More annual reports from IGO:
2023 ReportPeers and competitors of IGO:
Scottish Mortgage Investment TrustAnnual Report 2023
Contents
Overview
Our Year at a Glance
Chair’s Message
Acting CEO’s Message
Remembering Peter Bradford
CFO Report
How we make a difference
Our Strategy
Operations and Exploration
Our Sustainable Business
Governance
Reports
Directors’ Report
Remuneration Report
Financial Report
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6
8
10
12
15
16
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42
54
58
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About This Report
This Annual Report is a summary of IGO
and its subsidiary companies’ operations,
activities and financial position as at
30 June 2023. All dollar figures are
expressed in Australian dollars (AUD) unless
otherwise stated. A detailed summary of
IGO’s sustainability performance can be
found in our 2023 Sustainability Report.
Non-IFRS Financial Reporting
This report includes certain non-IFRS
financial measures, including underlying
measures of net profit after tax, EBITDA
and free cash flow. The meanings of
individual non-IFRS measures used in
this report are set out in the Glossary
on page 167.
Non-IFRS measures should not be
considered as alternatives to an IFRS
measure of profitability, financial
performance or liquidity.
Terminology
In this report, IGO may use the terms
Indigenous and Aboriginal and Torres Strait
Islander peoples interchangeably in
different contexts. We respectfully
acknowledge that preferred terms and
language may vary between jurisdictions.
We use the term Traditional Owners to
describe Aboriginal and Torres Strait
Islander peoples who have a continuing
connection to the lands on which we work
and operate, with rights and interests
granted under traditional law and customs.
1
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.
We are a purpose-led organisation with
strong, embedded values and a culture of
caring for our people and our stakeholders,
and 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’s Nickel Business includes the Nova and Forrestania Operations and
the Cosmos Project, all of which are located in Western Australia. Nova and
Forrestania are operating underground mining and processing operations,
while the Cosmos Project is currently under development.
Our lithium interests are held via our 49% shareholding in Tianqi Lithium Energy
Australia Pty Ltd (TLEA), an incorporated joint venture with Tianqi Lithium
Corporation (Tianqi). TLEA owns upstream and downstream lithium assets,
including a 51% stake in the Greenbushes Operation and a 100% interest in
a battery grade lithium hydroxide refinery in Kwinana, Western Australia.
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.
Acknowledgement of Country
IGO would like to acknowledge and pay respects to Traditional Owner groups
whose land we are privileged to work on, and whose input and guidance we
seek and value within the operation of our business. We acknowledge the
strong, special physical and cultural connections to their ancestral lands.
Nova Solar Farm
Image left: Forrestania Operation
2
IGO Annual Report 2023
Our Year
at a Glance
Group Revenue
$1,024M
13%
Underlying Free Cash Flow
Net Profit After Tax
$1,098M
252%
$549M
66%
Nova Processing Plant
Financial IGO Annual Report 2023
3
$1,184M
Record dividends from TLEA
driven by strong operating
performance at Greenbushes
34,846t
30%
1.491Mt
Spodumene concentrate
production at Greenbushes
exceeding FY23 guidance
Nickel Business production in line
with revised FY23 guidance
TRIFR 16.0
$8.3M
57%
Total Reportable Injury
Frequency Rate disappointingly
increased from 14.1 in FY22 to
16.0 in FY23
total spend on Aboriginal or
Torres Strait Islander owned or
managed businesses in FY23,
increase from $8.0M in FY22
female representation on the
IGO Board, and 27% of our
overall workforce is female
88%
of our people said we have
a work environment that
is accepting of diverse
backgrounds and ways
of thinking
$793k
corporate giving
contributions in FY23
10MW
expansion of the Nova solar farm
and battery installation allowing the
Operation to run on 100% renewable
power (engines off) for 8-9 hours
a day in spring and summer
SustainabilityOperations 4
IGO Annual Report 2023
Making a
Difference
Our Purpose
We believe in a world where people
power makes amazing things happen.
Where new technology enables new
opportunities and clean energy makes
the planet a better place for generations
to come. We 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 products that will make energy storage mobile,
efficient and effective enough to make long-term improvements to the
lives of people right around the globe.
How? Developments in battery storage technology is enabling the full
potential of renewable energy to be realised, by allowing energy 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 clean energy future and by delivering the products needed
for tomorrow’s battery systems, we are making it happen.
This is the IGO Difference.
5
Our Strategy
Our strategy is to
become a globally
relevant supplier of
products that are
critical for clean
energy – to create a
better planet.
We are committed to delivering this strategy by:
producing a diverse suite of products made safely, ethically,
sustainably and reliably
connecting with end users through vertical integration; and
committing to a net zero emission target by 2035.
All of which will be delivered by our people who are bold,
passionate, fearless and fun – a smarter, kinder, more
innovative team.
Our Values
Our values help
define who we are
as an organisation
and are key to our
long-term success.
Be better
together
We empower, support and
respect each other. We act
safely and with care, to the
strengths of our people.
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.
See
beyond
We know that our actions
We know that our actions today
today will impact the world
will impact the world of tomorrow.
of tomorrow. We believe our
We believe our people, community
people, community and
and the environment really matter.
the environment really matter.
Run through
the sprinklers
We find the fun in what we do.
We find the fun in what we do.
When our workplaces are
When our workplaces are
healthier and happier,
healthier and happier,
we are better.
we are better.
Never
stand still
We are bold, adventurous
We are bold, adventurous
and excited for the future.
and excited for the future.
We imagine new opportunities
We imagine new opportunities
and seek new horizons.
and seek new horizons.
IGO Annual Report 2023 6
Chair’s Message
We remain steadfast
in our commitment to our
people, the environment,
and the communities
in which we operate.
It is with mixed emotions that I summarise
the events and achievements of the
financial year 2023 (FY23) at IGO.
This period will be remembered as one
filled with both triumphs and
challenges, as we reflect upon the
significant successes we achieved
while acknowledging the difficulties
we encountered.
We remain steadfast in our commitment
to our people, the environment, and
the communities in which we operate.
Our strategy, which has generated
significant value, particularly in our
Lithium Business interests, remains
the foundation of IGO, and the Board
is dedicated to pursuing opportunities
and growth in this dynamic sector.
One of the greatest challenges we
faced during the year was the sudden
and tragic loss of our esteemed
Chief Executive Officer, Peter Bradford,
in October 2022. Peter was an
extraordinary leader, renowned for his
innovative thinking, strategic acumen,
and unwavering dedication to the
mining industry and its role in the
transition to a clean energy future.
He transformed IGO into the company
it is today and left an indelible mark on
all those who had the privilege of
knowing him. Peter’s love for the IGO
business, his passion for the mining
industry, and his kindness and generosity
are sorely missed by all of us.
Following Peter’s passing, the Board has
been focused on ensuring continuity
and providing support to the IGO team
in pursuing our strategic objectives.
Under the guidance of Matt Dusci,
who assumed the role of Acting Chief
Executive Officer, and the executive
team, IGO has advanced its ambition
to become a globally relevant producer
of critical products for clean energy.
The safety and wellbeing of our
employees are of paramount
importance. The Board remains deeply
engaged with the business to minimise
harm and improve the overall health and
safety of our workforce. However we are
disappointed to report that our Group
Total Recordable Injury Frequency Rate
(TRIFR) as of 30 June 2023, was 16.0,
an increase from 14.4 compared to the
previous year. The Board and Executive
team appreciate that this lagging
indicator is unacceptably high and
we have accelerated several key safety
programs during the year including
Critical Control Management and
Safety Leadership.
IGO remains steadfast in its
commitment to delivering success
while upholding our environmental,
social and governance obligations to
all stakeholders. Throughout FY23,
both the Board and management have
placed great emphasis on initiatives
aligned with our decarbonisation
goals, diversity and inclusion, risk
management, and building stronger
relationships with Traditional Owners
through our inaugural Reconciliation
Action Plan (RAP). We continue to
prioritise these areas as integral
components of our overall strategy and
encourage you to review our FY23
Sustainability Report.
Although a fire at the Nova power plant
in December caused some disruption
to our decarbonisation plan, our team
advanced the installation of a second
solar farm combined with a battery
energy storage system. This innovation
enables our operation to run in an
engines off mode for extended periods
during the spring and summer months,
reducing carbon emissions and
simultaneously improving our financial
outcomes. This exemplifies IGO’s
commitment to embracing new
technologies that drive environmental
sustainability in pursuit of our net zero
emission by 2035.
In recent weeks, we proudly launched
our Innovate RAP, developed in
collaboration with our employees and
in close consultation with the
Traditional Owners on whose land
we operate. This plan outlines our
tangible commitments to deliver
meaningful benefits to Aboriginal and
Torres Strait Islander peoples. It will
serve as a roadmap to track our
actions, ensuring that we uphold our
commitments and maintain our strong
and collaborative relationship with our
host communities.
IGO Annual Report 2023 7
Our strategy, which has generated significant value, particularly
in our Lithium Business interests, remains the foundation of IGO,
and the Board is dedicated to pursuing opportunities and growth
in this dynamic sector.
Despite the challenges of FY23,
we are pleased to have achieved record
financial results for the period and to
have provided record returns to
shareholders, in line with our newly
announced Capital Management Policy.
We were also excited to announce
the appointment of Ivan Vella as the
new Managing Director and Chief
Executive Officer of IGO, who will
commence in late 2023. This significant
milestone, resulting from an extensive
and rigorous global search, opens a
new and exciting chapter for our
organisation. Ivan’s wealth of
experience in the mining sector,
particularly as the former Chief
Executive Officer of Rio Tinto’s global
aluminium business, coupled with his
shared vision for a sustainable energy
future, makes him an exceptional
addition to our team. We eagerly
anticipate his leadership and the
positive impact he will bring to IGO.
Looking ahead, the focus for the Board
over FY24 and beyond will include-
improvement in our safety performance;
the successful onboarding of Ivan as
our next CEO, and guiding his build-out
of the management team; completion
of the review of the Cosmos project to
ensure full value of that project for IGO;
using our joint venture influence to
maximise the organic growth profile
of Greenbushes and Kwinana; and
pursuing growth through exploration
and where appropriate adding to IGO’s
critical minerals portfolio.
It has been a year of renewal for your
Board with the appointment of three
new Directors during FY23. As well as
their general Board contributions, we
have already experienced the benefits
of Trace Arlaud’s significant mining
knowledge, Justin Osborne’s extensive
exploration experience and the deep
financial and accounting skills of
Samantha Hogg. I would like to extend
a warm thanks to these and all my
fellow directors, whose wise guidance
and unwavering support have been
invaluable to many within our
organisation over the past year.
I would also like to express the Board’s
sincere gratitude to all members of the
IGO team who have persevered through
numerous challenges, and remained
dedicated to our Company’s vision and
achieving remarkable results in FY23.
Lastly, we extend our gratitude to
our suppliers, host communities, and,
of course you, our shareholders for your
continued support of IGO as we strive
to make a difference through our work.
Michael Nossal
Non-executive Chair
IGO Annual Report 2023 8
Acting CEO’s Message
Making a difference by
sustainably and ethically
delivering our products.
FY23 proved to be a year of significant
achievements for IGO and one with
many challenges. Throughout this
period, and despite these challenges,
our people have shown outstanding
resilience, determination and care for
each other. They have consistently
embraced our values of being bold,
passionate, fearless and fun and have
a deep understanding of our purpose
of Making a Difference.
The sudden loss of our Managing
Director and CEO, Peter Bradford, in
October 2022 deeply shocked us all.
It was devastating news for his family,
the industry and those fortunate
enough to have worked alongside him.
Peter’s vision, passion and dedication
played a crucial role in transforming
IGO from a junior mining business into
the company it is today. He was a
strong advocate for important industry
topics such as sustainability, diversity
and inclusion, and was passionate
about nurturing the next generation
of leaders in our industry. Peter was
a beloved leader, mentor, colleague
and friend and his absence is felt
deeply by all.
lithium products to enable the
technology and infrastructure required
to decarbonise our planet, reduce our
reliance on fossil fuels and ultimately
reduce climate change. Our strategy is
intrinsically linked to this dynamic, and
with demand and supply fundamentals
for these clean energy metals
continuing to strengthen, we remain
confident that our strategy will continue
to deliver value for all stakeholders into
the future.
One of the notable highlights of FY23
was our strong financial performance.
Supported by our world-class Lithium
Business, IGO achieved record
underlying EBITDA of $1,987M,
underlying NPAT of $1,528M, and
underlying free cash flow of $1,098M.
This outstanding financial performance
has enabled us to reduce our drawn
debt to $360M and finish the year with
net cash of $415M. Additionally, we are
proud to declare record dividends for
FY23, including a 44 cents per share
final dividend and 16 cents per share
special dividend, both fully franked.
This brings total dividends for FY23
to 74 cents per share.
Our business is uniquely positioned
to play an important role in the global
transition towards clean energy.
This clean energy future is critically
reliant on nickel, copper, cobalt and
Our Lithium Business, held through
the TLEA joint venture, recorded a
remarkable year. At the Greenbushes
Operation, the team achieved record
spodumene concentrate production,
combined with strong prices and
disciplined cost control, resulting in
$10,500M revenue on a 100% basis.
This excellent outcome was achieved
while simultaneously preparing the
operation for future growth through
the ongoing construction of additional
concentration capacity and the
expansion of mining capability and
associated support infrastructure.
Greenbushes is an exceptional asset
that holds the promise of further
improvement in the coming years as
the team implements numerous
growth and optimisation projects.
Although we have successfully
produced volumes of battery-grade
lithium hydroxide product, the Kwinana
Lithium Hydroxide Refinery (Kwinana
Refinery) has presented its share of
challenges. The production ramp-up
of Train 1 has been slower than
expected, with the site team working
diligently to address several
engineering issues that have affected
plant throughput and reliability.
We remain focused on systematically
addressing the engineering issues
as we continue to ramp-up production
from Train 1. In parallel, we will continue
to advance detailed engineering on
Train 2, IGO expects to make a final
investment decision within the next
12 months.
IGO Annual Report 2023 9
During FY23 we continued to establish ourselves as a globally
significant business, uniquely positioned to contribute to the
global transition toward clean energy.
FY23 presented a year of mixed results
for our Nickel Business. Our Nova
Operation recovered strongly after
an unexpected interruption in
December 2022 caused by a fire at the
power station. This was an outstanding
achievement given the circumstances
and I would like to commend our teams
at Nova for the way they responded to
the fire and recovered to limit the
interruption to just 18 days. Meanwhile,
our operations at Forrestania concluded
FY23 in line with revised guidance.
We also announced the allocation of
land in Kwinana for our proposed
Integrated Battery Materials Facility
(IBMF) and continued to progress the
technical feasibility study and
partnering process for this project
in line with our ambitions to be
integrated downstream.
At Cosmos, our nickel development
project, our team has worked
determinedly throughout the year
to advance project construction and
development towards production.
Nevertheless, the project has been
impacted by challenges related to
capital costs, operating costs, and
scheduling. As previously reported,
IGO has recorded an impairment
against the value of the Forrestania
and Cosmos assets acquired from
Western Areas of $968M, with the
majority of this impairment relating
to the Cosmos Project. We are currently
undertaking a thorough review of the
Project to evaluate the risks and
opportunities, which will continue until
December 2023. We acknowledge the
impairment was disappointing and
we are working diligently to extract
optimal value from this asset.
Beyond our operational activities,
our exploration and discovery teams
have remained focused on generating
opportunities that will contribute to
the organic growth of our business.
In FY23, our exploration programs
primarily focused on nickel and lithium
exploration in the Fraser Range,
Forrestania, Paterson and Kimberley
project areas, with the teams remaining
excited about several key prospects
within this broad portfolio.
Amidst the successes we experienced
in FY23, we also encountered some
difficult challenges on our journey.
The dedication and commitment of
our people to our purpose and values
throughout this have been truly
inspiring, and I extend my sincere
thanks to each and every one of them
for their support and contribution over
the past year. Our unique culture lies
at the heart of our business, and I am
incredibly proud that we have stood
together and worked tirelessly to
absorb the challenges and deliver
some great achievements.
I would further like to express my
gratitude to the Board and leadership
team for their guidance during this
period. My gratitude and thanks
extends to all our people who’s tireless
efforts have been unwavering during
FY23. I would also like to acknowledge
our contractors, local communities,
and shareholders for their continual
support and commitment to achieving
our goals and aspirations.
Before closing, I would like to extend
a warm welcome to our new Managing
Director and CEO, Ivan Vella, who will
commence with IGO in the coming
months. We are all looking forward to
working with Ivan as we continue to
build a globally relevant business
supporting the clean energy revolution.
Thank you.
Matt Dusci
Acting CEO
IGO Annual Report 2023 10
Commemoration
Remembering
Peter Bradford
1958 – 2022
IGO Annual Report 2023 11
Peter was passionate about giving back to the community,
in particular, by engaging with communities near our
operations, supporting families with unwell children, and
supporting and improving mining-related education.
He encouraged the IGO team to volunteer regularly and
introduced IGO’s Volunteer Days as a way for our people
to come together and make a difference to local causes,
as well as build community spirit within our own teams.
He was a strong supporter of the Ronald McDonald House
Charities WA and participated in the Up All Night event three
times. Through his dedicated advocacy, IGO’s participation in
Up All Night experienced remarkable growth each year, with
the November 2022 walk boasting IGO’s largest team to date.
Peter will be greatly missed, and here at IGO, we have
continued to deliver on his vision to make a difference and
to make the planet a better place for future generations.
Peter lives on within our culture, a culture he was immensely
proud of, leaving behind an inspiring legacy.
In October last year, IGO was deeply saddened by the news
that Managing Director and CEO Peter Bradford had passed
away unexpectedly.
As CEO of IGO for the past eight years, Peter Bradford was
an exceptional and visionary leader, compassionate mentor
and friend to many of us. He was also widely respected in
the mining industry.
Through his inspirational leadership, IGO transformed into
the company that it is today - a globally recognised ASX 100
listed company focused on creating a better planet.
His passion for mining and resources, and his personal
drive to raise the bar across the industry, was unparalleled.
Peter was passionate about climate change and the role our
industry can play in the transition to a clean energy future and
was equally passionate in engaging others on these important
issues. Peter was adamant that he and the team at IGO could
make a difference – locally, nationally and globally.
During his time at IGO Peter was instrumental in co-creating
the IGO values and purpose with our people, ensuring they
were aligned with these values and our focus. Our culture is
a key differentiator for IGO and under his guidance these
programs of work created a culture and work environment
that is enjoyed by many at IGO.
In addition to his role at IGO, Peter championed the mining
industry in Western Australia. He was the President of AMEC,
an active mentor for Women in Mining WA (WIMWA),
a member of CEO’s for Gender Equity and a former WA Mining
Club committee member and Vice President.
He was recognised by the industry in 2021 when he was
awarded CEO of the Year by MiningNews.net and was also
presented with an Honorary Doctorate of Curtin University
for his distinguished services to the university through
outstanding leadership, advocacy and philanthropic support
of mining education.
IGO Annual Report 2023 12
CFO Report
Record Financial Performance
It is with great pleasure that I present our financial results
for FY23, in what was another record year of growth for IGO,
despite some difficult challenges at both an operational and
personal level.
IGO delivered record underlying earnings of $1,528M in FY23,
underscored by the growth in earnings from IGO’s Lithium
Business. FY23 also included the first full year contribution
from Forrestania to IGO’s Nickel Business and continued to
develop the Cosmos Project, following the acquisition of
Western Areas in June 2022. IGO was disappointed to record
a significant impairment charge against the assets acquired
from Western Areas totalling $968M as at 30 June 2023,
reducing earnings to $549M for the year.
At Greenbushes, annual spodumene concentrate production
of 1.491Mt exceeded guidance, whilst full year unit Cost of
Goods Sold (COGS) before royalties of $279/t was marginally
above the guided range. This result marked an outstanding
achievement by the Greenbushes team given the widely
reported industry cost pressures, supply chain challenges
and labour shortages. Moreover, Greenbushes continued to
progress its vast expansion program with $513M of capital
expenditure outlaid during the year, primarily on growth
projects, including the commencement of construction of the
third chemical grade processing plant, CGP3, which will
increase spodumene production capacity by a further
0.5Mtpa when it is brought online during CY25.
Also within IGO’s Lithium Business is the lithium hydroxide
plant located at Kwinana, which is 100% owned by the TLEA
joint venture. After declaring commercial production on Train 1
at Kwinana during the December 2022 quarter, the plant
achieved steady improvement in lithium hydroxide production
up to the March 2023 quarter, before experiencing a
challenging restart to a planned shutdown in the final quarter
leading to a mixed overall FY23 result. With operations
returning to pre-shutdown levels post-year end, the team
at Kwinana are continuing to work diligently to increase plant
production toward nameplate capacity. For FY23, Train 1
produced a total of 1,884t lithium hydroxide, including
1,542t battery grade product.
For IGO’s Nickel Business, FY23 production and cash costs
of 34,846t and $5.63/lb nickel payable respectively, were in
line with updated guidance. At Nova, a major fire to the power
station in December 2022 suspended operations for 18 days
and created ongoing challenges during the second half of the
year due to power supply issues. Despite these challenges,
Nova generated $518M of free cash flow in FY23, which is a
fantastic outcome under the circumstances and a credit to
the rapid response by the whole Nova team and our partners
operating the power station, Zenith Energy.
At Forrestania, production and cash costs were delivered
in line with the revised guidance reported in January 2023,
while delivering free cash flow of $69M. Cash costs at
Forrestania were challenged by difficult ground conditions
encountered at both mines and general cost escalations.
At Cosmos, capital expenditure of $338M was incurred during
the year to progress the project construction and mine
development. IGO has commenced an independent review
of the Cosmos Project development strategy and mine plan
to fully understand the risks and opportunities and remains
committed to realising optimum value of the Cosmos Project
for IGO shareholders.
IGO’s balance sheet and cash position remains incredibly
strong, with considerable improvement in IGO’s financial
position underpinned by record underlying cash flows during
the year. IGO’s investment in TLEA generated dividends to
IGO of $1,184M for the full year (FY22: $71M), highlighting the
outstanding performance at Greenbushes. IGO also repaid
$540M of debt and paid record dividends of $144M, or 19c to
shareholders. At 30 June 2023, IGO had net cash of $415M,
including drawn debt of $360M, which will continue to be
amortised biannually until its maturity date of 30 April 2025.
IGO Annual Report 2023 13
On 31 July 2023, IGO announced a formal Capital
Management Policy (CMP) which outlines the key principles
for assessing the allocation of IGO capital. As part of the new
CMP, IGO’s Shareholder Returns Policy has been updated
with a new target return range of between 20-40% of
underlying free cash flows (previously 15-25% of free cash
flows) when liquidity is less than $1.0B. When liquidity is in
excess of $1.0B, further discretion will be applied to return
a greater proportion of cash to shareholders at the discretion
of the Board. In accordance with this policy and as part
of IGO’s ongoing commitment to maintain dividends to
its shareholders, IGO’s interim and full year dividend for FY23
totalled 74 cents per share (10c per share in FY22), with the
additional special dividend of 16 cents per share, reflecting
outstanding business performance for the year.
Finally, we were deeply saddened by the passing of our CEO
and friend, Peter Bradford, in October 2022. While I regret the
missed opportunity to work alongside Peter to continue our
journey to transform IGO into a globally relevant supplier of
clean energy metals, I will be forever grateful for the years
spent working with Peter as an IGO Board member and note
that Peter’s enduring legacy at IGO and across the broader
mining community will continue to drive us each and every
day in the years to come.
Kathleen Bozanic
Chief Financial Officer
Share Price Performance
$/share
17
16
15
14
13
12
10
9
8
Volume (‘000)
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 Aug 23
As at 15 August 2023 | Source: Bloomberg
Last Price
Volume
FY23 Financial Summary
Total revenue1
Underlying EBITDA2
Profit after tax
Underlying net profit after tax4
Net cash flow from operating activities
Underlying free cash flow2
Total assets
Cash
Marketable securities
Total liabilities
Shareholders’ equity
Net tangible assets per share ($ per share)
Dividends (cents per share)
FY23
$M
1,024
1,987
549
1,528
1,423
1,098
4,738
775
100
948
3,790
5.01
74
FY22
$M
903
717
331
404
357
312
FY21
$M
915
475
5493
165
446
363
FY20
$M
889
460
155
153
398
311
FY19
$M
785
341
76
76
372
278
4,863
3,609
2,293
2,190
367
127
1,428
3,435
4.54
10
529
111
409
510
108
367
348
28
341
3,200
1,926
1,849
4.30
10
3.26
11
3.13
10
1 Revenue from continuing and discontinued operations.
2 See Glossary on page 167 for definition.
3 Profit after tax includes the gain on the sale of Tropicana after tax of $385M.
4 Reconciliation of FY23 underlying NPAT is on page 21
IGO Annual Report 2023 14
Executive
Leadership Team
Matt is accountable for the day-to-day management, safe operational delivery and
performance of the Company in his acting capacity as Acting CEO.
Matt is also a Non-executive Director of the TLEA and Windfield Lithium joint ventures.
Matt joined IGO in 2014 as Chief Growth Officer and was appointed Chief Operating
Officer in early 2018, and prior to that was Chief Growth Officer. Since October 2022,
Matt has been performing the role of Acting CEO, which will cease when Ivan Vella joins
IGO as Managing Director and CEO later in the year. 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.
Kate provides guidance to the Company on all legal, risk and compliance and company
secretarial matters. She also oversees IGO’s environment team, land access and heritage
matters and provides oversight on the Company’s growth strategy and M&A activities.
She is directly involved in the Company’s key stakeholder relationships and negotiations.
Kate joined IGO in 2011 and was appointed to the Executive Leadership Team in 2017.
Kate has 25 years’ experience as a practising lawyer specialising in large scale resources
litigation, corporate law and Native Title. In addition to her corporate work, Kate is
currently a member of the board of Ronald McDonald House Charities (WA) and Chair
of its Governance Committee.
Kath’s role is accountable for finance, investor relations, IT, contracts and procurement,
information management and business improvement. She recently also took the
leadership role on the Cosmos Project.
Kath was appointed Chief Financial Officer in 2022 after three years as a Non-executive
Director of IGO, including being Chair of the Audit and Risk Committee from January 2021.
Kath has over 30 years’ experience as a finance professional, including as Partner of
professional services firm, Deloitte and Chief Financial Officer/General Manager of listed
and private mining and contracting companies. Kath has previously held senior positions
with BGC Contracting, Atlas Iron and Mt Gibson. In addition to her corporate work,
Kath has been a Non-executive Director and Chair of Audit and Risk Committees for
several listed, private and government organisations and is currently a member of
the board of Rugby WA.
Sam’s role is to provide leadership and oversight of all People and Culture activities,
including remuneration and benefits, diversity, equity and inclusion initiatives, learning,
succession, and talent development and reinforcing the organisation’s culture, purpose
and values. Sam leads the Company’s communications and brand function and is also
responsible for the corporate office administration and operation. Sam recently took up
leadership of safety at an organisational level.
Sam joined IGO in 2013 as Human Resources Manager and was appointed Head of
People & Culture in 2017. Sam has over 30 years’ experience in senior management,
human resources, consulting, and operational roles working for a range of organisations.
Prior to joining IGO, Sam led large workforces within Aherns Department Stores and
Ansett Airlines, before turning to roles in Human Resource management across the
mining, finance, legal and biomedical sectors. In addition to her corporate work,
Sam is currently a member of the Board of Youth Focus.
Matt Dusci
Acting Chief Executive Officer
BAppSc (Geology) (Hons)
Kate Barker
Chief Legal Officer
LLB, BA
Kathleen Bozanic
Chief Financial Officer
BCom (Acc & Fin), ANZCA, GAICD
Sam Retallack
Chief People Officer
Dip App Science, B. Health Science,
CAHRI, GAICD
IGO Annual Report 2023 15
Our Strategy
Our strategy is to become a globally relevant supplier of products
that are critical for clean energy – to create a better planet.
We are committed to
delivering this strategy by:
producing a diverse suite of
products made safely, ethically,
sustainably and reliably
connecting with end users through
vertical integration; and
committing to a net zero emission
target by 2035.
Our FY24 strategic priorities include:
• Remain focused on improving safety and wellbeing outcomes for our people
• Maintain our engagement with our host communities and Traditional Owners on
whose land we operate
• Continue to work collaboratively with our joint venture partners to maximise
the value of our Lithium Business through the delivery of key brownfields growth
projects, in both our upstream and downstream Lithium Business
• Successfully transition the Cosmos Project into production
• Advance our downstream nickel strategy with our partners
• Support our exploration team to maximise the opportunity of exploration success,
leveraging our best–in–class team and the latest technology and innovation
All of which will be delivered by our
people who are bold, passionate,
fearless and fun – a smarter, kinder,
more innovative team.
• Progress our decarbonisation plans across the business
• Focus on ramp-up of Train 1 at the Kwinana Refinery; and
• Ensure operational delivery across all our managed operations.
