
Balance at 1 July 2020
Profit for the period
Profit for the period
Other comprehensive income
Other comprehensive income
Effective portion of changes in fair value of cash flow
Effective portion of changes in fair value of cash flow
hedges, net of tax
hedges, net of tax
Currency translation differences - current period
Currency translation differences - current period
Reclassification to profit or loss on disposal of foreign
Reclassification to profit or loss on disposal of foreign
subsidiary
subsidiary
Total comprehensive income for the period
Total comprehensive income for the period
Transfer of current year profits
Transfer of current year profits
Transactions with owners in their capacity as
Transactions with owners in their capacity as
owners:
owners:
Acquisition of treasury shares
Acquisition of treasury shares
Dividends paid
Dividends paid
Share-based payments expense
Share-based payments expense
Issue of shares - Employee Incentive Plan
Issue of shares - Employee Incentive Plan
Share placement and institutional entitlement offer
Share placement and institutional entitlement offer
Costs associated with share placement (net of tax)
Costs associated with share placement (net of tax)
Balance at 30 June 2021
Balance at 30 June 2021
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
IGO Limited
IGO Limited
5
5
IGO ANNUAL REPORT 2021 — 77
Consolidated Statement of Changes in EquityFor The Year Ended 30 June 2021 Consolidated statement of cash flows
For the year ended 30 June 2021
Notes
2021
$'000
2020
$'000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest and other costs of finance paid
Interest received
Acquisition and transaction costs
Payments for exploration and evaluation
Net cash inflow from operating activities
7(a)
Cash flows from investing activities
Payments for property, plant and equipment
Payment for rehabilitation expenditure
Proceeds from sale of property, plant and equipment
Proceeds from sale of financial assets
Payments for development expenditure
Payments for purchase of listed investments
Payments for capitalised exploration and evaluation expenditure
Payments for acquisition of Tianqi
Proceeds on sale of Tropicana Joint Venture
Deferred proceeds on sale of Jaguar Operation
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issues of shares
Share issue transaction costs
Transaction costs associated with borrowings
Repayment of borrowings
Principal element of lease payments
Payment of dividends
Payments for shares acquired by the IGO Employee Trust
Net cash inflow (outflow) from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period
17
20
7
918,878
(397,913)
520,965
(8,672)
2,432
(4,864)
(63,809)
446,052
(14,211)
(59)
70
27,227
(71,895)
(20,498)
(8,606)
(1,855,409)
862,349
16,060
(1,064,972)
765,766
(16,669)
(17,519)
(57,145)
(6,132)
(29,540)
(5,764)
632,997
14,077
510,312
4,125
528,514
888,888
(422,782)
466,106
(3,279)
5,284
-
(70,594)
397,517
(17,052)
(278)
1,600
9,866
(67,508)
(54,921)
(3,111)
-
-
16,060
(115,344)
-
-
-
(28,571)
(5,676)
(82,712)
-
(116,959)
165,214
348,208
(3,110)
510,312
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
IGO Limited
6
78 — IGO ANNUAL REPORT 2021
Consolidated Statement of Cash FlowsFor The Year Ended 30 June 2020 About this report
IGO Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on
the Australian Securities Exchange. The nature of the operations and principal activities of the Group are described in
the directors' report.
The financial report of IGO Limited (the Company) and its subsidiaries (collectively, the Group) for the year ended 30
June 2021 was authorised for issue in accordance with a resolution of the Directors on 30 August 2021.
Basis of preparation
This financial report is a general purpose financial report, prepared by a for-profit entity, which:
•
•
•
•
•
Has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting
Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
(IASB);
Has been prepared on a historical cost basis, as modified by the revaluation of financial assets and liabilities
(including derivative instruments) at fair value through profit or loss and certain classes of property, plant and
equipment;
Is presented in Australian dollars with values rounded to the nearest thousand dollars or in certain cases, the
nearest dollar,
in accordance with the Australian Securities and Investments Commission 'ASIC Corporation
Legislative Instrument 2016/191';
Presents comparative information where required for consistency with the current year's presentation; and
Adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to the
operations of the Group and effective for reporting periods beginning on or after 1 July 2020 as disclosed in note 33.
Key estimates and judgements
In the process of applying the Group's accounting policies, management has made a number of judgements and applied
estimates of
judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in the following notes:
future events. The areas involving a higher degree of
Note 2
Note 5
Note 8
Note 9
Note 12
Note 13
Note 14
Note 15
Note 16
Note 28
Revenue
Income tax
Trade and other receivables
Inventories
Provisions
Property, plant and equipment
Leases
Mine properties
Exploration and evaluation expenditure
Share-based payments
Coronavirus (COVID-19) pandemic
The COVID-19 pandemic continues to pose a global socio-political, economic and health risk, and the potential for the
pandemic to have both lasting and unforseen impacts is high. Measures taken by various governments to contain the
virus have affected economic activity. We have taken a number of measures to monitor and mitigate the effects of
COVID-19, such as safety and health measures for our people and securing the supply of materials that are essential to
our production process.
At this stage, the impact on our business and results has not been significant and, based on our experience to date, we
expect this to remain the case. We will continue to follow the various government policies and advice and, in parallel, we
will do our utmost to continue our operations in the best and safest way possible without jeopardising the health of our
people.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities
(subsidiaries) at year end is contained in note 24.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies.
Basis of consolidation (continued)
In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses
and profit or losses resulting from intra-Group transactions have been eliminated. Subsidiaries are consolidated from
is disposed. The acquisition of subsidiaries is
the date on which control
IGO Limited
7
accounted for using the acquisition method of accounting.
is obtained to the date on which control
IGO ANNUAL REPORT 2021 — 79
IGO Limited
8
Notes to The Consolidated Financial Statements30 June 2021 CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL PERFORMANCE
1
2
3
4
5
6
Segment information
Revenue
Other income
Expenses and losses
Income tax
Earnings per share
WORKING CAPITAL AND PROVISIONS
7
8
9
Cash and cash equivalents
Trade and other receivables
Inventories
10
Financial assets at fair value through profit or loss
11
Trade and other payables
12 Provisions
INVESTED CAPITAL
13 Property, plant and equipment
14
Leases
15 Mine properties
16
Exploration and evaluation
CAPITAL STRUCTURE AND FINANCING ACTIVITIES
17 Borrowings
18 Contributed equity
19 Reserves and retained earnings
20 Dividends paid and proposed
RISK
21 Derivatives
22 Financial risk management
GROUP STRUCTURE
23 Discontinued operation
24
Interests in subsidiaries
25
Interests in associates
OTHER INFORMATION
26 Commitments and contingencies
27 Events occurring after the reporting period
28 Share-based payments
29 Related party transactions
30 Parent entity financial information
31 Deed of cross guarantee
32 Remuneration of auditors
33 Summary of significant accounting policies
80 — IGO ANNUAL REPORT 2021
81
81
84
85
86
86
89
91
91
92
93
94
94
94
97
97
99
101
103
104
104
106
107
109
110
110
111
119
119
120
121
123
123
123
124
128
129
130
132
132
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Financial Performance
This section of the notes includes segment information and provides further information on key line items relevant to
financial performance that the Directors consider most relevant, including accounting policies, key judgements and
estimates relevant to understanding these items.
1
1
Segment information
Segment information
(a)
(a)
Identification of reportable segments
Identification of reportable segments
Management has determined the operating segments based on the reports reviewed by the Board that are used to
Management has determined the operating segments based on the reports reviewed by the Board that are used to
make strategic decisions. The Group operates predominantly in only one geographic segment (Australia). During the
make strategic decisions. The Group operates predominantly in only one geographic segment (Australia). During the
year, the following segments were in operation: The Nova Operation, Lithium Operations, the Tropicana Operation and
year, the following segments were in operation: The Nova Operation, the Tropicana Operation and Growth, which
Growth, which comprises Regional Exploration Activities and Project Evaluation.
comprises Regional Exploration Activities and Project Evaluation.
The Nova Operation produces nickel and copper concentrates. Revenue is derived primarily from the sale of these
The Nova Operation produces nickel and copper concentrates. Revenue is derived primarily from the sale of these
concentrates containing nickel, copper and cobalt to multiple customers. The General Manager of the Nova Operation is
concentrates containing nickel, copper and cobalt to multiple customers. The General Manager of the Nova Operation is
responsible for the budgets and expenditure of the Operation. The Nova Operation and exploration properties are
responsible for the budgets and expenditure of the Operation. The Nova Operation and exploration properties are
owned by the Group's wholly owned subsidiary IGO Nova Pty Ltd.
owned by the Group's wholly owned subsidiary IGO Nova Pty Ltd.
the Group's 49% share in the Lithium joint venture (JV) with Tianqi Lithium
The Lithium Operations represent
The Tropicana Operation represented the Group's 30% joint venture interest in the Tropicana Gold Mine. AngloGold
Corporation (Tianqi) over its Australian lithium assets. The JV focus is on the existing upstream and downstream lithium
Ashanti Australia Limited (AngloGold Ashanti) were the manager of the Operation and held the remaining 70% interest.
assets located in Western Australia, whereby the Group has an indirect 24.99% interest in the Greenbushes Lithium
The Tropicana Operation was sold effective 31 May 2021.
Mine (a JV with global lithium company Albemarle Corporation who hold 49%) and a 49% interest in the owned and
The Group’s General Manager - Exploration is responsible for budgets and expenditure relating to the Group’s regional
operated Kwinana Lithium Hydroxide Refinery. The transaction completed on 30 June 2021and therefore there is no
exploration, scoping studies and feasibility studies, and the Head of Corporate Development is responsible for budgets
impact on segment operating profit/(loss) for the current year. The investment is equity accounted by the Group.
and expenditure relating to new business development. The Growth division does not normally derive any income.
The Tropicana Operation represented the Group's 30% joint venture interest in the Tropicana Gold Mine. AngloGold
Should a project generated by the Growth division commence generating income or lead to the construction or
Ashanti Australia Limited (AngloGold Ashanti) were the manager of the Operation and held the remaining 70% interest.
acquisition of a mining operation, that operation would then be disaggregated from the Growth division and become
The Tropicana Operation was sold effective 31 May 2021.
reportable in a separate segment.
The Group’s General Manager - Exploration is responsible for budgets and expenditure relating to the Group’s regional
exploration, scoping studies and feasibility studies, and the Head of Corporate Development is responsible for budgets
and expenditure relating to new business development. The Growth division does not normally derive any income.
Should a project generated by the Growth division commence generating income or lead to the construction or
acquisition of a mining operation, that operation would then be disaggregated from the Growth division and become
reportable in a separate segment.
IGO Limited
10
IGO ANNUAL REPORT 2021 — 81
Notes to The Consolidated Financial Statements30 June 2021 1
Segment information (continued)
(b) Segment results
Year ended 30 June 2021
Nickel revenue
Gold revenue
Copper revenue
Cobalt revenue
Silver revenue
Shipping and insurance service revenue
Other revenue
Total segment revenue
Segment operating profit/(loss) before
income tax
SPACE
Total segment assets
SPACE
Total segment liabilities
SPACE
Acquisition of property, plant and
equipment
SPACE
Depreciation and amortisation
SPACE
Other non-cash expenses
Year ended 30 June 2020
Nickel revenue
Gold revenue
Copper revenue
Cobalt revenue
Silver revenue
Shipping and insurance service revenue
Other revenue
Total segment revenue
Segment net operating profit/(loss)
before income tax
SPACE
Total segment assets
SPACE
Total segment liabilities
SPACE
Acquisition of property, plant and
equipment
SPACE
Impairment of assets
Depreciation and amortisation
SPACE
Other non-cash expenses
82 — IGO ANNUAL REPORT 2021
Nova
Operation
$'000
Lithium
Operations
$'000
Tropicana
Operation
(Discontinued)
$'000
Growth
$'000
Total
$'000
472,856
-
116,490
23,147
1,556
5,810
48,982
668,841
262,945
-
-
-
-
-
-
-
-
-
1,086,380
1,855,939
100,306
8,405
173,004
352
-
-
-
-
-
241,912
-
-
1,345
-
-
243,257
-
-
-
-
-
-
-
-
472,856
241,912
116,490
23,147
2,901
5,810
48,982
912,098
67,264
(63,371)
266,838
-
-
101,045
3,043,364
4,023
104,329
3,747
51,715
253
-
1
-
12,152
224,720
605
Nova
Operation
$'000
Lithium
Operations
$'000
Tropicana
Operation
(Discontinued)
$'000
Growth
$'000
Total
$'000
452,628
-
102,619
18,727
1,240
4,925
13,135
593,274
182,173
1,181,867
92,862
6,913
-
168,086
522
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
288,670
-
-
1,408
-
-
290,078
-
-
-
-
-
-
-
-
452,628
288,670
102,619
18,727
2,648
4,925
13,135
883,352
98,282
(72,139)
208,316
357,643
95,426
1,634,936
57,785
2,940
153,587
7,390
-
14,303
-
1,018
1,018
72,434
347
18
-
240,538
869
Notes to The Consolidated Financial Statements30 June 2021 1 Segment information (continued)
(c) Segment revenue
A reconciliation of reportable segment revenue to total revenue from continuing operations is as follows:
Total revenue for reportable segments
Elimination of discontinued operation
Other revenue from continuing operations
Total revenue from continuing operations
2021
$'000
912,098
(243,257)
2,898
671,739
2020
$'000
883,352
(290,078)
5,578
598,852
Revenues for the Nova Operation were received from BHP Nickel West Pty Ltd and Trafigura Pte. Ltd.
Revenues for the Tropicana Operation were received from The Perth Mint, Australia and the Company's financiers via
forward sales contracts.
(d) Segment net profit before income tax
A reconciliation of reportable segment profit before income tax to profit before discontinued operations and income tax
is as follows:
Segment profit before income tax
Elimination of discontinued operation
Interest revenue on corporate cash balances and other unallocated revenue
Fair value movement of financial investments
Share-based payments expense
Corporate and other costs and unallocated other income
Borrowing and finance costs
Acquisition and other integration costs
Depreciation expense on unallocated assets
Net gain on disposal of subsidiaries and other unallocated assets
Total profit before income tax from continuing operations
(e) Segment assets
A reconciliation of reportable segment assets to total assets is as follows:
Total assets for reportable segments
Unallocated assets:
Deferred tax assets
Listed equity securities
Cash and receivables held by the parent entity
Office and general plant and equipment
Total assets as per the balance sheet
2021
$'000
266,838
(67,264)
2,898
9,958
(4,917)
(18,588)
(25,172)
(4,550)
(2,616)
-
156,587
2020
$'000
208,316
(98,282)
5,578
33,207
(4,489)
(20,710)
(2,765)
-
(3,095)
3,470
121,230
2021
$'000
2020
$'000
3,043,364
1,634,936
30,721
110,944
410,503
13,200
119,734
107,759
418,642
11,959
3,608,732
2,293,030
IGO ANNUAL REPORT 2021 — 83
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
1 Segment information (continued)
(f) Segment liabilities
A reconciliation of reportable segment liabilities to total liabilities is as follows:
Total liabilities for reportable segments
Unallocated liabilities:
Deferred tax liabilities
Creditors and accruals of the parent entity
Provision for employee entitlements of the parent entity
Bank loans
Corporate lease liabilities
Current tax liabilities
Total liabilities as per the balance sheet
2 Revenue
From continuing operations
Sales revenue from contracts with customers
Sale of goods revenue
Shipping and insurance service revenue
Other revenue
Interest revenue
Provisional pricing adjustments
2021
$'000
2020
$'000
104,329
153,587
108,556
13,168
5,796
-
5,054
171,952
408,855
141,787
4,741
4,779
56,937
5,390
-
367,221
2021
$'000
2020
$'000
614,049
5,810
619,859
2,898
48,982
51,880
575,214
4,925
580,139
6,096
12,617
18,713
Total revenue
671,739
598,852
(a) Recognition and measurement
(i) Revenue from sale of goods
Revenue from the sale of goods is recognised when control of the goods has passed to the buyer based upon agreed
delivery terms.