Key Strategic Pillars
Producing a diverse suite of
products made safely, ethically,
sustainably and reliably
Delivery to Strategy in FY23
Produced a diversified mix of products critical to the battery storage and electric
vehicle industries, including lithium, nickel and copper
Progressed the development of our safety systems and support for our people
to deliver a physically and psychosocially safer work environment
Continued to reduce carbon emissions across our controlled operations
Connecting with end users
through vertical integration
Recorded the first sales of battery grade lithium hydroxide produced from the
Kwinana Refinery in Western Australia to customers in the battery supply chain
Committing to a net zero
emission target by 2035
Delivered by our people who are
bold, passionate, fearless and fun
– a smarter, kinder, more
innovative team
Progressed our downstream nickel strategy with the allocation of land at
Kwinana for a proposed Integrated Battery Material Facility (IBMF) producing
precursor cathode active material (PCAM)
Progressed discussions with global battery PCAM manufacturer to partner in
the project
$8.3M allocated to our decarbonisation fund in FY23, designed to facilitate
carbon reduction initiatives and projects
The Group emissions have increased during FY23 due to the consolidation
of the Cosmos and Forrestania assets into IGO’s emissions portfolio, however,
Nova emissions were down 9%, primarily due to the power station fire in
December 2022, which resulted in significantly lower power generation for a
period until temporary power could be established
Commissioned the new solar farm and battery storage facility at Nova – and
achieved the first engines off operation (100% renewable power), a first for an
Australian mine site
Progressed Cosmos decarbonisation roadmap, including mine electrification
and renewable energy studies
Integrated the Western Areas people into the business to create one
strengthened and aligned team
Employee engagement and development programs progressed across the
business to develop and retain our people
Continued to work on IGO’s first Reconciliation Action Plan
IGO Annual Report 2023
16
Key Operations
and Projects
Head Office Perth
Operations
Exploration Projects
Study/Construction
Ni-Co
Cu-Co
Ni-Cu-Co
Li2O
Kimberley Project
IGO 100% and various JVs
Paterson Project
IGO 100% and various JVs
Henderson Project
IGO up to 70%
Cosmos Project
IGO 100%
Kwinana Refinery
IGO 49%
Greenbushes Operation
IGO 24.99%
Greenbushes Project
IGO up to 100%
Forrestania Operation
IGO 100%
Forrestania Project
IGO 100%
Fraser Range Project
IGO 100% and various JVs
Nova Operation
IGO 100%
Raptor Project
IGO 100%
Irindina Project
IGO 100%
Western Gawler Project
IGO 100% and Iluka JV
Copper Coast Project
IGO 100%
Nova
Operation
Nickel, Copper, Cobalt
IGO 100%
Forrestania
Operation
Nickel, Cobalt
IGO 100%
Cosmos
Project
Nickel, Cobalt
IGO 100%
Greenbushes
Operation
Lithium (Spodumene)
IGO 24.99%
Kwinana
Refinery
Lithium (Hydroxide)
IGO 49%
IGO Annual Report 2023 17
Traditional Owner Groups
by Region/Project
Copper Coast
Barngarla, Narungga, Ngadjuri, Nukunu
Cosmos
Tjiwarl
Forrestania
Ballardong (Noongar South West Settlement),
Marlinyu Ghoorlie and Ngadju
Fraser Range/
Nova Operation
Ngadju, Nangaanya-ku, Untiri Pulka,
Upurli Upurli Nguratja
Western Gawler
Mirning, Wirangu, Kokatha, Yalata, Maralinga Tjaratja
Greenbushes
South West Boojarah (Noongar South West Settlement)
Irindina
Eastern Arrernte
East Kimberley
Jaru, Koongie-Elvire, Malarngowem,
Miriuwung-Gajerrong, Ngarrawanji, Yi-Martuwarra
Ngurrara, Yurriyangem Taam, Gooniyandi, Purnululu
West Kimberley
Bunuba, Warrwa, Wanjina-Wunggurr
Wilinggin, Dambimangari
Kwinana
Whadjuk (Noongar South West Settlement)
Lake Mackay
Paterson
Jipalpa-Winitjaru, Kiwirrkurra, Pikilyi,
Yarripilangu-Karrinyarra, Watakinpirri, Winparrku
Nyangumarta, Martu, Karnapyrri,
Ngurrara, Nyamal, Nyiyaparli
Raptor
Warlpiri, Anmatyerre
South Perth
Whadjuk Noongar
18
19
Operational Scorecard
and Outlook
Nickel Business
Nickel Production
Nova
Forrestania
Cosmos
Total contained nickel
Copper Production
Nova
Total contained copper
Cobalt Production1
Nova
Total contained cobalt
Nickel Cash Costs
Nova
Forrestania
Cosmos
Total Nickel Business cash costs
Development, Sustaining and Improvement Capex
Nova
Forrestania
Cosmos
Total Nickel Business capex
Lithium Business
Spodumene concentrate production (100%)
Greenbushes
Lithium hydroxide production (100%)
Kwinana Refinery
Lithium Cash Costs
Greenbushes cash cost
Greenbushes COGS
Kwinana Refinery COGS
Development, Sustaining and Improvement Capex
Greenbushes
Kwinana Refinery
Total Lithium Business Capex
Exploration
Exploration Expenditure
Units
FY23
Guidance
Range
FY23
Actual
FY24
Guidance
Range
t
t
t
t
t
t
t
t
$/lb
$/lb
$/lb
$/lb
$M
$M
$M
$M
kt
t
23,000 to 25,000
22,915
21,500 to 23,500
10,500 to 12,500
11,931
7,500 to 9,000
N/A
N/A
Not Provided
33,500 to 37,500
34,846
29,000 to 32,500
10,000 to 11,000
10,266
8,500 to 10,000
10,000 to 11,000
10,266
8,500 to 10,000
800 to 900
800 to 900
3.30 to 3.70
9.25 to 10.25
N/A
5.30 to 5.90
8 to 10
11 to 12
330 to 360
349 to 382
803
803
3.54
9.65
N/A
5.63
10
8
338
356
700 to 800
700 to 800
3.40 to 3.90
9.50 to 10.50
Not Provided
5.00 to 5.75
14 to 18
16 to 22
Not Provided
30 to 40
1,350 to 1,450
1,491
1,400 to 1,500
Not provided
1,884
Not provided
$/t produced
Not Provided
$/t sold
225 to 275
$/t produced
N/A
$M
$M
$M
550 to 600
35 to 45
585 to 645
244
279
N/A
513
30
543
280 to 330
Not provided
Not provided
850 to 950
35 to 45
885 to 995
Group exploration (ex-Lithium Business)
$M
75
82
65 to 75
1 Under the Nova-Forrestania blending agreement, cobalt contained in the Forrestania nickel concentrate is now recognised as a payable metal upon
sale of nickel concentrate
Left: Nova Processing Plant
IGO Annual Report 2023
20
Operating and
Financial Overview
FY23 represented another outstanding operating and financial result for IGO, highlighted by record
earnings from IGO’s Lithium Business and the integration of Western Areas’ nickel assets into IGO’s
Nickel Business.
A key financial indicator monitored by the Group’s Board and
management is 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, impairment and depreciation and
amortisation). This measure represents a useful proxy for
measuring an operation’s cash generating capabilities.
IGO’s Lithium Business enjoyed a record year in FY23, with
IGO’s share of net profit from TLEA increasing more than
eight times to $1,603.6M for the full year. At Greenbushes,
annual spodumene production of 1.49Mt exceeded full year
guidance and cash costs were marginally higher than guided,
reflecting ongoing industry cost pressures observed in the
sector. The outstanding result at Greenbushes helped deliver
record dividends to IGO of $1,184.4M from TLEA for FY23.
At Kwinana, commercial production was declared for the Train 1
lithium hydroxide plant in the December 2022 quarter, with
the plant producing 1,884t of lithium hydroxide for the full year.
IGO’s Nickel Business, which comprises the Nova Operation,
Forrestania Operation and Cosmos Project, delivered strong
earnings for the Group.
Revenue from continuing operations increased 13% year on
year. At Nova, revenue decreased 18% from FY22, following
a power station fire in December 2022 which caused
operations to be suspended for 18 days. Nova’s full year
production finished slightly below the revised guidance range,
while cash costs were in line, marking a strong result for the
site given the ongoing operating challenges and power supply
issues experienced following the fire. Nova’s full year EBITDA
of $460.4M compared with $631.2M in FY22 at an EBITDA
margin of 62% versus 70%, respectively.
At Forrestania, full year nickel production and cash costs were
within the guided range, with cash cost guidance having
been revised upward in January 2023 due to substantial cost
pressures and the impact of seismic events experienced at
the site. Underlying EBITDA of $110.5M was generated from
revenue of $275.5M, representing an EBITDA margin of 40%.
At Cosmos, project development activities increased
substantially during the year, with the advancement of several
major infrastructure projects including the paste plant,
processing plant, shaft and associated infrastructure,
together with the mine development. Capital expenditure
incurred at Cosmos for FY23 was $338.2M, which was below
the guided range due to schedule delays on certain activities
which are now expected to be completed in FY24.
As announced post-year end, IGO has recorded an
impairment charge of $968.5M as at 30 June 2023 against
the assets acquired from Western Areas. The impairment
charge reflects changes to capital costs, operating costs and
mine production schedule challenges at the Cosmos Project
and underperformance at Forrestania.
The following chart depicts the key contributions to IGO’s FY23 underlying EBITDA relative to the previous financial year:
Underlying EBITDA
FY23 $1,987M
FY22 $717M
1,800
1,600
1,400
1,200
1,000
800
600
400
200
$M
(200)
1,604
631
460
177
111
(11)
(96)
(68)
(49)
(28)
(20)
11
(12)
(6)
TLEA
Joint Venture
Nova
Operation
Forrestania
Operation
Cosmos
Project
Exploration
and evaluation
expense
Corporate
and other
expenses
Investment
revaluation
Share-based
payments
expense
(non-cash)
IGO Annual Report 2023 21
An independent review of the Cosmos Project has commenced
and is expected to be completed the December 2023 quarter.
Collectively, the strong financial and operating performance
helped deliver a record underlying EBITDA for the fifth year
in a row of $1,987.1M, a 177% increase on the prior year.
Underlying exploration and evaluation expenditure of
$96.1M was 42% higher than FY22, reflecting IGO’s expanding
exploration portfolio, consistent with its growth strategy.
Corporate expenditure also increased compared to FY22,
reflecting the increase in IGO’s employee headcount following
the acquisition of Western Areas in June 2022.
Underlying net profit after tax (NPAT) for the year was
$1,528.1M, compared to $404.0M in the previous financial
year, reflecting the immense growth in earnings from
TLEA in FY23. A reconciliation of underlying to reported
NPAT is set out below and the year-on-year movement in
underlying NPAT is illustrated in the chart below.
Underlying NPAT Reconciliation
Underlying NPAT
Adjusted for:
- Impairment of Cosmos and Forrestania assets
- Impairment of exploration tenements
- Other
Reported NPAT
Total
$M
1,528
(968)
(12)
1
549
Underlying NPAT Variance FY23 vs FY22
2,000
1,500
1,000
500
$M
404
i
g
n
y
l
r
e
d
n
U
2
2
Y
F
T
A
P
N
1,427
(171)
111
(11)
(111)
(20)
(6)
(28)
(31)
(31)
(4)
1,528
A
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L
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Below is a reconciliation of underlying EBITDA to underlying NPAT for FY23:
Underlying EBITDA to NPAT for FY23
1,987
(35)
(287)
(137)
1,528
2,000
1,500
1,000
500
$M
Underlying
EBITDA
Net finance
costs
Depreciation and
amortisation
Income tax
expense
Underlying NPAT
Depreciation and amortisation expense of $287.1M (FY22: $175.6M) was higher than FY22, reflecting the addition of the
Western Areas nickel assets. Net finance costs of $34.7M primarily comprises interest on the $900.0M debt facility used to fund
the acquisition of Western Areas in June 2022.
IGO Annual Report 2023
22
Full year cash flows from operating activities for the Group
were $1,423.1M compared to $357.1M in FY22, driven by
record dividends of $1,184.4M from TLEA (FY22: $70.7M).
The Nova Operation generated $528.7M cash flows from
operating activities for FY23, following the sale of 18,454t
of payable nickel (FY22: 21,377t), 9,894t of payable copper
(FY22: 10,383t) and 359t of payable cobalt (FY22: 420t).
The Forrestania Operation generated $78.0M cash flows
from operating activities from 7,911t of payable nickel and
26t of payable cobalt sold during the year. Additionally,
cash outflows for exploration and evaluation expenditure
were $99.6M and $82.3M cash outflows were for corporate,
transaction costs and net finance payments. Income tax
payments of $184.8M (FY22: $199.0M) were also paid
during the year.
Net cash outflows from investing activities decreased to
$293.6M for the year, from $1,281.0M in FY22. In FY22, total
payments of $1,168.5M (net of cash acquired) related to the
acquisition of Western Areas in June 2022. In the current
year, cash outflows from investing activities mainly comprised
$315.1M of mine and infrastructure development outflows
for the development of the Cosmos Project, together with
$10.6M capital expenditure at Nova and $8.8M at Forrestania.
FY23 investing cash flows also included $52.6M cash inflows
from the sale of listed shares during the year.
Cash flows from financing activities during the financial year
included net repayment of borrowings, totalling $540.0M,
in relation to a senior-secured debt facility which was fully
drawn to partially fund the Western Areas acquisition in
June 2022. The debt repayments are inclusive of a $360.0M
revolving credit facility which remains available to the Group
until their maturity in April 2025. Furthermore, cash outflows
from financing activities included dividends paid to
shareholders totalling $143.9M during the year.
At the end of the financial year, the Group had cash and
cash equivalents of $775.2M and marketable securities
of $100.0M (FY22: $367.1M and $208.4M respectively).
The Group’s future prospects are dependent on a number
of external factors that are summarised later in this report.
1,184
101
55
12
55
45
540
144
185
775
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2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
$M
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Nova Solar Farm
IGO Annual Report 2023
23
External Factors and
Risks Affecting the
Group’s Results
The Group operates in an uncertain economic environment
but these uncertainties are minimised through the application
of a rigorous risk management framework and clearly defined
risk appetite, set by the Board. 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.
Commodity Prices
The prices that the Group obtains for its products are a
key driver of business performance, and fluctuations in
these markets affects its results, including cash flows and
shareholder returns. The Group’s FY23 operating cash flows
were sourced from the sale of base metals at Nova and
Forrestania and from its dividends from TLEA, resulting from
lithium sales via its Lithium Business, which includes
Greenbushes and Kwinana. Each of these commodities are
priced by external markets and, as the Group is not a price
maker with respect to the metals it sells, it is 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.
Commodity prices experienced high volatility in FY23, with
upward pressure on prices generally through the first half of
FY23, with softer prices generally observed in the second half
of the financial year. During the year, IGO undertook a number of
proactive nickel hedge swaps to mitigate risks associated with
the Group’s exposure to adverse movements in the nickel price.
The Group also undertook limited diesel hedging to protect
against potential supply side risks emerging in global oil
markets during FY23. This hedging was performed for
approximately 50% of anticipated diesel usage at the Group’s
nickel operations, primarily being the Nova Operation, which
relies upon diesel-powered energy. These contracts expired
on 30 June 2023.
Currency Exchange Rates
The Group’s functional currency is Australian Dollars (AUD)
which is the currency of payment for the majority of its
suppliers and employees. However the Group is exposed to
exchange rate risk on the income it generates by way of
United States dollars (USD) denominated metal sales and
USD denominated dividends from its Lithium Business.
Under the Group’s Financial Risk Management Policy,
hedging is only permitted to mitigate risk and is not
permitted where it may be deemed speculation. The Group’s
cash inflows may therefore be subject to fluctuations in the
AUD:USD exchange rate with respect to metal sales or
dividends received from its Lithium Business to the extent
that these cash flows are unhedged. The Group did not
enter into any currency exchange hedging during FY23.
Exposure to Economic, Environment
and Social Risks
The Group has material exposure to economic, environmental
and social 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 2023 Sustainability
Report which can be found on the Company’s website.
Taskforce on Climate-related Financial Disclosures
IGO have disclosed in line with the recommendations of the
Taskforce on Climate-related Financial Disclosures (TCFD)
since 2017. To read about IGO’s response to climate change
and our full TCFD disclosure please see IGO’s 2023
Sustainability Report which can be found on the IGO website.
Downstream Processing Markets
In FY24, dividends received from TLEA will be impacted by
variable lithium prices, reflected in chemical and technical
grade spodumene prices and lithium hydroxide prices for
Greenbushes and the Kwinana Refinery, respectively.
Furthermore, the production of nickel, copper and cobalt
across the Nova and Forrestania Operations and Cosmos
Project will remain exposed to commodity price fluctuations.
The Group will continue to manage this risk in accordance
with its Financial Risk Management Policy in FY24 and beyond.
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. Some of the Group’s offtake agreements are
due to expire in FY24 and will be re-tendered. The outcome
of this tendering has the potential to materially affect the
Group’s results and profitability.
Further risks are discussed in the Managing Risk Effectively
section in this Annual Report.
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. The Group
may hedge interest rate risk in accordance with its Financial
Risk Management Policy in certain circumstances. The Group
did not enter into any interest rate hedging during FY23.
IGO Annual Report 2023 24
IGO is a leading
producer of
nickel and copper
concentrates,
with a portfolio
of operating,
development and
exploration assets
located in Western
Australia.
Above: Nova Processing Plant
Left: Nova Tailings Dam Facility
25
Nickel
Business
With over 20 years of operating experience in the nickel sector, IGO has established a reputation
as a safe and reliable producer of metal products to local and global customers.
Our Nickel Business strategy is evolving toward adding value to our nickel concentrate products by further refining and
processing to produce high-quality, battery grade chemical products, demand for which is growing quickly to support the
rapid uptake of electric vehicles and battery storage systems.
Nova Operation
IGO owns and operates the Nova Operation, an underground
nickel mine and processing facility located east-northeast of
Norseman in the Great Western Woodlands of Western Australia.
Nova has established a strong track record of production
efficiency and cost performance since production
commenced in 2017. It is one of the lowest cost nickel
operations in Australia and has generated over $2B in
free cash flow since first production.
During FY23, IGO maintained a strong focus on safety
at Nova. TRIFR at 30 June 2023 was 14.7 (FY22: 19.9),
representing a 21.4% improvement compared to the prior
year. Nova continued its focus on risk management
processes, psychosocial risk management and training,
and ensuring compliance to the new Work, Health and
Safety (WHS) legislation requirements.
FY23 production and cost performance at Nova was impacted
by a fire at the diesel power station in December 2022, which
resulted in the suspension of operations for 18 days. While
the fire caused significant damage to the power station, IGO
was fortunate that no other infrastructure was impacted and,
thankfully, none of our team were harmed.
With the support of our people and our key contractors,
Nova resumed production in late December utilising
temporary power generation. Limiting the downtime to just
18 days was an outstanding achievement and testament to
the strong team and collaborative culture at Nova.
Despite the interruption caused by the fire, Nova recorded
a strong FY23 result, producing 22,915t nickel, 10,266t
copper and 803t cobalt which was at the lower end of
the guidance range revised following the fire.
Cost performance for FY23 was $3.54/lb (payable), which
was higher than our original guided range, however within
the guidance range provided following an assessment of
the impact of the fire.
In FY23, IGO also achieved another key milestone as we work
towards our net zero emissions target. In March 2023,
IGO and its partner, Zenith Energy, commissioned a new
10MW solar farm and 10MWh battery storage system.
The new solar farm brings Nova’s total solar generation
capacity to 15MW. Combining this expanded solar generation
capacity with a stationary energy storage system will allow
Nova to operate in an engines off mode for an extended
period during the spring and summer months. Nova also
implemented significant water management projects in
FY23, which resulted in a reduction of raw water consumption
of up to 57%.
The culture at Nova remains strong with engagement of our
workforce remaining high. Despite challenges throughout the
year, such as the power station fire, the resilience of the Nova
team allowed us to respond in a safe and efficient way to
minimise the impact of such events.
IGO Annual Report 2023 26
Nova Operation (IGO 100%)
Total revenue
Segment operating profit before tax
Total segment assets
Total segment liabilities
Ore mined
Ore milled
Nickel grade
Copper grade
Cobalt grade
Metal in concentrate
- Nickel
- Copper
- Cobalt
Metal payable - in concentrate produced
- Nickel
- Copper
- Cobalt
$M
$M
$M
$M
t
t
%
%
%
t
t
t
t
t
t
Nickel cash costs and royalties*
Nickel All-in Sustaining Costs**
* Includes credits for copper and cobalt and royalties
** Includes cash costs and sustaining capex
$/lb total Ni metal payable
$/lb total Ni metal payable
FY23
FY22
739
285
753
124
901
457
974
109
1,500,101
1,644,752
1,502,051
1,673,168
1.78
0.74
0.06
22,915
10,266
803
18,306
9,289
336
3.54
3.95
1.85
0.75
0.07
26,675
11,483
982
21,281
10,620
417
1.95
2.33
Forrestania Operation
The Forrestania Operation, 100% owned and operated by IGO,
is located 400km east of Perth, Western Australia. Forrestania
includes two underground mines, Flying Fox and Spotted
Quoll, with ore from these mines processed via the Cosmic
Boy processing facility.
The TRIFR at 30 June 2023 was 13.4, representing a 7.6%
improvement from the previous year (FY22: 14.5). The safety
focus at Forrestania has been the integration of the site into
IGO safety systems. This includes key work involving ongoing
risk assessments and associated controls ensuring a
preventative approach to hazard management, as well as
IGO health and wellbeing initiatives with emphasis on
psychosocial risk and fatigue management.
In FY23, operations at Forrestania were challenged by
several seismic events which restricted access to high
grade stopes and required increased ground support and
longer re-entry times. These measures have proven
successful but did impact production and costs while being
implemented. Synergies within the IGO business were
realised during the year, whereby Forrestania and
Nova concentrate were blended which resulted in higher
payabilities and lower penalties for the concentrate.
Nickel production for FY23 was 11,931t, at a cash cost of
$9.65/lb (payable).
Throughout the year, Cosmos and Forrestania made
significant strides in integrating with IGO’s purpose,
culture and values. The result of this work was evidenced
through our engagement processes which highlight a
remarkable sense of pride among our workforce in being
part of the IGO family.
Forrestania Operation
IGO Annual Report 2023 Forrestania Operation (IGO 100%)
Total revenue
Segment operating profit before tax
Total segment assets
Total segment liabilities
Ore mined
Ore milled
Nickel grade
Metal in concentrate
- Nickel
Metal payable - in concentrate produced*
- Nickel
Nickel cash costs and royalties**
Nickel all-in sustaining costs***
$M
$M
$M
$M
t
t
%
t
t
$/lb total Ni metal payable
$/lb total Ni metal payable
27
FY23
275
1
211
73
416,478
586,583
2.53
11,931
9,574
9.65
10.38
* Under the Nova-Forrestania blending agreement, cobalt contained in the Forrestania nickel concentrate is now recognised as a payable metal upon
sale of nickel concentrate. Approximately 26t of payable cobalt metal was realised in nickel concentrate sales in FY23
Includes credits for copper and cobalt and royalties
Includes cash costs and sustaining capex
**
***
Cosmos Project
The Cosmos Nickel Project, 100% owned and operated by
IGO, is located 30km north of Leinster in Western Australia
in one of Australia’s premier nickel belts. Nickel was first
discovered at Cosmos in 1997 and has been previously
mined via open pit and underground methods.
During FY23, the safety focus at Cosmos was the integration
of IGO’s existing safety systems to the site. The TRIFR at
Cosmos as at 30 June 2023 was 19.2, representing a 27.2%
increase to the prior year (FY22: 15.1). We continued to
understand health and safety critical risks, increasing health
and safety capability by expanding and upskilling our leaders
and workforce. Our improvement focus extends to protecting
our people from psychosocial harms, and in FY23 specific
risk audits were undertaken to improve our understanding
of these issues, which will continue in FY24.
Cosmos is being developed as an underground mining
operation, with ore brought to surface via a shaft before
being processed on site into a nickel concentrate product.
Capital infrastructure is being installed to support mining
initially of the Odysseus ore body, which is situated at
approximately 1km depth, with the AM5 orebody to be
mined later in FY24 and AM6 in FY25.
Having acquired the Cosmos Project in 2022 as part of
the Western Areas acquisition, IGO has spent FY23
progressing construction, development and operational
readiness of the Project which will result in a revised plan
that will drive optimum value for Cosmos.
Key achievements during FY23 included:
• Completion and commissioning of the new aerodrome,
improving the ability for our people to travel to and
from site safely
• Completion and commissioning of the paste plant
infrastructure
• Strong progress toward completion of the shaft and
underground materials handling infrastructure
• Advanced construction works to refurbish and expand the
capacity of the processing infrastructure on surface; and
• Extensive mine and capital development.
In aggregate, capital expenditure incurred at Cosmos over
FY23 was $338M.
While strong progress has been made at Cosmos over the
year, the Project has faced several challenges relating to
capital and operating cost escalation, delays in development
and challenges to the mine production schedule. As a result,
IGO has been undertaking a comprehensive review of the
Project, led by a group of independent consultants, to
understand the risks and opportunities to the current life
of mine plan, capital costs and schedule, and define a
development pathway for IGO. This review is expected to
be completed by December 2023 and IGO will update the
market on its plan to deliver optimum value from the
Cosmos Project.
IGO Annual Report 2023
28
Nickel Business Outlook
Our Nickel Business has several key strategic work programs
planned for FY24 which are designed to enhance safety, improve
production and cost performance and enhance sustainability.
Nova Operation
At Nova, our focus will be on continued optimisation, particularly in the areas of
metallurgical recovery and sustainability.
Key activities will include:
• ongoing electric light vehicle and underground equipment trials, as well as further
integration of energy storage technologies to complement our renewable energy
generation capacity
• the sustained operation of the engines off scenario for the Nova power station; and
• the replacement of the temporary power station with a permanent power station.
Forrestania Operation
At Forrestania, the team are focused on improving production and cost performance
over the remaining mine life.
Key projects during FY24 include:
• transitioning to campaign milling in response to the planned closure of the
Flying Fox mine
• finalisation of the mine closure plan, including detailed care and maintenance and
rehabilitation plans for the site
• resource drilling at the South Ironcap lithium prospect; and
• ongoing historical diamond drill core relogging and assaying of LCT pegmatite
intersections.
Cosmos Project
At Cosmos, as announced in July 2023, our focus will be to complete the
independent project review by December 2023.
This comprehensive review will evaluate:
• project scope, schedule, capital and operating costs
• mining method, cut-off grades and development rates to optimise the mine given
challenging geotechnical conditions
• opportunities including extensions to resources and reserves; and
• Upon completion of the review, IGO will update the market on its plan to deliver
optimum value from the Cosmos Project.
IGO Annual Report 2023 29
Integrated Battery
Materials Facility
IGO, in conjunction with Wyloo Metals (Wyloo), is working
towards completion of a feasibility study on the development
of a project which involves integrating a downstream nickel
refinery with a plant producing high-value nickel dominant
PCAM for the battery supply chain. The project would
represent the first commercial scale production of PCAM in
Australia and would align with the State Government’s efforts
to support the growth of Western Australia’s battery industry.
Key workstreams required before a final investment decision
can be made include engaging a partner with experience in
PCAM production, delivery of a feasibility study in 2024,
environmental permitting and approvals, broad stakeholder
engagement and the achievement of key commercial
outcomes. IGO and Wyloo are currently advancing
discussions with a global battery PCAM manufacturer who
have indicated strong interest in partnering in the project.
This is an important step in integrating the parties’
technologies with IGO and Wyloo’s critical minerals to capture
value across the battery supply chain.
The proposed IBMF would harness the IGO ProcessTM, a
disruptive technology developed by IGO. At continuous pilot
scale this technology successfully demonstrated the ability
to treat a broader range of concentrate feeds than
traditional processes producing nickel rich battery materials,
at significantly reduced carbon emissions intensity.
Combining the IGO Process™ with leading precursor
production technology, the proposed IBMF Facility will
produce precursor cathode active material needed for
the manufacture of nickel rich lithium-ion batteries.
In April 2023, IGO secured approximately 30 hectares of land
in the Kwinana Strategic Industrial Area from the Western
Australian Government for the proposed IBMF. The land
secured for the proposed IBMF Facility is located adjacent
to the Kwinana Lithium Hydroxide Refinery which is owned
by TLEA, of which IGO is a 49% shareholder. IGO believes
there is strong strategic and environmental merit in
establishing a battery chemical hub in Kwinana close to raw
material supply given IGO’s existing upstream nickel assets
and Western Australia’s sizeable battery mineral endowment.
Below: Cosmos Project
IGO Annual Report 2023 30
IGO’s Lithium
Business is
held via the
Company’s 49%
shareholding
in TLEA.
Left: Kwinana Lithium Hydroxide Refinery
31
Lithium
Business
IGO’s Lithium Business is held via the Company’s 49%
equity interest in TLEA. TLEA, an incorporated joint venture
with Tianqi Lithium Corporation (51%), owns and operates
an integrated lithium business which includes a 51% interest
in the Greenbushes Lithium Mine and 100% interest in
the Kwinana Refinery, both of which are located in
Western Australia.
Within the joint venture, there are strong governance processes
in place. IGO is represented on the TLEA Board by Acting CEO,
Matt Dusci and IGO Chair, Michael Nossal. Matt Dusci is also
on the Board of Windfield Holdings, which is the parent entity
of Talison Lithium which operates Greenbushes.
FY23 Financial Performance
During FY23, excellent operational performance from
Greenbushes combined with very strong spodumene prices
delivered outstanding financial returns to IGO. IGO’s share
of net profit from TLEA for FY23 was $1,603.6M, up 807%
from FY22.
Free cash generation by the Lithium Business has also been
exceptional. While a total of $565M in capital expenditure was
spent at Greenbushes and Kwinana during the period, strong
cash flows to TLEA enabled a total of $1,184.4M in dividends
paid to IGO during FY23, which was more than 15 times higher
than in FY22.
TLEA (IGO 49% share)
Dividends received from TLEA
Share of net profit of TLEA
$M
$M
FY23
1,184
1,604
FY22
71
177
Greenbushes Operation
Greenbushes is operated by Talison Lithium under an
incorporated joint venture between TLEA and Albemarle
Corporation (TLEA: 51% / Albemarle: 49%).
FY23 capital expenditure at Greenbushes totalled $513M,
a significant uplift from FY22 as the operation works toward
increasing potential production capacity to ~2.5Mtpa by FY27.
Greenbushes is a large-scale, long life, low cost, hard rock
lithium mine located approximately 250km south of Perth,
Western Australia. An established mining and processing
operation, Greenbushes hosts the highest ore reserve grade
of any hard rock lithium mine globally.
The operation comprises a large open-pit mine, four
processing plants – three producing chemical grade lithium
concentrates (CGP1 and CGP2 and the Tailings Retreatment
Plant (TRP)), one producing technical grade lithium
concentrates (TGP), and associated support infrastructure.
During FY23, the team at Talison focused on safe and reliable
production, as well as the continued expansion of processing
and mining capacity via several key capital projects.
FY23 spodumene production from Greenbushes was 1,491kt,
representing a production uplift of 32% compared to FY22.
Production growth during FY23 was delivered via the ongoing
optimisation of the four processing facilities, and the
completion of ramp up of the TRP, which achieved nameplate
production during the year. In addition, improved recoveries,
higher feed grade and improved throughput helped deliver
a strong result, at the top end of the guidance range.
COGS for FY23 were at the top end of guidance at $279/t,
reflecting the impacts of cost inflation during the year.
In FY23, the Talison team made strong progress on the
following key projects:
• chemical Grade Plant 3 (CGP3) – CGP3 is designed to
deliver approximately 0.52Mtpa spodumene production
capacity. Construction commenced in FY23, starting with
key ground works and piling for infrastructure support
• mine services area – a new mine services area has been
established to support the expanded mining operations
and integration of Macmahon as the new mining contractor,
effective 1 July 2023
• tailings dam 4 (TSF4) – expanded tailing storage capacity
to support the increase to processing capacity
• power supply – adding a new 132kV power supply to site
via a new transmission
• water storage – expanded water capture and storage
capacity to supply process mills and assist in water
management on site; and
• accommodation village – commencement of
construction of a new accommodation village to increase
accommodation options during construction and
operations phases.
IGO Annual Report 2023 32
In addition, over the past 12 months, the Talison team have
continued their outstanding work to ensure the Greenbushes
Operation minimises impacts on the environment, while also
actively engaging with surrounding communities through
support for community organisations involved with education
and health.
Outlook for FY24
Looking ahead to FY24, the focus at Greenbushes is the
ongoing growth of production and processing operations.
IGO’s FY24 production guidance is 1,400kt to 1,500kt, with
spodumene cash costs expected to be in the range of
$280/t to $330/t of concentrate produced.
The team will continue to focus on optimising and maximising
the operational performance at Greenbushes through a
number of business improvement initiatives. This will continue
to assist in the improvement of recoveries, reduce cost,
improve productivity and ultimately production. During FY24
there will remain a considerable focus on the delivery to
budget and schedule of a number of capital growth and
enabling projects including the construction of CGP3.
IGO expects a decision on the financial investment decision on
CGP4 during FY24. Further ahead, additional studies will be
undertaken, including the assessment of underground mining
at Greenbushes as well as potential satellite feed opportunities.
$M
$M
‘000 tonnes
%
‘000 tonnes
$/t concentrate sold
$/t concentrate sold
FY23
10,500
9,514
3,983
2.66
FY22
1,880
1,348
3,793
2.41
1,491.3
1,134.6
279
670
238
457
During CY22, TRIFR was 4.8 representing an 11%
improvement (CY21: 5.4).1
1 TLEA reports on a calendar year (CY) basis.
Greenbushes Operation (100%)
Total revenue*
EBITDA**
Ore mined
Lithium grade
Spodumene concentrate production
Lithium cost of goods sold excluding royalties
Lithium cost of goods sold**
* Includes all costs of goods sold including royalties
** Represents Greenbushes revenue and EBITDA on a 100% basis
Kwinana Lithium Hydroxide Refinery
IGO Annual Report 2023 33
Kwinana Refinery
TLEA owns and operates the Kwinana Refinery, a fully
automated, state of the art facility designed to produce
lithium hydroxide for global customers. Located in the
Kwinana Strategic Industrial Area, 35km south of Perth,
the facility has been engineered to process spodumene
concentrate sourced from Greenbushes, located 200km away.
First battery grade lithium hydroxide production from Train 1
was achieved in May 2022, a significant milestone that
represented the first time lithium hydroxide had been
produced in Australia from a commercial facility.