Sale of concentrates
Revenue from the sale of concentrates is recognised when control has passed to the buyer based upon agreed delivery
terms, generally being when the product is loaded onto the ship and bill of lading received, or delivered to the
customer's premises. In cases where control of the product is transferred to the customer before shipping takes place,
revenue is recognised when the customer has formally acknowledged their legal ownership of the product, which
Notes to the consolidated financial statements
includes all inherent risks associated with control of the product. In these cases, the product is clearly identified and
30 June 2021
immediately available to the customer and this is when the performance obligation is met.
(continued)
The price to be received on sales of concentrate is provisionally priced and recognised at
the
consideration receivable that is highly probable of not reversing by reference to the relevant contractual price and the
2 Revenue (continued)
estimated mineral specifications, net of treatment and refining charges where applicable. Subsequently, provisionally
(a) Recognition and measurement (continued)
priced sales are repriced at each reporting period up until when final pricing and settlement is confirmed, with revenue
adjustments relating to the quality and quantity of commodities sold being recognised in sales revenue.
Sale of concentrates (continued)
Provisionally priced sales for which price finalisation is referenced to the relevant metal price index have an embedded
commodity derivative. The embedded derivative is carried at fair value through profit or loss as part of trade receivables.
The period between provisional pricing and final invoices is generally 60 days.
the estimate of
(ii) Revenue from Services - Shipping and Insurance
Sales of nickel and copper concentrates are on terms that include the Group being responsible for shipping and
IGO Limited
6
insurance costs. Shipping and insurance is a separate performance obligation from the sale of the commodity with the
revenue allocated to shipping and insurance being recognised over the period of transfer to the customer.
(iii) Provisional pricing adjustments
The Group’s sales contracts may provide for provisional pricing of sales at the time the product is delivered to the vessel
with final pricing determined using the index on or after the vessel’s arrival to the port of discharge. This provisional
pricing relates to the quality and quantity of the commodity sold, which is included in sales revenue, and an embedded
84 — IGO ANNUAL REPORT 2021
derivative relating to the pricing of the commodity sold. Provisional pricing adjustments relating to the embedded
derivative are separately identified as movements in the financial instrument rather than being included within Sales
revenue. The final pricing adjustment mechanism, being an embedded derivative, is separated from the host contract
and recognised at fair value through profit or loss. These amounts are disclosed separately as Provisional pricing
adjustments in Other revenue, rather than being included within Sales revenue for the Group.
(iv) Interest revenue
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective
interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the net carrying amount of the financial asset.
(b) Key estimates and judgements
Judgement is exercised in estimating variable consideration. This is determined by past experience with respect to the
goods returned to the Group where the customer maintains a right of return pursuant to the customer contract or where
goods or services have a variable component. Revenue will only be recognised to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognised under the contract will not occur when the
uncertainty associated with the variable consideration is subsequently resolved.
3 Other income
From continuing operations
Net foreign exchange gains
Net gain on disposal of property, plant and equipment
Net gain on sale of investments
2021
$'000
3,599
67
-
3,666
2020
$'000
-
1,602
1,965
3,567
IGO Limited
7
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
2 Revenue (continued)
(a) Recognition and measurement (continued)
Notes to the consolidated financial statements
30 June 2021
(continued)
Sale of concentrates (continued)
Provisionally priced sales for which price finalisation is referenced to the relevant metal price index have an embedded
2 Revenue (continued)
commodity derivative. The embedded derivative is carried at fair value through profit or loss as part of trade receivables.
(a) Recognition and measurement (continued)
The period between provisional pricing and final invoices is generally between 30 to 90 days.
Sale of concentrates (continued)
(ii) Revenue from Services - Shipping and Insurance
Provisionally priced sales for which price finalisation is referenced to the relevant metal price index have an embedded
Sales of nickel and copper concentrates are on terms that include the Group being responsible for shipping and
commodity derivative. The embedded derivative is carried at fair value through profit or loss as part of trade receivables.
insurance costs. Shipping and insurance is a separate performance obligation from the sale of the commodity with the
The period between provisional pricing and final invoices is generally between 30 to 90 days.
revenue allocated to shipping and insurance being recognised over the period of transfer to the customer.
(ii) Revenue from Services - Shipping and Insurance
(iii) Provisional pricing adjustments
Sales of nickel and copper concentrates are on terms that include the Group being responsible for shipping and
The Group’s sales contracts may provide for provisional pricing of sales at the time the product is delivered to the vessel
insurance costs. Shipping and insurance is a separate performance obligation from the sale of the commodity with the
with final pricing determined using the index on or after the vessel’s arrival to the port of discharge. This provisional
revenue allocated to shipping and insurance being recognised over the period of transfer to the customer.
pricing relates to the quality and quantity of the commodity sold, which is included in sales revenue, and an embedded
derivative relating to the pricing of the commodity sold. Provisional pricing adjustments relating to the embedded
(iii) Provisional pricing adjustments
derivative are separately identified as movements in the financial instrument rather than being included within Sales
The Group’s sales contracts may provide for provisional pricing of sales at the time the product is delivered to the vessel
revenue. The final pricing adjustment mechanism, being an embedded derivative, is separated from the host contract
with final pricing determined using the index on or after the vessel’s arrival to the port of discharge. This provisional
and recognised at fair value through profit or loss. These amounts are disclosed separately as Provisional pricing
pricing relates to the quality and quantity of the commodity sold, which is included in sales revenue, and an embedded
adjustments in Other revenue, rather than being included within Sales revenue for the Group.
derivative relating to the pricing of the commodity sold. Provisional pricing adjustments relating to the embedded
(iv) Interest revenue
derivative are separately identified as movements in the financial instrument rather than being included within Sales
revenue. The final pricing adjustment mechanism, being an embedded derivative, is separated from the host contract
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
and recognised at fair value through profit or loss. These amounts are disclosed separately as Provisional pricing
the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective
adjustments in Other revenue, rather than being included within Sales revenue for the Group.
interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the net carrying amount of the financial asset.
(iv) Interest revenue
(b) Key estimates and judgements
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective
Judgement is exercised in estimating variable consideration. This is determined by past experience with respect to the
interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
goods returned to the Group where the customer maintains a right of return pursuant to the customer contract or where
financial asset to the net carrying amount of the financial asset.
goods or services have a variable component. Revenue will only be recognised to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognised under the contract will not occur when the
(b) Key estimates and judgements
uncertainty associated with the variable consideration is subsequently resolved.
Judgement is exercised in estimating variable consideration. This is determined by past experience with respect to the
goods returned to the Group where the customer maintains a right of return pursuant to the customer contract or where
3 Other income
goods or services have a variable component. Revenue will only be recognised to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognised under the contract will not occur when the
2020
uncertainty associated with the variable consideration is subsequently resolved.
$'000
2021
$'000
3 Other income
From continuing operations
Net foreign exchange gains
Net gain on disposal of property, plant and equipment
Net gain on sale of investments
From continuing operations
Net foreign exchange gains
Net gain on disposal of property, plant and equipment
Net gain on sale of investments
IGO Limited
IGO Limited
3,599
2021
$'000
67
-
3,666
3,599
67
-
3,666
-
2020
$'000
1,602
1,965
3,567
-
1,602
1,965
3,567
7
7
IGO ANNUAL REPORT 2021 — 85
Notes to The Consolidated Financial Statements30 June 2021 4
Expenses and losses
Notes to the consolidated financial statements
30 June 2021
(continued)
2021
$'000
2020
$'000
Profit before income tax from continuing operations includes the following specific expenses:
Cost of sale of goods
Employee benefits expenses
Share-based payments expense
Exploration and evaluation expense
Impairment of exploration and evaluation expenditure
Net foreign exchange losses
Amortisation expense
Depreciation expense
Borrowing and finance costs
Borrowing and finance costs - other entities
Lease interest expense
Rehabilitation and restoration borrowing costs
Amortisation of borrowing costs
Finance costs expensed
5
Income tax
(a)
Income tax expense
The major components of income tax expense are:
Current tax on profits for the year
Adjustments for current tax of prior periods
Total current tax expense
Deferred income tax expense
Decrease in deferred tax assets
(Decrease)/increase in deferred tax liabilities
Total deferred tax expense
Income tax expense
Income tax expense is attributable to:
Profit from continuing operations
Profit from discontinued operation
229,437
51,474
4,917
61,495
-
-
165,168
10,453
24,837
1,051
352
208
26,448
2021
$'000
172,428
(476)
171,952
94,013
(33,952)
60,061
232,013
39,821
192,192
232,013
235,294
46,786
4,489
69,605
1,018
2,865
162,137
9,062
1,761
1,033
522
919
4,235
2020
$'000
-
-
-
60,503
3,916
64,419
64,419
34,923
29,496
64,419
IGO Limited
16
86 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
5
Income tax (continued)
(b) Amounts recognised directly in equity
Deferred income tax (benefit)/expense related to items charged or credited to other
comprehensive income or directly to equity:
Recognition of hedge contracts
Business-related capital allowances
Income tax benefit reported in equity
(c) Numerical reconciliation of income tax expense to prima facie tax payable
Profit from continuing operations before income tax expense
Profit from discontinued operation before income tax expense
Tax expense at the Australian tax rate of 30% (2020: 30%)
Tax effect of amounts which are not deductible (taxable)
in calculating taxable income:
Share-based payments
Other non-deductible items
Capital losses not brought to account
Previously unrecognised capital losses brought to account
Difference in overseas tax rates
Overseas tax losses not brought to account
Adjustments for current tax of prior periods
Research and development tax credit of prior periods
Recoupment of tax losses not recognised
Adjustment for deferred tax asset not previously brought to account
Adjustment for write-off of deferred tax balances on disposal of joint venture
Income tax expense
(d) Reconciliation of carry forward tax losses and income tax paid
Tax effected balances at 30%
Carry forward tax losses at the beginning of the year
Tax losses recouped during the current year
Recoupment of tax losses not recognised
Carry forward tax losses at the end of the year
2021
$'000
721
(5,000)
(4,279)
2021
$'000
156,587
624,087
780,674
234,202
2020
$'000
(41)
-
(41)
2020
$'000
121,230
98,282
219,512
65,854
(250)
43
789
494
233,995
67,137
139
-
5
13
(244)
(232)
(6,620)
-
4,957
232,013
2021
$'000
91,730
(98,084)
6,620
266
466
(145)
4
12
-
(540)
-
(2,515)
-
64,419
2020
$'000
154,388
(62,658)
-
91,730
IGO Limited
17
IGO ANNUAL REPORT 2021 — 87
Notes to The Consolidated Financial Statements30 June 2021 -
-
-
-
-
-
-
-
-
-
-
-
(41)
-
-
-
-
(41)
(41)
5
Income tax (continued)
(e) Deferred tax assets and liabilities
Deferred tax assets
Property, plant and equipment
Business-related capital allowances
Provision for employee entitlements
Provision for rehabilitation
Borrowing costs
Leased assets
Carry forward tax losses
Other
Gross deferred tax assets
Notes to the consolidated financial statements
30 June 2021
(continued)
Balance Sheet
Profit or loss
Equity
2021
$'000
2020
$'000
2021
$'000
2020
$'000
2021
$'000
2020
$'000
225
4,463
3,429
13,375
4,239
101
266
4,623
30,721
-
1,441
2,730
19,980
-
237
91,730
3,616
(225)
1,978
(699)
6,605
(4,239)
136
91,464
(1,007)
-
390
(820)
(1,248)
-
(237)
62,658
(240)
119,734
94,013
60,503
-
(5,000)
-
-
-
-
-
-
(5,000)
Deferred tax liabilities
Capitalised exploration expenditure
Mine properties
Property, plant and equipment
Deferred gains and losses on hedging contracts
Trade receivables
Consumable inventories
Financial assets at fair value through profit or loss
Other
(6,327)
(82,376)
-
(825)
(5,977)
(1,841)
(10,696)
(514)
(4,991)
(121,980)
(783)
(104)
(4,266)
(2,011)
(7,320)
(332)
1,336
(39,604)
(783)
-
1,711
(170)
3,376
182
2,828
(6,980)
(890)
-
1,414
196
7,320
28
Gross deferred tax liabilities
(108,556)
(141,787)
(33,952)
3,916
-
-
-
721
-
-
-
-
721
Net impact
(f) Tax losses
(77,835)
(22,053)
60,061
64,419
(4,279)
In addition to the above recognised tax losses, the Group also has the following revenue and capital tax losses for
which no deferred tax asset has been recognised:
Unrecognised revenue tax losses
Potential tax benefit @ 30% (2020: 30%)
Unrecognised capital tax losses
Potential tax benefit @ 30% (2020: 30%)
(g) Tax transparency code
2021
$'000
24,707
7,412
90,419
27,126
2020
$'000
46,775
14,033
93,135
27,941
The Group has adopted the Board of Taxation's voluntary Tax Transparency Code (TTC). The TTC requires additional
tax disclosures in two parts (Part A and Part B), which includes addressing the Company's approach to tax strategy and
governance. The Group has addressed these Part A and Part B disclosures in this note and in its 2020 Tax
Transparency Report. In relation to the year ended 30 June 2021, the Part A and Part B disclosures will be addressed in
the Group's 2021 Annual Sustainability Report.
IGO Limited
18
88 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
5
Income tax (continued)
(h) Recognition and measurement
Current taxes
The income tax expense or benefit for the period is the tax payable on the current period's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of
the reporting period in the countries where the Company's subsidiaries and associates operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Deferred taxes
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in foreign operations where the Company is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Offsetting deferred tax balances
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
(i) Significant estimates
In addition, deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future forecast taxable profits are available to utilise those temporary differences and losses, and the tax
losses continue to be available having regard to the relevant tax legislation associated with their recoupment.
The Australian consolidated tax group has recognised a deferred tax asset relating to carry forward tax losses of
$266,000 at 30 June 2021 (2020: $91,730,000). The utilisation of this deferred tax asset amount depends upon future
taxable amounts in excess of profits arising from the reversal of temporary differences. The Group believes this amount
to be recoverable based on taxable income projections.
6
Earnings per share
(a) Basic earnings per share
From continuing operations attributable to the ordinary equity holders of the company
From discontinued operation
Total basic earnings per share attributable to the ordinary equity holders of the
Company
IGO Limited
2021
Cents
17.21
63.65
80.86
2020
Cents
14.61
11.64
26.25
19
IGO ANNUAL REPORT 2021 — 89
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
6 Earnings per share (continued)
(b) Diluted earnings per share
From continuing operations attributable to the ordinary equity holders of the company
From discontinued operation
Total diluted earnings per share attributable to the ordinary equity holders of the
Company
(c) Earnings used in calculating earnings per share
Basic and diluted earnings per share
Profit attributable to the ordinary equity holders of the Company used in calculating
basic and diluted earnings per share:
From continuing operations
From discontinued operation
(d) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
Adjustments for calculation of diluted earnings per share:
Share rights
Weighted average number of ordinary and potential ordinary shares used as the
denominator in calculating diluted earnings per share
(e)
Information concerning the classification of securities
2021
Cents
17.13
63.38
80.51
2020
Cents
14.54
11.59
26.13
2021
$'000
2020
$'000
116,766
431,895
548,661
86,307
68,786
155,093
2021
Number
2020
Number
678,552,539
590,747,969
2,946,123
2,894,952
681,498,662
593,642,921
Share rights
Performance rights granted to Executives and employees under the Company's Employee Incentive Plan and any
outstanding service rights are included in the calculation of diluted earnings per share as they could potentially dilute
basic earnings per share in the future. The share rights are not included in the determination of basic earnings per
share. Further information about the share rights is provided in note 28.
(f) Calculation of earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
•
•
the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares,
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year and excluding treasury shares (note 18(b)).
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
•
•
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares;
and
the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
IGO Limited
12
90 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Working Capital and Provisions
This section of the notes provides further information about the Group's working capital and provisions, including
accounting policies and key judgements and estimates relevant to understanding these items.
7 Cash and cash equivalents
Cash at bank and in hand
Deposits at call
2021
$'000
528,514
-
528,514
2020
$'000
490,312
20,000
510,312
All cash balances are available for use by the Group. In the prior year, cash balances of $7,396,000 were not generally
available for use as the balances were held by the Tropicana Joint Venture and could only be used in relation to joint
venture expenditure.
The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in
note 22.