During FY23, the focus has been to transition Train 1 from
trial production to steadily ramping up towards the plant’s
24,000tpa nameplate production rate. As the operation of
Train 1 has ramped up, the team have identified a range
of engineering challenges which require rectification to
enable higher production to be achieved. These challenges
are now well understood and production ramp-up will
continue during FY24.
In parallel, TLEA are progressing towards the front-end
engineering and design work related to Train 2.
This engineering work is expected to continue into early
CY24, pending a final investment decision, after which the
TLEA Board expect to be in position to commit to this
second production train at Kwinana.
During CY22, TRIFR at Kwinana Refinery was 11.1%
representing a 113% increase (CY21: 5.2 TRIFR).
This increase is largely attributed to the fact that the
plant was not operational in CY21.
Kwinana Operation (100%)
EBITDA*
Train 1 production
$M
tonnes
* Represents Kwinana revenue and EBITDA on a 100% basis including the pro-forma period prior to commercial production
FY23
(36)
1,884
FY22
(41)
88
IGO Annual Report 2023
34
IGO remains
committed
to unlocking
value through
exploration and
discovery.
We understand that without an enduring
commitment to exploration, our industry
will be unable to satisfy global demand for
the metals which are critical to clean
energy and the ongoing decarbonisation
of our planet.
While global investment in mineral
exploration has been in decline over
several years, IGO has continued to invest
in our people and technology, develop
new techniques and adjust our exploration
portfolio to maximise the opportunity for
a material mineral discovery.
Above: Nova Core Yard
35
Regional Exploration
and Development
Our work in this area would not be possible without the
support of the many Traditional Owner groups and local
communities on whose land we operate. IGO’s approach to
engagement is guided by our values and the utmost respect
we have for the communities which we collaborate with
around Australia. Importantly, our teams will not commence
work on any project without appropriate agreements in place
and a clear plan for engagement with these stakeholder
groups as work progresses.
Our Exploration Strategy
IGO’s exploration strategy is aligned to our broader corporate
strategy focused on metals critical to clean energy. Our portfolio,
targeting nickel, copper, lithium and rare earths deposits, is one
of the largest landholdings held by an Australian resources
company, with some 62,000km2 under active tenement either
100% by IGO or in joint venture with various partners.
Our strategy relies on leveraging the latest technology and
innovation, our inhouse geology, geophysics and
geochemistry knowledge, our proprietary inhouse databases,
and targeted research collaborations.
Fraser Range Project | Western Australia
The Fraser Range Project in Western Australia is prospective for
high-value magmatic nickel-copper-cobalt sulphide discoveries.
With a total active land holding of over 9,000km2, the Fraser
Range has been a key focus for IGO for several years as IGO
seeks to unlock discovery in a known mineralised belt.
In FY23, IGO continued drill testing a range of targets around
Nova and Silver Knight following up previous drilling and
geophysical surveys, including new 3D seismic data. At Silver
Knight South, massive nickel-copper-cobalt sulphide
mineralisation was intersected and elsewhere several holes
intersected disseminated to blebby iron-nickel-copper
sulphides. Other exploration work included air core (AC)
drilling and moving-loop electromagnetic (MLEM) surveys.
In FY24, the focus will be on further drill target testing around
Silver Knight and Nova, including testing of shallow (<600m)
and deep (>1,000m) massive nickel-copper-cobalt sulphide
targets, based on seismic and other data.
Forrestania Project | Western Australia
The Forrestania Project in Western Australia is prospective
for komatiite nickel sulphides (as demonstrated by the
Flying Fox and Spotted Quoll mines) and pegmatite-hosted
lithium discoveries (as demonstrated by the nearby Earl Grey
deposit). The total area of active tenements is almost
1,000km2, 100% owned by IGO.
Exploration in FY23 was focused mainly on drill testing a range
of nickel sulphide targets throughout the belt, with some nickel
sulphides intersected. Relogging and sampling of historical drill
cores commenced with a focus on pegmatite intrusions with
the potential to contain lithium minerals, and at South Ironcap,
a soil sampling program was completed. Late in the year the
first drill holes in many years targeted extensions of the South
Ironcap lithium prospect, with all assay results still pending.
In FY24, the exploration for lithium will step up, whilst the
exploration for nickel will focus mainly on the assessment of FY23
drilling results once available, and new nickel target generation.
Paterson Project | Western Australia
The Paterson Project, located in Western Australia’s
Pilbara region, covers a granted tenement package of some
5,400km2 held through joint venture agreements with
Encounter Resources Limited, Cyprium Metals Limited, and
Antipa Minerals Ltd, as well as some 100% owned tenements.
The Paterson Project represents a belt-scale opportunity
to find and develop large scale sediment-hosted copper
(+/- cobalt) and intrusion-related copper-gold deposits.
While the area has been subject to exploration activity in
prior years, IGO strongly believes there is value to be
unlocked through the application of modern exploration
techniques which can identify deposits at depth.
Discoveries made by IGO’s peers, including Winu, Havieron
and Calibre, were all discovered beneath a layer of
transported cover, demonstrating the significant opportunity
that remains in the region.
During FY23, several work programs were conducted
including regional geophysical surveys, geological mapping,
soil sampling and AC drilling to provide high-quality primary
datasets for target identification, and core drilling of
combined geological, geophysical and geochemical targets.
Looking ahead to FY24, IGO’s plan in the Paterson includes
further core drilling of high priority target areas based on
integrated 3D geological models, as well as AC drilling,
geological mapping and geochemical sampling to further
progress other potential target areas.
Kimberley Project | Western Australia
The Kimberley Project, located in the Kimberley region
of Western Australia, spans a proterozoic belt with proven
magmatic nickel copper-cobalt sulphide mineralisation.
The Project includes numerous tenement positions held in
conjunction with Buxton Resources and several other junior
explorers, as well as IGO on a 100% basis. The total area
under granted tenure is around 7,500km2.
The fertility of the belt has been demonstrated by the
Savannah Mine in the East Kimberley and Merlin
nickel-copper-cobalt deposit in the West Kimberley.
IGO considers the Kimberley region to be underexplored
for nickel with much of the historical exploration focused
around the Savannah mining operation, while several other
intrusive suites remain underexplored for nickel-copper-
cobalt sulphide deposits by modern techniques, despite
evidence they are also prospective.
In FY23, IGO significantly advanced our understanding of
several prospective areas in the West and East Kimberley.
Work programs included HeliTEM airborne electromagnetic
(EM), UTV and/or helicopter supported geological and
geochemical traversing using pXRF analysers, ground EM
surveys, and select core drilling of prime targets.
In FY24, IGO plans to complete ground EM surveys and drill
test several EM targets in the West and East Kimberley where
positive geochemical results also coincide with some of the
EM anomalies. Geological and geochemical traversing will
also continue in the East and West Kimberley to follow-up
prospective geology and previous geochemical results and/or
airborne EM anomalies.
IGO Annual Report 2023 36
IGO Annual Report 2023
O U R PURPOSE
Safety &
Wellbeing
Traditional
Owners &
Communities
S
R
U
O
I
V
A
H
E
B
&
S
E
U
L
A
V
R
U
O
Our People
Making a
Difference
Our
Response to
Climate Change
O
U
R
C
U
L
T
U
R
E
Our Financial
Contributions
Environment
Business
Integrity
OUR STRAT E G Y
Nova Processing Plant
Our
Sustainable
Business
We strive to fulfil the needs of the current
generations without compromising the needs
of future generations, while ensuring a balance
between economic growth, environmental care
and social wellbeing.
37
We will discover, develop and deliver the products needed
for a clean energy future in a safe, sustainable and ethical
manner to create shared value for all our stakeholders.
Our purpose is centred on Making a Difference for future
generations by aspiring to decarbonise our business
and targeting to be net zero across all our managed
operations by 2035.
Our sustainability framework is formed on seven pillars,
centred around our purpose – Making a Difference – and
underpinned by our values. We recognise the wider community
is increasingly focused on the environmental, social and
governance areas of businesses, and these matters are
interconnected and constantly evolving. Our framework
highlights the unique relationships between each of these
pillars in achieving our overall business strategy, and these
pillars form the basis of our sustainability management,
reporting, targets and measurements of our progress.
To read more about IGO’s Seven Pillar Sustainability Model,
refer to our 2023 Sustainability Report.
IGO Annual Report 2023 38
Our People
Safety and
Wellbeing
27%
of our overall workforce are female
(29% in FY22)
57%
of our Board are female
(43% in FY22)
88%
of our people said we have a work
environment that is accepting of diverse
backgrounds and ways of thinking
16%
disappointingly an increase
in IGO’s TRIFR
(14.1 in FY22 to 16.0 in FY23)
96%
of our people feel empowered to
stop a job if believed to be unsafe
85%
of our people believe IGO shows care
and concern for their health and wellbeing
Our people promote sustainable business practices
throughout our business, and are the key drivers to
position IGO as a sustainability leader in our industry.
Providing a safe place to work is of the upmost importance,
and we proactively aim to prevent harm by promoting
safe work systems and a culture of care and wellbeing.
Our people are our difference, and we continue to work
together to inspire and empower each other to fulfill our
purpose through Making a Difference.
Key initiatives in FY23:
• extension of paid parental leave to 26 weeks rolled
out across the business
• ongoing commitment to maintaining gender balance
in senior leadership with 75% of our executive team
female and 57% of our Board, well ahead of the
HESTA 40:40 Vison target of 2030
• integrated Western Areas into the business to create
one strengthened and aligned team
• employee engagement and development programs
progressed across the business to develop and
retain our people
• improving communication and connection between
senior leaders and teams across the business to
improve the speed of decision making across
various levels of the business
• improved support for individual learning and
development needs; and
• increased employment opportunities for one of
our Traditional Owners with Ngadju employment
traineeships.
Acknowledging our safety performance during the year
fell short of our expectations with an increase in our
TRIFR, we plan to continue work with our people in FY24,
including our contracted workforces, to reduce incidences
leading to work related injuries and illnesses.
Our business expanded during FY23 with the addition
of the Forrestania Operation and Cosmos Project.
We worked closely with these sites to better understand
and manage our health and safety critical risks and align
processes to build on our existing approaches that will
lead to a common understanding of these risks for
increased transparency and assurance across the
entire business.
During the year we further enhanced our understanding
of psychosocial hazards through business wide audits,
risk assessments and education initiatives to reduce risks
with improved resourcing, assessment tools and
comprehensive training for our people.
IGO Annual Report 2023 39
Traditional Owners
and Communities
Our Response
to Climate Change
$24.6M
contributed to Ngadju Native Title
Aboriginal Corporation (NNTAC) in royalty
payments since the commencement of the
Nova Mining Agreement in 2014
$793k
invested in corporate giving to support
local businesses and charitable causes
($686k in FY22)
We continued to progress IGO’s inaugural
Innovate Reconciliation Action Plan
We recognise the important relationships between
our business and our host communities, and acknowledge
it is the shared responsibility of all our people to build
on these relationships that are integral to our
sustainable business.
We greatly value our relationships with the Traditional
Owners on whose lands we operate and appreciate the
support and trust Traditional Owners place in IGO.
We foster these cultural relationships through open and
honest engagement with fair and respectful agreements
that value and respect culture. We are committed to
building and strengthening these relationships through
providing indigenous employment pathways, training
opportunities, cultural heritage management and
protection practices, and creating business partnerships
that encourage personal empowerment and provide
meaningful opportunities for Aboriginal and Torres Strait
Islander peoples.
During the year, through a collaborative consultation
process with our people and Traditional Owner
representatives, we continued to progress IGO’s RAP.
IGO’s RAP will continue to drive our reconciliation journey
by formalising the existing work we do to foster engagement
with our people and host communities.
IGO’s purpose is Making a Difference – our Corporate
Giving Program is central to achieving our purpose
through engagement with our host communities.
We provide donations to local schools and community
groups and some of the organisations we supported
during FY23 include CoRE Learning Foundation,
Earbus Foundation, MADALAH, Ronald McDonald House
Charities, Royal Flying Doctor Service and St Barts.
Responding to the imperative to address a
changing climate has long been our focus and
we believe that IGO has a critical enabling role
in the transition to a low carbon world
10MW
expansion of the Nova solar farm and
battery installation allowing the Operation to
run on 100% renewable power (engines off) for
8-9 hours a day in spring and summer
$8.3M
decarbonisation fund allocated to support
investment in emission reduction projects,
research and development, and nature-based
solutions
Realising our climate change commitments is central to
our purpose, to make a real difference through being a
globally relevant supplier of products critical to clean
energy, improving people’s quality of life and changing the
way we live. IGO’s portfolio of high-quality operating and
exploration assets focusing on lithium, nickel and copper,
has been shaped to intrinsically link to clean energy and
zero emissions vehicle technologies. IGO aspires to be a
leader in the net zero transition. We have set a target to
reach net zero across our portfolio of managed operations
by 2035, if not sooner, and continue to seek opportunities
to decarbonise along our value chain.
During the year, significant work continued to accelerate
our response to climate change, including:
• improved understanding of our physical climate
resilience by conducting a risk-assessment workshop
for our Cosmos Project
• successfully implementing a decarbonisation fund built
on our internal carbon price mechanism
• continuing to implement high priority decarbonisation
projects at Nova; and
• advanced progress on the Cosmos Decarbonisation
Roadmap, including mine electrification and renewable
energy studies.
IGO have disclosed in line with the recommendations of
the Taskforce on Climate-related Financial Disclosures
(TCFD) since 2017 and continues to improve our climate-
related disclosure and our response and investment to a
changing climate.
IGO Annual Report 2023 40
Environment
153ha
land rehabilitated in FY23
57%
reduction per month in groundwater
extractions at Nova
Continued focus in FY23 on reducing
our exploration impacts and maintaining
progressive rehabilitation commitments
We work in some of Australia’s most biologically,
ecologically and culturally rich environments, and we are
committed to minimising the adverse environmental
impact of our activities through utilising best practice
and responsible environmental management.
We endeavour to be sustainable and accountable both in
our portfolio of the products we seek to develop, and how
their development is achieved. With this, innovation and
digital technologies provide us with dynamic tools to
mitigate and monitor our impact on the environment.
As we progress towards a more sustainable business,
we prioritise innovation and collaboration to reduce our
physical footprint and improve the way we use our natural
resources. Environmental risks are managed in accordance
with legal obligations, corporate policies and standards,
and site Environmental Management System (EMS),
aligned to ISO 14001 Environmental Management Systems.
Biodiversity is integral to IGO’s environmental strategy,
and we recognise the great value of the unique and
fragile ecosystems that exist within and adjacent to our
operational areas. Mining activities can have an impact on
biodiversity, and we strive to minimise these impacts
through a comprehensive and science-based approach to
ensure long-term conservation and restoration, a key
indicator of the overarching sustainability of our
operations and our social licence to operate.
Read more about our environmental activities, initiatives,
goals and commitments in our 2023 Sustainability Report.
IGO Annual Report 2023 Business
Integrity
Third Modern Slavery
Statement released
FY22 Tax Transparency
Report released
New compulsory Cyber Security
Training rolled out business wide
41
Our Financial
Contributions
$8.3M
total spend on Aboriginal or Torres Strait
Islander owned or managed businesses in
FY23, increase from $8.0M in FY22
86%
of our suppliers of goods and services are
located locally or within Western Australia,
increase from 73% in FY22
$1,107M
payments to suppliers for goods and
services in FY23
Business integrity is more than just compliance, and we
believe behaving honestly, with transparency and
accountability is the responsibility of everyone who
works at IGO.
IGO is proud to contribute to a clean energy future.
Success in delivering our business strategy enables us
to share the benefits our business creates and help
sustain local and regional economies.
IGO actively promotes ethical and responsible decision-
making by clearly stating our values and purpose in our
Code of Conduct. Our Code of Conduct is supported
by a system of internal controls, our risk management
process and our corporate governance frameworks,
and a healthy corporate culture which have been put in
place to drive continuous improvement and promote
responsible conduct.
In addition to maintaining our commitment to responsible
conduct, we also seek to align our values with those we
do business with and will adopt a Supplier Code of
Conduct during FY24.
Effective risk management is integral to achieving our
purpose and delivering on our strategy. Good risk
management enables us to safeguard our people, assets,
reputation and the environment.
We hold a high standard to protecting the security of
all personal information handled, including information
belonging to our employees, contractors, suppliers and
other stakeholders. During the year, we adopted a new
Privacy Standard to ensure IGO meets its regulatory
obligations under the Privacy Act and best practice.
Our financial contributions provide our stakeholders with
the confidence that we are sharing value through taxes,
royalties and employment and procurement opportunities,
in addition to building communities by investing in
education and training.
IGO continues to support the local communities and host
governments in which our operations are located, and our
goal is to leave host communities in a better economic
and social position than when we arrived. We seek to
invest first locally to support the economic development
in the communities in which we operate. This is followed
by regional investment within Western Australia, then
nationally and finally internationally.
Our commitment to sustainable development extends
through our value chain – from exploration to the way we
operate to extract and process the metals we mine, and
to the way our products are used by our customers to
deliver a clean energy future. IGO’s Modern Slavery
Statement and Human Rights Policy ensures IGO is being
transparent about the products we supply to the market
and the ethical ways they have been produced.
More information about our practices can be found in our
2023 Sustainability Report.
IGO Annual Report 2023 42
Continuous
improvement
in Governance
at IGO
Good governance
is the collective
responsibility of the
Board, Executive
Leadership Team, and
for all those who work
at IGO, to act ethically
and with integrity.
43
Corporate
Governance
IGO seeks to adopt and maintain leading practice and governance standards and apply these principles
in a manner that is consistent with and builds on and supports our culture and values.
Our governance framework supports our people to achieve
our strategic objectives and enables responsible and
informed decision making. We regularly review our
governance framework to ensure it reflects contemporary
legislation and governance practices, enabling our business
practices to remain relevant in creating ethically and
sustainable value for all our stakeholders.
We support the 4th Edition of the ASX Corporate Governance
Council’s Corporate Governance Principles and
Recommendations (ASX Recommendations), and during the
year we complied with the ASX Recommendations in their
entirety. Our overall approach to corporate governance is
detailed in our FY23 Corporate Governance Statement,
and related Appendix 4G, and can be found on our website at
https://www.igo.com.au/site/ourbusiness/governance.
Organisational Structure and
Lines of Responsibility
e
c
n
a
r
u
s
s
A
t
n
e
d
n
e
p
e
d
n
I
Stakeholders
Shareholders, Employees, Traditional Owners, Neighbouring Communities, Government, Suppliers,
Customers and Joint Venture Partners
Accountability
Board
Sub-committees
s
r
o
t
i
d
u
A
Accountable for strategy,
performance and governance
Audit & Risk
Committee
Nomination &
Governance
Committee
People,
Performance &
Culture Committee
Sustainability
Committee
l
a
n
r
e
t
n
I
d
n
a
l
a
n
r
e
t
x
E
7 Pillars of
Sustainability
Accountability
Delegation and oversight
Managing Director and CEO
Accountability
Delegation, direction and resources
Executive Leadership Team
Our People
Safety and
Wellbeing
Traditional
Owners and
Communities
Our Response
to Climate
Change
Environment
Business
Integrity
Our Financial
Contributions
IGO Annual Report 2023
44
Board Committees
The Board has established four Committees that are structured in accordance with the ASX Recommendations to support
the Board in effectively performing its duties and responsibilities. The Committees are accountable to the Board and inform
and make recommendations to the Board on the relevant areas of responsibility which are outlined in the Committee
Charters. All Charters were reviewed for best practice in FY23 and can be found on our website at https://www.igo.com.au/
site/our-business/governance.
Membership
Role
FY23 Key Focus
Audit and Risk Committee
Samantha Hogg (Chair)
Debra Bakker
Keith Spence
Xiaoping Yang
To assist the Board in fulfilling its oversight
responsibilities in relation to the Company’s
Risk Management System and to monitor the
effectiveness of the control environment of
IGO in the areas of balance sheet risk,
relevant legal and regulatory compliance,
financial reporting and External Audit and
Internal Audit.
Continuing to enhance cyber security and
response
Establishing risk and compliance frameworks
aligned to our values
Continued disciplined financial reporting
Enhancing business systems that reduce risk
and ensure financial discipline
Nomination and Governance Committee
Justin Osborne (Chair)
Keith Spence
Trace Arlaud
To assist the Board to review Board
composition (including identifying candidates
for the Board), director independence,
succession, performance and relevant
corporate governance policies and practices.
Diversification of Board with three new
Non-executive Director appointments
Introduced improved process for Board
evaluation and Board skills evaluation
Continued to improve Board education
programs
Reviewed succession planning across the
business
Enhanced leadership development programs
People, Performance and Culture Committee
To assist the Board on organisational
development and culture including IGO’s
workplace diversity and inclusion, and
establishing IGO’s remuneration framework
and relevant policies and practices to
attract, retain, reward and motivate a
diverse workforce.
Debra Bakker (Chair)
Michael Nossal
Justin Osborne
Sustainability Committee
Keith Spence (Chair)
Michael Nossal
Xiaoping Yang
Trace Arlaud
To assist the Board in fulfilling its oversight
responsibilities in relation to the Company’s
sustainability policies and practices in
safety and wellbeing, environment, climate
change and decarbonisation, human rights,
Traditional Owners and communities,
heritage and land access.
Continued focus on managing operational
health and safety critical risks and safety
improvement programs
Continued to progress IGO’s Innovate RAP
Review of IGO’s key material sustainability risks
Board Tenure and Diversity*
Tenure
< 2 years: 3
Between 2 – 4 years: 2
> 4 years: 2
Gender
57% Female
Age
Independence
Under 40: 0
Between 40 – 60: 4
Over 60: 3
100% of the IGO Board are
independent.
* Noting that Ivan Vella will join the IGO Board later in the year as Managing Director & CEO
IGO Annual Report 2023 45
Board Succession
Board Skills Matrix
and Experience
The year saw many changes for IGO, both from an
operational and leadership level. With the unexpected
passing of Peter Bradford, Matt Dusci, Chief Operating
Officer, stepped into the role of Acting CEO. The year also
saw the appointment of three new Non-executive Directors;
Trace Arlaud, Justin Osborne and Samantha Hogg.
These appointments have further enhanced the diversity of
our board, bringing a variety of new skills, experience, and
perspectives, which cultivate effective decision-making,
guidance and risk management.
Kathleen Bozanic retired as a Non-executive Director from
the Board with effect from 30 September 2022 and
transferred to the role of Chief Financial Officer with effect
from 10 October 2022. Non-executive Director. Peter Buck
also retired from the Board in November 2022 after providing
a wealth of knowledge and experience to the Company for
nine years.
As announced to the market in June 2023, Ivan Vella will
commence in the role of Managing Director and CEO later
in the year.
During the year, we engaged a third party, Board Outlook,
to assist with the annual Board evaluation process.
This process comprised an online questionnaire where the
results were then discussed with the Board and Executive
Leadership Team (ELT) as part of a half-day evaluation
workshop. Through this process a range of feedback on
the performance of the Board and the Board Committees
was received and how the Board works with the
management team and organisation.
Board Outlook was also used for a comprehensive review
of the skills and experience of the Board. The combination
of skills and experience were chosen to align with our
strategy, as well as current and emerging risks, challenges
and opportunities related to the Company and our industry.
As a result of this review, the Company’s Board Skills Matrix
confirms that the Board has a diverse set of knowledge and
experience. However, the review did identify gaps in the
areas of battery metals and downstream processing and
technology and digital data. These gaps will be addressed
through succession planning, the expertise of the ELT and
external advisors, and targeted education sessions during FY24.
Board Skills Matrix
Skill /Experience
Leadership experience
Safety oversight
Strategy oversight
Risk management oversight
Mergers, acquisitions and divestments oversight
Major mining projects oversight
G - Corporate governance experience
Talent, diversity and remuneration oversight
Mining sector experience
Culture oversight
S - Sustainability oversight
Major change and transformation oversight
Financing / funding oversight
Communications and external affairs oversight
E - Environmental impact oversight
Accounting and financial reporting oversight
Innovation and disruption oversight
Downstream processing experience
Battery metal products experience
Technology, data and digital oversight
Government engagement oversight
Regulatory engagement and legal oversight
Michael
Nossal
Trace
Arlaud
Debra
Bakker
Samantha
Hogg
Justin
Osborne
Keith
Spence
Xiaoping
Yang
%
Board1
100%
86%
100%
100%
86%
86%
86%
100%
57%
86%
71%
71%
43%
71%
57%
43%
57%
29%
14%
14%
14%
14%
1
Represents the percentage of directors with either expert or advanced skills in this area.
Expert – This skill assessment implies you are reasonably recognised by your board peers as an expert in these areas on the basis of extensive
practical experience / senior oversight relevant to IGO.
Advanced – This skill assessment implies you have strong understanding of the concepts, issues and common oversights within these areas, built on
repeated practical experience relevant to IGO.
General – This skill assessment implies you have good general awareness and understanding of these areas as relevant to IGO.
Limited – This skill assessment implies you are new to the area and have an early-stage understanding of these areas as relevant to IGO.
IGO Annual Report 2023 46
Managing Risk
Effectively
At IGO, effective management of risk is
imperative in order to live our purpose and deliver
on our strategy.
Our risk management framework is based on the three lines
model, with key elements working together across the
business to ensure strong risk management through
identification of risks, defined systems and controls and
assurance. Our framework encompasses:
We believe good risk management enables us to safeguard
our people, assets, reputation and the environment, and
serves the long-term interests of all of our stakeholders.
• Risk Management Policy: Our Policy establishes the
Board and Executive’s expectations for the management
of risk across our business
Risk management at IGO is overseen by the Board through
the Audit & Risk Committee (ARC). The ARC operates in
accordance with an approved ARC Charter and assists the
Board in overseeing and monitoring the risk management
framework.
IGO’s approach to risk management is governed by our risk
management framework, which is aligned to the principles of
the International Standard for Risk Management ISO:31000.
• Risk Appetite: Our Risk Appetite encompasses a series
of statements, which provide guidance on how much risk
we are willing to take in the pursuit of our strategic and
operational objectives, across a range of risk categories.
Aligned to our strategic perspectives, these statements
are used to support decision making at all levels of the
business, providing greater transparency to the Board and
ELT on whether the decisions we make are in accordance
with our appetite for the risk that these decisions
potentially expose us to
• Risk Management Standard: Our Standard outlines the
minimum mandatory requirements for the identification,
management, monitoring and reporting of risks that could
impact IGO’s strategic and business objectives, including
the use of standardised criteria for the assessment of risk;
and
• Risk Management Procedure: Our procedure establishes
the process requirements for the management of risk
across the business.
IGO Annual Report 2023 47
Our risk management framework also supports the regular
review and update of our strategic, operational, functional and
project risks through regular management reviews and
facilitated workshops, with those risks deemed material to
the Company being reported to the ARC.
To further strengthen and embed IGO’s risk management
framework, a Head of Risk and Compliance was appointed in
early 2023, whose responsibilities include:
• promotion of a strong risk management culture, through
encouraging a disciplined approach to risk management that
enhances risk thinking and challenges risk and control activity
Appetite Statement has supported the identification of the
KRIs that are to be used for this purpose and will remain
responsible for reporting these metrics to the Board; and
• review of risk framework documentation: Following the
refresh of IGO’s risk appetite statements, a review of the
framework documentation outlined earlier in this section
is underway. The focus of this review is to ensure that our
appetite for risk is reflected in our Policy and Standard, and
that any assessment of risk, irrespective of where it occurs
within the business, is undertaken in consideration of our
risk appetite.
• facilitation of the functioning and application of the risk
management framework; and
Strategic Risks
• coordination of risk management reporting to the ELT,
ARC and Board.
During FY23, a number of key initiatives commenced to
further enhance IGO’s risk management framework.
These include:
• revision of the Risk Appetite Framework: Working with the
ARC and ELT, the Risk Appetite Statements were reviewed
and updated to reconfirm the Board’s appetite for risk
across a range of risk categories
• operationalising our Risk Appetite: Each of our Risk
Appetite Statements are supported by a set of Key Risk
Indicators (KRIs), which is under review, and will be used
to confirm whether we are operating within the level of
appetite set by the Board. The ELT owner of each Risk
Nova Processing Plant
Risk that may threaten the ability for us to achieve our
strategic plan or threaten the future performance of the
company, are identified as strategic risks.
These risks are impacted by both internal and external factors
that could have the potential to significantly impact the
company. Our strategic risk profile was last reviewed in
September 2022, however since then, there have been
changes in the external environment, as well as the rise of
internal challenges, that have either influenced our existing
risks, or created new risks. As a result, our strategic risk profile
was reviewed and updated in May 2023, a summary which is
provided on page 48.
IGO Annual Report 2023 48
Risk
Context
Mitigation Summary
Commodity
Price and
Foreign
Exchange
Volatility
Commodity
Shifts away
from IGO
Strategic
Investments
A significant or sudden deterioration in economic conditions
can adversely impact demand for the products we produce,
as well as the price of commodities.
The Group’s operating revenues are sourced from the sale of
nickel, copper and cobalt concentrates from the Group’s
operations that are priced by external markets. As the Group
is not a price maker with respect to these metals, it is, and
will remain susceptible to adverse price movements.
Equally, dividends received from our investment in TLEA
are highly susceptible to variable lithium prices, namely
spodumene and lithium hydroxide prices applicable to the
Greenbushes and Kwinana Refinery, respectively.
We may also be exposed to fluctuations in the value of the
Australian dollar against other currencies. Whilst the AUD
functional currency is the currency of payment to the majority
of its suppliers and employees, the Group is exposed to
exchange rate risk on metal sales denominated in USD along
with USD denominated dividends received from TLEA.
Interest rate movements affect both returns on funds on
deposit as well as the cost of borrowings. Furthermore,
AUD and USD interest rate differentials directly linked to
movements in the AUD/USD exchange rate.
Operational costs and the price of sea freight, smelting
and refining charges are market driven and may continue
to be impacted by inflationary pressures.
Technological developments and/or product substitution
may impact revenue and cash flow, and result in an inability
to deliver on our strategy.
Physical Impact
of Climate
Change on
Operations,
Infrastructure,
People and
Supply Chains
Changing weather patterns and an increase in extreme
weather events may impact our operational stability.
It poses a risk to our physical assets and infrastructure,
supply chains and people, with increase in frequency and
severity of extreme weather impacting the reliability and
survivability of our operations.
IGO has a strong balance sheet, which
is not highly leveraged, and an enduring
culture of cost control and financial
discipline. The Group mitigates its
exposure to commodity prices through a
Financial Risk Management Policy in which
a percentage of anticipated usage may
be hedged.
Through our nickel operations and
investment in the TLEA, the Group also
maintains a diversification of cash flow
sources which insulates the effects of
single commodity price fluctuation
or deterioration.
We engage extensively with end-users
of our products to understand the
environment in which we operate.
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.
The technology required to make this shift
requires the products that IGO produces.
Detailed information regarding our
approach to climate-related risks and
opportunities is set out in the Climate
Change section of the 2023 Sustainability
Report. For longer-life assets, including the
Cosmos Project, we have commenced
physical climate resilience assessments
against current and forecast climate
impacts, and intend to continue these
across our portfolio. Current mitigation
controls and design specifications at the
Cosmos Project are being reviewed to
ensure they adequately address
foreseeable climate variability and future
climate projects under a range of scenarios
to the end of mine life.
IGO Annual Report 2023 Risk
Context
Mitigation Summary
49
Stakeholder
Relationships
A breakdown in our relationship with stakeholders will lead to
a damage in our reputation, it could jeopardise our social
licence to operate, and impact our financial returns and
capital management, which is essential to delivering our
purpose and strategy.
Health, Safety
and Wellbeing
of our People
Failing to provide a safe work environment can be devastating
for colleagues, contractors, family members and communities.
It can also negatively affect our culture, operational
performance, stakeholder confidence and our social licence
to operate.