(a) Reconciliation of profit after income tax to net cash inflow from operating activities
Profit for the period
Adjustments for:
Depreciation and amortisation
Impairment of exploration and evaluation expenditure
Net gain on sale of non-current assets
Fair value of movement of financial investments
Non-cash employee benefits expense - share-based payments
Gain on disposal of joint venture
Net exchange differences
Amortisation of borrowing expenses
Amortisation of lease incentive
Foreign exchange (gains)/losses on cash balances
Change in fair value measurement of receivables
Change in operating assets and liabilities:
Increase in trade receivables
Decrease/(increase) in inventories
Decrease in deferred tax assets
Increase in other operating receivables and prepayments
Increase in trade and other payables
Increase in income taxes payable
(Decrease)/increase in deferred tax liabilities
Increase in other provisions
Net cash inflow from operating activities
(b) Non-cash investing and financing activities
2021
$'000
2020
$'000
548,661
155,093
227,336
-
(26)
(9,958)
4,917
(556,823)
(530)
208
(65)
(4,125)
(541)
(29,214)
9,054
94,013
(2,177)
24,388
171,952
(33,952)
2,934
446,052
243,633
1,018
(3,494)
(33,207)
4,489
-
-
919
(78)
3,110
(1,065)
(21,215)
(20,713)
60,503
(116)
1,120
-
3,916
3,604
397,517
During the current year, the Group had acquisitions of right-of-use assets totalling $1,028,000 (2020: $12,577,000).
IGO Limited
21
IGO ANNUAL REPORT 2021 — 91
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
7 Cash and cash equivalents (continued)
(c) Recognition and measurement
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an
original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts. Bank overdrafts are included within borrowings in current liabilities on the
balance sheet.
8
Trade and other receivables
Trade receivables at amortised cost:
Trade receivables (subject to provisional pricing) - fair value
Other receivables
Prepayments
2021
$'000
78,513
859
3,003
82,375
2020
$'000
46,595
19,315
3,159
69,069
(a) Recognition and measurement
(i) Trade receivables
Trade receivables are generally received in the current month, or up to three months after the shipment date. The
receivables are initially recognised at fair value, less any allowance for expected credit losses.
The Group has applied the simplified approach to measuring expected credit losses, which applies a lifetime expected
loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Trade receivables are subsequently revalued by the mark-to-market of open sales. The Group determines
mark-to-market prices using forward prices at each period end for nickel, copper and cobalt sales.
(ii) Other receivables
Other receivables in the prior year included amounts outstanding on the sale of the Jaguar Operation in May 2018. The
discounted value of $15,519,000 (using a discount rate of 3.5%) of the outstanding cash proceeds was shown in current
receivables. There are no amounts relating to the sale of the Jaguar Operation shown in receivables at 30 June 2021.
Impairment and risk exposure
(iii)
Note 22(b)(i) sets out information about the impairment of financial assets and the Group's exposure to credit risk. Given
the Group's credit risk management processes, the resulting level of expected credit losses are insignificant.
(b) Key estimates and judgements
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected
credit loss rate for each group. These assumptions include recent sales experience, historical collection rates, the
impact of the COVID-19 pandemic and forward-looking information that is available. The allowance for expected credit
losses is calculated based on the information available at the time of preparation. The actual credit losses in future
years may be higher or lower.
IGO Limited
22
92 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 9
Inventories
Current
Mine spares and stores
ROM inventory
Concentrate inventory
Gold in circuit
Gold dore
Non-current
ROM inventory
Notes to the consolidated financial statements
30 June 2021
(continued)
2021
$'000
11,329
8,553
14,131
-
-
34,013
2020
$'000
20,653
44,656
5,452
1,980
2,929
75,670
-
-
67,911
67,911
(a) Classification of inventory
Inventory classified as non-current related to low grade (0.6g/t to 1.2g/t) gold ore stockpiles which were not intended to
be utilised within the next 12 months but were anticipated to be utilised beyond that period.
(b) Recognition and measurement
(i) Ore, concentrate and gold inventories
Inventories, comprising nickel, copper and cobalt in concentrate, gold dore, gold in circuit and ore stockpiles, are valued
at the lower of weighted average cost and net realisable value. Costs include fixed direct costs, variable direct costs and
an appropriate portion of fixed overhead costs. A portion of the related depreciation, depletion and amortisation charge
is included in the cost of inventory.
(ii) Mine spares and stores
Inventories of consumable supplies and spare parts are valued at the lower of cost and net realisable value. Cost is
assigned on a weighted average basis. Net realisable value is the estimated selling price in the ordinary course of
business less estimated costs of completion, and the estimated costs necessary to make the sale.
The recoverable amount of surplus items is assessed regularly on an ongoing basis and written down to its net
realisable value when an impairment indicator is present.
(c) Key estimates and judgements
The Group reviews the carrying value of inventories regularly to ensure that their cost does not exceed net realisable
value. In determining net realisable value various factors are taken into account, including estimated future sales price
of the product based on prevailing spot metals prices at the reporting date, less estimated costs to complete production
and bring the product to sale.
Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the amount of
contained metal based on assay data, and the estimated recovery percentage based on the expected processing
method.
IGO Limited
23
IGO ANNUAL REPORT 2021 — 93
Notes to The Consolidated Financial Statements30 June 2021 10 Financial assets at fair value through profit or loss
Shares in listed companies - at fair value through profit or loss
Notes to the consolidated financial statements
30 June 2021
(continued)
2021
$'000
110,944
110,944
2020
$'000
107,759
107,759
(a) Recognition and measurement
The Group classifies financial assets at fair value through profit or loss if they are acquired principally for the purpose of
selling in the short term, ie are held for trading. They are presented as current assets if they are expected to be sold
within 12 months after the end of the reporting period; otherwise they are presented as non-current assets. Refer to
note 22(d) for fair value measurement.
(b) Amounts recognised in profit or loss
Changes in fair values of financial assets at fair value through profit or loss are recorded in fair value movement of
financial investments in the profit or loss. During the current year, the changes in fair values of financial assets resulted
in a gain to the profit or loss of $9,958,000 (2020: $33,207,000).
11 Trade and other payables
Current liabilities
Trade and other payables
(a) Recognition and measurement
2021
$'000
47,286
47,286
2020
$'000
53,013
53,013
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which
are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables
are presented as current liabilities unless payment is not due within 12 months from the reporting date. They are
recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
12 Provisions
Current
Provision for employee entitlements
Non-current
Provision for employee entitlements
Provision for rehabilitation costs
IGO Limited
94 — IGO ANNUAL REPORT 2021
2021
$'000
8,721
8,721
2021
$'000
2,708
44,584
47,292
2020
$'000
7,058
7,058
2020
$'000
2,042
66,599
68,641
24
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
12 Provisions (continued)
(a) Movements in provisions
Movements in the provision for rehabilitation costs during the financial year are set out below:
Carrying amount at beginning of financial year
Additional provision
Rehabilitation and restoration borrowing costs expense
Payments during the period
Disposal of joint venture
Carrying amount at end of financial year
(b) Recognition and measurement
2021
$'000
66,599
7,646
605
(59)
(30,207)
44,584
2020
$'000
62,441
3,567
869
(278)
-
66,599
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability.
(i) Rehabilitation and restoration
Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with
current environmental and regulatory requirements.
Full provision is made based on the net present value of
the estimated cost of rehabilitating and restoring the
environmental disturbance that has occurred up to the reporting date. To the extent that future economic benefits are
expected to arise, these costs are capitalised and amortised over the remaining lives of the mines.
Annual increases in the provision relating to the change in the net present value of the provision are recognised as
finance costs (and disclosed within Borrowing and finance costs in the profit or loss). The estimated costs of
rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation,
technology or other
circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets or from plant clean-up
at closure.
(ii) Employee benefits
The provision for employee benefits represents annual
employees.
leave and long service leave entitlements accrued by
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service, are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The amounts are presented as current employee entitlements in the balance sheet.
Other long-term employee benefit obligations
The liabilities for long service leave and annual leave that are not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service are measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of
service. Expected future payments are discounted using market yields at the end of the reporting period of government
bonds with terms and currencies that match, as closely as possible,
the estimated future cash outflows.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit
or loss.
IGO Limited
25
IGO ANNUAL REPORT 2021 — 95
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
12 Provisions (continued)
(b) Recognition and measurement (continued)
(ii) Employee benefits (continued)
Other long-term employee benefit obligations (continued)
The obligations are presented as current liabilities in the consolidated balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual
settlement is expected to occur.
(c) Key estimates and judgements
Rehabilitation and restoration provisions
The provision for rehabilitation and restoration costs is based on the net present value of the estimated cost of
rehabilitating and restoring the environmental disturbance that has occurred up to the reporting date. Significant
estimates and assumptions are made in determining the provision for mine rehabilitation as there are numerous factors
that will affect the ultimate liability payable. These factors include estimates of the extent and costs of rehabilitation
activities, technological changes, regulatory changes, cost increases as compared to the inflation rates and changes in
in future actual expenditure differing from the amounts currently
discount rates. These uncertainties may result
provided. The provision at reporting date represents management’s best estimate of the present value of the future
rehabilitation costs required.
Long service leave
Long service leave is measured at the present value of benefits accumulated up to the end of the reporting period. The
liability is discounted using an appropriate discount
to determine key
assumptions used in the calculation, including future increases in salaries and wages, future on-costs rates and future
settlement dates of employees' departures.
requires judgement
rate. Management
IGO Limited
26
96 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Invested Capital
This section of the notes provides further information about property, plant and equipment, leases, mine properties and
exploration and evaluation expenditure and the carrying amount of these non-financial assets, including accounting
policies, key judgements and estimates relevant to understanding these items.
13 Property, plant and equipment
Land and
buildings
$'000
Mining plant
and
equipment
$'000
Furniture,
fittings and
other
equipment
$'000
Motor
vehicles
$'000
Assets under
construction
$'000
Year ended 30 June 2021
Cost
Accumulated depreciation
Net book amount
Movements
Opening net book amount
Additions
Disposals
Depreciation charge
Transfers from assets under
construction
Transfers from mine
properties under
construction
Disposal of joint venture
Closing net book amount
Year ended 30 June 2020
Cost
Accumulated depreciation
Net book amount
Movements
Opening net book amount
Additions
Disposals
Depreciation charge
Transfers from assets under
construction
Closing net book amount
6,692
(4,054)
2,638
9,901
1,091
-
(3,150)
22,353
(7,757)
14,596
18,881
(10,427)
8,454
2,908
(2,428)
480
19,235
4,738
(33)
(7,420)
6,505
985
(2)
(2,312)
572
7,341
3,764
4,677
(10,453)
2,638
8,781
(18,046)
14,596
-
(486)
8,454
753
457
(4)
(405)
251
-
(572)
480
26,916
(17,015)
9,901
36,209
(16,974)
19,235
16,960
(10,455)
6,505
4,896
(4,143)
753
10,706
1,409
-
(2,681)
467
9,901
15,681
7,033
(73)
(5,143)
1,737
19,235
5,104
2,108
(1)
(1,812)
1,106
6,505
805
334
-
(386)
-
753
Total
$'000
58,800
(24,666)
34,134
48,580
14,979
(39)
(13,287)
7,966
-
7,966
12,186
7,708
-
-
(11,928)
-
-
-
7,966
13,458
(29,557)
34,134
12,186
-
12,186
9,326
6,170
-
-
(3,310)
12,186
97,167
(48,587)
48,580
41,622
17,054
(74)
(10,022)
-
48,580
(a) Non-current assets pledged as security
Refer to note 17 for information on non-current assets pledged as security by the Group.
IGO Limited
27
IGO ANNUAL REPORT 2021 — 97
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
13 Property, plant and equipment (continued)
(b) Recognition and measurement
Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. It also includes the direct cost of bringing the asset
to the location and condition necessary for first use and the estimated future cost of rehabilitation, where applicable. The
assets are subsequently measured at cost less accumulated depreciation and any accumulated impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item
can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised
when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they
are incurred.
Depreciation
Land is not depreciated. Depreciation on other assets is calculated using either units-of-production or straight-line
depreciation as follows:
Depreciation periods are primarily:
Buildings
Mining plant and equipment
Motor vehicles
Furniture and fittings
5 - 10 years
2 - 10 years
3 - 8 years
3 - 10 years
Depreciation is expensed as incurred, unless it relates to an asset or operation in the construction phase, in which case
it is capitalised.
Derecognition
An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is
expected to bring no future economic benefits. Any gain or loss from derecognising the asset (being the difference
between the proceeds of disposal and the carrying amount of the asset) is included in the profit or loss in the period the
item is derecognised.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
(c) Key estimates and judgements
The estimations of useful lives, residual values and depreciation methods require significant management judgements
and are regularly reviewed. If they need to be modified, the depreciation and amortisation expense is accounted for
prospectively from the date of the assessment until the end of the revised useful life (for both the current and future
years).
IGO Limited
28
98 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
14 Leases
(a) Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Right-of-use assets
Buildings
Mining plant and equipment
Lease liabilities
Current
Non-current
Additions to the right-of use assets during the year were $1,028,000 (2020: $12,577,000).
(b) Amounts recognised in the statement of profit or loss
The statement of profit or loss includes the following amounts relating to leases:
Depreciation charge of right-of-use assets
Buildings
Mining plant and equipment - continuing operations
Mining plant and equipment - discontinued operation
Interest expense (included in borrowing and finance costs) - continuing operations
Interest expense (included in borrowing and finance costs) - discontinued operation
Total interest expense
2021
$'000
5,505
19,206
24,711
4,421
20,627
25,048
2021
$'000
863
3,841
1,389
6,093
1,051
400
1,451
2020
$'000
5,339
33,657
38,996
6,235
33,550
39,785
2020
$'000
1,534
3,415
1,516
6,465
1,033
490
1,523
Space
The total cash outflow for leases for the financial year to 30 June 2021 was $7,582,000 (2020: $7,199,000).
(c) Recognition and measurement
The Group leases office space and equipment. Rental contracts are typically made for fixed periods of 5 to 15 years, but
may have extension options as described below.
Contracts may contain both lease and non-lease components. The Group allocated the consideration in the contract to
the lease and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the
lessor. Leased assets may not be used as security for borrowing purposes.
Lease liabilities
Liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the following payments:
•
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
IGO Limited
29
IGO ANNUAL REPORT 2021 — 99
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
14 Leases (continued)
(c) Recognition and measurement (continued)
•
•
•
•
variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the
commencement date;
amounts expected to be payable by the Group under residual value guarantees;
the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the
liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the Group, an arm's length asset finance facility borrowing rate is used, being
the rate that the individual lessee would have to pay to finance the asset of similar value to the right-of-use asset in a
similar economic environment with similar terms, security and conditions. The weighted average borrowing rate used for
the year was 3.9% (2020: 4.1%).
Subsequent to initial recognition, lease liabilities are carried at amortised cost. Lease payments are allocated between
principal and finance costs. The finance cost is charged to profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets
Right-of-use assets are measured at cost and comprise the following:
•
•
•
•
the amount of the initial amount of lease liability;
any lease payments made at or before the commencement date, less any lease incentives received;
any initial direct costs; and
restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful
life and the lease term on a
straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated
over the underlying asset's useful life.
Short-term leases and leases of low value assets
Payments associated with short-term leases of equipment and all
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
leases of low-value assets are recognised on a
Extension and termination options
Extension and termination options are included in a number of property and equipment leases across the Group. These
are used to maximise operational flexibility in terms of managing the assets used in the Group's operations. The
majority of extension and termination options held are exercisable only by the Group and not by the respective lessor.
(d) Key estimates and judgements
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or
purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that
create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered
at
to the Group's
operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence
of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses
whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a
significant event or significant change in circumstances.
the lease commencement date. Factors considered may include the importance of
the asset
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to
discount future lease payments to measure the present value of the lease liability at the lease commencement date.
Such a rate is based on what the Group estimates it would have to pay to finance an asset of a similar value to the
right-of-use asset, with similar terms, security and economic environment.