Resources and
Reserves
Failure to prolong our existing resources and reserves, or to
identify and secure new resources and reserves, could
impact our ability to meet the demands of our customers.
It can also result in a detrimental impact on shareholder
returns, and the long-term viability of the Company.
Execution of
Major Capital
Projects
Failing to deliver our major capital projects safely, on budget,
on time, and to the desired level of quality can significantly
impact our reputation and erode the value derived from the
project. It can affect the market’s perception of us, making it
difficult to secure partners for growth opportunities, whilst
also negatively impacting shareholder confidence.
Senior Leader
Strength and
Stability
A loss of senior leaders within the business, coupled with a
lack of recognised internal candidates and an inability to
attract the required capabilities from the market, will
ultimately lead to a leadership void in the business.
The loss of senior leaders can de-stabilise teams below,
risk having key talent leave the business with them; and
impact strategic delivery and operational performance as
new leaders take time to embed themselves in the
organisation. The loss of multiple senior leaders can be a
critical mass that can shift culture and impact internal and
external organisational confidence significantly.
We actively engage with stakeholders,
including Traditional Owners and local
communities, employees, investors and
regulators, to understand their concerns
and expectations related to environmental
and social risks. By fostering open and
transparent communication channels, we
can work towards mutually beneficial
agreements that contribute to cultural
preservation, economic development and
community wellbeing.
Any incident, be that physical or otherwise,
no matter how significant, is never
acceptable. The safety and wellbeing of
our people is our highest priority. As a
Company, we care about our people and
keeping each other safe and healthy.
We have a comprehensive system of risk
management, internal safety and wellbeing
policies, standards and systems which are
designed to prevent and mitigate potential
exposure to health and safety risks.
We also continue to look for new and
innovative ways of working that will further
reduce the potential of our people being
harmed.
We continue to enhance our understanding
of our existing resources and reserves and
identify opportunities to add further value
through a commitment to extensional
drilling, our exploration program and
consideration of potential M&A
opportunities.
We will maintain a sound project
management framework, supported by
the capability of our people, who have
significant experience in delivering major
capital projects. Our framework and
methodology are supported by rigorous
oversight of our projects through the
establishment of Project Steering
Committees.
Succession planning (currently at senior
leadership levels) enables IGO to
understand and plan for current and future
leadership capability and strength and
forms the basis of targeted development
plans to deliver IGO’s strategy. Where gaps
exist within IGO, talent mapping of the
external market to identify IGO values-
aligned, experienced leaders will be
undertaken for high risk or high priority
roles. IGO is revising its leadership
framework and programs to continue to
develop exceptional individual leaders and
leadership teams. IGO has a strong brand,
compelling purpose, and growth agenda
as well as attractive and competitive,
benchmarked financial and non-financial
benefits.
IGO Annual Report 2023 50
Board
Profile
During the year we
enhanced the diversity
of our board with the
appointment of three new
directors, bringing a variety
of new skills, experience
and perspectives.
Michael Nossal
Non-executive Chair
Age 65
| BSc, MBA, FAusIMM
Term of office
Mr. Nossal was appointed as a Non-executive Director in
December 2020 and Non-executive Chair in July 2021.
Board Committees
People, Performance & Culture
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 in which they operate.
Other current directorships
Non-executive Director – Tianqi Lithium Energy Australia
Former directorships in the last three years
Non-executive Chair – Nordgold plc
IGO Annual Report 2023 51
Trace Arlaud
Non-executive Director
Debra Bakker
Non-executive Director
Age 54
Grad Dip Mining, M.Eng Mining
| BSc (Geology and Geophysics) (Hons),
Age 56
GradDip FINSIA, GAICD
| MAppFin., BBus. (Accounting and Finance),
Term of office
Term of office
Ms. Arlaud was appointed as a Non-executive Director in
August 2022.
Ms. Bakker was appointed as a Non-executive Director in
December 2016.
Board Committees
Nomination & Governance
Sustainability
Experience
Ms. Arlaud is a senior mining executive with over 28 years’
experience in the management of mining and site operations
and large engineering projects. Ms. Arlaud has particular
experience in underground mine planning and operations and
has a significant track record in complex underground mining
operations and an acute understanding of the associated
safety risks. Ms. Arlaud is currently CEO of underground
mining specialist, IMB Inc.
Other current directorships
Non-executive Director – Global Atomic (TSX), Imdex Limited,
Seabridge Gold (TSX)
Former directorships in the last three years
None
Board Committees
Audit & Risk
People, Performance & Culture (Chair)
Experience
Ms. Bakker is an experienced investment banker to the
resources industry, with 14 years’ experience working in
Sydney, 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 leadership roles in the Natural Resources business.
Since 2013 she has focused on her non-executive director
interests, her role as Australian Representative for Auramet
International LLC, and working with a range of not for profit
enterprises.
Other current directorships
Non-executive Director – Carnarvon Petroleum Limited,
Ten Sixty Four Limited
Former directorships in the last three years
None
IGO Annual Report 2023 52
Samantha Hogg
Non-executive Director
Justin Osborne
Non-executive Director
Age 56
| BCom (Commerce), MAICD
Age 57
| BSc (Geology) Hons, MAICD, FAusIMM, FSEG
Term of office
Term of office
Ms. Hogg was appointed as a Non-executive Director in
January 2023.
Mr. Osborne was appointed as a Non-executive Director in
October 2022.
Board Committees
Audit & Risk (Chair)
Experience
Ms. Hogg is an experienced executive with international
experience across the transport, infrastructure, energy and
resources sectors. Ms. Hogg has held senior executive
positions at Transurban Group and Western Mining Company
across a broad range of portfolios including finance, strategic
projects, marketing and corporate services. Her most recent
role was as the CFO of Transurban Group. Ms. Hogg was a
Non-executive Director of De Grey Mining Limited, Australian
Renewable Energy Agency, TasRail, MaxiTRANS Industries
Limited, Hydro Tasmania and Infrastructure Australia, and was
a board member of the National COVID-19 Commission
Advisory Board.
Other current directorships
Non-executive Director – Cleanaway Waste Management
Limited, Adbri Limited
Former directorships in the last three years
Non-executive Director – De Grey Mining Limited
Board Committees
Nomination & Governance (Chair)
People, Performance & Culture
Experience
Mr. Osborne has over 30 years’ experience as an exploration,
mining and development geologist, is a Fellow of the
Australasian Institute of Mining and Metallurgy and holds a
Bachelor of Science, Honours (First Class). Up until June 2021
Mr. Osborne was an Executive Director at Gold Road
Resources, playing a pivotal role in the discovery,
development and construction of the world class Gruyere
Gold Mine. Mr. Osborne previously held senior positions on
the exploration executive team of Gold Fields Ltd, including
Vice President Development Strategy – Growth and
International Projects, and General Manager Near Mine
Exploration covering all international mining operations; and
management roles with WMC Resources at the Kambalda
Nickel and St Ives Gold operations.
Other current directorships
Non-executive Chair – Matador Mining Ltd, Non-executive
Director – Hamelin Gold Ltd, Astral Resources NL
Former directorships in the last three years
Non-executive Director – Gold Road Resources Limited
IGO Annual Report 2023 53
Keith Spence
Non-executive Director
Xiaoping Yang
Non-executive Director
Age 69
| BSc. (Geophysics) (Hons)
Age 63
| PhD ChemE, MBA
Term of office
Term of office
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
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.
Board Committees
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. She has a
diverse breadth of experience in technology development
and innovation including renewable resource development in
solar, hydrogen, and biotechnologies. Ms. Yang worked in the
US and Asia, held general manager roles in joint ventures and
chair positions in downstream and new energy frontier
businesses.
Mr. Spence has significant experience in exploration and
appraisal, development, project construction, operations
and marketing.
Other current directorships
Non-executive Director – Methanex Corporation
Other current directorships
Non-executive Chair – Santos Limited
Former directorships in the last three years
None
Former directorships in the last three years
None
IGO Annual Report 2023 54
Directors’
Report
30 June 2023
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 2023.
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:
Trace Arlaud1
Peter Buck4
Keith Spence
Debra Bakker
Samantha Hogg5
Xiaoping Yang
Kathleen Bozanic2
Michael Nossal
Peter Bradford3
Justin Osborne6
1. Trace Arlaud was appointed a Non-executive Director effective
29 August 2022.
2. Kathleen Bozanic was a Non-executive Director until
30 September 2022. She then transitioned to Chief Financial Officer
on 10 October 2022.
3. Peter Bradford was Managing Director until his passing on
15 October 2022.
4. Peter Buck was a Non-executive Director until his retirement on
17 November 2022.
5. Samantha Hogg was appointed a Non-executive Director effective
25 January 2023.
6. Justin Osborne was appointed a Non-executive Director effective
10 October 2022.
Principal Activities
The principal activities of the Group during the financial year
were nickel, copper and cobalt mining and processing at the
Nova and Forrestania Nickel Operations, development of
the Cosmos Nickel Project, upstream and downstream
lithium mining and processing operations via our 49%
joint venture interest, and ongoing mineral exploration in
Australia and overseas.
Dividends
Dividends paid to members during the financial year were as
follows:
In addition to the above dividends, since the end of the
financial year, the Company has announced the payment of a
fully franked dividend of $454.4M (comprising a final dividend
of 44 cents plus a special dividend of 16 cents per fully paid
share) to be paid on 28 September 2023.
Operating and Financial Review
Information on the operations and financial position of the
Group is set out in the Operating and Financial Review on
pages 20 to 35 of this Annual Report.
External Factors and Risks Affecting the
Group’s Results
Information on external factors and risks affecting the Group’s
results are set out on page 23 of this Annual Report, and
further information is also provided in the Managing Risks
Effectively section of this Annual Report on pages 46 to 49.
Future Developments
Disclosure of information regarding likely developments in the
operations of the consolidated entity in future financial years
and the expected results of those operations is likely to result
in unreasonable prejudice to the consolidated entity.
Accordingly, this information has not been disclosed in this
report.
Significant Changes in the State of Affairs
In April 2023, the Company announced that it expected a
non-cash impairment to be recognised on the assets
acquired from Western Areas Limited in June 2022. An
impairment charge on the Forrestania and Cosmos assets of
$968.5M has been reflected in the Group’s profit or loss for
the year and is a result of cost pressures and escalation of
capital and operating costs in the current inflationary
environment, changes to the mine production schedule and
delays in the development of the Cosmos Project.
There have been no other significant changes in the state of
affairs of the Group during the year.
Final ordinary dividend for the year
ended 30 June 2022 of 5.0 cents
(2021: 10.0 cents) per fully paid share
Interim ordinary dividend for the year
ended 30 June 2023 of 14.0 cents
(2022: 5.0 cents) per fully paid share
2023
$M
2022
$M
37.9
75.7
106.0
37.9
143.9
113.6
Events Since the End of the Financial Year
On 30 August 2023, the Directors resolved to pay a final
dividend of 44 cents per share, plus a special dividend of
16 cents per share, both fully franked, to be paid on 28
September 2023.
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.
IGO Annual Report 2023 55
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 18 years’ professional experience working for listed companies in
Australia and the UK. Prior to joining IGO, Ms. McDonald held positions with Paladin Energy Ltd and Unilever plc.
Ms. McDonald is currently a WA State Councillor for the Governance Institute of Australia and a Director of the
Fremantle Foundation.
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 attended by each Director during the year ended
30 June 2023, and the numbers of meetings held were:
Meetings of Committees
Name
Trace Arlaud1
Debra Bakker
Kathleen Bozanic2
Peter Bradford3
Peter Buck4
Samantha Hogg5
Michael Nossal
Justin Osborne6
Keith Spence
Xiaoping Yang
Full Meetings
of Directors
People,
Performance &
Culture Committee
Audit & Risk
Committee
Nomination &
Governance
Committee
Sustainability
Committee
A
14
14
3
3
7
5
15
12
14
15
B
14
15
3
3
7
6
15
12
15
15
A
**
5
**
**
2
**
5
2
**
**
B
**
5
**
**
2
**
5
2
**
**
A
**
9
3
**
**
3
**
**
9
9
B
**
9
3
**
**
3
**
**
9
9
A
2
**
2
**
2
**
**
4
5
**
B
2
**
2
**
2
**
**
4
5
**
A
2
**
**
**
**
**
5
**
5
5
B
2
**
**
**
**
**
5
**
5
5
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. Ms. Arlaud was appointed a Non-executive Director on 29 August 2022.
2. Ms. Bozanic was a Non-executive Director until her resignation on 30 September 2022.
3. Mr. Bradford was Managing Director until his passing on 15 October 2022.
4. Mr. Buck was a Non-executive Director until his retirement on 17 November 2022.
5. Ms. Hogg was appointed a Non-executive Director on 25 January 2023.
6. Mr. Osborne was appointed a Non-executive Director on 10 October 2022.
Note: The 15 board meetings included five special purpose board meetings held during the year.
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.
Directors Interest in Shares of the Company
At the date of this report, the interests of the Directors in the shares of IGO Limited were as follows:
Name
Trace Arlaud
Debra Bakker
Samantha Hogg
Michael Nossal
Justin Osborne
Keith Spence
Xiaoping Yang
Total
Ordinary Fully Paid Shares
-
34,800
-
55,000
10,000
24,728
14,000
138,528
IGO Annual Report 2023 56
Letter from Chair of
People, Performance and
Culture Committee
Dear Shareholders
On behalf of the Board, I am pleased to present IGO’s Remuneration Report (Report) for the year ended 30 June 2023.
Over the past year, the Board and Executive Key Management Personnel (KMP) have continued to deliver the Company’s
winning aspiration to be a globally relevant supplier of products critical to clean energy. In FY23, this delivery has been within
the context of considerable challenges, including the global headwinds of post Covid-19 supply constraints, the cost of inflation
that has affected our Cosmos Development Project, and the tragic passing of our Chief Executive Officer and Managing
Director, Peter Bradford, in October 2022.
In many sectors of the business, it has been a year of solid delivery, with our shareholders benefiting from the strength of our
operating capabilities, our lithium joint venture and the continuing global pivot to renewable energy. We have also seen
significant and continuous improvement in our risk management and safety systems, and progressed our decarbonisation plans
to align with a clean energy future.
The Board recognises the benefits of continuity within the business and the success generated by teams, including the KMP,
that are incentivised, developed and retained to deliver long-term shareholder value. To ensure this continuity following the
passing of Peter Bradford, the Board was nimble in the implementation of several additional strategies with regards to
supporting, motivating and retaining a significantly smaller executive team. The Board is encouraged by the momentum
maintained on our journey through the challenges of the year and proud of the way our senior team, led by our KMP, have
pulled together as one team to maintain, or reduce, turnover across the business.
This year the Board doubled its efforts around succession planning and recruitment and through this program of work has
progressively increased the depth of talent in senior roles and, as a result, the resilience of the business throughout the year.
The Board remains watchful regarding the current competitive environment for senior talent, the strategic importance on the
retention of key executives, and the need to ensure that fixed and variable remuneration remains competitive.
Finally, in recognition of the changing nature of the business, which continues to increase in scale and complexity, the Board
supported a review of the Company’s operating model to evolve the systems, processes, organisational and remuneration
structures that will support further growth in FY24 and into the future. The leadership team have worked with Deloitte as an
independent, global specialist in Human Capital assessments to assist with this review, which, when complete in FY24, will
include organisational design and further role clarification to allow the Board to align Executive KMP structures and
remuneration with relevant global peers for FY24 and FY25.
Executive KMP Remuneration
The Board regularly engages with major investors and proxy advisors on environmental, social and governance (ESG) and
remuneration matters. Taking into account input from these discussions, our annual external benchmarking performed for
Executive KMP roles of similar scope and complexity, and in recognition of the critical role that the retention of Executive KMPs
depth and expertise of talent plays in value creation for the Company, the Board have approved the following changes for FY24,
summarised below and outlined in greater detail in Section 5 of this Report:
• CEO remuneration set to attract and retain a high quality candidate
• Executive KMP total fixed remuneration (TFR) to remain at existing levels, which are consistent with external benchmarking for
these roles
• Continuation of the FY23 remuneration uplift for the Acting CEO and an exertion payment of 10% of TFR to the Chief Financial
Officer, Chief Legal Officer and Chief People Officer until 31 December 2023 to recognise the additional workload associated
with a reduced size executive team
• STI target opportunity to remain unchanged at 80% for the Executive KMP (with the exception of the Acting CEO who has
a temporary uplift as Acting CEO to 100%), paid as 40% cash and 60% service rights; and
• LTI target opportunity to remain at 80% for the Executive KMP, however delivered by way of performance rights only for the
FY24 series (FY23 series was a mix of performance rights and options), with LTIs vesting after three years, then subject to
a further 12 month hold lock.
IGO Annual Report 2023 57
Following the commencement of the new CEO and completion of the programs of work associated with the new operating
model, KMP portfolio structures and the accompanying remuneration benchmarking will be revised for any reshaped roles and
changes communicated to shareholders in the 2024 Remuneration Report.
Board and Committee Fees
In late FY23, Board and Committee fees were reviewed and benchmarked against industry and ASX peer data, taking into
consideration the changes to the size and complexity of the IGO business. To align with market practice, the Board has
approved a number of changes to Board and Committee fees that will apply from 1 July 2023 as follows:
• Chair fee increased to $290,000 (from $280,000)
• Non-executive Director fees increased to $160,000 (from $150,000)
• An increase in the Audit and Risk Committee Chair fees from $25,000 to $35,000 and an increase in the other Committee
Chair fees from $25,000 to $30,000; and
• The introduction of Committee member fees for all Board Committees.
Further details are outlined in Section 4 of this Remuneration Report.
Each year we try to improve our reporting transparency and clarity for shareholders, and I invite you to review the full FY23
Remuneration Report which we trust clearly explains the links between our strategy, performance and executive remuneration
outcomes and alignment with shareholder interests. The Board will continue to monitor the effectiveness of the reward
framework with KMP and shareholders and welcome your feedback in FY24 in our endeavour to continuously improve the
transparency in all that we do.
Thank you for your ongoing support of IGO.
Debra Bakker
Chair, People, Performance & Culture Committee
30 August 2023
IGO Annual Report 2023 58
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, either directly or indirectly,
including any Director, whether executive or otherwise of the Company.
Section 1
FY23 Overview
Section 2
Remuneration at IGO
Section 1 details organisational developments and outcomes in FY23.
Section 2 provides an overview of key elements of the Company’s remuneration governance
and philosophy.
Section 3
Section 3 details remuneration arrangements in FY23 for the following Executive KMP:
Executive KMP
Remuneration in FY23
Peter Bradford
Managing Director and Chief Executive Officer (until his passing on
15 October 2022)
Kate Barker
Chief Legal Officer
Kathleen Bozanic Non-executive Director (until 30 September 2022) and then
transitioned to Chief Financial Officer (from 10 October 2022)
Matt Dusci
Acting Chief Executive Officer (from 16 October 2022) and
Chief Operating Officer
Sam Retallack
Chief People Officer
Scott Steinkrug
Chief Financial Officer (until 7 October 2022)
Section 4 details remuneration and benefits for the Company’s Non-executive Directors (see
pages 50 to 53 for details about each Director) including:
Trace Arlaud
Non-executive Director (from 29 August 2022)
Debra Bakker
Non-executive Director
Kathleen Bozanic Non-executive Director (until 30 September 2022)
Peter Buck
Non-executive Director (until 17 November 2022)
Samantha Hogg Non-executive Director (from 25 January 2023)
Michael Nossal
Non-executive Chair
Justin Osborne
Non-executive Director (from 10 October 2022)
Keith Spence
Non-executive Director
Xiaoping Yang
Non-executive Director
Section 5 provides an overview of the planned changes in remuneration and reward in FY24
for the 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 4
Non-executive Director
Remuneration
Section 5
Planned Remuneration
Changes for FY24
Section 6
Statutory Remuneration
Disclosures
IGO Annual Report 2023
59
Section 1
FY23 Overview
The Company’s total rewards philosophy is designed to
provide Executive KMP and employees with a strategic,
purpose driven approach designed to drive optimal business
performance. It is delivered through a combination of financial
(fixed and variable remuneration) and non-financial benefits
to provide a holistic employee value proposition, and connect
the IGO strategy and purpose to individual remuneration and
reward outcomes.
Over the past year, the Board and Executive KMP have
continued to deliver the Company’s winning aspiration and
strategic programs of work within the context of the
continuing global headwinds of post Covid-19 supply
constraints, the cost of inflation that has affected our Cosmos
Development Project, continued competition for talent and
pressure on salaries and the tragic passing of our Managing
Director & CEO, Peter Bradford, in October 2022.
The Board recognises the benefits of continuity within the
business and the success generated by teams, including the
Executive KMP, that are incentivised and retained. To ensure
this continuity following the passing of Peter Bradford, the
Board implemented several additional strategies to ensure the
retention of a significantly smaller executive team.
To this end, along with Company-wide salary benchmarking
and the award of a group-wide CPI increment for all roles
(or consideration of), the following remuneration initiatives
were implemented at a Board and Executive KMP level for FY23:
• Matt Dusci was appointed Acting CEO and his TFR was
adjusted from $850,000 to $1,100,000 to reflect the
additional responsibilities involved in this role
• the TFR of the new CFO was set at $825,000, with a
short-term incentive target opportunity of 80% of TFR
(with a maximum opportunity of 120% for the achievement
of stretch outcomes) and a long-term incentive
opportunity of 80% of TFR, acknowledging the broadened
responsibilities of the role anticipated for FY23
• other Executive KMP were awarded increases to TFR in
line with a planned restructuring of the executive team and
portfolio mix early in FY23 (prior to Mr. Bradford’s passing)
and market benchmarking commensurate with roles of
similar breadth and complexity within the IGO comparator
group and broader industry groups
• following the passing of Peter Bradford, Executive KMP
portfolios were reset and the strategic programs of work
adjusted to account for the reduced size of the executive
team. As such the Board awarded an exertion payment
to be made to each Executive KMP (excluding the Acting
CEO) at the completion of the financial year
• to ensure the continuity of Executive KMP through the
transition period prior to, and following the appointment
of the new CEO, the Board awarded a retention payment
to each of the Executive KMP in the form of a grant of
additional service rights which vest in July 2024
• the quantum (as a percentage of TFR) of the short-term
and long-term incentive opportunity for the Chief Legal
Officer and Chief People Officer increased from 50% to
80% of TFR due to a change to their reward grade which
attracted a change in the quantum of both incentives.
• changes to the delivery mechanism of the LTI included
the option (in FY23) to nominate a portion of the grant of
performance rights in the form of options (up to 60%) and
an additional 12 month, post vesting hold lock on a portion
of the performance rights; and
• an increase in the Board Chair fees from $260,000 to
$280,000 and an increase in Non-executive Director fees
from $140,000 to $150,000.
Finally, in FY23 the Board and Executive team have been
focused on a significant program of work to proactively build
organisational resilience and stability by recruiting a number
of senior roles in areas of anticipated change for the business
in the next three years, build leadership capacity in areas of
the business critical to delivery of current programs and
focused on assessing change demand and reviewing priorities
to ensure that there is capacity in reserve to deliver business
critical initiatives into the future.
The following table is a summary of the structure of fixed and variable remuneration for FY23:
TFR
Paid throughout year
STI
LTI
Performance Period
(12months)
40% Cash
30% Rights
30% Rights
Restriction
Restriction
YEAR 1
Performance Period
(Three Years)
YEAR 2
50% Rights
50% Rights
Restriction
YEAR 3
YEAR 4
IGO Annual Report 2023 60
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, develop and retain highly skilled Directors, Executive KMP and
employees. To ensure continued consistency of talent across the business the Company has an active People, Performance &
Culture Committee (Committee) to ensure that people, performance and culture are a priority across the business.
The Committee, chaired by Debra Bakker, held 5 meetings during FY23. Messrs Nossal and Osborne are also Committee
members. The Acting CEO (and previously the Managing Director and CEO) 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 Committee which operates in accordance with the Company’s
People, Performance & Culture Committee Charter and the
requirements of the Corporations Act 2001 and its regulations.
People, Performance & Culture 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:
• 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.
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 2023, no remuneration
recommendations, as defined by the Corporations Act 2001,
were provided by remuneration consultants. However, the
Committee did utilise general benchmarking data provided by
Mercer Consulting ($7,500) in forming their views on
remuneration matters and benefits across the organisation.
• Remuneration policy is transparent
with information communicated to all
employees to create a high level of
understanding of the link between pay,
performance, culture, behaviours and
delivery against Company objectives
and values.
• 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 and succession 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.
Further information on the Committee’s role,
responsibilities and membership can be found
under the Governance section on the Company’s
website at www.igo.com.au
IGO Annual Report 2023 61
Section 3
Executive KMP Remuneration in FY23
Components of Executive KMP Remuneration at IGO
Executive KMP remuneration at IGO is comprised of an integrated package of fixed and at-risk components, the purpose of
which is to align Executive KMP reward with shareholder outcomes, Executive KMP performance and the retention of key talent.
Total fixed and at-risk remuneration is benchmarked at least annually by the 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 base
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 and continuity
of Executive KMP.
Total Realised Earnings for Executive KMP in FY23
The table below provides details of the actual remuneration earned during FY23 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 FY23
• the cash component of the exertion payment received for FY23
• 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.
Kate Barker
Kathleen Bozanic
Matt Dusci
Sam Retallack
$550,000
$596,712
$1,026,135
$550,000
$439,622
$101,517 $110,000 $161,207
$129,234 $165,000
$441,182
$1,125,439
$147,061
$464,742
$113,837 $110,000 $160,752
TFR
STI Cash
Exertion bonus
Service Rights vested
Performance Rights vested
IGO Annual Report 2023 62
Executive KMP At-Risk Remuneration in FY23
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, complexity and reward grading of Executive KMP and
employees. It also depends on the performance of both the Company and the individual executive.
The following is an overview of the total fixed and at-risk remuneration (at target) for Executive KMP in FY23:
Acting CEO
Other Executive KMP
TFR - 36%
TFR - 38%
STI - 36%
STI - 31%
LTI - 28%
LTI - 31%
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 (to zero) unvested awards where
vesting is not justified or supportable for performance or other specified reasons.
IGO STIP Outline for FY23
The key elements of the Short-Term Incentive Program (STIP) as it relates to the Company’s Executive KMP are 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 benchmarked to market and reviewed
by the Board annually.
STIP payments are awarded to Executive KMP in the form of 40% in cash and 60% in equity
(service rights) on the achievement of performance above a threshold for a range of business
objectives (Company KPIs) and individual performance objectives (Individual KPIs).
Target and Maximum
Opportunity
The target opportunity for the Acting CEO is 100% of TFR, which can increase to 150% for the
achievement of stretch outcomes. The target and maximum opportunity for all other Executive KMP
is 80% of TFR, which can increase to 120% of TFR for the achievement of stretch outcomes.
Performance Targets
The maximum STI opportunity represents 150% of the Executive KMP’s target STI opportunity on
the achievement of stretch outcomes.
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 strive to achieve high levels of
performance aligned with the Company’s strategic objectives to ensure near-term shareholder
value creation. In FY23, the performance targets for KPI assessment reflected the following
financial and non-financial components:
• ESG Performance – including safety, culture and diversity measures
• Operational Performance
• Financial Performance
• Strategic Plan and Projects
Performance
Assessment
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
defined KPIs. A final performance assessment for each Executive KMP occurs annually following
the completion of the financial year. Executive KMP are assessed on their contribution to the
achievement of Company KPIs (Key Performance Indicators) (80%) and individual KPIs (20%) which
includes their demonstrated support for the Company’s values and behaviours.
Measurement Period
The STIP is an annual program and operates from 1 July to 30 June each year.
IGO Annual Report 2023 63
STIP Deferral
Component
Service rights issued to Executive KMP are issued pursuant to the STIP and 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.
How Performance was Linked to STIP Outcomes in FY23
As part of the annual business planning process, the Board determines the KPIs to reflect targets for the key strategic drivers
for the business for the award year. To maintain a focus on the value that achievement of the strategic plan delivers to
shareholders and to ensure a culture of accountability and high performance, the Board regularly reviews progress against
Company and Individual KPIs throughout the financial year.
Company Scorecard - Board Discretion
The Board reviews STI incentive outcomes annually at the completion of the financial year and has the authority to apply the
following discretions:
• 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 - Board Discretion
No individual STIP component will be awarded in the event of a material breach of the Company’s Code of Conduct by the individual.
FY23 Scorecard
The KPI Scorecard for Executive KMP and performance achieved against the specific KPIs for each Key Result Area for FY23 are
listed in the table below.
Company Key Result Area
(KRA)
Weighting and Rationale for
Inclusions
Performance and commentary
ESG
25% weighting
17.1% achieved
ESG measures are designed to
focus the organisation on:
• improvements that better
manage the workplace health
and safety risks inherent to the
Company’s operations within a
12 month timeframe.
• 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.
• Group Overall Injury Frequency
Rate
• Safety Work Plan Delivery
(including WHS changes)
• Annual Engagement Survey
Score
• Metrics for the achievement of
year-on-year improvement for
female employment and
development across the
business
• Metrics for the achievement
of year-on-year improvement
of Aboriginal or Torres Strait
Islander employment
Key ESG metrics in FY23 were focused on the programs
of work that would materially impact safety culture,
employee engagement and improving diversity across
the business, with a focus on integration of the new
assets acquired from Western Areas. A summary of
FY23 results includes:
• Overall Injury Frequency Rate = 16.0 (Threshold =
16.5, Target = 15.7, Stretch = 14.9) (5% weighting)
• Safety Work Plan Delivery = 84.3% complete
(Threshold = 80%, Target = 90%, Stretch = 100%) (5%
weighting)
• Engagement Survey score = 76% (Threshold = 74%,
Target = 75%, Stretch = 76%) (5% weighting)
• Female employees (as a % of the total employee
cohort) = 26.6% (Threshold = 25.5%, Target = 26.5%,
Stretch = 27.5%) (5% weighting)
• Aboriginal or Torres Strait Islander employees (as a %
of the total employee cohort) = 2.9% (Threshold =
3.4%, Target = 3.9%, Stretch = 4.4%) (5% weighting)
IGO Annual Report 2023 64
Operations
20% weighting
0% achieved
Delivery of strong and optimised
production performance is a key
enabler to funding the
achievement of the Company’s
strategic plan.
Achieve consolidated nickel
production from IGO operations
on a nickel metal equivalent
basis.
The production outcome achieved at IGO operations
was below the planned outputs as a result of a
challenging operating environment across all sites (i.e
the Nova power plant fire in December 2022). Full year
results were as follows:
• nickel metal production from all operations = 34,846t
(Threshold = 37,589, Target = 39,568t, Stretch =
41,546)(20% weighting)
Financial Performance
30% weighting
10% achieved
Delivery of strong financial
performance is a key enabler to
funding the achievement of the
Company’s strategic plan.
Achieve consolidated operating
costs within budget (production
and non- production) for the
Group (excluding non-controlled
operations).
Achieve planned NPAT for
the Group
Group costs = $631M1 (Threshold = $754M,
Target = $749M, Stretch = $744M) (10% weighting)
NPAT Delivery = ~$549M (Threshold = $1,032M,
Target = $1,062M, Stretch = $1,092M) (20% weighting)
Strategic Plan2
15% weighting
10% achieved
Complete nominated number of
agreed strategic priorities
Assesses performance to plan
on the delivery of a suite of
strategic initiatives, brownfields/
greenfields opportunities and
value accretive M&A
opportunities important to
growing shareholder value.
Progress against the FY23 business plan was achieved
on a range of strategic priorities and timelines, along
with the progression of the Company’s greenfields and
brownfields exploration programs, and inorganic growth
program.
BP23 = 8 projects (Threshold = 7 projects, Target = 10
projects, Stretch = 13 projects) (15% weighting)
Board Discretion
10% awarded
Given the significant impact on the business with the
passing of Peter Bradford and the subsequent
Company-wide effort to continue the delivery the
Company’s purpose, strategy and a number of
additional strategic projects, the Board has exercised
its discretion and awarded an additional 10% to the
scorecard for FY23.
Total
100%
Total outcome 47.1%
1 The Board exercised downward discretion on this KPI for the Executive KMP only.
2 Due to the sensitive nature of some corporate KPIs the full detail on measures and achievement is confidential.
FY23 STIP Outcomes
Executive KMP
Position
Kate Barker
Chief Legal Officer
Kathleen Bozanic4 Chief Financial Officer
Matt Dusci5
Acting CEO
Sam Retallack
Chief People Officer
Target
Opportunity1
$
FY23 STI
Declared2
$
FY22
Potential STI
$
FY22 STI3
$
440,000
477,370
975,726
440,000
253,792
323,084
367,654
284,592
225,000
236,000
-
560,000
200,000
-
594,000
210,000
1. Target opportunity is based on a percentage of TFR. Executive KMP have the opportunity to earn up to a maximum of 150% of the target opportunity for
the delivery of stretch targets.
2. To be paid in August 2023 - 40% in cash and 60% in service rights (vesting in equal parts in September 2024 and September 2025).
3. Paid in August 2022 - 50% in cash and 50% in service rights (vesting in equal parts in September 2023 and September 2024).
4. Ms. Bozanic’s target opportunity and actual STI are calculated on a pro-rata basis from her commencement date as Chief Financial Officer on 10 October 2022.
5. Mr. Dusci’s target opportunity and actual STI are calculated on a pro-rata basis for the period of time he was Acting CEO and Chief Operating Officer.
IGO Annual Report 2023 65
IGO LTIP Outline for FY23
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.
Performance Rights
Hurdles
The LTIP opportunity for each individual Executive KMP is currently 80% of TFR.
For performance rights issued in FY23, there are five performance hurdles with weightings as follows:
Performance Hurdle
Weighting
Relative Total Shareholder Return 25%
Absolute Total Shareholder Return 25%
20%
Return on Capital Employed
20%
Strategic Delivery
10%
Decarbonisation Plan Delivery
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 and additional hold lock 12-month period
commencing on or around the grant date and is aimed at the retention of key personnel to promote
long-term stability in shareholder returns.
Performance
Conditions for
Performance Rights
Relative Total Shareholder Return (Relative TSR)
The Relative 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 Total Shareholder Return (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 that
Executive KMP performance is rewarded when a year-on-year improvement in shareholder value is achieved.
Return on Capital Employed (ROCE)
The Company’s ROCE will be determined based on the returns of the Company over the
performance period as determined by its earnings before interest and tax (EBIT), relative to its
capital employed (total assets less current liabilities at the end of the performance period).
ROCE measures the profitability generated by the Company relative to each dollar of capital
employed. The Board considers that ROCE is an appropriate performance hurdle to align senior
leaders with driving profitability and capital efficiency and ensures that our leaders are focused on
generating strong returns from the capital it puts to use.
Strategic Delivery
IGO’s Strategic Delivery will be assessed on the number of completed strategic projects.
The Board considers that Strategic Delivery is an appropriate performance hurdle to align senior
leaders of the business on the delivery of programs of work that achieve the Company’s longer
term strategic initiatives, brownfields and greenfields opportunities and value accretive M&A
opportunities important to growing shareholder value over time.
Decarbonisation Plan Delivery
IGO’s Decarbonisation Plan Delivery will be assessed based on the achievement of IGO’s
Decarbonisation Plan which will include projects across the business to promote the development
and use of renewable energy.
The Board considers that delivery of the Company’s decarbonisation plan is an appropriate performance
hurdle, aligned to the delivery of both the IGO Purpose and strategy, as a critical global and business risk.
IGO Annual Report 2023
66
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
Level of vesting
Less than 50th percentile
0%
Between 50th and 75th percentile
Between 75th and 90th percentile
50% (at 50th percentile) plus straight-line pro-rata
between 50% and 100% (at 75th percentile)
100% (at 75th percentile) plus straight-line pro-rata
between 100% and 150% (at 90th percentile)
90th percentile or better
150%
Absolute TSR
The vesting schedule of the 25% of performance rights subject to Absolute TSR testing is as follows:
Absolute TSR performance
Level of vesting
Less than 10% per annum return
0%
Between 10% and 20% per annum return
Between 20% and 25% per annum return
50% (at 10% per annum Absolute TSR) plus
straight-line pro-rata between 50% and 100%
(at 20% per annum Absolute TSR)
100% (at 20% per annum Absolute TSR) plus
straight-line pro-rata between 100% and 150%
(at 25% per annum Absolute TSR)
25% per annum return or better
150%
Return on Capital Employed
The vesting schedule of the 20% of performance rights subject to ROCE testing is as follows:
ROCE performance
Less than 8%
Between 8% and below 12%
Between 12% and below 16%
16% or better
Strategic Delivery
Level of vesting
0%
50% (at 8% ROCE) plus straight-line pro-rata
between 50% and 100% (at 12% ROCE)
100% (at 12% ROCE) plus straight-line pro-rata
between 100% and 150% (at 16% ROCE)
150%
The vesting schedule of the 20% of performance rights subject to Strategic Delivery testing is as follows:
Strategic Delivery
Level of vesting
Less than 5 completed projects
0%
Between 5 and 7 completed projects
Between 7 and 9 completed projects
Pro-rata straight line percentage between 50%
(at 5 completed projects) and 100% (at 7 completed
projects)
Pro-rata straight line percentage between 100%
(at 7 completed projects) and 150% (at 9 completed
projects)
9 completed projects or better
150%
Decarbonisation Plan Delivery
The vesting schedule of the 10% of performance rights subject to Decarbonisation Plan Delivery
testing is as follows:
Decarbonisatin Plan Delivery
Level of vesting
Three year targets not achieved
Three year targets achieved
0%
100%
Other Conditions
Stretch outcomes are subject to Absolute TSR being greater than 10% per annum. Stretch outcomes can
be achieved for four of the five performance measures, however the maximum LTI will be capped at 100%.
IGO Annual Report 2023 67
Performance Rights
Measurement Period
Cessation of
Employment
Testing occurs three years from 1 July of the relevant financial year.
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 RTSR performance for performance rights issued during FY23 will be assessed
against a peer group comprised of members of the S&P ASX 300 Metals and Mining Index, as well
as a number of listed overseas mining companies.
LTI - Non-executive
Directors
The overarching 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.
Testing of LTI Performance Rights Granted in FY21
Below is a summary of the performance of the LTI performance hurdles for the vesting of the FY21 performance rights which
were tested on 30 June 2023 for the performance period 1 July 2020 to 30 June 2023:
Relative TSR
Weighting
Actual Score
Calculation
Absolute TSR
Weighting
Actual Score
Calculation
25%
IGO’s TSR over the three year performance period was 204% placing IGO in the 67th percentile of
the comparator group
83.3% achieved based on vesting of 50% where IGO’s relative TSR is above 50% and then on a
straight-line pro-rata allocation to 100%
25%
IGO’s TSR over the three year performance period was 204%
100% achieved based on vesting of 100% where IGO’s absolute TSR is above 20% per annum
(or 60% over the three year performance period)
Reserve Growth per Share
Weighting
Actual Score
Calculation
25%
IGO’s underlying EBITDA margin was in excess of 40% over the three year performance period
100% achieved based on vesting of 100% where IGO’s reserve growth per share is greater 110% of
baseline ore reserves
Group Underlying EBITDA Margin
Weighting
Actual Score
Calculation
25%
IGO’s underlying EBITDA margin was in excess of 40% over the three year performance period
100% achieved based on vesting of 100% where IGO’s average Group underlying EBITDA margin is
greater than 40%
Total Outcome
95.83%
As the performance rights vested in FY24 they will be reported in actual realised remuneration in the FY24 Remuneration Report.
Full details of the FY21 performance rights plan are disclosed in the Company’s FY21 Remuneration Report and the details of
performance rights held by Executive KMP are set out on page 78 of this Remuneration Report.
In addition to the above, the performance rights for the performance period to 30 June 2022 vested during FY23 and are
included in the table of actual realised remuneration on page 74.
IGO Annual Report 2023 68
Executive KMP Exertion and Retention Payments
During FY23, in recognition of the considerable additional workload of the Executive KMP resulting from the reduced size of the
executive team during the time of transition from the passing of the CEO on 15 October 2022, the Board approved an exertion
payment to be awarded to each Executive KMP, excluding the Acting CEO. The amount was equivalent to 20% of each
Executive KMP’s annual TFR and paid in cash following the completion of the financial year in July 2023. No exertion payment
was made to Mr Dusci for the same period as he received a temporary increase in TFR as Acting CEO.
All Executive KMP also received an additional allocation of service rights equivalent to 30% of their TFR as a retention incentive
to recognise the importance of the retention of the Executive KMP to business continuity and delivery of the strategic plan in a
period of uncertainty. This allocation of service rights will vest on 31 July 2024, so long as the individual is still employed by the
Company at that date.
Executive KMP
Matt Dusci
Kate Barker
Position
Acting CEO
Chief Legal Officer
Kathleen Bozanic
Chief Financial Officer
Sam Retallack
Chief People Officer
Exertion payment1
Retention incentive
(Additional service
rights issued 2)
$
-
110,000
165,000
110,000
Number
21,100
10,550
15,825
10,550
1. Amount was paid in July 2023.
2. Service rights awarded at the 5-day VWAP of the Company’s shares to 30 January 2023 of $15.64.
Employee Incentive Plan
The IGO EIP was approved by shareholders at the Annual General Meeting in November 2022.
The number of eligible products able to be issued under the EIP is limited to 5% of the issued capital of the Company. The 5%
limit includes grants under all plans made in the previous three years (with certain exclusions under the Corporations Act 2001).
At the end of FY23 this percentage stands at 0.52%. There are no voting or dividend rights attached to the share rights.
Company Performance
A key and continued focus for the Board and Company is to align Executive KMP remuneration to the achievement of strategic
and business objectives of the Group and the creation of shareholder value. The table below illustrates a summary of the
Group’s financial performance over the last five years as required by the Corporations Act 2001.
Revenue ($ millions)
Profit for the year attributable to owners ($ millions)
Dividends (cents per share)
Share price at year end ($ per share)
* Includes continuing and discontinued operations.
2023
1,024.9
549.1
74
15.20
2022
902.8
330.9
10
9.94
2021
915.0*
548.7
10
7.63
2020
888.9
155.1
11
4.87
2019
784.5
76.1
10
4.72
IGO Annual Report 2023 69
Peter Bradford Performance Rights and Service Rights Finalisation
The vesting of service rights and performance rights is pursuant to the IGO EIP and is subject to Board discretion. Following the
passing of Peter Bradford in October 2022, and in recognition of the significant contribution that he made to the growth and
success of the business and subsequent shareholder value, the Board agreed to exercise its discretion under the EIP and
approve the finalisation of his outstanding benefits (service rights and performance rights) and a pro-rata consideration for the
2023 awards. A summary of the Board approved course of action is outlined in the table below:
Details and grant year
Share rights previously granted
Service rights – FY22
Service rights – FY21
Performance rights – FY221
Performance rights – FY211
FY23 allocations (not granted)
Service rights2
Performance rights2
Total
Rights
granted
Allocation
Cash
settlement 3
Number
Number
$4
40,613
22,446
106,724
40,613
22,446
62,223
635,358
351,150
973,432
182,773
167,584
2,621,712
-
-
-
-
446,795
178,555
5,207,002
1
In recognition of Mr. Bradford’s unused annual leave and long service leave, the testing date for the pro-rata entitlement calculation of outstanding
performance rights has been set as 31 March 2023.
² The testing date for the pro-rata entitlement calculation for all FY23 rights has been set as 16 October 2022. $971,876 relating to the share rights
previously granted has been expensed in the current and prior financial years in accordance with AASB 2 Share-Based Payment. The difference
between this amount and the final proposed cash settlement is included in the share-based payment expense in the FY23 profit or loss.
3 The Company has provided for the amount of the proposed cash settlement in its FY23 financial statements.
4 The share price used to determine the equivalent cash payment was based on the 5-day VWAP of the Company’s shares to 30 January 2023 of $15.64.
Further details of the Board agreed course of action is summarised as follows:
Service rights (previously shareholder approved)
The Board agreed to waive the service condition and allow early vesting of 100% of the service rights previously earned and
approved for performance in FY21 (vesting 1 September 2023) and FY22 (vesting 1 September 2023 and 1 September 2024).
Performance rights (previously shareholder approved)
The Board approved for the existing performance rights to be pro-rated for the portion of the three year performance period
worked, with the performance conditions attaching to these performance rights waived.
Service rights FY23
The Board approved an equivalent pro-rata payment for the FY23 STI based on the period of time worked in FY23, with the
service conditions waived.
Performance rights FY23
The Board approved to make an equivalent pro-rata payment for the FY23 LTI performance rights based on the period of time
worked in FY23 relative to the three year performance period, with the performance conditions waived.
IGO Annual Report 2023 70
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
Trace Arlaud1
Debra Bakker
Peter Bilbe2
Kathleen Bozanic3
Peter Buck4
Samantha Hogg5
Michael Nossal
Justin Osborne6
Keith Spence
Xiaoping Yang
Total Non-executive Director remuneration
Cash fees
Superannuation
Year
2023
2023
2022
2022
2023
2022
2023
2022
2023
2023
2022
2023
2023
2022
2023
2022
2023
2022
$
126,731
163,775
147,321
48,295
39,063
147,321
59,896
147,321
67,680
252,500
232,500
111,394
156,250
147,321
150,000
140,000
1,127,289
1,010,079
$
-
19,653
17,679
5,795
4,687
17,679
7,187
17,679
8,121
27,500
27,500
13,367
18,750
17,679
-
-
Total
$
126,731
183,428
165,000
54,090
43,750
165,000
67,083
165,000
75,801
280,000
260,000
124,761
175,000
165,000
150,000
140,000
99,265
1,226,554
104,011
1,114,090
1 Ms. Arlaud was appointed a Non-executive Director effective 29 August 2022.
2 Mr. Bilbe retired as a Non-executive Director effective 18 November 2021.
3 Ms. Bozanic was a Non-executive Director until 30 September 2022. She then transitioned to Chief Financial Officer on 10 October 2022.
All amounts received by Ms. Bozanic’s in her role as CFO are shown in the table on page 75.
4 Mr. Buck was a Non-executive Director until his retirement on 17 November 2022.
5 Ms. Hogg was appointed a Non-executive Director effective 25 January 2023.
6 Mr. Osborne was appointed a Non-executive Director effective 10 October 2022.
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 $1,750,000 which was approved by shareholders at the Annual
General Meeting on 17 November 2022, of which $1,130,000 was being utilised at 30 June 2023 (2022: $1,060,000).
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.
IGO Annual Report 2023 71
The Board recognises the growing complexity of matters considered by Board and Committee Chairs and members of board
committees in ASX listed companies. These changes have shaped a significant increase in workload for IGO Board Chairs and
Committee members over the last three years.
Based on FY23 benchmarking market data from both the IGO industry peer group and the ASX peer group (15 above and
15 below IGO on the ASX 100 on 23 June 2023), changes to Board or Committee Chairs’ and Non-executive Directors
remuneration have been approved by the Board for FY24. Details of Non-executive Director fees are as follows:
Non-executive Director Base Fees
Board Chair
Board Member
Committee Fees
Audit & Risk Committee - Chair
Audit & Risk Committee - Member
People, Performance & Culture Committee - Chair
People, Performance & Culture Committee - Member
Sustainability Committee – Chair
Sustainability Committee – Member
Nomination Committee – Chair
Nomination Committee – Member
Approved
2024
$
30 June
2023
$
30 June
2022
$
290,000
160,000
280,000
150,000
260,000
140,000
35,000
20,000
30,000
15,000
30,000
15,000
30,000
15,000
25,000
-
25,000
-
25,000
-
25,000
-
25,000
-
25,000
-
25,000
-
25,000
-
IGO Annual Report 2023 72
Section 5
Planned Remuneration Changes for FY24
IGO’s remuneration philosophy is underpinned by competitive and performance-based remuneration commensurate with role
complexity and scope, coupled with a strong employment brand and a purpose driven and personalised employee value
proposition. This approach ensures that IGO is able to attract and retain talented people, committed to the IGO purpose and
focused on the delivery of long-term shareholder value, in an environment where there is significant competition for talent and
continuing wage pressure due to cost of living drivers.
To ensure market competitivity, the Company’s 2023 benchmarking process utilised data from the IGO resources industry peer
group and an ASX 100 peer group, which consisted of the companies 15 places above and below IGO on the ASX 100 listing on
23 June 2023. At the time of the review, Executive KMP remuneration was judged to be largely market competitive with a
further review planned following the commencement of the new CEO.
In addition, the Board regularly engages with our relevant stakeholders to seek their feedback on the alignment of remuneration
structures and outcomes. Overall, feedback in FY23 was positive with regard to the IGO remuneration structure for Executive
KMP and supportive of the introduction of a hold lock period on the LTI component of Executive KMP and senior leader
remuneration.
Changes to Executive KMP remuneration will be communicated to shareholders more fully in the FY24 Remuneration Report,
however key changes, approved by the Board in FY23, are summarised below:
Ivan Vella, Managing Director and CEO (elect)
On 13 June 2023, the Company announced the appointment of Ivan Vella as the Company’s new Managing Director and CEO.
This important appointment marked the culmination of an extensive and rigorous global search and assessment process that
was initiated following the tragic passing of former Managing Director and CEO, Peter Bradford, in October 2022.
Mr. Vella’s remuneration has been set to reflect benchmarking against IGO resource industry peers, the ASX peer group and
takes into consideration Mr.Vella’s considerable skills and experience spanning multiple commodities and diverse geographies
and markets. As such, the Board has approved the following remuneration package for FY24:
• TFR of $1,400,000, inclusive of statutory superannuation, to reflect market benchmarking of the role
• STI target at 100% of TFR, with a maximum opportunity of 150% of TFR. For FY24, the STI Target will be pro-rated from
Mr. Vella’s commencement date; and
• LTI target increased to 200% of TFR. For FY24, the LTI Target will be pro-rated from Mr. Vella’s commencement date.
Additional Compensation for foregone benefits
In recognition of Mr. Vella foregoing other financial benefits and opportunities to accept employment with IGO, he will receive an
award of 400,000 service rights, which will be issued in accordance with and subject to the terms of the EIP. These service
rights will vest according to the following schedule, provided that Mr. Vella remains an employee of IGO on those dates:
Vesting Date
August 2024
August 2025
August 2026
August 2027
Number
100,000
100,000
100,000
100,000
The issue of these service rights will be subject to IGO shareholder approval and IGO intends to seek shareholder approval for
these service rights, as well as Mr. Vella’s initial LTI performance rights. If shareholder approval is not granted by shareholders in
relation to the issue of these service rights, then IGO will consider an alternative mechanism for delivering equivalent value of
the service rights to Mr. Vella (which may include the Company making a cash payment or issuing rights that are satisfied upon
vesting by IGO shares sourced on-market by the Company).
IGO Annual Report 2023
73
Matt Dusci, Acting CEO
In recognition of the complexity and additional workload of the Acting CEO role, the Board has set remuneration for this role to
reflect the relativity to market benchmarks of comparable CEO/Chief Operating Officer roles. As such, the Board made the
following changes to the Acting CEO remuneration for FY23, which will continue in FY24 until the commencement of the new
CEO later in 2023:
• TFR to remain unchanged in Acting CEO capacity at $1,100,000 (increased from $850,000 as COO) to reflect market benchmarking
• STI target increased in Acting CEO role to 100% of TFR, with a maximum opportunity of 150% of TFR; and
• LTI target unchanged at 80% of TFR.
In addition, and in consideration of the importance of retention of the role of Acting CEO, the Board has also approved an
additional cash payment of $220,000 (20% of TFR) which will be paid on or around 1 July 2024, subject to Mr. Dusci’s retention
to this date.
Other Executive KMP
The FY24 TFR for other Executive KMP will be between $550,000 and $825,000 and is consistent with market benchmarking
for similar roles. STI targets will remain unchanged at 80% of TFR, with a maximum opportunity of 120% of TFR. LTI targets will
also remain unchanged at 80% of TFR. The TFR and executive compensation for the other executives is designed to be, and
remains, competitive with the comparator and broader industry groups for roles of similar complexity and breadth.
The commencement of the new CEO will include the review and reshape of the existing Executive KMP portfolio structure, with
an anticipated reorganisation of some roles and responsibilities. Given this program of change, including the recruitment and
appointment of additional executives underway but not completed in FY23, the final outcomes of Executive KMP remuneration,
taking into account internal and external benchmarking of new or reorganised roles, is expected to be completed in the second
half of FY24, and will be reported in more detail in the 2024 Remuneration Report.
FY24 STI and LTI Outline
FY24 STI
FY24 LTI
There will be no change made to the delivery mechanisms for the STI (awarded in cash and service
rights) in FY24.
The delivery mechanism for the LTI program in FY24 will revert to an offer of 100% performance rights.
Options will not be offered to Executive KMP in FY24.
FY24 Performance Hurdles
• Relative TSR – 50%
• Absolute TSR – 20%
• Strategic Delivery – 30%
These performance hurdles reflect a set of measures that will accurately track the progress made, and
value delivered to shareholders, on a range of key strategic initiatives and long-term programs of work.
LTI Vesting Period and Hold Lock
A change was made to the LTI vesting schedule in FY23 by introducing a hold lock on vested LTIs.
In FY23, the hold lock was applied to 50% of the vested LTIs for one year, however from FY24, the one
year hold lock will apply to 100% of the vested LTIs (refer table below). This change has been made to
better align the employee and shareholder experience and act as a further retention tool for senior leaders
of the business.
The following table is a summary of the structure of fixed and variable remuneration for FY24:
TFR
Paid throughout year
STI
LTI
Performance Period
(12months)
40% Cash
30% Rights
30% Rights
Restriction
Restriction
YEAR 1
Performance Period
(Three Years)
YEAR 2
100% Rights
Restriction
YEAR 3
YEAR 4
IGO Annual Report 2023 74
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
Matt Dusci
Kate Barker
Position
Acting CEO
Chief Legal Officer
550,000
No fixed term
3 months
Kathleen Bozanic
Chief Financial Officer
825,000
No fixed term
3 months
Sam Retallack
Chief People Officer
550,000
No fixed term
3 months
TFR
Term of
Agreement
Notice Period
Termination
Benefit
1,100,000
No fixed term
3 months
6 months
6 months
6 months
6 months
(I)
Remuneration expenses for Executive KMP
The following table shows the value of earnings realised by Executive KMP during FY23. 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 year
Executive KMP
TFR Value1
STI Cash
Component2
Exertion
Bonus3
Vested
Service
Rights
Component
Vested
Performance
Rights
Component
Total Actual
Remuneration
$
$
$
$
$
$
Kate Barker
Kathleen Bozanic4
Matt Dusci5
Sam Retallack
550,000
596,712
1,026,135
550,000
101,517
110,000
161,207
439,622
1,362,346
129,234
165,000
147,061
-
113,837
110,000
-
441,182
160,752
-
1,125,439
464,742
890,946
2,739,817
1,399,331
1 Includes base salary and superannuation.
2 Represents the amounts to be paid in August 2023 for performance in FY23.
3 Represents the amounts paid in July 2023.
4 Ms. Bozanic commenced the CFO role on 10 October 2022 and TFR is pro-rated from this date. The table above includes amounts received by
Ms. Bozanic in her role as CFO and does not include amounts received in her capacity as Non-executive Director.
5 Mr. Dusci commenced the Acting CEO role effective 16 October 2022. TFR above is pro-rated based on the salary received in his role as Acting CEO and COO.
IGO Annual Report 2023 The following table shows details of the remuneration expense recognised for the Group’s Executive KMP for the current and
previous financial year measured in accordance with the requirements of the Accounting Standards.
75
Executive KMP
Year
Cash
salary1
Cash
bonus2
Super-
annuation
Long
service
leave3
$
$
Share
rights4
$
Total
$
Executive Directors
Peter Bradford5
Other Executive KMP
Kate Barker
Kathleen Bozanic6
2023
2022
2023
2022
2023
$
573,242
$
-
9,167
116,604
186,110
885,123
1,047,934
530,000
27,500
47,647
1,138,200
2,791,281
543,226
428,076
211,517
118,000
27,500
35,942
343,816
1,162,001
27,500
20,253
233,151
826,980
614,862
294,234
20,253
2,713
187,717
1,119,779
Matt Dusci
2023
1,065,550
147,061
27,500
106,234
801,580
2,147,925
Andrew Eddowes7
Joanne McDonald8
Sam Retallack
Scott Steinkrug9
Total Executive
Directors and other
Executive KMP’s
Total NED
remuneration (see
page 70)
Total Executive KMP
remuneration
2022
2022
2022
2023
2022
2023
2022
676,235
297,000
377,774
105,000
374,425
105,000
27,500
27,500
27,500
36,758
596,023
1,633,516
15,588
19,404
227,289
753,151
213,388
739,717
574,164
223,837
27,500
50,711
323,985
1,200,197
386,100
105,000
143,960
-
27,500
2,183
15,550
223,377
757,527
3,157
81,135
230,435
518,315
139,000
27,500
28,664
392,408
1,105,887
2023
3,515,004
876,649
114,103
315,361
1,924,343 6,745,460
2022
3,808,859
1,399,000
192,500
183,864
3,023,836
8,608,059
2023
1,127,289
2022
1,010,079
-
-
99,265
104,011
-
-
-
-
1,226,554
1,114,090
2023 4,642,293
876,649
213,368
315,361
1,924,343
7,972,014
2022
4,818,938
1,399,000
296,511
183,864
3,023,836
9,722,149
Performance
related
%
23
60
48
42
43
44
55
44
43
46
43
35
48
1 Cash salary and fees includes movements in annual leave provision during the year.
2 Cash bonus represents STIs that were awarded to each Executive KMP in relation to FY23 performance and will be paid in August 2023 (2022: related to
FY22 and paid in August 2022), and the exertion bonus paid to Executive KMP in July 2023.
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 29 for details of the valuation techniques used for the EIP.
5 Mr. Bradford was Chief Executive Officer until his passing on 15 October 2022. Amounts included for annual leave and long service leave reflect
adjustments to align with the actual amounts paid in August 2023 in relation to unused annual leave and long service leave of $280,708 and $318,288,
respectively. Refer to the table of page 69 for further details on the proposed cash settlement relating to Mr. Bradford’s outstanding performance and
service rights.
6 Ms. Bozanic was appointed Chief Financial Officer effective 10 October 2022. Prior to this, Ms. Bozanic was a Non-executive Director. Any amounts
relating to her role as Non-executive Director are included in the table on page 70.
7 Mr. Eddowes ceased as a Executive KMP as at 30 June 2022.
8 Ms. McDonald ceased as a Executive KMP as at 30 June 2022.
9 Mr. Steinkrug ceased to be a Executive KMP effective 7 October 2022 following his resignation as CFO.
IGO Annual Report 2023 76
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 FY23.
The number of performance rights and percentages vested/forfeited for each grant are disclosed in the table on page 78.
Executive KMP
STI bonus (cash)
STI (service rights)2
Target
Target
opportunity Awarded1
Awarded Forfeited
opportunity Awarded2
Awarded Forfeited
LTI (performance rights
and options)
Value
granted3
Value
vested4
Value
forfeited4
$
$
Kate Barker
176,000
101,517
Kathleen
Bozanic
190,948 129,234
Matt Dusci
390,290
147,061
Sam Retallack
176,000 113,837
%
58
68
38
65
%
$
$
42 264,000 152,275
32 286,422 193,850
62 585,436 220,592
35 264,000 170,755
%
58
68
38
65
%
$
$
42 465,573 152,034
32
727,140
-
62
931,159 389,209
35 478,368 160,721
$
-
-
-
-
1 To be paid in August 2023.
2 Service rights will be issued in September 2023 based on the 5-day VWAP following the release of IGO’s 2023 Financial Statements. The service rights will
vest in equal parts in September 2024 and September 2025.
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 29 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.
(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.
Grant date
Vesting date
9 December 2022
18 November 2021
22 October 2021
18 November 2020
2 October 2020
20 November 2019
14 October 2019
1 July 20251
1 July 2024
1 July 2024
1 July 2023
1 July 2023
1 July 2022
1 July 2022
Grant date
value
$
Performance
achieved
Vested
12.36
To be determined
8.68
8.28
3.43
2.74
4.45
4.65
To be determined
To be determined
To be determined2
To be determined2
To be determined3
To be determined3
%
n/a
n/a
n/a
n/a
n/a
100
100
1 50% of the performance rights which vest will be available to exercise following completion of the testing of the performance conditions, and 50% are
subject to one year holding lock and will vest on 1 July 2026.
2 The performance conditions of the share rights granted in FY21 (which vested on 1 July 2023) were tested post 30 June 2023. Refer discussion in Section
3 for performance against hurdles. These performance rights will be disclosed in actual realised remuneration in the FY24 Remuneration Report.
3 The performance conditions of the share rights granted in FY20 (which vested on 1 July 2022) resulted in the Company achieving a TSR of 143.1% for the
period 1 July 2019 to 30 June 2022, resulting in the vesting of 100% of performance rights subject to relative TSR testing and 100% of performance rights
subject to absolute TSR testing (with 25% allocation to both relative and absolute TSR). The Company also achieved greater than 110% reserve growth
per share (25% allocation) and greater than 40% average EBITDA margin for the performance period (25% allocation). This resulted in an overall vesting of
100% of the FY20 series performance rights.
IGO Annual Report 2023 77
Options under the Company’s EIP
In FY23, the Board approved a change to the delivery mechanism of the LTI program to allow certain senior management to
elect to take up to 60% of LTIs as options. The options vest after three years from the start of the financial year, subject to
meeting certain performance conditions. On vesting, each option will convert into one ordinary share upon payment of the
exercise price (unless a cashless exercise facility is utilised under the terms of the EIP). The Executive KMP do not receive any
dividends and are not entitled to vote in relation to the options during the vesting period. If an Executive KMP ceases
employment before the options vest, the options will be forfeited, except in certain circumstances that are approved by the Board.
Grant date
Vesting date
9 December 2022
1 July 20251
Exercise
price
$
10.79
Grant date
value
Performance
achieved
$
3.46
To be determined
Vested
%
n/a
1 50% of the options which vest will be available to exercise following completion of the testing of the performance conditions, and 50% are subject to one
year holding lock and will vest on 1 July 2026.
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.
In FY23, additional service rights were granted to Executive KMP as a retention incentive to recognise the importance of the
retention of the Executive KMP to business continuity and delivery of the strategic plan in a period of uncertainty. The service
rights will vest on 31 July 2024 as long as the Executive KMP is still employed by the Company at that date.
The fair value of the service rights was determined based on the 5-day VWAP of the Company’s shares to 30 January 2023.
Grant date
1 February 2023
4 November 2022
22 October 2021
2 October 2020
14 October 2019
Vesting
%
100%
50
50
50
50
50
50
50
50
Vesting date
Grant date value
31 July 2024
1 September 2023
1 September 2024
1 September 2022
1 September 2023
1 September 2021
1 September 2022
1 September 2020
1 September 2021
$
15.64
13.05
13.05
9.69
9.69
4.46
4.46
5.88
5.88
IGO Annual Report 2023 78
(IV) Reconciliation of performance rights, options, 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.