IGO Limited
30
100 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 15 Mine properties
Year ended 30 June 2021
Cost
Accumulated amortisation
Net book amount
Movements
Carrying amount at beginning of the period
Additions
Transfers from exploration and evaluation
expenditure
Transfers to property, plant and equipment
Transfers from mine properties under construction
Amortisation expense
Disposal of joint venture
Closing net book amount
Year ended 30 June 2020
Cost
Accumulated amortisation
Net book amount
Movements
Carrying amount at beginning of the period
Additions
Transfers from exploration and evaluation
expenditure
Amortisation expense
Notes to the consolidated financial statements
30 June 2021
(continued)
Mine
properties in
development
$'000
Mine
properties in
production
$'000
Deferred
stripping
$'000
Total mine
properties
$'000
-
-
-
1,448,282
(644,179)
804,103
-
-
-
1,448,282
(644,179)
804,103
19,022
3,463
-
(13,458)
(9,027)
-
-
-
19,022
-
19,022
4,271
12,491
2,260
-
1,095,914
20,106
2,949
-
9,027
(189,140)
(134,753)
804,103
44,685
56,079
-
-
-
(18,816)
(81,948)
-
1,159,621
79,648
2,949
(13,458)
-
(207,956)
(216,701)
804,103
1,742,936
(647,022)
1,095,914
235,855
(191,170)
1,997,813
(838,192)
44,685
1,159,621
1,255,493
22,815
-
(182,394)
51,612
37,825
-
(44,752)
1,311,376
73,131
2,260
(227,146)
Closing net book amount
19,022
1,095,914
44,685
1,159,621
(a) Recognition and measurement
(i) Mine properties in development
Mine properties in development represent the expenditure incurred when technical feasibility and commercial viability of
extracting a mineral resource have been demonstrated, and includes the costs incurred up until such time as the asset
is capable of being operated in a manner intended by management. These costs are not amortised but the carrying
value is assessed for impairment whenever facts and circumstances suggest that the carrying amount of the asset may
exceed its recoverable amount.
(ii) Mine properties in production
Mine properties in production represent the accumulation of all acquisition, exploration, evaluation and development
expenditure incurred by or on behalf of the Group in relation to areas of interest in which mining of the mineral resource
has commenced. When further development expenditure is incurred in respect of a mine property after
the
commencement of production, such expenditure is carried forward as part of the cost of that mine property only when
substantial future economic benefits are established, otherwise such expenditure is classified as part of the cost of
production.
IGO Limited
31
IGO ANNUAL REPORT 2021 — 101
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
15 Mine properties (continued)
(a) Recognition and measurement (continued)
(ii) Mine properties in production (continued)
Amortisation is provided on a units-of-production basis, with separate calculations being made for each mineral
resource. The units-of-production method results in an amortisation charge proportional
the
economically recoverable mineral resources (comprising proven and probable reserves).
to the depletion of
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest. An impairment exists when the carrying value of mine properties exceeds its
estimated recoverable amount. The asset is then written down to its recoverable amount and the impairment losses are
recognised in profit or loss.
(iii) Deferred stripping
Stripping activity costs incurred in the development phase of a mine are capitalised as part of the cost of constructing
the mine and subsequently amortised over the life of the mine on a units-of-production basis.
Stripping activity incurred during the production phase of a mine is assessed as to whether the benefit accruing from
that activity is to provide access to ore that can be used to produce ore inventory, or whether it in addition provides
improved access to ore that will be mined in future periods.
To the extent that the benefit from the stripping activity is realised in the form of inventory produced, the Group accounts
for those stripping activity costs in accordance with AASB102 Inventories. A stripping activity asset is brought to account
if it is probable that future economic benefits (improved access to the ore body) will flow to the Group, the component of
the ore body for which access has been improved can be identified and costs relating to the stripping activity can be
measured reliably.
The amount of stripping activity costs that are capitalised is determined based on a comparison of the stripping ratio in
the relevant period with the life of mine stripping ratio. To the extent that there is a period of sustained stripping that
exceeds the average life of mine stripping ratio, mine waste stripping costs are capitalised to the stripping activity asset.
Such capitalised costs are amortised over the life of that mine on a units-of-production basis. The life of mine ratio is
based on ore reserves of the mine. Changes to the life of mine are accounted for prospectively.
(b) Key estimates and judgements
(i) Proved and probable ore reserves
The Group uses the concept of life of mine to determine the amortisation of mine properties. In determining life of mine,
the Group prepares ore reserve estimates in accordance with the JORC Code 2012, guidelines prepared by the Joint
Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists
and Minerals Council of Australia. The estimate of these proved and probable ore reserves, by their very nature, require
judgements, estimates and assumptions.
Where the proved and probable reserve estimates need to be modified, the amortisation expense is accounted for
prospectively from the date of the assessment until the end of the revised mine life (for both the current and future
years).
(ii) Deferred stripping
The Group defers advanced stripping costs incurred during the production stage of its open cut mining operations. This
calculation requires the use of judgements and estimates, such as estimates of tonnes of waste to be removed over the
life of the mining area and economically recoverable reserves extracted as a result. Changes in a mine's life and design
may result in changes to the expected stripping ratio (waste to mineral reserves ratio). Any resulting changes are
accounted for prospectively.
IGO Limited
32
102 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 16 Exploration and evaluation
Opening net book amount
Additions
Transfer to mine properties in production
Disposal of joint venture
Transfer to mine properties under construction
Impairment loss
Closing net book amount
(a)
Impairment
Notes to the consolidated financial statements
30 June 2021
(continued)
2021
$'000
95,030
8,606
(2,949)
(160)
-
-
100,527
2020
$'000
95,197
3,111
-
-
(2,260)
(1,018)
95,030
The Group did not recognise any impairment charges during the current reporting period (2020: $1,018,000 relating to
the relinquishment of tenements).
(b) Recognition and measurement
Exploration for and evaluation of mineral resources is the search for mineral resources after the entity has obtained
legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial viability
of extracting the mineral resource.
Exploration and evaluation expenditure is expensed to the profit or
circumstances in which case the expenditure may be capitalised:
loss as incurred except
in the following
•
•
The existence of a commercially viable mineral deposit has been established and it is anticipated that future
economic benefits are more likely than not to be generated as a result of the expenditure; and
The exploration and evaluation activity is within an area of interest which was acquired as an asset acquisition or in
a business combination and measured at fair value on acquisition.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest. An impairment exists when the carrying value of expenditure exceeds its
estimated recoverable amount. The area of interest is then written down to its recoverable amount and the impairment
losses are recognised in profit or loss.
Upon approval for the commercial development of an area of interest, exploration and evaluation assets are tested for
impairment and transferred to 'Mine properties in development'. No amortisation is charged during the exploration and
evaluation phase.
(c) Key estimates and judgements
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful
development and commercial exploitation, or alternatively, sale of the respective area of interest.
The Group reviews the carrying value of exploration and evaluation expenditure on a regular basis to determine whether
economic quantities of reserves have been found or whether further exploration and evaluation work is underway or
planned to support continued carry forward of capitalised costs. This assessment requires judgement as to the status of
the individual projects and their estimated recoverable amount.
IGO Limited
33
IGO ANNUAL REPORT 2021 — 103
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Capital structure and financing activities
This section of the notes provides further information about the Group's borrowings, contributed equity, reserves,
retained earnings and dividends, including accounting policies relevant to understanding these items.
17 Borrowings
Current
Unsecured
Bank loans
Total current borrowings
(a) Corporate loan facility
2021
$'000
2020
$'000
-
-
56,937
56,937
The Company's loan facilities under the previous syndicated facility agreement, which was entered into in July 2015,
were cancelled during the current financial year following repyament of outstanding debt.
On 23 December 2020, the Company entered into a new Syndicated Facility Agreement (Facility Agreement) for
facilities totalling $1,100,000,000, which was originally established to fund the acquisition of the 49% of the Lithium joint
venture with Tianqi Lithium Corporation (Transaction). Following the divestment of the Company’s interest in the
Tropicana JV, the facility was not required as a source of funds for the Transaction. To maintain financial flexibility, the
facility was amended prior to financial year end to consist of a $450,000,000 amortising revolving credit facility, expiring
in June 2024. The facility's commitments will reduce (amortise) by $50,000,000 semi-annually commencing 31
December 2021, with the balance of $200,000,000 expiring in June 2024.
As at 30 June 2021, draw down of the facilities is conditional upon the satisfaction of certain conditions, including the
Company entering into a General Security Agreement (GSA) with the lenders of the Facility Agreement.
Transaction costs are accounted for under the effective interest rate method. These costs are incremental costs that are
directly attributable to the loan and include loan origination fees, commitment fees and legal fees. At 30 June 2021,
there were no unamortised transaction costs (2020: $208,000 was offset against the bank loans contractual liability of
$57,145,000). Total capitalised transaction costs to 30 June 2021 are $nil (2020: $5,495,000).
The Facility Agreement has certain financial covenants that the Company has to comply with. All such financial
covenants have been complied with in accordance with the Facility Agreement.
(b) Assets pledged as security
There were no assets pledged as security as at 30 June 2021. As stated above, a condition subsequent to the
execution of the amended Facility Agreement is the entering into of a GSA with the lenders. The GSA provides that the
Company and its subsidiaries pledge all present and after acquired property as security of drawn amounts from the
$450,000,000 facility outlined above. Certain mining tenements owned by IGO Nova Pty Ltd are excluded from this GSA
pending consents from third parties. There were no assets pledged as security at 30 June 2020.
IGO Limited
34
104 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
17 Borrowings (continued)
(c) Financing arrangements
The Group had the following financing arrangements in place at the reporting date:
Total facilities
Corporate debt facility
Contingent instrument facility1
Facilities used as at reporting date
Corporate debt facility
Contingent instrument facility
Facilities unused as at reporting date
Corporate debt facility
2021
$'000
450,000
1,522
451,522
-
1,522
1,522
450,000
450,000
2020
$'000
57,145
1,211
58,356
57,145
1,211
58,356
-
-
1. This facility provides financial backing in relation to non-performance of third party guarantee requirements.
(d) Recognition and measurement
(i) Borrowings
Borrowings are initially recognised at
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method.
fair value, net of
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs
and amortised over the period of the remaining facility.
(ii) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
IGO Limited
35
IGO ANNUAL REPORT 2021 — 105
Notes to The Consolidated Financial Statements30 June 2021 18 Contributed equity
Ordinary shares
Treasury shares
(a) Ordinary shares
Movements in ordinary share capital:
Details
Balance at beginning of financial year
Share placement and entitlement offers
Less: Transaction costs arising on share
placement (net of tax)
Issue of shares under the Employee
Incentive Plan
Notes to the consolidated financial statements
30 June 2021
(continued)
Notes
2021
$'000
2,651,223
(2,649)
2,648,574
2020
$'000
1,897,126
-
1,897,126
2021
Number of shares
2021
$'000
2020
Number of shares
2020
$'000
590,797,034
166,470,779
-
-
1,897,126
765,766
(11,669)
590,477,819
-
1,895,855
-
-
-
-
319,215
1,271
Balance at end of financial year
757,267,813
2,651,223
590,797,034
1,897,126
(b) Treasury shares
Treasury shares are shares in IGO Limited that are held by the Company's Employee Share Trust for the purpose of
issuing shares under the IGO Employee Incentive Plan (refer to note 28 for further information). Shares issued to
employees are recognised on a first-in-first-out basis.
Movements in treasury shares:
Balance at beginning of financial year
Acquisition of shares by the Trust
(average price: $4.95 per share)
Issue of deferred shares under the
Company's Employee Incentive Plan
Balance at end of financial year
(c) Capital management
2021
Number of shares
2021
$'000
2021
Number of shares
2021
$'000
-
-
(1,164,600)
(5,764)
1,028,074
(136,526)
3,115
(2,649)
-
-
-
-
-
-
-
-
The Board’s policy is to preserve a strong balance sheet so as to maintain investor, creditor and market confidence, and
to sustain ongoing and future development of the business. Demonstrating the Company's balance sheet strength are
various financing and liquidity ratios, supported by strong EBITDA margins:
Current ratio (times)
Debt to equity
Underlying EBITDA margin
2021
3.3
-%
52%
2020
6.2
3%
52%
including reserves, and net debt/(cash). As at 30 June 2021 this totalled
The Group's capital comprises equity,
$2,671,363,000 (2020: $1,472,643,000), an increase of 81% over 2020. Contributing to this increase was a share
placement and institutional entitlement offer, net of costs, totalling $749,097,000, an ongoing reduction of debt as a
result of debt repayments of $57,145,000 and the continued strong cash flow generation during the year from deploying
our existing capital.
IGO Limited
36
106 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
18 Contributed equity (continued)
(c) Capital management (continued)
The Company's capital management framework aims to respond to a dynamic commodity and investment cycle. To this
end, the goals of the framework are to:
•
•
•
•
the Company's operations are able to generate cash flows safely, at appropriate margins, and
Ensure that
according to plan;
Provide a buffer from future potential adverse price movements as a result of the Company operating in a cyclical
commodity price environment;
Raise and repay debt and invest in growth and replenish and acquire new assets; and
Raise capital and to repay capital to shareholders by way of dividends or capital returns in accordance with the
Company's shareholder returns policy. The policy targets the return of 15 to 25 percent of underlying free cash flow
to shareholders whenever liquidity is less than $500,000,000. When liquidity is in excess of $500,000,000, further
discretion will be applied by the Board to return a great proportion of cash to shareholders. The policy remains
generally at the discretion of the Board, noting however that it expects to consistently pay dividends over the near to
medium term and that these dividends will be frankable based on the expected ongoing payment of tax by the
Company, together with the expectation of franked dividends from its investment in the Lithium joint venture.
None of the Group’s entities are currently subject to externally imposed capital requirements.
There were no changes in the Group’s approach to capital management during the year.
(d) Recognition and measurement
(i) Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds. Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the
shares held. Every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
(ii) Treasury shares
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain
or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments.
19 Reserves and retained earnings
(a) Reserves
Distributable profits reserve
Hedging reserve
Share-based payments reserve
Foreign currency translation reserve
2021
$'000
483,171
1,926
20,447
-
505,544
2020
$'000
-
244
18,645
(15)
18,874
IGO Limited
29
IGO ANNUAL REPORT 2021 — 107
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
19 Reserves and retained earnings (continued)
(a) Reserves (continued)
(i) Movements in reserves
The following table shows a breakdown of the movements in these reserves during the year. A description of the nature
and purpose of each reserve is provided below the table.
Share- based
payments
reserve
$'000
Foreign
currency
translation
reserve
$'000
Distributable
profits
reserve
$'000
Balance at 1 July 2020
Revaluation - gross
Deferred tax
Currency translation differences - current
period
Reclassification to profit or loss on
disposal of subsidiary
Share-based payment expenses
Issue of shares under the Employee
Incentive Plan
Transfer of 2021 profits from retained
earnings
Balance at 30 June 2021
-
-
-
-
-
-
-
483,171
483,171
Balance at 1 July 2019
Revaluation - gross
Deferred tax
Transfer to profit or loss - gross
Deferred tax
Currency translation differences - current
period
Share-based payment expenses
Issue of shares under the Employee
Incentive Plan
Balance at 30 June 2020
-
-
-
-
-
-
-
-
-
Hedging
reserve
$'000
244
2,403
(721)
-
-
-
-
-
18,645
-
-
-
-
4,917
(3,115)
-
1,926
20,447
339
(2,006)
602
1,870
(561)
-
-
-
244
15,427
-
-
-
-
-
4,489
(1,271)
18,645
Total
$'000
18,874
2,403
(721)
63
(48)
4,917
(3,115)
483,171
505,544
15,777
(2,006)
602
1,870
(561)
(26)
4,489
(1,271)
18,874
(15)
-
-
63
(48)
-
-
-
-
11
-
-
-
-
(26)
-
-
(15)
(ii) Nature and purpose of reserves
Distributable profits reserve
The distributable profits reserve is used to record profits generated by the Parent entity, IGO Limited for the purpose of
future dividend distributions by the Company. As approved by resolution of the Directors on 30 June 2021, current
period profits of $483,171,000 were transferred to the reserve that was established during the period.
Notes to the consolidated financial statements
Hedging reserve
30 June 2021
The hedging reserve is used to record gains or losses on derivatives that are designated and qualify as cash flow
(continued)
hedges and that are recognised in other comprehensive income. Amounts are reclassified to profit or loss when the
associated hedged transaction affects profit or loss.