Executive
KMP
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
Maximum
value yet
to vest
Number
Number Number
% Number
%
Vested and
exercisable1
Kate Barker
Kathleen
Bozanic
Matt Dusci
2023
2022
2021
2020
2023
2023
2022
2021
2020
-
16,311
24,013
42,016
32,710
-
-
-
-
-
42,817
32,623
59,765
105,882
83,738
-
-
Sam Retallack
2023
-
24,467
2022
2021
2020
21,345
38,865
34,579
-
-
-
-
-
-
-
-
32,710 100
-
-
-
-
-
-
83,738 100
-
-
-
-
34,579 100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32,710
-
-
-
-
83,738
-
-
-
34,579
Number
$
16,311
24,013
42,016
-
168,260
73,028
-
-
42,817
441,688
32,623
336,529
59,765
181,756
105,882
-
-
-
24,467
252,394
21,345
38,865
-
64,914
-
-
1 Performance rights have vested due to vesting and service conditions being achieved and, subject to being exercised, will convert into ordinary shares.
Options
The table below shows the number of options 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 year
Forfeited during
the year
Balance at
the end of
the year
(unvested)
Maximum
value
yet to vest
Number
Number
Number
%
Number
%
Number
$
Kate Barker
Kathleen Bozanic
Matt Dusci
Sam Retallack
2023
2023
2023
2023
-
-
-
-
76,306
57,230
152,612
50,871
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
76,306
57,230
208,368
165,278
152,612
440,737
50,871
146,913
IGO Annual Report 2023
79
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
Number Number Number
% Number
%
Kate Barker
2023
-
19,593
Kathleen
Bozanic
Matt Dusci
Sam
Retallack
2022
2021
2020
2019
2018
2023
2023
2022
2021
2020
2019
2018
2023
2022
2021
2020
2019
2018
10,320
7,231
-
-
-
-
-
26,006
20,908
-
-
-
-
9,355
7,679
-
-
-
-
-
-
-
-
15,825
43,859
-
-
-
-
-
18,596
-
-
-
-
-
-
5,160
7,231
-
50
100
-
-
-
-
-
-
-
-
-
13,003
20,908
50
100
-
-
-
-
-
-
-
-
4,677
7,679
50
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance
at end of
the year
Maximum
value
yet to
vest
Vested and
exercisable2 Unvested
$
-
19,593
170,088
5,160
14,461
8,333
7,648
9,509
-
-
5,160
4,572
-
-
-
-
-
-
-
-
15,825
179,961
43,859 366,072
13,003
13,003
11,522
41,816
18,452
18,942
19,801
-
-
-
-
-
-
-
-
-
18,596 164,563
4,677
15,358
8,759
9,107
10,542
4,678
4,145
-
-
-
-
-
-
-
-
1 Vesting of the FY22 service rights represents the first tranche of 50% vesting on the 12 month anniversary of the award date and vesting of the FY21
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.
IGO Annual Report 2023 80
Shareholdings of Executive KMP
The number of ordinary shares in the Company held by each Director and Executive KMP, including their personally related
entities, are set out below.
Received during
the year on
vesting or
exercise of
performance
rights
Received
during the year
on vesting or
exercise of
service rights
Balance at
the start
of the year
Other changes
during the
period
Balance at
the end of
the year
-
30,800
866,756
26,118
-
55,000
-
24,728
14,200
56,858
15,844
254,649
118,013
117,072
1,580,038
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,000
(866,756)
(26,118)
-
-
10,000
-
(200)
-
-
-
-
(117,072)
(996,146)
-
34,800
-
-
-
55,000
10,000
24,728
14,000
56,858
15,844
254,649
118,013
-
583,892
Name
Directors
Trace Arlaud
Debra Bakker
Peter Bradford
Peter Buck
Samantha Hogg
Michael Nossal
Justin Osborne
Keith Spence
Xiaoping Yang
Executive KMP
Kate Barker
Kathleen Bozanic
Matt Dusci
Sam Retallack
Scott Steinkrug
Total
1 Shareholdings are reversed to show a zero balance at 30 June 2023 after ceasing to be a Executive KMP during the year.
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 Executive 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 year 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
Except as disclosed section 3 of this Report, 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 96% of “yes” votes on its Remuneration Report for the 2022 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
IGO Annual Report 2023 81
Shares Under Option
At the reporting date, there were 528,064 unissued ordinary shares under options, and there were no ordinary shares issued
during the year ended 30 June 2023 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 Group1
Total remuneration for non-audit services
1 Other services relate to review of the Sustainability Report and Corporate Advisory services.
2023
$
80,400
80,400
2022
$
46,450
46,450
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 82.
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 hundred thousand dollars, or in certain
cases, to the nearest dollar.
This report is made in accordance with a resolution of Directors.
Michael Nossal
Non-executive Chair
Perth, Western Australia
Dated this 30th day of August 2023
IGO Annual Report 2023 82
Auditor’s Independence Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF IGO LIMITED
As lead auditor of IGO Limited for the year ended 30 June 2023, I declare that, to the best of my
knowledge and belief, there have been:
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
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.
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF IGO LIMITED
As lead auditor of IGO Limited for the year ended 30 June 2023, I declare that, to the best of my
This declaration is in respect of IGO Limited and the entities it controlled during the period.
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.
Ashleigh Woodley
Director
BDO Audit (WA) Pty Ltd
Perth
Ashleigh Woodley
30 August 2023
Director
BDO Audit (WA) Pty Ltd
Perth
30 August 2023
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, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
IGO Annual Report 2023
83
IGO Limited
Financial Report
30 June 2023
ABN 46 092 786 304
Financial statements
Consolidated statement of profit or loss and other
comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors’ declaration
84
85
86
87
89
149
84
2
3
2
3
Notes
Notes
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
2022
2023
$M
$M
2022
2023
$M
$M
902.8
1,023.9
-
6.0
902.8
1,023.9
-
6.0
(170.4)
(305.5)
(59.7)
(102.3)
(170.4)
(305.5)
(6.3)
(11.8)
(59.7)
(102.3)
11.4
(19.7)
(6.3)
(11.8)
(175.6)
(287.1)
11.4
(19.7)
(67.7)
(96.1)
(175.6)
(287.1)
(37.5)
(41.0)
(67.7)
(96.1)
(20.8)
(22.8)
(37.5)
(41.0)
(6.0)
(44.0)
(20.8)
(22.8)
(3.0)
(17.3)
(6.0)
(44.0)
-
(968.5)
(3.0)
(17.3)
(71.1)
3.5
-
(968.5)
(9.3)
(40.6)
(71.1)
3.5
176.7
1,603.6
(9.3)
(40.6)
463.5
680.3
176.7
1,603.6
(132.6)
(131.2)
463.5
680.3
330.9
549.1
(132.6)
(131.2)
Revenue from continuing operations
Other income
Revenue from continuing operations
Other income
Mining, development and processing costs
Employee benefits expense
Mining, development and processing costs
Share-based payments expense
Employee benefits expense
Fair value movement of financial assets
Share-based payments expense
Depreciation and amortisation expense
Fair value movement of financial assets
Exploration and evaluation expense
Depreciation and amortisation expense
Royalty expense
Exploration and evaluation expense
Transport, shipping and wharfage costs
Royalty expense
Borrowing and finance costs
Transport, shipping and wharfage costs
Impairment of exploration and evaluation expenditure
Borrowing and finance costs
Impairment of other assets
Impairment of exploration and evaluation expenditure
Acquisition and transaction costs
Impairment of other assets
Other expenses
Acquisition and transaction costs
Share of profit from associates
Other expenses
Profit before income tax
Share of profit from associates
Income tax benefit/(expense)
Profit before income tax
Profit after income tax for the year
Income tax benefit/(expense)
4
17
4
16
17
16
26
5
26
5
549.1
330.9
Profit after income tax for the year
Other comprehensive income
Items that may be reclassified to profit or loss
Other comprehensive income
Effective portion of changes in fair value of cash flow hedges, net of tax
Items that may be reclassified to profit or loss
Items that will not be reclassified to profit or loss
Effective portion of changes in fair value of cash flow hedges, net of tax
Share of other comprehensive income of associates accounted for using
Items that will not be reclassified to profit or loss
the equity method
Share of other comprehensive income of associates accounted for using
Changes in the fair value of equity investments at fair value through other
the equity method
comprehensive income
Changes in the fair value of equity investments at fair value through other
Other comprehensive income/(loss) for the year, net of tax
comprehensive income
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income for the year
Total comprehensive income for the year
Profit for the year attributable to the members of IGO Limited
Profit for the year attributable to the members of IGO Limited
Total comprehensive income for the year attributable to the
members of IGO Limited
Total comprehensive income for the year attributable to the
members of IGO Limited
Earnings per share for profit attributable to the ordinary equity
holders of the Company:
Earnings per share for profit attributable to the ordinary equity
Basic earnings per share
holders of the Company:
Diluted earnings per share
Basic earnings per share
Diluted earnings per share
6
6
6
6
(8.2)
(8.2)
(3.5)
(3.5)
(30.9)
(42.6)
(30.9)
(42.6)
506.5
506.5
549.1
549.1
506.5
506.5
Cents
Cents
72.51
72.27
72.51
72.27
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
6.3
6.3
14.6
14.6
(1.4)
19.5
(1.4)
19.5
350.4
350.4
330.9
330.9
350.4
350.4
Cents
Cents
43.69
43.54
43.69
43.54
2
2
IGO Annual Report 2023 Consolidated balance sheet
As at 30 June 2023
ASSETS
Current assets
ASSETS
Cash and cash equivalents
Current assets
Trade and other receivables
Cash and cash equivalents
Inventories
Trade and other receivables
Financial assets at fair value through profit or loss
Inventories
Derivative financial instruments
Financial assets at fair value through profit or loss
Current tax receivables
Derivative financial instruments
Total current assets
Current tax receivables
Non-current assets
Total current assets
Investments accounted for using the equity method
Non-current assets
Property, plant and equipment
Investments accounted for using the equity method
Right-of-use assets
Property, plant and equipment
Mine properties
Right-of-use assets
Exploration and evaluation expenditure
Mine properties
Deferred tax assets
Exploration and evaluation expenditure
Financial assets at fair value through other comprehensive income
Deferred tax assets
Other non-current assets
Financial assets at fair value through other comprehensive income
Total non-current assets
Other non-current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
TOTAL ASSETS
Current liabilities
LIABILITIES
Trade and other payables
Current liabilities
Borrowings
Trade and other payables
Lease liabilities
Borrowings
Current tax liabilities
Lease liabilities
Provisions
Current tax liabilities
Total current liabilities
Provisions
Non-current liabilities
Total current liabilities
Borrowings
Non-current liabilities
Lease liabilities
Borrowings
Provisions
Lease liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities
Deferred tax liabilities
Total non-current liabilities
TOTAL LIABILITIES
TOTAL LIABILITIES
NET ASSETS
NET ASSETS
EQUITY
Contributed equity
EQUITY
Reserves
Contributed equity
Retained earnings
Reserves
Retained earnings
TOTAL EQUITY
85
Consolidated balance sheet
As at 30 June 2023
Consolidated balance sheet
As at 30 June 2023
2022
Restated*
2022
$M
Restated*
$M
2023
$M
2023
$M
Notes
Notes
7
8
7
9
8
10
9
22
10
22
26
13
26
14
13
15
14
17
15
5
17
10
5
10
11
18
11
14
18
14
12
12
18
14
18
12
14
5
12
5
775.2
89.7
775.2
136.2
89.7
62.4
136.2
1.2
62.4
74.3
1.2
1,139.0
74.3
1,139.0
2,409.1
57.5
2,409.1
62.4
57.5
498.0
62.4
460.9
498.0
69.5
460.9
37.6
69.5
3.9
37.6
3,598.9
3.9
3,598.9
4,737.9
4,737.9
160.8
178.4
160.8
29.1
178.4
-
29.1
41.7
-
410.0
41.7
410.0
179.5
45.1
179.5
93.6
45.1
219.5
93.6
537.7
219.5
537.7
947.7
367.1
119.8
367.1
82.4
119.8
126.8
82.4
49.0
126.8
-
49.0
745.1
-
745.1
1,994.5
193.2
1,994.5
68.5
193.2
1,225.0
68.5
480.3
1,225.0
74.3
480.3
81.6
74.3
0.8
81.6
4,118.2
0.8
4,118.2
4,863.3
4,863.3
149.2
176.5
149.2
26.3
176.5
83.3
26.3
17.2
83.3
452.5
17.2
452.5
713.5
42.9
713.5
82.2
42.9
137.0
82.2
975.6
137.0
975.6
1,428.1
947.7
3,790.2
Consolidated balance sheet
1,428.1
3,435.2
As at 30 June 2023
(continued)
3,435.2
3,790.2
19
20(a)
Notes
19
20(b)
20(a)
20(b)
2,631.5
563.8
2023
2,631.5
594.9
$M
563.8
594.9
3,790.2
2,641.8
2022
747.6
Restated*
2,641.8
45.8
$M
747.6
45.8
3,435.2
* Restated balances reflect the finalisation of the purchase price accounting allocation for the acquisition of Western Areas
Limited on 20 June 2022. Refer to note 24 for further details.
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
IGO Limited
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
IGO Limited
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
IGO Limited
3
3
4
IGO Annual Report 2023 86
Consolidated statement of changes in equity
For the year ended 30 June 2023
Consolidated statement of changes in equity
For the year ended 30 June 2023
Consolidated statement of changes in equity
For the year ended 30 June 2023
Balance at 1 July 2021
Balance at 1 July 2021
Profit for the year
Other comprehensive income
Profit for the year
Effective portion of changes in fair value of cash
Other comprehensive income
flow hedges, net of tax
Effective portion of changes in fair value of cash
Share of other comprehensive income of
flow hedges, net of tax
associate
Share of other comprehensive income of
Changes in financial assets at fair value through
associate
other comprehensive income, net of tax
Changes in financial assets at fair value through
other comprehensive income, net of tax
Total comprehensive income for the year
Total comprehensive income for the year
Transfer of 30 June 2022 profits
Share of other equity of associate
Transfer of 30 June 2022 profits
Share of other equity of associate
Transactions with owners in their capacity as
owners:
Transactions with owners in their capacity as
Dividends paid
owners:
Share-based payments expense
Dividends paid
Issue of shares - Employee Incentive Plan
Share-based payments expense
Acquisition of treasury shares
Issue of shares - Employee Incentive Plan
Acquisition of treasury shares
Balance at 30 June 2022
Balance at 30 June 2022
Balance at 1 July 2022
Balance at 1 July 2022
Profit for the year
Other comprehensive income
Profit for the year
Effective portion of changes in fair value of cash
Other comprehensive income
flow hedges, net of tax
Effective portion of changes in fair value of cash
Changes in financial assets at fair value through
flow hedges, net of tax
other comprehensive income, net of tax
Changes in financial assets at fair value through
Share of other comprehensive income of
other comprehensive income, net of tax
associate
Share of other comprehensive income of
associate
Total comprehensive income for the year
Total comprehensive income for the year
Share of other equity of associate
Share of other equity of associate
Transactions with owners in their capacity as
owners:
Acquisition of treasury shares
Dividends paid
Share-based payments expense
Issue of shares - Employee Incentive Plan
Contributed
equity
Contributed
$M
equity
$M
2,648.6
2,648.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.3
-
(10.1)
3.3
(10.1)
2,641.8
2,641.8
Contributed
equity
Contributed
$M
equity
$M
2,641.8
2,641.8
-
-
-
Retained
earnings
Retained
$M
earnings
$M
45.8
45.8
330.9
330.9
-
-
-
-
-
-
330.9
330.9
(330.9)
-
(330.9)
-
-
-
-
-
-
-
-
-
45.8
45.8
Reserves
$M
Reserves
$M
505.5
505.5
-
-
6.3
6.3
14.6
14.6
(1.4)
(1.4)
19.5
19.5
330.9
2.3
330.9
2.3
(113.6)
6.3
(113.6)
(3.3)
6.3
-
(3.3)
-
747.6
747.6
Retained
earnings
Retained
$M
earnings
$M
45.8
45.8
549.1
549.1
Reserves
$M
Reserves
$M
747.6
747.6
-
-
Total
equity
Total
$M
equity
$M
3,199.9
3,199.9
330.9
330.9
6.3
6.3
14.6
14.6
(1.4)
(1.4)
350.4
350.4
-
2.3
-
2.3
(113.6)
6.3
(113.6)
-
6.3
(10.1)
-
(10.1)
3,435.2
3,435.2
Total
equity
Total
$M
equity
$M
3,435.2
3,435.2
549.1
549.1
-
(8.2)
(8.2)
-
-
(8.2)
-
Consolidated statement of changes in equity
(30.9)
-
For the year ended 30 June 2023
(30.9)
(30.9)
(continued)
(3.5)
(3.5)
(8.2)
(30.9)
-
-
-
-
-
-
Contributed
-
-
equity
$M
-
-
549.1
Retained
549.1
-
earnings
$M
-
(3.5)
(42.6)
(42.6)
(1.1)
Reserves
$M
(1.1)
(13.1)
-
-
2.8
-
-
-
-
-
(143.9)
6.6
(2.8)
563.8
(3.5)
506.5
Total
506.5
(1.1)
equity
$M
(1.1)
(13.1)
(143.9)
6.6
-
3,790.2
Balance at 30 June 2023
2,631.5
594.9
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.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying
notes.
IGO Annual Report 2023 Consolidated statement of cash flows
For the year ended 30 June 2023
Consolidated statement of cash flows
Consolidated statement of cash flows
For the year ended 30 June 2023
For the year ended 30 June 2023
87
Cash flows from operating activities
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest and other costs of finance paid
Interest and other costs of finance paid
Interest received
Interest received
Acquisition and transaction costs
Acquisition and transaction costs
Payments for exploration and evaluation
Payments for exploration and evaluation
Income taxes paid
Income taxes paid
Dividends received from TLEA
Dividends received from TLEA
Net cash inflow from operating activities
Net cash inflow from operating activities
Cash flows from investing activities
Cash flows from investing activities
Payment for acquisition of subsidiary, net of cash acquired
Payment for acquisition of subsidiary, net of cash acquired
Payments for property, plant and equipment
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from sale of listed investments
Proceeds from sale of listed investments
Payments for development expenditure
Payments for development expenditure
Payments for purchase of listed investments
Payments for purchase of listed investments
Payments for capitalised exploration and evaluation expenditure
Payments for capitalised exploration and evaluation expenditure
Capital contributions to TLEA
Capital contributions to TLEA
Payments on sale of Tropicana Joint Venture
Payments on sale of Tropicana Joint Venture
Net cash (outflow) from investing activities
Net cash (outflow) from investing activities
Cash flows from financing activities
Cash flows from financing activities
Proceeds from borrowings
Proceeds from borrowings
Repayment of borrowings
Repayment of borrowings
Transaction costs associated with borrowings
Transaction costs associated with borrowings
Principal element of lease payments
Principal element of lease payments
Payment of dividends
Payment of dividends
Payments for shares acquired by the IGO Employee Trust
Payments for shares acquired by the IGO Employee Trust
Net cash (outflow) inflow from financing activities
Net cash (outflow) inflow from financing activities
Net increase (decrease) in cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the beginning of the year
Effects of exchange rate changes on cash and cash equivalents
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year
Cash and cash equivalents at the end of the year
Notes
Notes
2023
2023
$M
$M
1,150.0
1,150.0
(589.4)
(589.4)
560.6
560.6
(33.5)
(33.5)
8.3
8.3
(12.3)
(12.3)
(99.6)
(99.6)
(184.8)
(184.8)
1,184.4
1,184.4
1,423.1
1,423.1
-
-
(22.3)
(22.3)
-
-
52.6
52.6
(315.1)
(315.1)
(7.8)
(7.8)
(1.0)
(1.0)
-
-
-
-
(293.6)
(293.6)
100.0
100.0
(640.0)
(640.0)
(0.2)
(0.2)
(29.5)
(29.5)
(143.9)
(143.9)
(13.1)
(13.1)
(726.7)
(726.7)
402.8
402.8
367.1
367.1
5.3
5.3
775.2
775.2
2022
2022
$M
$M
934.1
934.1
(373.9)
(373.9)
560.2
560.2
(4.3)
(4.3)
2.1
2.1
(8.1)
(8.1)
(64.5)
(64.5)
(199.0)
(199.0)
70.7
70.7
357.1
357.1
(1,168.5)
(1,168.5)
(18.7)
(18.7)
0.1
0.1
-
-
(18.7)
(18.7)
(2.8)
(2.8)
(50.7)
(50.7)
(15.7)
(15.7)
(6.0)
(6.0)
(1,281.0)
(1,281.0)
900.0
900.0
-
-
(10.1)
(10.1)
(4.4)
(4.4)
(113.6)
(113.6)
(10.1)
(10.1)
761.8
761.8
(162.1)
(162.1)
528.5
528.5
0.7
0.7
367.1
367.1
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
IGO Annual Report 2023 88
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 2023 was authorised for issue in accordance with a resolution of the Directors on 30 August 2023.
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 hundred 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 2022 as
disclosed in note 34.
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 future events. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial statements, are disclosed in the following notes:
Note 2
Note 5
Note 8
Note 9
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
Note 24
Note 26
Note 29
Revenue
Income tax
Trade and other receivables
Inventories
Provisions
Property, plant and equipment
Leases
Mine properties
Impairment of other assets
Exploration and evaluation
Business combination
Interests in associates
Share-based payments
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 25.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies.
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 the date on which control is obtained to the date on which control is disposed. The acquisition
of subsidiaries is accounted for using the acquisition method of accounting.
IGO Limited
8
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Contents of the notes to the
consolidated financial statements
89
Financial Performance
Segment information
Revenue
Other income
Expenses and losses
Income tax
Earnings per share
Working Capital and Provisions
Cash and cash equivalents
Trade and other receivables
Inventories
Financial assets
Trade and other payables
Provisions
Invested capital
Property, plant and equipment
Leases
Mine properties
Impairment of other assets
Exploration and evaluation
Capital structure and financing activities
Borrowings
Contributed equity
Reserves and retained earnings
Dividends paid and proposed
Risk
Derivatives
Financial risk management
Group structure
Business combination
Interests in subsidiaries
Interests in associates
Other information
Commitments and contingencies
Events occurring after the reporting period
Share-based payments
Related party transactions
Parent entity financial information
Deed of cross guarantee
Remuneration of auditors
Summary of significant accounting policies
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
90
90
93
94
95
95
99
100
100
102
102
103
104
104
107
107
109
111
113
114
116
116
118
119
122
123
123
124
132
132
134
135
138
138
138
138
144
145
146
148
148
IGO Annual Report 2023 90
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
Financial Performance
This section of the notes includes segment information and provides further information on key line items relevant
to financial performance that
including accounting policies, and key
judgements and estimates relevant to understanding these items.
the Directors consider most relevant,
1
Segment information
(a)
Identification of reportable segments
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 one geographic segment (Australia). During
the year, the following segments were in operation: the Nova Operation, Forrestania Operation, Cosmos Project,
Lithium Business, and Growth, which comprises Regional Exploration Activities and Project Evaluation.
The Nova Operation comprises the Nova underground nickel mine and processing operation which 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 responsible for
the budgets and expenditure of the Operation.
The Forrestania Operation comprises the Flying Fox and Spotted Quoll underground mines, and the Cosmic Boy
processing facility. Nickel concentrate is produced, and revenue is derived primarily from the sale of these
concentrates containing nickel and cobalt to multiple customers. The General Manager of the Forrestania
Operation is responsible for the budgets and expenditure of the Operation.
The Cosmos Project primarily comprises the development of the Odysseus underground mine focused on the
production of nickel concentrate, containing nickel and cobalt metal. The General Manager of the Cosmos Project
is responsible for the budgets and expenditure of the Project.
The Forrestania Operation and Cosmos Project were acquired during the previous year as part of the Group's
transaction to acquire Western Areas Limited, which completed on 20 June 2022.
The Lithium Business represents the Group's 49% share in the Lithium joint venture, Tianqi Lithium Energy
Australia Pty Ltd (TLEA), with Tianqi Lithium Corporation. The existing assets of TLEA include the Greenbushes
Lithium Mine and the Kwinana Lithium Hydroxide refinery located in Western Australia, to which the Group holds
an indirect interest of 24.99% and 49%, respectively. The investment is equity accounted by the Group.
The Group’s Head of 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 typically derive
any income. Should a project generated by the Growth division commence generating income or lead to the
construction or acquisition of a producing operation, that operation would then be disaggregated from the Growth
division and become reportable in a separate segment.
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
91
1
Segment information (continued)
(b) Segment results
Year ended 30 June 2023
Nickel revenue
Copper revenue
Cobalt revenue
Silver revenue
Shipping and insurance service
revenue
Other revenue
Total segment revenue
Segment profit/(loss) before
impairment
SPACE
Total segment assets
SPACE
Total segment liabilities
SPACE
Acquisition of property, plant and
equipment
SPACE
Depreciation and amortisation
Impairment of assets
SPACE
Other non-cash expenses
Year ended 30 June 2022
Nickel revenue
Copper revenue
Cobalt revenue
Silver revenue
Shipping and insurance service
revenue
Other revenue
Total segment revenue
Segment profit/(loss) before
impairment
Nova
Operation
$M
Forrestania
Operation
$M
Cosmos
Project
$M
Lithium
Business
$M
Growth
$M
270.7
-
1.4
-
3.0
0.4
275.5
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.4
(15.7)
1,603.6
(102.1)
1,771.9
211.0
73.3
2,409.1
461.0
3,858.0
2.2
278.2
23.5
78.8
8.0
4.4
7.8
3.3
171.9
107.2
-
1.4
94.9
873.6
1.1
0.4
-
-
-
-
-
-
-
17.3
-
Nova
Operation
$M
Forrestania
Operation
$M
Cosmos
Project
$M
Lithium
Business
$M
Growth
$M
Total
$M
901.7
114.0
24.4
1.2
8.6
(35.2)
1,014.7
19.1
283.5
985.8
2.9
Total
$M
670.3
126.4
37.6
1.3
9.6
55.4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
631.0
114.0
23.0
1.2
5.6
(35.6)
739.2
284.7
753.4
123.9
670.3
126.4
37.6
1.3
9.6
55.4
900.6
456.8
974.1
-
Notes to the consolidated financial statements
-
900.6
30 June 2023
(continued)
-
-
176.7
(70.7)
562.8
371.0
551.9
1,994.5
480.7
4,372.2
Segment information (continued)
1
SPACE
Total segment assets (restated)
(b) Segment results (continued)
SPACE
Total segment liabilities
(restated)
SPACE
Year ended 30 June 2022
Acquisition of property, plant and
equipment
SPACE
Impairment of assets
Depreciation and amortisation
SPACE
Other non-cash expenses
108.8
Nova
Operation
$M
11.8
76.4
Forrestania
Operation
$M
-
41.0
Cosmos
Project
$M
-
-
Lithium
Business
$M
-
-
173.0
0.7
-
-
-
-
-
-
-
-
-
6.8
233.0
Growth
$M
-
3.0
-
-
Total
$M
11.8
3.0
173.0
0.7
IGO Annual Report 2023 92
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
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
Interest revenue
Total revenue from continuing operations
2023
$M
1,014.7
9.2
1,023.9
2022
$M
900.6
2.2
902.8
Revenue of $631.2 million and $234.8 million was derived from two external customers of the Nova and
Forrestania Operations, which individually account for greater than 10% of the total segment revenue (2022:
revenues of $450.0 million and $450.6 million from two external customers of the Nova Operation).
(d) Segment net profit before income tax
A reconciliation of reportable segment profit before impairment to profit before income tax is as follows:
Segment profit before impairment
Interest revenue on Group cash balances
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
Impairment of exploration and evaluation expenditure
Impairment of other 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
Current tax receivables
Office and general plant and equipment
Other assets
2023
$M
1,771.9
9.3
(19.7)
(11.8)
(45.7)
(37.8)
3.5
(3.6)
(17.3)
(968.5)
680.3
2023
$M
3,858.0
69.5
100.0
615.6
74.3
16.6
3.9
2022
$M
562.8
2.2
11.4
(6.3)
(25.4)
(4.5)
(71.1)
(2.6)
(3.0)
-
463.5
2022
Restated*
$M
4,372.2
74.3
208.4
190.3
-
17.3
0.8
Total assets as per the balance sheet
4,737.9
4,863.3
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
93
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
Unallocated creditors and accruals
Provision for employee entitlements of the parent entity
Bank loans, net of capitalised borrowing costs
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 and hedging adjustments
2023
$M
278.2
219.5
75.3
12.9
357.9
3.9
-
947.7
2022
Restated*
$M
233.0
137.0
72.6
7.9
890.0
4.3
83.3
1,428.1
2023
$M
2022
$M
1,041.3
8.6
1,049.9
9.2
(35.2)
(26.0)
835.6
9.6
845.2
2.2
55.4
57.6
Total revenue
1,023.9
902.8
(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 the 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 includes all inherent risks associated with control of the product. In these cases, the product
is clearly identified and immediately available to the customer and this is when the performance obligation is met.
IGO Annual Report 2023 94
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
2 Revenue (continued)
(a) Recognition and measurement (continued)
Sale of concentrates (continued)
The price to be received on sales of concentrate is provisionally priced and recognised at the estimate of the
consideration receivable that is highly probable of not reversing by reference to the relevant contractual price and
the estimated mineral specifications, net of treatment and refining charges where applicable. Subsequently,
provisionally 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.
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 between 30 and 60 days.
(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
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 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
Net foreign exchange gains
Other income
2023
$M
5.8
0.2
6.0
2022
$M
-
-
-
IGO Annual Report 2023 95
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
4
Expenses and losses
Profit before income tax from continuing operations includes the following specific expenses:
2023
$M
2022
$M
Cost of sale of goods
Employee benefits expenses
Share-based payments expense
Exploration and evaluation expense
Impairment of exploration and evaluation expenditure
Impairment of other assets
Net loss of sale of property, plant and equipment and other investments
Net loss on sale of tenements
Net foreign exchange losses
Amortisation expense
Depreciation expense
Less: amounts capitalised
Depreciation expensed
Borrowing and finance costs
Borrowing and finance costs
Lease interest expense
Rehabilitation and restoration borrowing costs
Amortisation of borrowing costs
Less: amounts capitalised
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
Increase in deferred tax liabilities
Total deferred tax expense
Income tax expense
Income tax expense is attributable to:
Profit from continuing operations
438.5
102.3
11.8
96.1
17.3
968.5
3.6
2.6
-
207.5
85.7
(6.1)
79.6
30.2
3.5
2.9
7.9
(0.5)
44.0
2023
$M
29.1
(1.9)
27.2
18.0
86.0
104.0
131.2
131.2
131.2
268.3
59.7
6.3
67.7
3.0
-
-
-
0.1
163.7
11.9
-
11.9
4.3
0.9
0.7
0.1
-
6.0
2022
$M
104.4
(2.3)
102.1
4.1
26.4
30.5
132.6
132.6
132.6
IGO Annual Report 2023 96
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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
Financial assets at fair value through other comprehensive income
Income tax expense/(benefit) reported in equity
(c) Numerical reconciliation of income tax expense to prima facie tax payable
Profit from continuing operations before income tax expense
Tax expense at the Australian tax rate of 30% (2022: 30%)
Tax effect of amounts which are not deductible (taxable)
in calculating taxable income:
Share-based payments
Sundry items
Non-deductible costs associated with acquisition of subsidiary and associate
Deferred tax unwind of investment in associate
Previously unrecognised capital losses brought to account
Deferred tax assets relating to impairment 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
Income tax expense
2023
$M
(3.5)
(13.2)
(16.7)
2023
$M
680.3
204.1
(0.4)
0.6
(1.9)
(355.3)
(152.9)
(8.3)
293.7
0.1
-
(1.4)
131.2
2022
$M
2.7
(0.6)
2.1
2022
$M
463.5
139.0
(1.1)
0.2
21.3
(21.2)
138.2
-
-
(3.4)
(0.2)
(2.0)
132.6
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
97
5
Income tax (continued)
(d) Deferred tax assets and liabilities
Balance Sheet
Profit or loss
Equity
2022
Restated
$M
2023
$M
2023
$M
2022
$M
2023
$M
2022
$M
Acquisition of
Subsidiary
2022
Restated
$M
2023
$M
Deferred tax assets
Property, plant and
equipment
Capitalised development
expenditure
Trade receivables
Accrued expenses
Business-related capital
allowances
Provision for employee
entitlements
Provision for rehabilitation
Financial assets
Borrowing costs
Leased assets
Carry forward tax losses
Other
Gross deferred tax assets
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
Investments in associates
Other
Gross deferred tax
liabilities
4.6
-
-
6.4
6.2
8.0
25.8
13.7
-
1.1
-
3.7
69.5
-
(4.6)
0.2
28.9
2.1
4.7
8.4
5.5
24.3
-
-
0.2
-
0.2
74.3
28.9
2.1
(1.7)
2.2
(2.5)
(1.5)
(0.5)
-
(0.9)
-
(3.5)
18.0
-
(2.1)
(0.2)
0.8
(1.0)
2.1
-
4.2
(0.1)
0.3
(0.1)
4.1
(16.5)
(41.1)
(8.7)
(65.1)
7.8
(24.0)
2.4
(17.3)
-
(0.1)
(0.1)
0.1
(0.4)
(1.2)
(2.3)
-
(157.6)
(0.4)
(14.7)
-
(2.4)
(13.8)
(31.8)
(0.4)
(10.8)
1.2
(0.1)
(13.8)
125.8
-
11.2
(6.0)
0.6
3.4
31.8
0.2
-
-
-
-
-
-
-
(13.2)
-
-
-
-
(13.2)
-
-
-
(3.5)
-
-
-
-
-
(219.5)
(137.0)
86.0
26.4
(3.5)
Net impact
(150.0)
(62.7)
104.0
30.5
(16.7)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.7
-
-
(0.6)
-
-
2.1
2.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(28.9)
-
-
(4.7)
(1.1)
(13.0)
-
-
-
-
-
(47.7)
-
-
-
-
-
-
-
-
-
-
(47.7)
IGO Annual Report 2023 98
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
5
Income tax (continued)
(e) Tax losses
The Group 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% (2022: 30%)
Unrecognised capital tax losses
Potential tax benefit @ 30% (2022: 30%)
(f) Tax transparency code
2023
$M
13.2
4.0
62.7
18.8
2022
$M
17.9
5.4
90.5
27.1
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 2022 Tax Transparency Report. In relation to the year ended 30 June 2023, the Part A and Part B disclosures
will be addressed in the Group's 2023 Annual Sustainability Report.