19 Reserves and retained earnings (continued)
Share-based payments reserve
(a) Reserves (continued)
The share-based payments reserve is used to record the value of share-based payments provided to employees,
including key management personnel, as part of their remuneration. Refer to note 28 for further details of these plans.
(ii) Nature and purpose of reserves (continued)
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
income and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss
when the net investment is disposed of.
IGO Limited
(b) Retained earnings
Movements in retained earnings were as follows:
Balance at beginning of financial year
Net profit for the period
108 — IGO ANNUAL REPORT 2021
Dividends paid during the period
Transfer to distributable profits reserve
Balance at end of financial year
20 Dividends paid and proposed
(a) Ordinary shares
Notes
20
19(a)
Final dividend for the year ended 30 June 2020 of 5 cents (2019: 8 cents) per fully
Interim dividend for the year ended 30 June 2021 of nil cents (2020: 6 cents) per fully
paid share
paid share
Total dividends paid during the financial year
(b) Dividends not recognised at the end of the reporting period
In addition to the above dividends, since year end the Directors have recommended
the payment of a final franked dividend of 10 cents per fully paid ordinary share (2020:
5 cents per fully paid ordinary share, unfranked). The aggregate amount of the
proposed dividend expected to be paid on 11 October 2021 out of the distributable
profits reserve at 30 June 2021 not recognised as a liability at year end, is:
38
2020
$'000
(62,572)
155,093
(82,712)
-
9,809
2020
$'000
47,264
35,448
82,712
2021
$'000
9,809
548,661
(29,540)
(483,171)
45,759
2021
$'000
29,540
-
29,540
2021
$'000
2020
$'000
75,727
29,540
2021
$'000
74,202
2020
$'000
322
(c) Franked dividends
The final dividends recommended after 30 June 2021 will be fully franked out of existing franking credits, or out of
franking credits arising from the payment of income tax in the year ending 30 June 2022.
Franking credits available for subsequent reporting periods based on a tax rate of
30.0% (2020 - 30.0%)
The above amounts are calculated from the balance of the franking account as at the end of the reporting period,
adjusted for franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and
dividends after the end of the year.
IGO Limited
39
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
19 Reserves and retained earnings (continued)
(b) Retained earnings
Movements in retained earnings were as follows:
Balance at beginning of financial year
Net profit for the period
Dividends paid during the period
Transfer to distributable profits reserve
Balance at end of financial year
20 Dividends paid and proposed
(a) Ordinary shares
Notes
20
19(a)
Final dividend for the year ended 30 June 2020 of 5 cents (2019: 8 cents) per fully
paid share
Interim dividend for the year ended 30 June 2021 of nil cents (2020: 6 cents) per fully
paid share
Total dividends paid during the financial year
(b) Dividends not recognised at the end of the reporting period
In addition to the above dividends, since year end the Directors have recommended
the payment of a final dividend of 10 cents per fully paid ordinary share, fully franked
(2020: 5 cents per fully paid ordinary share, unfranked). The aggregate amount of the
proposed dividend expected to be paid on 23 September 2021 out of the distributable
profits reserve at 30 June 2021 not recognised as a liability at year end, is:
2021
$'000
9,809
548,661
(29,540)
(483,171)
45,759
2021
$'000
29,540
-
29,540
2020
$'000
(62,572)
155,093
(82,712)
-
9,809
2020
$'000
47,264
35,448
82,712
2021
$'000
2020
$'000
75,727
29,540
(c) Franked dividends
The final dividends recommended after 30 June 2021 will be fully franked out of existing franking credits, or out of
franking credits arising from the payment of income tax in the year ending 30 June 2022.
Franking credits available for subsequent reporting periods based on a tax rate of
30.0% (2020 - 30.0%)
2021
$'000
140,006
2020
$'000
322
The above amounts are calculated from the balance of the franking account as at the end of the reporting period,
adjusted for franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and
dividends after the end of the year.
(d) Recognition and measurement
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
A provision for dividends is not recognised as a liability unless the dividends are declared, determined or publicly
recommended on or before the reporting date.
IGO ANNUAL REPORT 2021 — 109
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Risk
This section of the notes includes information on the Group's exposure to various risks and shows how these could
affect the Group's financial position and performance.
21 Derivatives
The Group has the following derivative financial
sheet:
instruments in the following line items in the consolidated balance
Current assets
Diesel hedging contracts - cash flow hedges
Non-current assets
Diesel hedging contracts - cash flow hedges
(a)
Instruments used by the Group
2021
$'000
2,751
2,751
-
-
2020
$'000
64
64
284
284
Derivative financial instruments may be used by the Group in the normal course of business in order to hedge exposure
to fluctuations in foreign exchange rates, commodity prices and diesel prices.
The derivative financial instruments are classified as held for trading and accounted for at fair value through profit or
loss unless they are designated as cash flow hedges. The Group's accounting policy for its cash flow hedges is set out
below.
The fair value of the derivative instruments at the reporting date is reflected in current and non-current assets and
liabilities in the balance sheet and is calculated by comparing the contracted rate to the market rates for derivatives with
the same length of maturity.
Refer to note 22 and below for details of the diesel fuel risk being mitigated by the Group’s derivative instruments as at
30 June 2021 and 30 June 2020.
Diesel Hedges
The Group held various commodity forward hedging contracts at 30 June 2021 and 30 June 2020 to reduce the
exposure to future increases in the price of the Singapore gasoil component of landed diesel fuel cost.
The following table details the Singapore gasoil 10ppm hedging contracts outstanding at the reporting date:
Litres of oil ('000)
Weighted average price
(AUD/litre)
2021
6,299
6,068
-
12,367
2020
11,514
15,954
7,144
34,612
2021
0.42
0.45
-
0.43
2020
0.44
0.45
-
0.45
Fair value
2021
$'000
1,528
1,223
-
2,751
2020
$'000
(11)
75
284
348
0 - 6 months
6 -12 months
1 - 2 years
Total
(b) Recognition and measurement
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value
depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being
hedged. The Group designates certain derivatives as either:
•
hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges); or
IGO Limited
41
110 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
21 Derivatives (continued)
(b) Recognition and measurement (continued)
•
hedges of a particular risk associated with the cash flows of recognised assets and liabilities and highly probable
forecast transactions (cash flow hedges).
The Group documents, at the inception of the hedging transaction, the relationship between hedging instruments and
hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The
Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that
are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or
cash flows of hedged items.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of
the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the
hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability. Movements in the
hedging reserve in shareholder's equity are shown in note 19.
(i) Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or
loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
(ii) Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in the hedging reserve in equity, limited to the cumulative change in the fair value of the hedged item on a
present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised
immediately in profit or loss.
Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or
loss. The gain or loss relating to the effective portion of forward foreign exchange contracts hedging export sales is
recognised in profit or loss within 'sales revenue'.
The changes in the time value component of options that relate to hedged items are recognised with other
comprehensive income in the hedging reserve within equity. The cumulative changes accumulated in the hedge reserve
are reclassified to the profit or loss when the hedged item affects profit or loss.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the
forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss.
(iii) Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative
instrument that does not qualify for hedge accounting are recognised immediately in profit or loss.
22 Financial risk management
This note explains the Group's exposure to financial risks and how these risks could affect the Group's future financial
performance.
Financial instruments are held by the Group for various purposes, including:
• Operational: Activities of the Group generate financial instruments which include cash, trade receivables and trade
payables;
•
•
Financing: The Company may enter into debt instruments in order to finance both internal growth opportunities and
acquire assets. Types of instruments used include syndicated and other bank loans and hire purchase agreements.
Surplus funds are held either at call or as short-term deposits; and
Risk management: The Group is exposed to commodity and foreign exchange risk which is overseen by
management, under policies approved by the Board. Management identifies, evaluates and hedges financial risks in
close co-operation with the Group’s operating units. Financial instruments used by the Group to mitigate these risks
include forward exchange contracts, commodity swaps and forward sales agreements.
IGO Limited
42
IGO ANNUAL REPORT 2021 — 111
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
By holding these financial instruments, the Group exposes itself to risk. The Board reviews and agrees the Group's
policies for managing each of these risks, which are summarised below:
(a) Market risk
(i) Foreign currency risk
As the Group’s sales revenues for base and precious metals are denominated in United States dollars (USD), and the
majority of operating costs are denominated in Australian dollars (AUD),
the Group’s cash flow is exposed to
movements in the AUD:USD exchange rate. The Group may mitigate this risk through the use of derivative instruments,
including, but not limited to, forward contracts denominated in AUD.
Financial
currency (i.e. AUD) were as follows:
instruments, including derivative instruments, denominated in USD and then converted into the functional
Financial assets
Cash and cash equivalents
Trade receivables
Net financial assets
2021
$'000
114,826
78,513
193,339
2020
$'000
48,512
46,595
95,107
The cash balance above only represents the cash held in the USD bank accounts at the reporting date as converted
into AUD at the 30 June 2021 AUD:USD exchange rate of 0.7518 (2020: 0.6863). The remainder of the cash balance of
$413,688,000 (2020: $461,800,000) was held in AUD bank accounts and therefore not exposed to foreign currency risk.
The trade receivables amounts represent the USD denominated trade debtors. All other receivables were denominated
in AUD at the reporting date.
The following table summarises the Group’s sensitivity of financial instruments held at 30 June 2021 to movements in
the AUD:USD exchange rate, with all other variables held constant.
Sensitivity of financial instruments to foreign currency movements
Increase/decrease in foreign exchange rate
Increase 5.0%
Decrease 5.0%
Impact on post-tax profit
2021
$'000
(6,192)
6,844
2020
$'000
(4,377)
4,838
(ii) Commodity price risk
The Group’s sales revenues are generated from the sale of nickel, copper and cobalt. Accordingly, the Group’s
revenues, derivatives and trade receivables are exposed to commodity price risk fluctuations, primarily nickel, copper
and cobalt.
The markets for base and precious metals are freely traded and can be volatile. As a relatively small producer, the
Group has no ability to influence commodity prices. The Group mitigates this risk through derivative instruments,
including, but not limited to, quotational period hedging, forward contracts and collar arrangements.
Nickel
Nickel concentrate sales have an average price finalisation period of two to three months until the sale is finalised with
the customer.
It is the Board’s policy to hedge between 0% and 50% of total nickel production tonnes.
Copper
Copper concentrate sales during the year had an average price finalisation period of up to three months from shipment
date.
It is the Board’s policy to hedge between 0% and 50% of total copper production tonnes.
IGO Limited
43
112 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
(a) Market risk (continued)
(ii) Commodity price risk (continued)
Diesel fuel
It is the Board's policy to hedge up to 75% of forecast diesel fuel usage. Diesel fuel price comprises a number of
components, including Singapore gasoil and various other costs such as shipping and insurance. The total of all costs
represents the wholesale or Terminal Gate Price (TGP) of diesel. The Group only hedges the Singapore gasoil
component of the diesel TGP, which represents approximately 40% of the total diesel price.
At the reporting date, the carrying value of the financial instruments exposed to commodity price movements were as
follows:
Financial instruments exposed to commodity price movements
Financial assets
Trade receivables
Derivative financial instruments - diesel hedging contracts
Net exposure
2021
$'000
65,077
2,751
67,828
2020
$'000
38,089
348
38,437
The following table summarises the sensitivity of financial instruments held at 30 June 2021 to movements in the nickel
price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of 5.0% (2020:
5.0%).
Sensitivity of financial instruments to nickel price movements
Increase/decrease in nickel price
Increase
Decrease
Impact on post-tax profit
2021
$'000
5,545
(5,545)
2020
$'000
3,840
(3,840)
The following table summarises the sensitivity of financial instruments held at 30 June 2021 to movements in the copper
price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of 5.0% (2020:
5.0%).
Sensitivity of financial instruments to copper price movements
Increase/decrease in copper price
Increase
Decrease
Impact on post-tax profit
2021
$'000
1,300
(1,300)
2020
$'000
805
(805)
The following table summarises the sensitivity of financial instruments held at 30 June 2021 to a 20% (2020: 20%)
movement in the price of Singapore gasoil 10ppm, with all other variables held constant.
Sensitivity of financial instruments to Singapore gasoil price movements
Increase/decrease in Singapore gasoil price
Increase
Decrease
IGO Limited
Impact on other components of
equity
2021
$'000
1,137
(1,137)
2020
$'000
2,206
(2,206)
44
IGO ANNUAL REPORT 2021 — 113
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
(a) Market risk (continued)
(iii) Equity price risk sensitivity analysis
The following sensitivity analysis has been determined based on the exposure to equity price risks at the reporting date.
Each equity instrument is assessed on its individual price movements with the sensitivity rate based on a reasonably
possible change of 20% (2020: 20%). At reporting date, if the equity prices had been higher or lower, net profit for the
year would have increased or decreased by $15,532,000 (2020: $15,086,000).
(iv) Cash flow and fair value interest rate risk
The Group’s exposure to interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates. At the reporting date, the Group had the following exposure to interest rate risk on
financial instruments:
Financial assets
Cash and cash equivalents
Financial liabilities
Bank loans
30 June 2021
30 June 2020
Weighted
average
interest rate
%
0.4%
0.4%
-%
-%
Weighted
average
interest rate
%
1.3%
1.3%
2.6%
2.6%
Balance
$'000
528,514
528,514
-
-
Balance
$'000
510,312
510,312
57,145
57,145
The sensitivity analysis below has been determined based on the exposure to interest rates at the reporting date and
the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting
period.
Sensitivity of interest revenue and expense to interest rate movements
Interest revenue
Increase 1.0% (2020: 1.0%)
Decrease 1.0% (2020: 1.0%)
Interest expense
Increase 1.0% (2020: 1.0%)
Decrease 1.0% (2020: 1.0%)
(b) Credit risk
Impact on post-tax profit
2021
$'000
2,896
(1,240)
-
-
2020
$'000
3,520
(3,520)
(400)
400
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has a strict code of credit, including only transacting with high quality financial
institutions and
customers with an appropriate credit history. The maximum exposure to credit risk at the reporting date to recognised
financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance
sheet and notes to the financial statements. The Group does not hold any collateral.
114 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
(b) Credit risk (continued)
The maximum exposure to credit risk at the reporting date was as follows:
Financial assets
Cash and cash equivalents
Trade receivables
Other receivables
Financial assets at fair value through profit or loss
Derivative financial instruments
2021
$'000
2020
$'000
528,514
78,513
859
110,944
2,751
721,581
510,312
46,595
19,315
107,759
348
684,329
(i)
Impairment of financial assets
The Group has two types of financial assets that are subject to the expected credit loss model:
•
•
trade receivables, and
other receivables and financial assets.
While cash and cash equivalents are also subject to the impairment requirements of AASB 9, no impairment loss has
been identified.
Trade receivables
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables
through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered
representative across all customers of the Group based on recent sales experience, historical collection rates, the
impact of the COVID-19 pandemic and forward-looking information that is available. The allowance for expected credit
losses is calculated based on the information available at the time of preparation. The actual credit losses in future
years may be higher or lower.
The Group has policies in place to ensure that sales of products are made to customers with an appropriate credit
history.
Nickel, copper and cobalt concentrate sales
Credit risk arising from sales to customers is managed by contracts that stipulate a provisional payment of between
90% and 100% of the estimated value of each sale. Provisional payments are predominantly made via an unconditional
and irrevocable letter of credit, governed by the laws of Western Australia, or alternatively via direct payment from the
customer, and are expected to be received within a few business days of the sale. Final payment is dependent on the
quotation period of the respective purchase contract, and is also made via an irrevocable letter of credit or direct
payment from the customer.
Due to the large size of concentrate shipments, there are a relatively small number of transactions each month and
therefore each transaction and receivable balance is actively managed on an ongoing basis, with attention to timing of
customer payments and imposed credit limits. The resulting exposure to impairment losses is not considered significant,
despite the impact of the COVID-19 pandemic.
Other receivables and financial assets
The Group recognises a loss allowance for expected credit losses on other financial assets which are either measured
at amortised cost, fair value through profit or loss or fair value through other comprehensive income. The measurement
of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the
recognition, based on reasonable and
instrument's credit risk has increased significantly since initial
financial
supportable information that is available, without undue cost or effort to obtain.