(g) Recognition and measurement
Current taxes
The income tax expense or benefit for the year is the tax payable on the current year'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
It establishes provisions where
to interpretation.
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.
IGO Annual Report 2023 99
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
5
Income tax (continued)
(g) Recognition and measurement (continued)
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.
(h) Significant estimates and judgements
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,
Notes to the consolidated financial statements
and the tax losses continue to be available having regard to the relevant tax legislation associated with their
30 June 2023
recoupment.
(continued)
6
Earnings per share
(a) Earnings used in calculating earnings per share
Profit used in calculating basic and diluted earnings per share attributable to ordinary equity holders of the
Company is $549.1 million (2022: $330.9 million).
(b) 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
Options
2023
Number
2022
Number
757,267,813
757,267,813
2,225,456
338,540
2,597,510
-
Weighted average number of ordinary and potential ordinary shares used as the
denominator in calculating diluted earnings per share
759,831,809
759,865,323
(c)
Information concerning the classification of securities
Share rights and options
Performance rights and options 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 29.
(d) 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 19(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 Annual Report 2023 100
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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
2023
$M
775.2
775.2
2022
$M
367.1
367.1
All cash balances are available for use by the Group.
The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are
disclosed in note 23.
(a) Reconciliation of profit after income tax to net cash inflow from operating activities
Profit for the year
Adjustments for:
Depreciation and amortisation
Impairment of exploration and evaluation expenditure
Impairment of assets
Net loss on sale of non-current assets
Fair value of movement of financial investments
Non-cash employee benefits expense - share-based payments
Share of profits of associates
Amortisation of borrowing expenses
Foreign exchange gains on cash balances
Change in operating assets and liabilities:
Decrease in trade receivables
(Increase) in inventories
(Increase) in income tax receivable
Decrease in deferred tax assets
(Increase) in other operating receivables and prepayments
Decrease/(increase) in derivative financial instruments
(Decrease)/increase in trade and other payables
(Decrease) in income taxes payable
Increase in deferred tax liabilities
Increase in other provisions
Dividends received from associates
Net cash inflow from operating activities
(b) Non-cash investing and financing activities
2023
$M
549.1
287.1
17.3
968.5
6.2
19.7
11.8
(1,603.6)
7.9
(5.3)
22.1
(36.6)
(74.3)
41.3
(3.3)
36.1
(7.5)
(83.3)
62.8
22.7
1,184.4
1,423.1
2022
$M
330.9
175.6
3.0
-
-
(11.4)
6.3
(176.7)
0.1
(0.7)
25.9
(0.3)
-
4.2
(12.3)
(31.3)
39.6
(97.0)
26.4
4.1
70.7
357.1
During the current year, the Group recognised additions of right-of-use assets totalling $34.6 million (2022: $20.0
million).
IGO Annual Report 2023 101
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
7 Cash and cash equivalents (continued)
(c) Net debt reconciliation
This section sets out a summary of net cash/(debt) for each of the years presented.
Net (debt)/cash
Cash and cash equivalents
Borrowings
Lease liabilities
Net cash/(debt)
2023
$M
775.2
(360.0)
(74.2)
341.0
2022
$M
367.1
(900.0)
(69.2)
(602.1)
The table below sets out the movements in interest-bearing liabilities to cash flows arising from financing
activities for each of the years presented.
Interest-bearing liabilities as at 1 July 2021
Net drawdown/(repayment) of borrowings
Repayment of lease liabilities
Total changes from financing activities
New leases
Acquisition of subsidiary
Other changes
Interest expense
Interest payments (presented as operating cash flows)
Other non-cash movements*
Borrowings
$M
Leases
$M
-
900.0
-
900.0
-
-
0.9
-
(0.9)
25.0
-
(4.4)
(4.4)
20.0
28.6
0.9
(0.9)
-
Total
$M
25.0
900.0
(4.4)
895.6
20.0
28.6
1.8
(0.9)
(0.9)
Interest-bearing liabilities as at 30 June 2022 (restated)
900.0
69.2
969.2
Net drawdown/(repayment) of borrowings
Repayment of lease liabilities
Total changes from financing activities
New leases
Other changes
Interest expense
Interest payments (presented as operating cash flows)
Other non-cash movements*
Interest-bearing liabilities as at 30 June 2023
(540.0)
-
(540.0)
-
(29.6)
(29.6)
(540.0)
(29.6)
(569.6)
-
34.6
34.6
27.2
(28.0)
0.8
(3.5)
3.5
-
23.7
(24.5)
0.8
360.0
74.2
434.2
* Other non-cash movements include accrued interest expense which will be presented as operating cash
Notes to the consolidated financial statements
30 June 2023
(continued)
flows in the consolidated statement of cash flows when paid.
(d) Recognition and measurement
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with
7 Cash and cash equivalents (continued)
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.
(d) Recognition and measurement (continued)
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.
IGO Annual Report 2023 102
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
8
Trade and other receivables
Trade receivables at amortised cost:
Trade receivables (subject to provisional pricing) - fair value
Other receivables
Hedge receivables
Prepayments
2023
$M
73.1
9.4
-
7.2
89.7
2022
$M
95.1
3.3
14.8
6.6
119.8
(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.
Impairment and risk exposure
(ii)
Note 23(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.
9
Inventories
Current
Mine spares and stores
ROM inventory
Concentrate inventory
2023
$M
25.3
22.2
88.7
136.2
2022
Restated
$M
22.5
11.7
48.2
82.4
IGO Annual Report 2023 103
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
9
Inventories (continued)
(a) Recognition and measurement
(i) Ore and concentrate inventories
Inventories, comprising nickel, copper and cobalt in concentrate, 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.
(b) 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.
10 Financial assets
Current
Shares in listed companies - at fair value through profit or loss
Non-current
Share in listed companies - at fair value through other comprehensive income
2023
$M
62.4
62.4
37.6
37.6
2022
$M
126.8
126.8
81.6
81.6
(a) Financial assets at fair value through profit or loss
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 23(d) for fair value measurement.
(i) 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 assets in the profit or loss. During the current year, the changes in fair values of financial assets
resulted in an expense to the profit or loss of $19.7 million (2022: $11.4 million gain).
(b) Financial assets at fair value through other comprehensive income
(i) Classification of financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income (FVOCI) comprise equity securities which are
not held for trading and which the Group has irrevocably elected at initial recognition to recognise in this
category. These are strategic investments for which the Group considers this classification to be more relevant.
IGO Annual Report 2023 104
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
10 Financial assets (continued)
(b) Financial assets at fair value through other comprehensive income (continued)
(ii) Equity investments at fair value through other comprehensive income
Equity investments at FVOCI comprise the Group's investment in an ASX listed entity which was acquired as a
result of the acquisition of Western Areas Limited during the prior period (refer to note 24). The fair value of the
Group's investment at FVOCI at 30 June 2023 is $37.6 million (2022: $81.6 million). Refer to note 23(d) for fair
value measurement.
(c) Fair value and risk exposure
Information about the methods and assumptions used in determining fair value is provided in note 23(d).
For an analysis of the sensitivity of the financial assets to price refer to note 23(a)(iii).
11 Trade and other payables
Current liabilities
Trade and other payables
(a) Recognition and measurement
2023
$M
160.8
160.8
2022
$M
149.2
149.2
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
Provision for rehabilitation costs
Other provisions
Non-current
Provision for employee entitlements
Provision for rehabilitation costs
2023
$M
21.2
4.8
15.7
41.7
2023
$M
5.4
88.2
93.6
2022
$M
17.2
-
-
17.2
2022
$M
3.8
78.4
82.2
IGO Annual Report 2023 105
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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
Adjustment to provision
Additional provision on acquisition of subsidiary
Rehabilitation and restoration borrowing costs expense
Carrying amount at end of financial year
(b) Recognition and measurement
2023
$M
78.4
11.7
-
2.9
93.0
2022
$M
44.6
(7.6)
40.7
0.7
78.4
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 leave and long service leave entitlements accrued by
employees.
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 recognised in Trade and other payables 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 Annual Report 2023 106
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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.
(iii) Other provisions
Other provisions includes provision for potential contract cancellation costs relating to the Cosmos Project at 30
June 2023.
Short-term obligations
(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 discount rates. These uncertainties may result in future actual expenditure differing from the
amounts currently 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 rate. Management requires judgement
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.
IGO Annual Report 2023 107
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
Invested Capital
This section of
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.
the notes provides further information about property, plant and equipment,
13 Property, plant and equipment
Land and
buildings
$M
Mining plant
and
equipment
$M
Furniture,
fittings and
other
equipment
$M
Motor
vehicles
$M
Assets
under
construction
$M
Total
$M
Year ended 30 June 2023
Cost
Accumulated depreciation and
impairment
Net book amount
Movements
Opening net book amount
Additions
Depreciation charge
Disposals
Transfers
Impairment*
Closing net book amount
Year ended 30 June 2022
(restated)
Cost
Accumulated depreciation and
impairment
Net book amount
Movements
Opening net book amount
Acquisition of subsidiary
Additions
Depreciation charge
Disposals
Transfers
Closing net book amount
53.7
114.6
44.2
(45.2)
8.5
(94.5)
20.1
(32.6)
11.6
47.3
0.9
(11.1)
-
0.7
(29.3)
8.5
52.1
(4.8)
47.3
2.6
40.8
3.2
(0.7)
-
1.4
47.3
93.7
2.1
(32.1)
(0.1)
7.5
(51.0)
20.1
25.0
2.5
(10.1)
(3.7)
7.6
(9.7)
11.6
105.2
37.9
(11.5)
93.7
(12.9)
25.0
14.6
79.9
1.2
(3.7)
-
1.7
93.7
8.4
15.8
2.1
(2.5)
-
1.2
25.0
7.1
(5.4)
1.7
2.9
1.2
(1.0)
(0.1)
0.7
(2.0)
1.7
5.4
(2.5)
2.9
0.5
1.8
0.3
(0.2)
(0.1)
0.6
2.9
23.2
242.8
(7.6)
(185.3)
15.6
57.5
24.3
15.1
-
-
(16.2)
(7.6)
15.6
193.2
21.8
(54.3)
(3.9)
0.3
(99.6)
57.5
24.3
224.9
-
24.3
(31.7)
193.2
8.0
10.0
11.2
-
-
(4.9)
24.3
34.1
148.3
18.0
(7.1)
(0.1)
-
193.2
* Refer to note 16 for details of impairment charges recognised during the year.
(a) Non-current assets pledged as security
Refer to note 18 for information on non-current assets pledged as security by the Group.
IGO Annual Report 2023 108
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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
reporting period.
(c) Key estimates and judgements
lives are reviewed, and adjusted if appropriate, at the end of each
lives, residual values and depreciation methods require significant management
The estimations of useful
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 Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
109
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
Motor vehicles
Lease liabilities
Current
Non-current
2023
$M
4.7
57.3
0.4
62.4
29.1
45.1
74.2
2022
Restated
$M
5.8
61.2
1.5
68.5
26.3
42.9
69.2
Additions to the right-of use assets during the year were $34.6 million (2022: $20.0 million). The additions during
the year relate to the extension of mining services and haulage contracts which have been recognised as
right-of-use assets.
(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
Motor vehicles
Impairment charge of right-of-use assets
Mining plant and equipment
Motor vehicles
Interest expense (included in borrowing and finance costs)
Total interest expense
2023
$M
1.8
23.1
0.4
25.3
7.6
0.4
8.0
3.0
3.0
2022
$M
0.9
3.9
-
4.8
-
-
-
0.9
0.9
Space
In addition to the above, amounts of $0.5 million interest expense (2022: $nil) and $6.1 million depreciation
expense (2022: $nil) for right-of-use assets was capitalised to mine properties under development.
The total cash outflow for leases for the financial year to 30 June 2023 was $33.1 million (2022: $5.3 million).
(c) Recognition and measurement
The Group leases office space and equipment. Rental contracts are typically made for fixed periods of up to five
years, but may have extension options as described below.
IGO Annual Report 2023 110
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
14 Leases (continued)
(c) Recognition and measurement (continued)
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;
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 4.8% (2022: 3.8%).
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 leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or
less.
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.
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
111
14 Leases (continued)
(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.
facts and
circumstances that create an economical
to exercise a
termination option, are considered at the lease commencement date. Factors considered may include the
importance of the asset 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.
incentive to exercise an extension option, or not
In determining the lease term, all
Identification of non-lease components
In addition to containing a lease, the Group’s mining services arrangements involve the provision of additional
services, including personnel cost, maintenance, drilling related activities and other items. These are considered
to be non-lease components and the Group has elected to separate these from the lease components.
Judgement is required to identify each of the lease and non-lease components. The consideration in the contract
is then allocated between the lease and non-lease components on a relative stand-alone price basis. This
requires the Group to estimate stand-alone prices for each lease and non-lease component.
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.
15 Mine properties
Year ended 30 June 2023
Cost
Accumulated amortisation and impairment
Net book amount
Movements
Carrying amount at beginning of the period
Additions
Amortisation expense
Adjustment to rehabilitation provisions
Depreciation expense capitalised
Interest expense capitalised
Transfers to inventories
Impairment*
Closing net book amount
Mine
properties in
development
$M
Mine
properties in
production
$M
Total
$M
792.9
(792.9)
-
481.1
330.3
-
5.5
6.1
0.5
(14.9)
(808.6)
-
1,570.8
(1,072.8)
498.0
2,363.7
(1,865.7)
498.0
743.9
7.7
(207.5)
6.2
-
-
-
(52.3)
498.0
1,225.0
338.0
(207.5)
11.7
6.1
0.5
(14.9)
(860.9)
498.0
IGO Annual Report 2023 112
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
15 Mine properties (continued)
Year ended 30 June 2022 (restated)
Cost
Accumulated amortisation and impairment
Net book amount
Movements
Carrying amount at beginning of the period
Additions
Acquisition of subsidiary
Amortisation expense
Adjustment to rehabilitation provisions
Closing net book amount
Mine
properties in
development
$M
Mine
properties in
production
$M
481.1
-
481.1
-
-
481.1
-
-
481.1
1,551.8
(807.9)
743.9
804.1
2.5
108.6
(163.7)
(7.6)
743.9
Total
$M
2,032.9
(807.9)
1,225.0
804.1
2.5
589.7
(163.7)
(7.6)
1,225.0
* Refer to note 16 for details of impairment charges recognised during the year.
(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.
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 to the depletion of the
economically recoverable mineral resources (comprising proven and probable reserves).
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.
(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 (JORC) 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).
IGO Annual Report 2023 113
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
16 Impairment of other assets
(a)
Impairment policy
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment charge is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount. For the purposes of assessing impairment, operating assets
are grouped at the lowest levels for which there are separately identifiable cash flows (Cash Generating Units -
CGUs). The recoverable amount of each CGU is determined as the higher of value-in-use and fair value less
costs of disposal (FVLCD) estimated based on the discounted present value of future cash flows (a level 3 fair
value estimation method) and other adjustments. Assets that are not currently in use and not scheduled to be
brought back into use (idle assets) are considered on a standalone basis.
Indicators of impairment may include significant changes in business performance or future operating plans,
along with changes in technology.
(b) Impairment of Forrestania Operation and Cosmos Project cash generating units
IGO Limited acquired 100% of the issued capital of Western Areas Limited (Western Areas) on 20 June 2022.
Western Areas was an ASX listed Australian-based mining and exploration company with a portfolio of operating
and development stage mines. It owns a 100% interest in the Forrestania Nickel Operation and the Cosmos
Nickel Project, both located in Western Australia, together with a substantial exploration portfolio.
These operations are separate CGUs as they each operate independently of each other.
Given the nature of the Group's activities, information on the fair value of an asset is usually difficult to obtain
unless negotiations with potential purchasers or similar transactions are taking place. Consequently,
the
value-in-use for each CGU has been estimated based on discounted future estimated cash flows (expressed in
nominal terms) expected to be generated from the continued use of the CGUs using consensus prices and
foreign exchange forecasts. Production and cost assumptions were derived from estimated quantities of
recoverable minerals, production levels, operating costs and capital requirements, and its eventual disposal,
based on each CGU’s latest life of mine (LOM) plans. These cash flows were discounted using a nominal pre-tax
the Group. Estimates of quantities of
discount rate that reflects the weighted average cost of capital of
recoverable minerals, production levels, operating costs and capital requirements are generated as part of the
Group's planning process, including LOM plans.
This assessment is in accordance with the relevant accounting standards, taking into consideration the current
outlook for nickel and cobalt prices and other macroeconomic cost assumptions.
The non-cash impairment charge of $968.5 million recognised on the Forrestania and Cosmos assets is a result
of cost pressures and escalation of capital and operating costs in the current inflationary environment, challenges
to the mine production schedule and delays in the development of Cosmos.
In accordance with the Group policy, at 30 June 2023, the Group has impaired the carrying amount of the
Forrestania and Cosmos assets, as detailed in the table below:
Property, plant and equipment
Mine properties
Right-of-use assets
Refer to note 1 for the allocation of the impairment charge to each CGU.
2023
$M
99.6
860.9
8.0
968.5
IGO Annual Report 2023 114
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
Notes to the consolidated financial statements
30 June 2023
30 June 2023
(continued)
(continued)
16 Impairment of other assets (continued)
16 Impairment of other assets (continued)
(c) Key assumptions
(c) Key assumptions
The table below summaries the key assumptions used in the 30 June 2023 year end carrying value
The table below summaries the key assumptions used in the 30 June 2023 year end carrying value
assessments.
assessments.
Assumption
Assumption
LOM average value
LOM average value
Cosmos
Cosmos
Forrestania
Forrestania
Nickel price
Nickel price
Foreign exchange rate (AUD:USD)
Foreign exchange rate (AUD:USD)
Inflation rate
Inflation rate
Discount rate
Discount rate
US$18,619/t
US$18,619/t
0.731
0.731
2.5% per annum
2.5% per annum
10% pre-tax
10% pre-tax
US$20,177/t
US$20,177/t
0.670
0.670
2.5% per annum
2.5% per annum
9% pre-tax
9% pre-tax
Nickel prices
Nickel prices
Nickel price assumptions are determined based on June 2023 consensus forecasts.
Nickel price assumptions are determined based on June 2023 consensus forecasts.
Foreign exchange rates
Foreign exchange rates
AUD:USD exchange rate assumptions are determined based on June 2023 consensus forecasts.
AUD:USD exchange rate assumptions are determined based on June 2023 consensus forecasts.
Inflation rates
Inflation rates
The annual inflation rate used within the discounted cash flow model was 2.5% which is based on the Reserve
The annual inflation rate used within the discounted cash flow model was 2.5% which is based on the Reserve
Bank of Australia's long-term target for monetary policy in Australia to achieve an inflation rate within the range of
Bank of Australia's long-term target for monetary policy in Australia to achieve an inflation rate within the range of
2% to 3% on average, over time.
2% to 3% on average, over time.
Discount rate
Discount rate
In determining the fair value of the CGU’s, the future real cash flows are discounted using the Group’s target
In determining the fair value of the CGU’s, the future real cash flows are discounted using the Group’s target
nominal pre-tax weighted average cost of capital, with adjustments made to reflect specific risks associated with
nominal pre-tax weighted average cost of capital, with adjustments made to reflect specific risks associated with
each CGU: being 10% and 9% for the Cosmos and Forrestania CGU's, respectively.
each CGU: being 10% and 9% for the Cosmos and Forrestania CGU's, respectively.
Operating and capital costs
Operating and capital costs
Life of mine operating and capital cost assumption are based on the Group’s latest approved budget and
Life of mine operating and capital cost assumption are based on the Group’s latest approved budget and
life-of-mine plans.
life-of-mine plans.
In relation to the Cosmos Project that was impaired during the year, any favourable variation in the key
In relation to the Cosmos Project that was impaired during the year, any favourable variation in the key
assumptions above may lead to a reversal of impairment.
assumptions above may lead to a reversal of impairment.
17 Exploration and evaluation
17 Exploration and evaluation
Exploration and evaluation costs
Exploration and evaluation costs
2022
2022
Restated
Restated
$M
$M
Notes to the consolidated financial statements
480.3
480.3
30 June 2023
480.3
(continued)
480.3
2023
2023
$M
$M
460.9
460.9
460.9
460.9
Reconciliations of the carrying amounts at the beginning and end of the financial year are as follows:
Reconciliations of the carrying amounts at the beginning and end of the financial year are as follows:
17 Exploration and evaluation (continued)
Opening net book amount
Additions
Disposals
Impairment loss
Acquisition of subsidiary
Closing net book amount
2023
$M
480.3
1.0
(3.1)
(17.3)
-
460.9
2022
Restated
$M
100.5
50.7
-
(3.0)
332.1
480.3
IGO Annual Report 2023 115
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
17 Exploration and evaluation (continued)
(a)
Impairment
The Group recognised impairment charges during the current reporting period of $17.3 million (2022: $3.0
million) 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 loss as incurred except in the following
circumstances in which case the expenditure may be capitalised:
•
•
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
acquisition or in a business combination and measured at fair value on acquisition.
interest which was acquired as an asset
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 Annual Report 2023 116
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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.
18 Borrowings
Current
Secured
Bank loans
Capitalised borrowing costs
Total current borrowings
Non-current
Secured
Bank loans
Capitalised borrowing costs
Total non-current borrowings
(a) Corporate loan facility
2023
$M
180.0
(1.6)
178.4
180.0
(0.5)
179.5
2022
$M
180.0
(3.5)
176.5
720.0
(6.5)
713.5
In May 2022, the Company entered into a Syndicated Facility Agreement (Facility Agreement) for debt facilities
totalling $900.0 million. The Facility Agreement comprises:
•
•
A $540.0 million amortising term loan facility expiring in April 2025; and
A $360.0 million revolving loan facility expiring in April 2025.
The Facility's term loan commitments reduce (amortise) by $90.0 million semi-annually, which commenced on 31
December 2022. Interest is payable based on the BBSY bid price plus a relevant margin.
The Company repaid the $360.0 million revolving loan facility during the year, however the facility remains
available for redraw.
Borrowings are initially recognised at fair value, net of transaction costs. 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
2023, a balance of unamortised transaction costs of $2.1 million (2022: $10.0 million) was offset against the bank
loans contractual liability of $360.0 million (2022: $900.0 million).
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
The Company has entered into a General Security Agreement that provides that it and its subsidiaries pledge all
present and after acquired property as security for all debts and monetary liabilities owing under the Facility
Agreement and the related finance documents.
IGO Annual Report 2023 117
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
18 Borrowings (continued)
(c) Financing arrangements
The Group had the following financing arrangements in place at the reporting date:
Total facilities
Corporate debt facility
Asset finance facility
Contingent instrument facility1
Security bond facility
Facilities used as at reporting date
Corporate debt facility
Asset finance facility
Contingent instrument facility
Security bond facility
Facilities unused as at reporting date
Corporate debt facility
Asset finance facility
2023
$M
720.0
4.0
1.4
0.5
725.9
360.0
0.5
1.4
0.5
362.4
360.0
3.5
363.5
2022
$M
900.0
4.0
1.3
0.5
905.8
900.0
1.4
1.3
0.5
903.2
-
2.6
2.6
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 fair value, net of 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.
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.
IGO Annual Report 2023 118
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
19 Contributed equity
Ordinary shares
Treasury shares
(a) Ordinary shares
Movements in ordinary share capital:
Details
Balance at beginning and end of financial
year
(b) Treasury shares
2023
$M
2,651.2
(19.7)
2,631.5
2022
$M
2,651.2
(9.4)
2,641.8
2023
Number of shares
2023
$M
2022
Number of shares
2022
$M
757,267,813
2,651.2
757,267,813
2,651.2
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 29 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
Issue of deferred shares under the
Company's Employee Incentive Plan
Balance at end of financial year
2023
Number of shares
(320,390)
(1,178,798)
475,930
(1,023,258)
2023
$M
(9.4)
(13.1)
2.8
(19.7)
2022
Number of shares
(136,526)
(1,151,725)
967,861
(320,390)
2022
$M
(2.6)
(10.1)
3.3
(9.4)
The average price per share of the shares acquired by the Trust during the year was $11.06 (2022: $8.75 per
share).
(c) Capital management
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, as follows:
Current ratio (times)
Net debt/(cash) to equity ratio
Gross debt to EBITDA ratio (times)
2023
2.8
(16%)
0.2
2022
1.7
20%
1.3
The Group's gearing ratios improved significantly during the year due to the strong cash generation from the
operations, which enabled the reduction in gross debt from $900.0 million to $360.0 million and net debt from
$532.9 million to net cash of $415.2 million as at 30 June 2023.
IGO Annual Report 2023 119
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
19 Contributed equity (continued)
(c) Capital management (continued)
On 31 July 2023, the Group announced the adoption of a formal Capital Management Policy (CMP) which
outlines the key principles referenced by the Board when assessing the allocation of capital. The CMP seeks to
balance the reliable and consistent return of capital to shareholders with maintaining balance sheet strength and
flexibility to respond to organic and inorganic growth opportunities as they arise. Underpinned by the safe and
reliable management of IGO’s operations, capital allocation will be prioritised by:
Investment in the sustainability in the Group’s operations;
Servicing of debt facilities;
•
•
• Opportunities to grow the business organically; and
•
Exploration activity to grow the Company’s resource base.
Under the new CMP and in accordance with the Company’s updated Shareholder Returns Policy, the Group will
target shareholder returns of between 20% and 40% of Underlying Free Cash Flow when liquidity (comprising
cash and undrawn available debt facilities) is below $1.0 billion. When liquidity is above $1.0 billion, the Board will
use its discretion to consider a dividend payout above the 40% threshold. Remaining funds will be allocated to
either the payment of special dividends, share buybacks, debt reduction, inorganic growth, or a combination of
these.
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.
20 Reserves and retained earnings
(a) Reserves
Distributable profits reserve
Financial assets at fair value through other comprehensive income
Hedging reserve
Share-based payments reserve
Foreign currency translation reserve
Other reserves
2023
$M
556.6
(32.3)
-
27.2
11.1
1.2
563.8
2022
$M
700.5
(1.4)
8.2
23.4
14.6
2.3
747.6
IGO Annual Report 2023 120
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
20 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.
Distributable
profits
reserve
$M
Hedging
reserve
$M
Share-
based
payments
reserve
$M
Financial
assets at
FVOCI
$M
Foreign
currency
translation
reserve
$M
(1.4)
(44.1)
13.2
14.6
-
-
Balance at 1 July 2022
Revaluation - gross
Deferred tax
Transfer to profit or loss -
gross
Deferred tax
Share-based payment
expenses
Issue of shares under the
Employee Incentive Plan
Dividends paid during the
period
Share of other
comprehensive income of
associate
Share of other equity of
associate
700.5
-
-
-
-
-
-
(143.9)
-
-
Balance at 30 June 2023
556.6
Balance at 1 July 2021
Revaluation - gross
Deferred tax
Transfer to profit or loss -
gross
Deferred tax
Share-based payment
expenses
Issue of shares under the
Employee Incentive Plan
Transfer of 2022 profits
from retained earnings
Dividends paid during the
period
Share of other
comprehensive income of
associate
Share of other equity of
associate
483.2
-
-
-
-
-
-
330.9
(113.6)
-
-
8.2
-
-
(11.7)
3.5
-
-
-
-
-
-
1.9
11.7
(3.5)
(2.7)
0.8
-
-
-
-
-
-
23.4
-
-
-
-
6.6
(2.8)
-
-
-
-
-
-
-
-
-
-
27.2
(32.3)
20.4
-
-
-
-
6.3
(3.3)
-
-
-
-
-
(2.0)
0.6
-
-
-
-
-
-
-
-
Balance at 30 June 2022
700.5
8.2
23.4
(1.4)
Other
reserve
$M
2.3
-
-
-
-
-
-
-
-
(1.1)
1.2
-
-
-
-
-
-
-
-
-
-
2.3
2.3
Total
$M
747.6
(44.1)
13.2
(11.7)
3.5
6.6
(2.8)
(143.9)
(3.5)
(1.1)
563.8
505.5
9.7
(2.9)
(2.7)
0.8
6.3
(3.3)
330.9
(113.6)
14.6
2.3
747.6
-
-
-
-
-
(3.5)
-
11.1
-
-
-
-
-
-
-
-
-
14.6
-
14.6
IGO Annual Report 2023 121
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
20 Reserves and retained earnings (continued)
(a) Reserves (continued)
(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. No profits were transferred to the reserve in the current
year (2022: $330.9 million).
Hedging reserve
The hedging reserve is used to record gains or losses on derivatives that are designated and qualify as cash flow
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.
Share-based payments reserve
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 29 for further details of these
plans.
Financial assets at fair value through other comprehensive income (FVOCI)
The Group has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income, as explained in note 10(b). These changes are accumulated within the FVOCI reserve
within equity. The Group transfers amounts from this reserve to retained earnings when the relevant equity
securities are derecognised.
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.
Other reserve
The other reserve is used to record the Group's share of other changes in the equity of associates.
(b) Retained earnings
Movements in retained earnings were as follows:
Balance at beginning of financial year
Net profit for the year
Transfer to distributable profits reserve
Balance at end of financial year
Notes
20(a)
2023
$M
45.8
549.1
-
594.9
2022
$M
45.8
330.9
(330.9)
45.8
IGO Annual Report 2023 122
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
21 Dividends paid and proposed
(a) Ordinary shares
Final dividend for the year ended 30 June 2022 of 5 cents (2021: 10 cents) per
fully paid share
Interim dividend for the year ended 30 June 2023 of 14 cents (2022: 5 cents) per
fully paid share
Total dividends paid during the financial year
2023
$M
37.9
106.0
143.9
2022
$M
75.7
37.9
113.6
The dividends paid during the current year were paid out of the distributable profits reserve (refer note 20(a)).