IGO Limited
46
IGO ANNUAL REPORT 2021 — 115
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
(b) Credit risk (continued)
Other receivables and financial assets (continued)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is
attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit
impaired, or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's
lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the
probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original
effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised
within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
In respect of cash and cash equivalents, financial assets at fair value through profit or loss and derivative financial
instruments, the Group's exposure to credit risk arises from potential default of the counterparty, with a maximum
exposure equal to the carrying amount of these instruments. The Group does not hold any credit derivatives to offset its
credit exposure.
Derivative counterparties and cash transactions are restricted to high credit quality financial institutions.
(ii) Significant estimates and judgements
Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The
Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on
the Group’s past history, existing market conditions as well as forward looking estimates at the end of each reporting
period.
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial liabilities as they fall due. The Group’s
approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation. Management and the Board monitors liquidity levels on an ongoing basis.
Maturities of financial liabilities
The following table details the Group’s remaining contractual maturity for its non-derivative financial
liabilities. The
tables are based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group
can be required to pay.
Contractual maturities of financial
liabilities
Less than 6
months
$'000
6 - 12
months
$'000
Between
1 and 5
years
$'000
Over 5
years
$'000
Total
contractual
cash
flows
$'000
Carrying
amount
$'000
At 30 June 2021
Trade and other payables
Lease liabilities
At 30 June 2020
Trade and other payables
Lease liabilities
Bank loans*
* Includes estimated interest payments.
47,286
2,652
49,938
53,013
3,931
57,388
114,332
-
2,657
2,657
-
3,775
-
3,775
-
21,506
21,506
-
27,862
-
27,862
-
833
833
-
9,485
-
9,485
47,286
27,648
74,934
47,286
25,048
72,334
53,013
45,053
57,388
53,013
39,785
56,937
155,454
149,735
IGO Limited
47
116 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
(d) Recognised fair value measurements
(i) Fair value hierarchy
The fair value of financial assets and liabilities must be estimated for recognition and measurement or for disclosure
purposes.
AASB 13 Fair Value Measurement requires disclosure of fair value measurements by level of the following fair value
measurement hierarchy:
(a)
(b)
quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
(c)
The following table presents the Group’s assets and liabilities measured and recognised at fair value at 30 June 2021
and 30 June 2020 on a recurring basis.
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
At 30 June 2021
Financial assets
Listed investments
Derivative instruments
Diesel hedging contracts
At 30 June 2020
Financial assets
Listed investments
Derivative instruments
Diesel hedging contracts
110,944
-
110,944
-
2,751
2,751
-
-
-
110,944
2,751
113,695
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
107,759
-
107,759
-
348
348
-
-
-
107,759
348
108,107
The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at 30
June 2021 and did not transfer any fair value amounts between the fair value hierarchy levels during the year ended 30
June 2021.
(ii) Valuation techniques used to determine level 1 fair values
The fair value of financial instruments traded in active markets (such as publicly traded derivatives and trading and
available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market
price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.
(iii) Valuation techniques used to determine level 2 and level 3 fair values
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives)
is determined using valuation techniques. These valuation techniques maximise the use of observable market data
where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value
an instrument are observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Specific valuation techniques used to value financial instruments include:
•
•
The use of quoted market prices or dealer quotes for similar instruments.
The fair value of commodity and forward foreign exchange contracts is determined using forward commodity and
exchange rates at the reporting date.
• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining
financial instruments.
All of the resulting fair value estimates are included in level 2.
IGO ANNUAL REPORT 2021 — 117
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
22 Financial risk management (continued)
(d) Recognised fair value measurements (continued)
(iv) Fair value of other financial instruments
The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. These
instruments had the following fair value at the reporting date.
Current liabilities
Bank loans
Lease liabilities
Non-current liabilities
Lease liabilities
30 June 2021
30 June 2020
Carrying
amount
$'000
Fair value
$'000
Carrying
amount
$'000
Fair value
$'000
-
4,421
4,421
-
5,309
5,309
20,627
20,627
22,339
22,339
56,937
6,235
63,172
33,550
33,550
57,145
7,706
64,851
37,347
37,347
118 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Group structure
This section of the notes provides information which will help users understand how the group structure affects the
financial position and performance of the Group.
23 Discontinued operation
On 13 April 2021, the Company announced that it had entered into a binding agreement with Regis Resources Limited
(Regis) for the sale of the Company's 30% interest in the Tropicana Gold Mine (Tropicana). The sale was completed
with effect from 31 May 2021 and Tropicana is reported in the current period as a discontinued operation. Financial
information relating to the discontinued operation for the period to the date of disposal is set out below.
(a) Financial performance and cash flow information
The financial performance and cash flow information presented are for the 11 months ended 31 May 2021 (2021
column) and the year ended 30 June 2020.
Revenue
Mining, development and processing costs
Employee benefits expense
Depreciation and amortisation expense
Exploration and evaluation expense
Royalty expense
Borrowing and finance costs
Other expenses
Profit before income tax
Income tax expense
Profit after income tax of discontinued operation
Gain on sale of the joint venture after income tax (see (b) below)
Profit from discontinued operation
2021
$'000
243,257
(96,706)
(15,298)
(51,715)
(2,835)
(6,851)
(653)
(1,935)
67,264
(20,188)
47,076
384,819
431,895
2021
$'000
2020
$'000
290,078
(89,570)
(15,725)
(72,434)
(3,089)
(8,150)
(837)
(1,991)
98,282
(29,496)
68,786
-
68,786
2020
$'000
Net cash inflow from operating activities
Net cash inflow/(outflow) from investing activities (2021 includes a net inflow of
$862,349,000 from the sale of the joint venture)
Net cash (outflow) from financing activities
Net increase in cash generated by the joint venture
139,683
149,863
788,558
(1,249)
926,992
(70,652)
(1,243)
77,968
(b) Details of the sale of the joint venture
Cash consideration received or receivable
Costs of sale paid or payable
Total net disposal consideration
Carrying amount of net assets sold
Gain on sale before income tax
Income tax expense on gain
Gain on sale after income tax
2021
$'000
888,579
(28,810)
859,769
(302,946)
556,823
(172,004)
384,819
2020
$'000
-
-
-
-
-
-
-
IGO ANNUAL REPORT 2021 — 119
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
23 Discontinued operation (continued)
(b) Details of the sale of the joint venture (continued)
The carrying amounts of assets and liabilities as at the date of sale (31 May 2021) were:
Cash and cash equivalents
Trade and other receivables
Property, plant and equipment
Inventories
Right-of-use assets
Mine properties
Exploration and evaluation expenditure
Total assets
Trade and other creditors
Lease liabilities
Provisions
Total liabilities
Net assets
24 Interests in subsidiaries
(a) Significant investments in subsidiaries
31 May 2021
$'000
3,406
2,565
29,557
100,515
9,220
216,701
160
362,124
(19,338)
(9,633)
(30,207)
(59,178)
302,946
The consolidated financial statements incorporate the assets, liabilities and results of IGO Limited and the subsidiaries
listed in the following table:
Name of entity
Note
Country of
incorporation
Equity holding
IGO Newsearch Pty Ltd
IGO Stockman Parent Pty Ltd
IGO Stockman Project Pty Ltd
IGO Windward Pty Ltd
Flinders Prospecting Pty Ltd
IGO Europe Pty Ltd
IGO Nova Holdings Pty Ltd
IGO Nova Pty Ltd
Independence Group Europe AB
IGO Lithium Holdings Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Sweden
Australia
(a)
(a)
(b)
(c)
2021
%
100
100
100
100
100
100
100
100
-
100
(a)
(b)
(c)
These subsidiaries have been granted relief from the necessity to prepare financial reports in accordance with
ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 issued by the Australian Securities and
Investments Commission. For further information refer to note 31.
Independence Group Europe AB was divested by the Group on 21 April 2021.
IGO Downstream Technologies Pty Ltd changed its name to IGO Lithium Holdings Pty Ltd during the year.
IGO Limited
120 — IGO ANNUAL REPORT 2021
2020
%
100
100
100
100
100
100
100
100
100
100
52
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
24 Interests in subsidiaries (continued)
(b) Principles of consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entities. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of
the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
the impairment of
25 Interests in associates
(a)
Interests in associates
Set out below are the associates of the Group as at 30 June 2021 which, in the opinion of the Directors, are material to
the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by
the Group. The country of incorporation or registration is also their principal place of business, and the proportion of
ownership interest is the same as the proportion of voting rights held.
Place of
business/
country of
incorporation
Name of
entity
% of
ownership
interest
2021
%
2020
%
Nature of
relationship
Measurement
method
Quoted fair value
Carrying amount
2021
$'000
2020
$'000
2021
$'000
2020
$'000
-
TLEA*
Australia
49
-
Associate
Equity method 1,855,939
- 1,855,939
* Tianqi Lithium Energy Australia Pty Ltd
The Group completed the transaction to acquire 49% of the share capital of Tianqi Lithium Energy Australia Pty Ltd
(TLEA) from Tianqi Lithium Corporation (Tianqi) on 30 June 2021. TLEA is the exclusive vehicle for lithium investments
for IGO and Tianqi outside of China. As the transaction completed on 30 June 2021, there is no impact to the Group's
Notes to the consolidated financial statements
profit or loss for the current financial year.
30 June 2021
(continued)
(i) Summarised financial information for associates
The tables below provide summarised financial
information for the associates that are material to the Group. The
information disclosed reflects the amounts presented in the financial statements of the relevant associates and not IGO
25 Interests in associates (continued)
Limited’s share of those amounts. They have been amended to reflect adjustments made by the Group when using the
equity method,
including provisional accounting fair value adjustments of $1,857,177,000 (IGO 49% share:
(a)
$910,017,000) and modifications for differences in accounting policy.
(i) Summarised financial information for associates (continued)
Interests in associates (continued)
Summarised balance sheet
Current assets
Cash and cash equivalents
Other current assets
Total current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
IGO Limited
Reconciliation to carrying amounts:
Opening net assets 1 July
Profit for the period*
Acquisition during the period
Group share in %
Group's share in $
Carrying amount
(b) Recognition and measurement
Equity method
TLEA
2021
$'000
2020
$'000
133,149
341,211
474,360
4,512,941
250,293
949,378
3,787,630
TLEA
2021
$'000
-
-
3,787,630
3,787,630
-
-
-
-
-
-
-
2020
$'000
45
-
-
-
-
IGO ANNUAL REPORT 2021 — 121
49.0%
1,855,939
1,855,939
-%
-
-
* The transaction to acquire the Group's 49% share in TLEA was completed on 30 June 2021, therefore there is no
impact to the Group's share of profit or loss for the current financial year.
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally
the case where the Group holds of between 20% and 50% of the voting rights. Investments in associates are accounted
for using the equity method of accounting, after initially being recognised at cost.
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the Group's share of the post-acquisition profits or losses of the investee in profit or loss, and the Group's
share of movements in other comprehensive income of
the investee in other comprehensive income. Dividends
received or receivable from associates are recognised as a reduction in the carrying amount of the investment.
Where the Group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity,
including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's
interest
in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where
necessary to ensure consistency with the policies adopted by the Group.
IGO Limited
46
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
25 Interests in associates (continued)
(a)
Interests in associates (continued)
(i) Summarised financial information for associates (continued)
Reconciliation to carrying amounts:
Opening net assets 1 July
Profit for the period*
Acquisition during the period
Group share in %
Group's share in $
Carrying amount
TLEA
2021
$'000
2020
$'000
-
-
3,787,630
3,787,630
49.0%
1,855,939
1,855,939
-
-
-
-
-%
-
-
* The transaction to acquire the Group's 49% share in TLEA was completed on 30 June 2021, therefore there is no
impact to the Group's share of profit or loss for the current financial year.
(b) Recognition and measurement
Equity method
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally
the case where the Group holds of between 20% and 50% of the voting rights. Investments in associates are accounted
for using the equity method of accounting, after initially being recognised at cost.
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the Group's share of the post-acquisition profits or losses of the investee in profit or loss, and the Group's
share of movements in other comprehensive income of
the investee in other comprehensive income. Dividends
received or receivable from associates are recognised as a reduction in the carrying amount of the investment.
Where the Group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity,
including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's
interest
in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described
in note 33(c)(i).
IGO Limited
54
122 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
Other information
This section of the notes includes other information that must be disclosed to comply with the accounting standards and
other pronouncements, but are not considered critical in understanding the financial performance or position of the
Group.
26 Commitments and contingencies
(a) Capital commitments
Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as
follows:
Corporate office fitout
Mine properties in development
(b) Leasing Commitments
Finance lease commitments
Future minimum lease payments under lease contracts with the present value of net
minimum lease payments are as follows:
Within one year
Later than one year but not later than five years
Later than five years
Total minimum lease payments
Future finance charges
Present value of minimum lease payments
Current
Non-current
Total included in lease liabilities
(c) Contingencies
2021
$'000
4,800
-
4,800
2020
$'000
-
4,125
4,125
2021
$'000
2020
$'000
5,309
21,506
833
27,648
(2,600)
25,048
4,421
20,627
25,048
7,706
27,862
9,485
45,053
(5,268)
39,785
6,235
33,550
39,785
The Group had guarantees outstanding at 30 June 2021 totalling $1,522,000 (2020: $1,211,000) which have been
granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation bonds at
the various mine sites.
27 Events occurring after the reporting period
On 27 July 2021, the Company announced that it had entered into a binding agreement with entities owned and
controlled by Mark Creasy (Creasy Group) to i) acquire 100% of the Silver Knight nickel-copper-cobalt sulphide deposit
(Silver Knight), and ii) form a JV with Creasy Group (IGO 65%: Creasy Group 35%) over a portfolio of exploration
tenements around Silver Knight, for a total cash consideration of $45,000,000 (Transaction). Documentation for the
Transaction is expected to be completed by 30 September 2021, with completion of the Transaction occurring within
five business days thereafter.
IGO Limited
55
IGO ANNUAL REPORT 2021 — 123
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
27 Events occurring after the reporting period (continued)
The impact of the COVID-19 pandemic is ongoing and, while it has had limited impact on the Group up to 30 June 2021,
it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation continues
to develop and is dependent on measures imposed by the Australian Government and other countries, such as
maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be
provided.
On 31 August 2021, the Company announced a final fully franked dividend of 10 cents per share, to be paid on 23
September 2021.
Other than the above, there has not arisen in the interval between the end of the financial year and the date of this
report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the
Company, to affect significantly the operations of the consolidated entity, the results of those operations, or the state of
affairs of the consolidated entity, in future financial years, other than as stated elsewhere in the financial report.
28 Share-based payments
The Group provides benefits to employees (including executive directors) of the Group through share-based incentives.
Information relating to these schemes is set out below.
(a) Employee Incentive Plan
The IGO Limited Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting of the
Company in November 2016. The EIP incorporates both broad based equity participation for eligible employees, as well
as key executive incentive schemes designed to provide long-term incentives to senior management (including
executive directors) to deliver long-term shareholder returns.
The EIP comprised the following schemes during the current financial year:
•
•
•
•
Long-term incentive (LTI) - performance rights;
Short-term incentive (STI) - service rights;
Employee share ownership award; and
Employee salary sacrifice share plan.
LTI - Performance Rights
Under the LTI scheme, participants are granted performance rights which will only vest if certain performance conditions
are met and the employees are still employed by the Group at the end of the vesting period. Participation in the LTI
scheme is at the Board’s discretion and no individual has a contractual right to participate in the scheme or to receive
any guaranteed benefits.
Equity settled awards outstanding
Set out below are summaries of performance rights granted under the LTI scheme:
Outstanding at the beginning of the year
Rights issued during the year
Rights vested during the year
Rights lapsed during the year
Rights cancelled during the year
Outstanding at the end of the year
2021
2020
Weighted
average fair
value at grant
date
3.20
2.87
2.52
3.64
2.52
3.31
Weighted
average fair
value at grant
date
2.54
4.62
-
2.39
2.29
3.20
Number of
share rights
2,369,141
819,577
-
(495,826)
(2,026)
2,690,866
Number of
share rights
2,690,866
934,917
(819,643)
(103,943)
(142,156)
2,560,041
The share-based payments expense relating to performance rights included in profit or loss for the year totalled
$2,727,688 (2020: $2,695,027).
IGO Limited
49
124 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
28 Share-based payments (continued)
Fair value of performance rights granted
The fair value of the share rights granted during the year ended 30 June 2021 are determined using a trinomial tree
which has been adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy, with the following
inputs:
Fair value inputs
CEO
Senior management
Other employees
Grant date
Vesting date
Share price at grant date
Fair value estimate at grant date
Expected share price volatility (%)
Expected dividend yield (%)
Expected risk-free rate (%)
18 November 2020
1 July 2023
4.88
3.43
40
1.43
0.11
2 October 2020
1 July 2023
4.07
2.74
40
1.72
0.18
2 October 2020
1 July 2023
4.07
2.74
40
1.72
0.18
Vesting conditions of performance rights granted
Vesting of the performance rights granted to executive directors, executives and other employees during the year is
based on four equally weighted performance hurdles as follows:
•
•
•
•
Relative total shareholder return (TSR);
Absolute TSR;
Reserve growth per share; and
EBITDA average margin.
Relative TSR
The relative TSR scorecard for the three year measurement period will be determined based on a percentile ranking of
the Company's TSR results relative to the TSR of each of the companies in the comparator group over the same three
year measurement period.
The comparator group is a peer group comprised of members of the S&P ASX 300 Metals and Mining Index, as well as
several mining companies listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). The
Board has discretion to adjust the peer group from time to time in its absolute discretion.
The vesting schedule for the 25% of the performance rights subject to relative TSR testing is as follows:
Relative TSR performance
Less than 50th percentile
Between 50th and 75th percentile
75th percentile or better
Level of vesting
Zero
50% plus pro-rata straight line percentage between 50%
and 100%
100%
Absolute TSR
The absolute TSR scorecard for the three year measurement period will be determined based on an increase in
absolute TSR of the Company over the three year measurement period.
The vesting schedule for the 25% of the performance rights subject to absolute TSR testing is as follows:
Absolute TSR performance
10% per annum return
Above 10% per annum and below 20% per annum return
Above 20% per annum return
Level of vesting
33%
Straight line pro-rata between 33% and 100%
100%
IGO Limited
50
IGO ANNUAL REPORT 2021 — 125
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
28 Share-based payments (continued)
Vesting conditions of performance rights granted (continued)
Reserve growth per share
The reserve growth per share performance condition will be determined as managed ore reserve growth in excess of
depletion over the three-year measurement period. Baseline ore reserves means the Group's managed nickel
equivalent ore reserves at the start of the performance period as determined by the Board.
The vesting schedule for the 25% of the performance rights subject to reserve growth per share testing is as follows:
Reserve growth
<90% of Baseline Ore Reserves
90% of Baseline Ore Reserves
Above 90% of Baseline Ore Reserves and below 100%
100% of Baseline Ore Reserves
Above 100% of Baseline Ore Reserves and below 120%
120% and above of Baseline Ore Reserves
Level of vesting
0%
33%
Straight line pro-rata between 33% and 66%
66%
Straight line pro-rata between 66% and 100%
100%
EBITDA average margin
The EBITDA average margin will be measured over the three-year measurement period.
The vesting schedule for the 25% of the performance rights subject to EBITDA average margin testing is as follows:
Group EBITDA margin
<20%
≥ 20%
≥ 30%
≥ 40%
Service rights - STI scheme
Level of vesting
0%
33%
66%
100%
Under the Group's short-term incentive (STI) scheme, Executives and selected employees receive 50% of the annual
STI achieved in cash and 50% in the form of rights to deferred shares in IGO Limited (referred to as service rights). The
service rights are granted following the determination of the STI for the performance year and vest in two equal
tranches. The first tranche of 50% vests on the 12 month anniversary of the STI award date, and the second tranche of
50% vests on the 24 month anniversary of the STI award date.
The service rights automatically convert into one ordinary share each on vesting at an exercise price of nil. The
Executives and employees do not receive any dividends and are not entitled to vote in relation to the service rights
during the vesting period. If an Executive or employee ceases to be employed by the Group within the vesting period,
the service rights will be forfeited, except in circumstances that are approved by the Board on a case-by-case basis.
The number of rights to be granted is determined based on the 5 day VWAP of the Company's shares after the release
of IGO Limited's financial statements.
Set out below are summaries of movements in service rights during the year:
Outstanding at the beginning of the year
Rights issued during the year
Rights vested during the year
Rights lapsed during the year
Outstanding at the end of the year
2021
2020
Number of
share rights
Weighted
average fair
value
Number of
share rights
Weighted
average fair
value
476,088
536,496
(305,157)
(58,155)
649,272
5.36
4.46
5.08
4.81
4.79
437,686
338,175
(279,978)
(19,795)
476,088
4.01
5.88
3.90
4.77
5.36
The share-based payments expense relating to service rights included in profit or loss for the year totalled $1,989,887
(2020: $1,614,857).
IGO Limited
58
126 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
28 Share-based payments (continued)
Employee Share Ownership Award
In accordance with the terms of the EIP, the Employee Share Ownership Award (ESOA) provides for shares to be
issued by the Company to employees for no cash consideration. All employees (excluding executive directors, senior
management and other employees entitled to participate in the LTI scheme and non-executive directors) who have
been continuously employed by the Group for a period of at least three months prior to 1 July are eligible to participate
in the ESOA.
Under the ESOA, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares in IGO Limited
annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount
divided by the weighted average price at which the Company's shares are traded on the Australian Securities Exchange
for the 20 days up to and including the date of grant.
Number of shares issued under the plan to participating employees
2021
Number
39,800
2020
Number
39,240
Each participant was issued with shares worth $1,000 based on the weighted average market price of $5.02 (2020:
$4.58). The share-based payments expense relating to ESOA included in profit or loss for the year totalled $199,758
(2020: $179,719).
Employee Salary Sacrifice Share Plan
In accordance with the terms of the EIP, the Employee Salary Sacrifice Plan allows for employees, excluding KMP, to
purchase up to $5,000 of shares in the Company via salary sacrifice. The Company will match any share purchased
with one share, up to a maximum of $5,000. The number of shares acquired on-market by the Company during the year
for the purposes of this plan were 174,232 shares with an average price per share of $5.76 (2020: 159,712 shares with
an average price per share of $5.32).
The share rights issued under the EIP will not be subject to any further escrow restrictions once they have vested to the
employees.
Share trading policy
The trading of shares issued to participants under the Company’s EIP is subject to, and conditional upon, compliance
with the Company’s employee share trading policy.
Non-executive Directors
The EIP permits non-executive directors to be eligible employees and therefore to participate in the plan. It is not
currently intended that non-executive directors will be issued with performance rights under the EIP and any such issue
would be subject to all necessary shareholder approvals.
(b) Recognition and measurement
Equity-settled transactions
The fair values of equity settled awards are recognised in share-based payments expense,
together with a
corresponding increase in share-based payments reserve within equity, over the period in which the performance
conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting
date).
The cost of these equity-settled transactions is measured by reference to the fair value at the date at which they are
granted. The fair value is determined with the assistance of a valuation software using a trinomial tree which has been
adopted by the Boyle and Law (1994) node alignment algorithm, and takes into account the exercise price, the term of
the performance right, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield, the risk-free interest rate for the term of the share right and the correlations and volatilities of the peer
group companies.
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects: (i)
the extent to which the vesting period has expired, and (ii) the number of awards that, in the opinion of the Directors of
the Company, will ultimately vest. This opinion is formed based on the best available information at the reporting date.
IGO Limited
59
IGO ANNUAL REPORT 2021 — 127
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
28 Share-based payments (continued)
(b) Recognition and measurement (continued)
Equity-settled transactions (continued)
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had
not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of
the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled
award, and designated as a replacement award on the date that it is granted, the cancelled and new award is treated as
if it was a modification of the original award, as described in the previous paragraph.
29 Related party transactions
(a) Transactions with other related parties
During the financial year, a wholly-owned subsidiary paid dividends of $106,600,000 to IGO Limited (2020:
$195,000,000). Any such amounts are eliminated on consolidation for the purposes of calculating the profit of the Group
for the financial year.
Loans were made between IGO Limited and certain entities in the wholly-owned group. The loans receivable from
controlled entities are interest-free and repayable on demand.
(b) Key management personnel
Compensation of key management personnel
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
2021
$
7,325,162
296,637
92,145
2,782,708
10,496,652
2020
$
5,851,169
305,561
138,450
2,614,857
8,910,037
Detailed remuneration disclosures are provided in the remuneration report on pages 50 to 70.
IGO Limited
53
128 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
30 Parent entity financial information
(a) Summary financial information
The following information relates to the parent entity, IGO Limited, at 30 June.
Balance sheet
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Distributable profits reserve
Hedging reserve
Share-based payments reserve
Retained earnings
Total equity
Profit for the year
Other comprehensive income for the period
Total comprehensive income for the year
(b) Guarantees entered into by the parent entity
2021
$'000
2020
$'000
517,145
2,861,434
3,378,579
190,574
20,546
211,120
583,089
1,552,565
2,135,654
86,725
88,307
175,032
3,167,459
1,960,622
(3,167,459)
(1,960,622)
2,648,574
1,897,126
483,171
-
20,447
15,267
-
44
18,645
44,807
3,167,459
1,960,622
2021
$'000
483,171
(44)
483,127
2020
$'000
235,432
(92)
235,340
The parent entity has no unsecured guarantees in respect of finance leases of subsidiaries (2020: $nil).
There are cross guarantees given by IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd as described in
note 31. No deficiencies of assets exist in any of these companies.
(c) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2021 or 30 June 2020.
(d) Contractual commitments for the acquisition of property, plant or equipment
The parent entity has outstanding contractual commitments for the acquisition of property, plant and equipment at 30
June 2021 of $4,800,000 relating to the corporate office fitout (2020: $nil).
IGO Limited
61
IGO ANNUAL REPORT 2021 — 129
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
31 Deed of cross guarantee
IGO Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd are parties to a deed of cross guarantee under which
each company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been
relieved from the requirement to prepare a financial report and directors' report under ASIC Corporations (Wholly-owned
Companies) Instrument 2016/785 (as amended) issued by the Australian Securities and Investments Commission.
(a) Consolidated statement of profit or loss and other comprehensive income and summary of movements in
consolidated retained earnings
The above companies represent a 'closed group' for the purposes of the Legislative Instrument, and as there are no
other parties to the deed of cross guarantee that are controlled by IGO Limited, they also represent the 'extended closed
group'.
Set out below is a consolidated statement of profit or loss and other comprehensive income and a summary of
movements in consolidated retained earnings for the year ended 30 June 2021 of the closed group consisting of IGO
Limited, IGO Nova Holdings Pty Ltd and IGO Nova Pty Ltd.
Consolidated statement of profit or loss and other comprehensive income
Revenue from continuing operations
Other income
Other expenses from ordinary activities
Borrowing and finance costs
Profit before income tax
Income tax expense
Profit from continuing operations
Profit from discontinued operation
Profit after income tax for the period
Other comprehensive income
Items that may be reclassified to profit or loss
Effective portion of changes in fair value of cash flow hedges, net of tax
Other comprehensive profit/(loss) for the period, net of tax
Total comprehensive income for the period
Summary of movements in consolidated retained earnings
2021
$'000
671,739
3,666
(561,389)
(26,448)
87,568
(51,403)
36,165
431,895
468,060
2020
$'000
598,852
3,492
(444,526)
(4,235)
153,583
(50,245)
103,338
68,786
172,124
1,682
1,682
(95)
(95)
469,742
172,029
Retained earnings/(accumulated losses) at the beginning of the financial year
Profit for the year
Dividends paid
Transfer to distributable profits reserve
Retained earnings at the end of the financial year
82,085
468,060
(29,540)
(483,171)
37,434
(7,327)
172,124
(82,712)
-
82,085
IGO Limited
62
130 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
31 Deed of cross guarantee (continued)
(b) Consolidated balance sheet
Set out below is a consolidated balance sheet as at 30 June 2021 of the closed group consisting of IGO Limited, IGO
Nova Holdings Pty Ltd and IGO Nova Pty Ltd.
ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Inventories
Financial assets at fair value through profit or loss
Derivative financial instruments
Total current assets
Non-current assets
Receivables
Property, plant and equipment
Right-of-use assets
Mine properties
Exploration and evaluation expenditure
Deferred tax assets
Derivative financial instruments
Investments in controlled entities
Investments in joint ventures
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Current tax liabilities
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Deferred tax liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Retained earnings
TOTAL EQUITY
2021
$'000
2020
$'000
528,514
81,857
34,013
107,407
2,751
754,542
1,872,327
34,134
24,710
804,103
36,338
30,721
-
35,139
-
2,837,472
502,842
65,861
26,304
105,065
64
700,136
-
28,657
28,386
960,352
36,338
111,113
284
35,195
429,706
1,630,031
3,592,014
2,330,167
43,263
-
4,421
171,952
8,721
228,357
20,627
47,292
104,186
172,105
400,462
92,407
56,937
4,869
-
7,058
161,271
24,033
40,273
106,490
170,796
332,067
3,191,552
1,998,100
2,648,574
505,544
37,434
3,191,552
1,897,126
18,889
82,085
1,998,100
IGO Limited
63
IGO ANNUAL REPORT 2021 — 131
Notes to The Consolidated Financial Statements30 June 2021 Notes to the consolidated financial statements
30 June 2021
(continued)
32 Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, IGO
Limited, and its related practices:
Amounts received or due and receivable by BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Other assurance services
Amounts received or due and receivable by an associate of the Auditor of the Group
for:
Tax services
Corporate advisory services
Other compliance and advisory services
Total services provided by BDO
2021
$
2020
$
205,500
9,000
214,500
177,500
8,000
185,500
-
81,845
13,093
94,938
5,000
18,000
12,500
35,500
309,438
221,000
33 Summary of significant accounting policies
(a) New and amended standards and interpretations adopted by the Group
The Group has adopted all of the new or amended Accounting Standards and Interpretations issues by the Accounting
Standards Board (AASB) that are mandatory for the current reporting period.
The Group has not elected to early adopt any new standards or amendments during the current financial year.
(b) New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2021
reporting periods and have not been early adopted by the Group. The Group's assessment of the impact of these new
standards is that they are not expected to have a material impact on the Group in the current or future reporting periods.
(c) Other significant accounting policies
Impairment of assets
(i)
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value-in-use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets
(cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.
IGO Limited
64
132 — IGO ANNUAL REPORT 2021
Notes to The Consolidated Financial Statements30 June 2021 Directors' declaration
30 June 2021
In the Directors' opinion:
(a)
the financial statements and notes set out on pages 74 to 132 are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
complying with Accounting Standards,
professional reporting requirements, and
the Corporations Regulations 2001 and other mandatory
giving a true and fair view of the consolidated entity's financial position as at 30 June 2021 and of its
performance for the year ended on that date, and
(b)
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable, and
at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the
deed of cross guarantee.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Peter Bradford
Managing Director
Perth, Western Australia
Dated this 30th day of August 2021
IGO ANNUAL REPORT 2021 — 133
Directors’ Declaration Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of IGO Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of IGO Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial report, including a summary of significant accounting policies and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
134 — IGO ANNUAL REPORT 2021
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, andform part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.Tel: +61 8 6382 4600Fax: +61 8 6382 4601www.bdo.com.au38 Station StreetSubiaco, WA 6008PO Box 700 West Perth WA 6872AustraliaINDEPENDENT AUDITOR'S REPORTTo the members of IGO LimitedReport on the Audit of the Financial ReportOpinionWe have audited the financial report of IGO Limited (the Company) and its subsidiaries (the Group),which comprises the consolidated balance sheet as at 30 June 2020, the consolidated statement ofprofit or loss and other comprehensive income, the consolidated statement of changes in equity andthe consolidated statement of cash flows for the year then ended, and notes to the financial report,including a summary of significant accounting policies and the directors’ declaration.In our opinion the accompanying financial report of the Group, is in accordance with theCorporationsAct 2001, including:(i)Giving a true and fair view of the Group’s financial position as at 30 June 2020 and of itsfinancial performance for the year ended on that date; and(ii)Complying with Australian Accounting Standards and theCorporations Regulations 2001.Basis for opinionWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities underthose standards are further described in theAuditor’s responsibilities for the audit of the FinancialReport section of our report. We are independent of the Group in accordance with theCorporationsAct 2001and the ethical requirements of the Accounting Professional and Ethical Standards Board’sAPES 110Code of Ethics for Professional Accountants(including Independence Standards) (the Code)that are relevant to our audit of the financial report in Australia. We have also fulfilled our otherethical responsibilities in accordance with the Code.We confirm that the independence declaration required by theCorporations Act 2001, which has beengiven to the directors of the Company, would be in the same terms if given to the directors as at thetime of this auditor’s report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.Key audit mattersKey audit matters are those matters that, in our professional judgement, were of most significance inour audit of the financial report of the current period. These matters were addressed in the context ofour audit of the financial report as a whole, and in forming our opinion thereon, and we do not providea separate opinion on these matters.Independent Auditors Report
Acquisition Accounting – Tianqi Lithium Energy Australia Pty Ltd
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2021, the
Group acquired a 49% non-controlling interest in
Tianqi Lithium Energy Australia Pty Ltd (“TLEA”).
Note 25 discloses details of the transaction, in-
cluding, the cost of the acquisition and the sum-
marised financial position of the associate. The in-
vestment in TLEA is considered to be a significant
transaction for the Group.
The recognition of the TLEA investment is
impacted by various key estimates and
judgements, in particular the:
Determination of control and significant
influence;
Determination of business combination or
asset acquisition; and
Treatment of transaction costs.
This is a key audit matter due to the importance
and significance of the presentation,
measurement and disclosures in relation to the
users’ understanding of the financial statements.
Our work included but was not limited to the
following procedures:
Reviewing all executed agreements in order to
understand the structure and terms and
conditions of the transaction;
Evaluating management's assessment of
whether control, joint control or significant
influence existed, which included completing
the following;
Agreeing equity ownership to supporting
documentation; and
Reviewing shareholders agreement to
assess the voting rights of each party;
Verifying the transaction settlement date to
supporting documentation;
Verifying the transaction consideration to
supporting documentation, including bank
statements;
Verifying the assets and liabilities disclosed on
acquisition to the audited financial information
of the acquired businesses; and
We also assessed the adequacy of related
disclosures in Note 25 to the financial statements.
IGO ANNUAL REPORT 2021 — 135
Independent Auditors Report
Carrying Value of Mine Properties
Key audit matter
How the matter was addressed in our audit
Refer to Note 15 of the financial
statements, for disclosure over the mine
properties asset.
The carrying value of mine properties is
impacted by various key estimates and
judgements, in particular:
Ore Reserves and estimates;
Amortisation rates;
Capitalisation and attribution of mining
costs;
The Group is also required to assess for
indicators of impairment at each reporting
period. The assessment of impairment
indicators in relation to the mine assets
requires management to make significant
accounting judgements and estimates which
includes discount rates, commodity price
and ore reserve estimates.
This is a key audit matter due to the
quantum of the asset and the significant
judgement involved in management’s
assessment of the carrying value of mine
properties.
Our work included, but was not limited, to the following
procedures:
Reviewing management’s amortisation models,
including agreeing key inputs to supporting
information;
Assessing the competency and objectivity of, and
work performed by, management’s experts in
respect of the ore reserve estimates;
Evaluating and challenging management’s
assessment of indicators of impairment under the
Australian Accounting Standards for the mining
assets by:
Comparing the carrying amount of the Group’s
net assets against the market capitalisation,
both as at 30 June 2021, and subsequent
movements;
Comparing commodity price and foreign
exchange rate assumptions at 30 June 2021 to
independent consensus forecast;
Comparing FY21 operating performance against
Board approved budgets and historical
operating performance; and
Assessing economic indicators for impacts
on appropriate discount rates; and
We also assessed the adequacy of related disclosures in
Note 15 to the financial statements.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
136 — IGO ANNUAL REPORT 2021
Independent Auditors Report
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error. In preparing the financial report, the directors are responsible for assessing the ability
of the group to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 50 to 70 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of IGO Limited, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 30 August 2021
IGO ANNUAL REPORT 2021 — 137
Independent Auditors Report
Additional ASX Information
The following additional information not shown elsewhere in this report is required by ASX Limited in respect of listed companies
only. This information is current as at 20 August 2021.
1. SHAREHOLDING
Distribution of shareholders
RANGE
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – Over
Total
TOTAL HOLDERS
UNITS
% OF ISSUED
CAPITAL
7,643
5,026
1,175
1,025
111
2,871,252
12,092,168
8,432,021
23,708,293
710,164,079
14,980
757,267,813
0.38
1.60
1.11
3.13
93.78
100.00
SHARES
80,518,341
60,020,001
46,764,869
45,566,028
The number of shareholders holding less that a marketable parcel of fully paid ordinary shares is 1,101.
The Company has received the following notices of substantial shareholding (Notice):
SUBSTANTIAL SHAREHOLDER
Mark Creasy
T. Rowe Price Group, Inc.
Ausbil Investment Management Limited
FIL Limited
Voting rights: The voting rights of the fully paid ordinary shares are one vote per share held.
2. TWENTY LARGEST HOLDERS OF ORDINARY SHARES
ORDINARY
SHAREHOLDERS
1
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
2 HSBC CUSTODY NOMINEES LIMITED
3 CITICORP NOMINEES PTY LIMITED
4 YANDAL INVESTMENTS PTY LTD
5 NATIONAL NOMINEES LIMITED
6 BNP PARIBAS NOMS PTY LTD
7 BNP PARIBAS NOMINEES PTY LTD
8 FRASERX PTY LTD
9 HSBC CUSTODY NOMINEES LIMITED
10 HSBC CUSTODY NOMINEES LIMITED-GSCO ECA
11 CITICORP NOMINEES PTY LIMITED
12 HSBC CUSTODY NOMINEES LIMITED - A/C 2
13 PERTH SELECT SEAFOODS PTY LTD
14 ARGO INVESTMENTS LIMITED
15 BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
16 BNP PARIBAS NOMINEES PTY LTD
17 MR KENNETH JOSEPH HALL
18 NATIONAL NOMINEES LIMITED
19 PERTH SELECT SEAFOODS PTY LTD
20 AMALGAMATED DAIRIES LIMITED
Top 20 Holders of Independence Ordinary Share Class (Total)
Total Remaining Holders Balance
138 — IGO ANNUAL REPORT 2021
NO. OF SHARES
HELD
PERCENTAGE
HELD
190,283,784
184,080,753
86,346,444
67,103,153
66,268,171
19,591,386
13,415,943
13,415,188
7,845,620
4,971,370
3,539,536
3,493,576
3,237,884
3,080,970
2,572,263
2,186,210
2,173,918
2,139,747
2,062,116
2,004,180
679,812,212
77,455,601
25.13
24.31
11.40
8.86
8.75
2.59
1.77
1.77
1.04
0.66
0.47
0.46
0.43
0.41
0.34
0.29
0.29
0.28
0.27
0.26
89.77
10.23
3. UNQUOTED SECURITIES
IGO has 1,666,982 performance rights and 649,272 service rights on issue. The number of beneficial holders of performance rights
and service rights are 70 and 57 respectively.
SHAREHOLDER REPORTING TIMETABLE
Please note that the dates below are subject to change. Please check the IGO website nearer the time to confirm dates.
2021
27 October 2021
September 2021 Quarterly Activities Report
27 October 2021
September 2021 Quarter Investor Webcast
18 November 2021
Annual General Meeting
The Melbourne Hotel, Perth WA and via live webcast
2022
31 January 2022
FY21 Half Yearly Financial Statements
(Incorporating December 2021 Quarterly Activities Report)
31 January 2022
FY21 Half Year Investor Webcast
28 April 2022
March 2022 Quarterly Activities Report
28 April 2022
March 2022 Quarter Investor Webcast
27 July 2022
June 2022 Quarterly Activities Report
27 July 2022
June 2022 Quarter Investor Webcast
IGO ANNUAL REPORT 2021 — 139
Additional ASX Information Glossary
AC
AGAA
Ag
Au
BCM
CGP
Co
Cu
DD
EBITDA
EM
air core usually in the context of drilling or drill holes
AngloGold Ashanti Australia
silver
gold
bulk cubic metres
Chemical Grade Plant
cobalt
copper
Diamond Drilling
Earnings Before Interest, Tax, Depreciation and Amortisation
electromagnetic
EM conductors
electromagnetic conductors returned from EM surveys
FLEM
Fixed-Loop electromagnetic
Greenbushes
Greenbushes Lithium Mine
HPGR
HPM
IFRS
IGO
lb
High Pressure Grinding Rolls
high precious metal
International Financial Reporting Standards
IGO Limited
pound
Kwinana
Kwinana Lithium Hydroxide Plant
LiOH
Li2O
LTIFR
MLEM
Mt
Mtpa
NPAT
Ni
oz
lithium hydroxide
lithium oxide
lost time injury frequency rate per million hours worked
moving-loop electromagnetic surveys
million metric tonnes
million metric tonnes per annum
Net Profit After Tax
nickel
ounce
RC drilling
reverse circulation drilling
t
TGP
metric tonnes
Technical Grade Plant
Tropicana Operation
Tropicana Gold Mine that is 30% owned by the Company and 70% owned by AngloGold Ashanti Australia under the
TJV agreement
TJV
TRP
Underlying EBITDA
Tropicana Joint Venture that is 30% owned by the Company and 70% owned by AngloGold Ashanti Australia
Tailings Retreatment Plant
Is a non-IFRS measure and comprises net profit or loss before finance costs, depreciation and amortisation
and income tax, and after any earnings adjustment items, including asset impairments, gain or loss on sale of
subsidiaries and joint venture, redundancy and restructuring costs, acquisition and transaction costs and foreign
exchange and hedging gains/losses attributable to the acquisition of Tianqi.
Underlying Free Cash
Flow
Comprises Free Cash Flow (Net Cash Flow from Operating Activities and Net Cash Flow from Investing Activities)
adjusted to exclude acquisition costs, proceeds from investment sales (including Tropicana) and payments for
investments and mineral interests.
Zn
$
$M
zinc
Australian dollars. All currency amounts in this report are Australian Dollars unless otherwise stated
million Australian dollars
140 — IGO ANNUAL REPORT 2021
Glossary
FORWARD-LOOKING STATEMENTS
This document may include Forward-looking statements. Forward-looking statements include, but are not limited to,
statements concerning IGO’s planned production and planned exploration program and other statements that are not
historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”,
“should” and similar expressions are Forward-looking statements. Although IGO believes that its expectations reflected in
these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can
b given that actual results will be consistent with these Forward-looking statements.
CASH COSTS
All cash costs quoted include royalties and are net of by-product credits unless otherwise stated.
CURRENCY
All currency amounts in this report are Australian Dollars unless otherwise stated.
ALL-IN SUSTAINING COSTS (AISC) PER OUNCE OF GOLD SOLD
IGO reports All-in Sustaining Costs (AISC) per ounce of gold sold in AUD for its 30% interest in the Tropicana Gold Mine
using the World Gold Council guidelines for AISC. The World Gold Council guidelines publication was released via press
release on 27 June 2013 and is available from the World Gold Council’s website.
IGO ANNUAL REPORT 2021 — 141
Glossary Company Directory
DIRECTORS
Michael Nossal
Non-executive Chair
Peter Bradford
Managing Director & CEO
Debra Bakker
Non-executive Director
Peter Bilbe
Non-executive Director
Kathleen Bozanic
Non-executive Director
Peter Buck
Non-executive Director
Keith Spence
Non-executive Director
Xiaoping Yang
Non-executive Director
EXECUTIVE LEADERSHIP TEAM
Peter Bradford
Managing Director & CEO
Kate Barker
General Counsel and Head of Risk & Compliance
Matt Dusci
Chief Operating Officer
Andrew Eddowes
Head of Corporate Development
Joanne McDonald
Company Secretary and Head of Corporate Affairs
Sam Retallack
Head of People & Culture
Scott Steinkrug
Chief Financial Officer
PERTH OFFICE
Suite 4, Level 5
South Shore Centre
85 South Perth Esplanade
South Perth WA 6151
Postal
PO Box 496
South Perth WA 6951
Telephone +61 8 9238 8300
Facsimile +61 8 9238 8399
Email
Website www.igo.com.au
contact@igo.com.au
EXTERNAL AUDITOR
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Telephone +61 8 6382 4600
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 11
172 St Georges Terrace
Perth WA 6000
Telephone 1300 850 505 (within Australia),
+61 3 9415 4000 (outside Australia)
Facsimile +61 3 9473 2500
Email
Web
www.investorcentre.com/contact
www.computershare.com
SHARES
Listed on Australian Securities Exchange (ASX)
ASX code: IGO
Shares on issue: 757,267,813 ordinary shares
WEBSITE
Through the use of the internet, we have ensured that our
corporate reporting is timely, complete and available at
minimum cost to the Company. All ASX releases, investor
presentations, financial statements and other information
are available on our website.
www.igo.com.au
142 — IGO ANNUAL REPORT 2021
Cautionary Notes and Disclaimer
This annual report has been prepared by IGO Limited (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe
for, purchase or sell any securities in IGO or as an inducement to make an offer or invitation with respect to those securities in any jurisdiction.
This annual report contains general summary information about IGO, and information derived from publicly available sources that has not been
independently verified. The information, opinions or conclusions expressed in this annual report should be read in conjunction with IGO’s other
periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available on the IGO website.
No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and
conclusions expressed in this annual report. This annual report should not be relied upon as a recommendation or forecast by IGO.
This annual report contains forward looking information regarding future events, conditions, circumstances and the future financial performance of
IGO. Often, but not always, forward looking statements can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”,
“plan”, “estimate”, “anticipate”, “continue” and “guidance”, or other similar words and may include statements regarding plans, strategies and objectives
of management, anticipated production or construction commencement dates and expected costs or production outputs. These forward-looking
statements are not a guarantee, assurance or prediction of future performance and involve known and unknown risks, uncertainties and other factors,
many of which are beyond IGO’s control, which may cause actual results and developments to differ materially from those expressed or implied.
Further details of these risks are set out below. All references to future production and production guidance made in relation to IGO are subject to the
completion of all necessary feasibility studies, permit applications and approvals, construction, financing arrangements and access to the necessary
infrastructure, amongst other things. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further
information about the Mineral Resources and Ore Reserves, as well as any Competent Persons’ Statements included in IGO’s periodic and continuous
disclosure announcements lodged with the ASX. Forward looking statements only apply at the date of this annual report. Subject to any continuing
obligations under applicable law or any relevant stock exchange listing rules, in providing this information IGO does not undertake any obligation to
publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such
statement is based. IGO cautions against reliance on any forward-looking statement or guidance, particularly in light of the current economic climate
and significant volatility, uncertainty and disruption, including that caused by the COVID-19 pandemic. Past performance cannot be relied on as a guide
of future performance.
There are a number of risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO and
the value of an investment in IGO including and not limited to economic conditions, stock market fluctuations, commodity demand and price
movements, access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and
resource estimations, native title and title risks, foreign currency fluctuations and mining development, construction and commissioning risk. The
production guidance in this annual report is subject to risks specific to IGO and of a general nature which may affect the future operating and financial
performance of IGO.
The information in this annual report that relates to Exploration Results is extracted from the ASX announcements released on 17 March 2021 entitled
‘CY20 Mineral Resource and Ore Reserve Statement’, 24 May 2021 entitled ‘PRX: Exceptional high grade copper intersections at the Phreaker Prospect
within Lake Mackay JV and 28 July 2021 entitled ‘June 2021 Quarterly Activities Report, , and for which Competent Persons’ consents were obtained.
The Competent Persons’ consents remain in place for subsequent releases by the Company of the same information in the same form and context, until
the consent is withdrawn or replaced by a subsequent report and accompanying consent.
The information in this annual report that relates to Mineral Resources or Ore Reserves is extracted from IGO’s Mineral Resource and Ore Reserve
Statement released to the ASX on 17 March 2021 and for which Competent Persons’ consents were obtained. The Competent Persons’ consents
remain in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or
replaced by a subsequent report and accompanying consent.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX
announcements released on 24 May 2021 and 28 July 2021 and, in the case of estimates or Mineral Resources or Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified
from the original ASX announcement.
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