(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 44 cents per share, plus a
special dividend of 16 cents per share, both fully franked. The aggregate amount
of the proposed dividend of 60 cents per share (2022: 5 cents per fully paid
ordinary share, fully franked) expected to be paid on 28 September 2023 out of
the distributable profits reserve at 30 June 2023 but not recognised as a liability
at year end, is:
2023
$M
2022
$M
454.4
37.9
(c) Franked dividends
The final dividends recommended after 30 June 2023 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 2024.
Franking credits available for subsequent reporting periods based on a tax rate of
30.0% (2022: 30.0%)
2023
$M
2022
$M
729.7
256.0
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.
The impact on the franking account of the dividend recommended by the Directors since the end of the reporting
period, but not recognised as a liability at the reporting date, will be a reduction in the franking account of $194.7
million (2022: $16.2 million).
(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 2023 123
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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.
22 Derivatives
The Group has the following derivative financial
balance sheet:
instruments in the following line items in the consolidated
Current assets
Commodity hedging contracts - cash flow hedges
Commodity hedging contracts - held for trading
2023
$M
-
1.2
1.2
2022
$M
11.7
37.3
49.0
(a)
Instruments used by the Group
Derivative financial instruments may be used by the Group in the normal course of business in order to hedge
exposure to fluctuations in financial risks, such as foreign exchange rates and commodity prices.
The derivative financial instruments are classified as held for trading and accounted for at fair value through profit
or loss unless they are designated as cash flow hedges. The Group's accounting policy for its cash flow hedges
is set out below.
The fair value of the derivative instruments at the reporting date is reflected in current and non-current assets and
liabilities in the balance sheet and is calculated by comparing the contracted rate to the market rates for
derivatives with the same length of maturity.
Refer to note 23 and below for details of
instruments as at 30 June 2023 and 30 June 2022.
the commodity risk being mitigated by the Group’s derivative
Nickel
The Group held various nickel forward hedging contracts at 30 June 2023 to reduce the exposure to a future
decrease in the market value of nickel sales.
The following table details the nickel contracts outstanding at the reporting date:
Tonnes of metal
Weighted average price
(A$/metric tonne)
0 - 6 months
Total
2023
3,200
3,200
2022
3,584
3,584
2023
31,068
31,068
2022
46,667
46,667
Fair value
2023
$M
1.2
1.2
2022
$M
49.0
49.0
Diesel Hedges
There were no diesel fuel hedging contracts outstanding at 30 June 2023 or 30 June 2022.
(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 Annual Report 2023 124
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
22 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 20.
(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.
23 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;
•
to finance both internal growth
Financing: The Company may enter into debt
opportunities and acquire assets. Types of instruments used include syndicated and other bank loans and
finance lease agreements. Surplus funds are held either at call or as short-term deposits; and
instruments in order
IGO Annual Report 2023 125
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
23 Financial risk management (continued)
• 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.
By holding these financial
Group's policies for managing each of these risks, which are summarised below:
instruments, the Group exposes itself to risk. The Board reviews and agrees the
(a) Market risk
(i) Foreign currency risk
As the Group’s sales revenues for base 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 instruments denominated in USD and then converted into the functional currency (i.e. AUD) were as
follows:
Financial assets
Cash and cash equivalents
Trade receivables
Net financial assets
2023
$M
530.6
73.1
603.7
2022
$M
195.2
95.1
290.3
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 2023 AUD:USD exchange rate of 0.6630 (2022: 0.6889). The remainder of
the cash balance of $244.6 million (2022: $171.9 million) 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
movements in the AUD:USD exchange rate, with all other variables held constant.
financial
instruments held at 30 June 2023 to
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
2023
$M
(19.9)
22.0
2022
$M
(9.5)
10.5
(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 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 (QP) hedging, forward contracts and collar arrangements.
Nickel
Nickel concentrate sales have a price finalisation period of one to two months until the sale is finalised with the
customer.
IGO Annual Report 2023 126
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
23 Financial risk management (continued)
(a) Market risk (continued)
(ii) Commodity price risk (continued)
Nickel (continued)
It is the Group’s policy to undertake hedging for up to 100% of the expected QP price risk. This risk emerges
between the time at which the Company receives provisional payment and the time the Company receives final
payment for its product. The provisional payment is based on prices prevailing at the time of shipment, however
the final price received is based on prices one or two months in the future, depending on the contractual
arrangement.
For production outside of the QP period, it is the Group’s policy to hedge between 0% and 50% of total nickel
production tonnes, unless otherwise approved by the Board.
Copper
Copper concentrate sales during the year had an average price finalisation period of up to three months from
shipment date.
It is the Group’s policy to hedge between 0% and 50% of total copper production tonnes.
Diesel fuel
It is the Group's policy to hedge between 0 and 50% 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.
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 - commodity hedging contracts
Net exposure
2023
$M
55.5
1.2
56.7
2022
$M
12.3
49.0
61.3
The following table summarises the sensitivity of financial instruments held at 30 June 2023 to movements in the
nickel price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of 5.0%
(2022: 5.0%) and a 5.0% (2022: 20.0%) sensitivity analysis is used to value derivative contracts.
Sensitivity of financial instruments to
nickel price movements
Increase/decrease in nickel price
Increase
Decrease
Impact on post-tax profit
Impact on other components of
equity
2023
$M
0.7
(0.7)
2022
$M
(13.4)
13.3
2023
$M
-
-
2022
$M
(2.7)
2.7
The following table summarises the sensitivity of financial instruments held at 30 June 2023 to movements in the
copper price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of
5.0% (2022: 5.0%).
IGO Annual Report 2023 127
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
23 Financial risk management (continued)
(a) Market risk (continued)
(ii) Commodity price risk (continued)
Sensitivity of financial instruments to copper price movements
Increase/decrease in copper price
Increase
Decrease
Impact on post-tax profit
2023
$M
1.0
(1.0)
2022
$M
0.6
(0.6)
(iii) Equity price risk
The Group's exposure to equity securities price risk arises from investments held by the Group and classified in
the balance sheet either as at fair value through other comprehensive income or at fair value through profit or
loss. The majority of the Group's investments are publicly traded on the Australian Securities Exchange.
The following table summaries the sensitivity analysis of on the exposure to equity price risks as 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% (2022: 20%).
Sensitivity of equity investments to
equity price movements
Increase/decrease in equity prices
Increase
Decrease
Impact on post-tax profit
Impact on other components of
equity
2023
$M
8.7
(8.7)
2022
$M
17.7
(17.7)
2023
$M
5.3
(5.3)
2022
$M
11.4
(11.4)
(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 2023
30 June 2022
Weighted
average
interest rate
%
Weighted
average
interest rate
%
Balance
$M
3.1%
3.1%
4.4%
4.4%
775.2
775.2
360.0
360.0
0.2%
0.2%
2.9%
2.9%
Balance
$M
367.1
367.1
900.0
900.0
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.
IGO Annual Report 2023 128
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
23 Financial risk management (continued)
(a) Market risk (continued)
(iv) Cash flow and fair value interest rate risk (continued)
Sensitivity of interest revenue and expense to interest rate movements
Interest revenue
Increase 1.0% (2022: 1.0%)
Decrease 1.0% (2022: 1.0%)
Interest expense
Increase 1.0% (2022: 1.0%)
Decrease 1.0% (2022: 1.0%)
(b) Credit risk
Impact on post-tax profit
2023
$M
5.4
(5.4)
(2.5)
2.5
2022
$M
1.3
(1.3)
(6.3)
6.3
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 with a minimum long-term S&P (or Moody's or Fitch equivalent) credit rating of 'A-' or better, 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.
The maximum exposure to credit risk at the reporting date was as follows:
Financial assets
Cash and cash equivalents
Trade receivables
Hedge receivables
Other receivables
Derivative financial instruments
Other assets
2023
$M
775.2
73.1
-
9.4
1.2
3.9
862.8
2022
$M
367.1
95.1
14.8
3.3
49.0
0.8
530.1
Impairment of financial assets
(i)
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 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.
IGO Annual Report 2023 129
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
23 Financial risk management (continued)
(b) Credit risk (continued)
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
the timing of customer payments and imposed credit limits. The resulting exposure to impairment losses is not
considered significant.
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
instrument's credit risk has increased significantly since initial recognition,
period as to whether the financial
based on reasonable and supportable information that is available, without undue cost or effort to obtain.
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
the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or
loss.
fair value through other comprehensive income,
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 year.
(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.
IGO Annual Report 2023 130
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
23 Financial risk management (continued)
(c) Liquidity risk (continued)
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
At 30 June 2023
Trade and other payables
Lease liabilities
Bank loans
At 30 June 2022 (restated)
Trade and other payables
Lease liabilities
Bank loans
Less than
6 months
$M
6 - 12
months
$M
Between
1 and 5
years
$M
Total
contractual
cash
flows
$M
Carrying
amount
$M
160.8
17.3
99.9
278.0
149.2
28.9
105.3
283.4
-
14.6
97.4
112.0
-
22.7
103.7
126.4
-
47.5
186.6
234.1
-
22.4
757.3
779.7
160.8
79.4
383.9
624.1
149.2
74.0
966.3
160.8
74.2
360.0
595.0
149.2
69.2
900.0
1,189.5
1,118.4
(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
2023 and 30 June 2022 on a recurring basis.
Level 1
$M
Level 2
$M
Level 3
$M
Total
$M
At 30 June 2023
Financial assets
Financial assets at fair value through profit or loss
Financial assets at fair value through other
comprehensive income
Derivative financial instruments - commodity
hedging contracts
62.4
37.6
-
100.0
-
-
1.2
1.2
-
-
-
-
62.4
37.6
1.2
101.2
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
(continued)
30 June 2023
(continued)
131
23 Financial risk management (continued)
23 Financial risk management (continued)
(d) Recognised fair value measurements (continued)
(d) Recognised fair value measurements (continued)
(i) Fair value hierarchy (continued)
(i) Fair value hierarchy (continued)
Level 1
$M
Level 1
$M
Level 2
$M
Level 2
$M
Level 3
$M
Level 3
$M
Total
$M
Total
$M
-
-
-
-
-
-
-
-
-
-
-
-
49.0
49.0
49.0
49.0
126.8
126.8
81.6
81.6
-
-
208.4
208.4
Commodity hedging contracts
Commodity hedging contracts
At 30 June 2022
Financial assets
At 30 June 2022
Financial assets at fair value through profit or loss
Financial assets
Financial assets at fair value through other
Financial assets at fair value through profit or loss
comprehensive income
Financial assets at fair value through other
Derivative financial instruments
comprehensive income
Derivative financial instruments
126.8
126.8
81.6
81.6
49.0
49.0
257.4
257.4
The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at
30 June 2023 and did not transfer any fair value amounts between the fair value hierarchy levels during the year
The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at
ended 30 June 2023.
30 June 2023 and did not transfer any fair value amounts between the fair value hierarchy levels during the year
ended 30 June 2023.
(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
(ii) Valuation techniques used to determine level 1 fair values
and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted
The fair value of financial instruments traded in active markets (such as publicly traded derivatives and trading
market price used for financial assets held by the Group is the current bid price. These instruments are included
and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted
in level 1.
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
instruments that are not traded in an active market (for example, over-the-counter
The fair value of financial
(iii) Valuation techniques used to determine level 2 and level 3 fair values
is determined using valuation techniques. These valuation techniques maximise the use of
derivatives)
instruments that are not traded in an active market (for example, over-the-counter
The fair value of financial
observable market data where it is available and rely as little as possible on entity specific estimates. If all
is determined using valuation techniques. These valuation techniques maximise the use of
derivatives)
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
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.
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:
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
•
The use of quoted market prices or dealer quotes for similar instruments.
•
and exchange rates at the reporting date.
The fair value of commodity and forward foreign exchange contracts is determined using forward commodity
•
• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining
and exchange rates at the reporting date.
financial instruments.
• 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.
23 Financial risk management (continued)
All of the resulting fair value estimates are included in level 2.
(iv) Fair value of other financial instruments
(d) Recognised fair value measurements (continued)
The Group also has a number of financial instruments which are not measured at fair value in the balance sheet.
(iv) Fair value of other financial instruments
These instruments had the following fair value at the reporting date.
The Group also has a number of financial instruments which are not measured at fair value in the balance sheet.
(iv) Fair value of other financial instruments (continued)
These instruments had the following fair value at the reporting date.
Notes to the consolidated financial statements
30 June 2023
(continued)
30 June 2023
30 June 2022
Current liabilities
Lease liabilities
Non-current liabilities
Lease liabilities
Carrying
amount
$M
Fair value
$M
Carrying
amount
$M
Fair value
$M
29.1
29.1
45.1
45.1
31.9
31.9
47.5
47.5
26.3
26.3
42.9
42.9
28.9
28.9
45.1
45.1
The fair value of borrowings are not materially different from the carrying amount, since the interest payable on
the borrowings is close to current market rates.
IGO Annual Report 2023 132
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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.
24 Business combination
(a) Summary of acquisition
The Company acquired 100% of the issued capital of Western Areas Limited (Western Areas) in the prior year.
Western Areas was an ASX listed Australian-based mining and exploration company with a portfolio of operating
and development stage mines. Its assets include a 100% interest in the Forrestania Operation (consisting of the
Flying Fox and Spotted Quoll underground nickel mines and the Cosmic Boy processing facility) and the Cosmos
nickel development project, both located in Western Australia, together with a substantial exploration portfolio.
The purchase price of $1,262.5 million was based on consideration of $3.87 per Western Areas share.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase consideration (refer to (b) below):
Cash paid
Total purchase consideration
2022
$M
1,262.5
1,262.5
The final and provisional purchase price accounting values for the assets and liabilities recognised as a result of
the acquisition are as follows:
Cash
Trade and other receivables
Inventories
Financial assets at fair value through profit or loss
Property, plant and equipment
Right-of-use assets
Mine properties
Exploration and evaluation expenditure
Deferred tax assets
Financial assets at fair value through other comprehensive income
Trade and other payables
Current tax liabilities
Provisions
Lease liabilities
Final fair
value
$M
Provisional fair
value
$M
94.0
50.2
48.1
1.6
148.3
28.6
589.7
332.1
47.7
83.7
(77.4)
(8.4)
(47.1)
(28.6)
94.0
50.2
48.2
1.6
70.1
15.7
948.4
94.0
-
83.7
(77.4)
(2.1)
(47.1)
(16.8)
Net identifiable assets acquired
1,262.5
1,262.5
There were no business combinations in the year ending 30 June 2023.
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
133
24 Business combination (continued)
(b) Purchase consideration - cash outflow
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration
Less: Balances acquired
Cash
Net outflow of cash - investing activities
2023
$M
2022
$M
-
-
-
1,262.5
(94.0)
1,168.5
Acquisition-related costs
Acquisition and other integration related credits of $3.5 million (2022: $65.8 million debit) are included in
acquisition and transaction costs in the profit or loss and an amount of $12.3 million (2022: $2.5 million) is
included in operating cash flows in the statement of cash flows.
(c) Recognition and measurement
The acquisition method of accounting is used to account for all business combinations, regardless of whether
equity instruments or other assets are acquired.
The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred,
liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes the
fair value of any asset or liability resulting from a contingent consideration arrangement and the fair value of any
pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred.
On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic conditions, the
Group's operating or accounting policies and other pertinent conditions in existence at the acquisition date.
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree over
the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the
fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been
reviewed, the difference is recognised directly in profit or loss as a discount on acquisition.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional assets or liabilities during the measurement
period, based on new information obtained about the facts and circumstances that existed at the acquisition date.
The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when
the acquirer receives all the information possible to determine fair value.
(d) Key estimates and judgements
As discussed above, business combinations are initially accounted for on a provisional basis. Estimates and
judgements are required by the Group, taking into consideration all available information at the reporting date, to
assess the fair value of assets acquired, liabilities and contingent liabilities assumed. Fair value adjustments on
the finalisation of the business combination accounting is retrospective, where applicable, to the period the
combination occurred and may have an impact on the assets, liabilities, depreciation and amortisation reported.
IGO Annual Report 2023 134
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
25 Interests in subsidiaries
(a) Significant investments in subsidiaries
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
2023
%
2022
%
IGO Lithium Holdings Pty Ltd
IGO Nova Holdings Pty Ltd
IGO Nova Pty Ltd
IGO Nickel Holdings Pty Ltd
IGO Forrestania Limited
Western Areas Nickel Pty Ltd
IGO Cosmos Pty Ltd
BioHeap Ltd
Western Platinum NL
IGO Newsearch Pty Ltd
IGO Copper Holdings Pty Ltd
IGO Copper Pty Ltd
IGO Stockman Parent Pty Ltd
IGO Stockman Project Pty Ltd
IGO Windward Pty Ltd
Flinders Prospecting Pty Ltd
IGO Better Futures Pty Ltd
IGO Downstream Pty Ltd
IGO Canada Holdings B.C. Ltd
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(b)
(c)
(d)
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Canada
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
-
100
(a)
(b)
(c)
(d)
These subsidiaries have been granted relief from the necessity to prepare full general purpose 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 32.
IGO Cobar Pty Ltd changed its name to IGO Copper Pty Ltd during the year.
IGO Better Futures Pty Ltd was incorporated on 23 September 2022.
IGO Downstream Pty Ltd was incorporated on 13 December 2022.
(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 impairment of
the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
IGO Annual Report 2023 135
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
26 Interests in associates
(a)
Interests in associates
Set out below are the associates of the Group as at 30 June 2023 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.
Name of
entity
Place of
business/
country of
incorporation
TLEA*
Australia
2022
%
2023
%
49.0
% of ownership
interest
Nature of
relationship
Measurement
method
Carrying amount
2023
$M
2022
$M
49.0
Associate
Equity method
2,409.1
1,994.5
* 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.
(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 TLEA and have been
amended to reflect adjustments made by the Group when using the equity method,
including fair value
accounting adjustments and modifications for differences in accounting policy.
Summarised balance sheet
Current assets
Cash and cash equivalents
Other current assets
Total current assets
Non-current assets
Current liabilities
Financial liabilities (excluding trade payables)
Other current liabilities
Total current liabilities
Non-current liabilities
Financial liabilities (excluding trade payables)
Other non-current liabilities
Non-current liabilities
Net assets
Minority interests
Net assets adjusted for minority interests
TLEA (100% basis)
2023
$M
2022
$M
461.9
3,446.8
3,908.7
5,709.8
-
1,679.5
1,679.5
1,409.3
421.7
1,831.0
179.4
1,092.6
1,272.0
5,144.4
807.0
585.0
1,392.0
-
336.6
336.6
6,108.0
4,687.8
(1,191.4)
(617.3)
4,916.6
4,070.5
IGO Annual Report 2023 136
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
26 Interests in associates (continued)
(a)
Interests in associates (continued)
(i) Summarised financial information for associates (continued)
Reconciliation to carrying amounts:
Carrying amount at 1 July
Profit for the year
Other comprehensive income
Dividends received
Capital contributions
Share of other changes in equity of TLEA
Group share in %
Group's share in $
Carrying amount
Summarised statement of comprehensive income
Revenue (100%)
< blank header row >
Profit for the year (100%)1
< blank header row >
Profit for the year - IGO Group's 49% share
Equity accounting adjustments2
IGO Group's share of profit of equity accounted investments
< blank header row >
< blank header row >
Total other comprehensive income3
< blank header row >
IGO Group's share of other comprehensive income
< blank header row >
Dividends received from TLEA
TLEA (100% basis)
2023
$M
2022
$M
4,070.5
3,272.7
(7.2)
(2,417.1)
-
(2.3)
4,916.6
3,787.6
360.7
29.8
(144.3)
32.1
4.6
4,070.5
49.0%
2,409.1
2,409.1
49.0%
1,994.5
1,994.5
TLEA
2023
$M
2022
$M
11,007.0
2,021.3
3,325.7
419.3
1,629.6
(26.0)
1,603.6
205.4
(28.7)
176.7
(7.2)
(3.5)
1,184.4
29.8
14.6
70.7
1.
2.
3.
Profit for the year is the amount attributable to owners of TLEA (ie net of amounts attributable to
non-controlling interests within the TLEA Group).
IGO's share of equity accounting adjustments for the year relate to the amortisation of the fair value
accounting adjustments (IGO Group's 49% share).
Other comprehensive income is the amount attributable to owners of TLEA (ie net of amounts attributable to
non-controlling interests within the TLEA group) and primarily relates to revaluation of foreign exchange
loans between TLEA group companies.
IGO Annual Report 2023 137
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
26 Interests in associates (continued)
(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 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 34.
(c) Key estimates and judgements
Control exists where the parent entity is exposed or has the rights to variable returns from its involvement with
the investee and has the ability to affect those returns through its power over the investee. Power over the
investee exists when it has existing rights to direct the relevant activities of the investee which are those which
is the contractually agreed sharing of control of an
significantly affect the investee’s returns. Joint control
arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the
parties sharing control. Significant influence exists if the Group holds 20% or more of the voting power of an
investee, and has the power to participate in the financial and operating policy decisions of the entity.
Estimates and judgements are required by the Group to consider the existence of control, joint control or
significant influence over an investee. The Group has considered its investment in TLEA and the rights and
obligations contained within the Investment Agreement concluding the Group has significant influence but not
control or joint control.
IGO Annual Report 2023 138
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(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.
27 Commitments and contingencies
(a) Capital commitments
Significant capital expenditure contracted for at the end of the reporting year but not recognised as liabilities is as
follows:
Cosmos Project capital
(b) Contingencies
2023
$M
89.3
89.3
2022
$M
82.8
82.8
The Group had guarantees outstanding at 30 June 2023 totalling $1.9 million (2022: $1.8 million) which have
been granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation
estimates at the various mine sites.
the finalisation of
The Group previously announced on 22 June 2021 that
to acquire the
Company's 49% interest in the Lithium Joint Venture from Tianqi Lithium Corporation (Tianqi) was subject to an
internal restructure of the Australian arm of Tianqi, which included informal engagement by Tianqi with the
Australian Taxation Office (ATO) to confirm that there would be no tax implications arising from the internal
restructure. The ATO engagement process was ongoing at that time. Notwithstanding this process was not
completed with the ATO, and it was a matter between Tianqi and the ATO, IGO agreed to proceed to completion
and if there were any unforeseen tax outcomes resulting from the internal restructure, IGO would share the tax
liability with Tianqi in proportion to IGO’s joint venture interest (being 49%), to a maximum of $96.7 million. The
review with the ATO is ongoing.
the agreement
28 Events occurring after the reporting period
On 30 August 2023, the Company resolved to pay a final dividend of 44 cents per share, plus a special dividend
of 16 cents per share, both fully franked, to be paid on 28 September 2023.
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.
29 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 2022. 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 and options;
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
(continued)
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
Significant capital expenditure contracted for at the end of the reporting year but not recognised as liabilities is as
Other information
or position of the Group.
27 Commitments and contingencies
(a) Capital commitments
follows:
Cosmos Project capital
(b) Contingencies
2023
$M
89.3
89.3
2022
$M
82.8
82.8
The Group had guarantees outstanding at 30 June 2023 totalling $1.9 million (2022: $1.8 million) which have
been granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation
estimates at the various mine sites.
The Group previously announced on 22 June 2021 that
the finalisation of
the agreement
to acquire the
Company's 49% interest in the Lithium Joint Venture from Tianqi Lithium Corporation (Tianqi) was subject to an
internal restructure of the Australian arm of Tianqi, which included informal engagement by Tianqi with the
Australian Taxation Office (ATO) to confirm that there would be no tax implications arising from the internal
restructure. The ATO engagement process was ongoing at that time. Notwithstanding this process was not
completed with the ATO, and it was a matter between Tianqi and the ATO, IGO agreed to proceed to completion
and if there were any unforeseen tax outcomes resulting from the internal restructure, IGO would share the tax
liability with Tianqi in proportion to IGO’s joint venture interest (being 49%), to a maximum of $96.7 million. The
review with the ATO is ongoing.
28 Events occurring after the reporting period
On 30 August 2023, the Company resolved to pay a final dividend of 44 cents per share, plus a special dividend
of 16 cents per share, both fully franked, to be paid on 28 September 2023.
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.
139
29 Share-based payments
Notes to the consolidated financial statements
The Group provides benefits to employees (including executive directors) of the Group through share-based
Notes to the consolidated financial statements
incentives. Information relating to these schemes is set out below.
30 June 2023
30 June 2023
(continued)
(a) Employee Incentive Plan
Notes to the consolidated financial statements
The IGO Limited Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting of
30 June 2023
29 Share-based payments (continued)
the Company in November 2022. The EIP incorporates both broad based equity participation for eligible
(continued)
employees, as well as key executive incentive schemes designed to provide long-term incentives to senior
(a) Employee Incentive Plan (continued)
management (including executive directors) to deliver long-term shareholder returns.
29 Share-based payments (continued)
Short-term incentive (STI) - service rights;
•
The EIP comprised the following schemes during the current financial year:
Employee share ownership award; and
•
(a) Employee Incentive Plan (continued)
Employee salary sacrifice share plan.
•
Long-term incentive (LTI) - performance rights and options;
•
Short-term incentive (STI) - service rights;
•
During the current year, certain senior executives had the option to take their LTI in the form of options.
•
Employee share ownership award; and
Employee salary sacrifice share plan.
•
(b) LTI - Performance Rights
Under the LTI scheme, participants are granted performance rights which will only vest if certain performance
During the current year, certain senior executives had the option to take their LTI in the form of options.
conditions are met and the employees are still employed by the Group at the end of the vesting period.
(b) LTI - Performance Rights
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.
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.
Equity settled awards outstanding
Participation in the LTI scheme is at the Board’s discretion and no individual has a contractual right to participate
Set out below are summaries of performance rights granted under the LTI scheme:
in the scheme or to receive any guaranteed benefits.
Equity settled awards outstanding
2023
2022
7.16
2022
2023
2,177,583
1,934,189
Number of
share rights
Number of
share rights
2,560,041
Number of
570,045
share rights
(715,516)
2,560,041
(236,987)
570,045
2,177,583
(715,516)
(236,987)
2,177,583
Number of
583,264
share rights
(736,615)
2,177,583
(90,043)
583,264
1,934,189
(736,615)
(90,043)
Weighted
Set out below are summaries of performance rights granted under the LTI scheme:
average fair
value at grant
date
Weighted
average fair
4.87
value at grant
12.72
date
4.61
4.87
8.83
12.72
7.16
4.61
8.83
Weighted
average fair
value at grant
date
Weighted
average fair
3.31
Outstanding at the beginning of the year
value at grant
8.35
Rights issued during the year
date
2.66
Rights vested during the year
3.31
Outstanding at the beginning of the year
3.09
Rights lapsed and cancelled during the year
8.35
Rights issued during the year
4.87
Outstanding at the end of the year
2.66
Rights vested during the year
The share-based payments expense relating to performance rights included in profit or loss for the year totalled
Rights lapsed and cancelled during the year
3.09
$6,531,566 (2022: $3,317,624).
Outstanding at the end of the year
Fair value of performance rights granted
The share-based payments expense relating to performance rights included in profit or loss for the year totalled
The fair value of the share rights granted during the year ended 30 June 2023 are determined using a trinomial
$6,531,566 (2022: $3,317,624).
tree which has been adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy, with
Fair value of performance rights granted
the following inputs:
The fair value of the share rights granted during the year ended 30 June 2023 are determined using a trinomial
tree which has been adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy, with
Fair value inputs
the following inputs:
Grant date
Vesting date*
Fair value inputs
Share price at grant date
Grant date
Fair value estimate at grant date
Vesting date*
Expected share price volatility (%)
Share price at grant date
Expected dividend yield (%)
Fair value estimate at grant date
Expected risk-free rate (%)
Expected share price volatility (%)
* 50% of the performance rights which vest will be available to exercise following completion of the testing of the
Expected dividend yield (%)
performance conditions, and 50% will be subject to a one year holding lock and available to exercise on 1 July
Expected risk-free rate (%)
2026.
* 50% of the performance rights which vest will be available to exercise following completion of the testing of the
Vesting conditions of performance rights granted
performance conditions, and 50% will be subject to a one year holding lock and available to exercise on 1 July
2026.
Vesting of the performance rights granted to executives and other employees during the year is based on a
number of performance hurdles as follows:
Vesting conditions of performance rights granted
9 December 2022
1 July 2025
15.04
9 December 2022
12.36
1 July 2025
44.57
15.04
1.97
12.36
3.02
44.57
1.97
3.02
9 December 2022
1 July 2025
15.04
9 December 2022
12.36
1 July 2025
44.57
15.04
1.97
12.36
3.02
44.57
1.97
3.02
Senior management
Senior management
Other employees
Other employees
4.87
Vesting of the performance rights granted to executives and other employees during the year is based on a
number of performance hurdles as follows:
IGO Annual Report 2023 140
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
29 Share-based payments (continued)
(b) LTI - Performance Rights (continued)
Performance Hurdle
Relative TSR performance
Absolute TSR performance
Return on capital employed
Strategic delivery
Decarbonisation project delivery
Relative TSR
Weighting
25%
25%
20%
20%
10%
The relative TSR (total shareholder return) 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 and
a number of overseas listed mining companies. The Board has discretion to adjust the peer group from time to
time at 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
Level of vesting
0%
Between 50th and 75th percentile
50% plus straight-line pro-rata between 50% and 100%
Between 75th and 90th percentile
100% plus straight-line pro-rata between 100% and 150%
90th percentile or better
150%
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
Level of vesting
Less than 10% per annum return
0%
Between 10% and 20% per annum return
50% plus straight-line pro-rata between 50% and 100%
Between 20% and 25% per annum return
100% plus straight-line pro-rata between 100% and 150%
25% per annum return or better
150%
Return on Capital Employed (ROCE)
The Company's ROCE will be determined based on the returns of the Company over the performance period as
determined by its earnings before interest and tax (EBIT), relative to its capital employed (total assets less
current liabilities at the end of the performance period). ROCE measures the profitability generated by the
Company relative to each dollar of capital employed and is calculated as follows:
ROCE = A / B
Where:
• A = the EBIT of the Company over the performance period; and
• B = the capital employed of the Company.
IGO Annual Report 2023 141
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
29 Share-based payments (continued)
(b) LTI - Performance Rights (continued)
The vesting schedule for the 20% of the performance rights subject to ROCE testing is as follows:
Group ROCE
Less than 8%
Between 8% and 12%
Between 12% and 16%
16% or better
Strategic Project Delivery
Level of vesting
0%
50% plus straight-line pro-rata between 50% and 100%
50% plus straight-line pro-rata between 50% and 150%
150%
The Group's strategic delivery will be assessed on the number of completed strategic projects. Further details on
the projects will be provided in the Remuneration Report
the performance
measurement period.
following the completion of
The vesting schedule for the 20% of the performance rights subject to the achievement of the strategic project
delivery is as follows:
Strategic Project Delivery
Level of vesting
Less than 5 completed projects
0%
Between 5 and 7 completed projects
50% plus straight-line pro-rata between 50% and 100%
Between 7 and 9 completed projects
100% plus straight-line pro-rata between 100% and 150%
9 completed projects or better
150%
Decarbonisation Plan Delivery
The Group's decarbonisation plan delivery will be assessed based on the achievement of IGO’s Decarbonisation
Plan. Further details on IGO’s Decarbonisation Plan can be found in the Company’s annual Sustainability Report
and details on the achievement will be provided in the Remuneration Report following the completion of the
performance measurement period.
The vesting schedule for 10% of the performance rights subject to the achievement of the decarbonisation plan
delivery is as follows:
Decarbonisation Project Delivery
Level of vesting
Three year targets not achieved
Three year targets achieved
0%
100%
Other Conditions
Although stretch outcomes can be achieved for four of the five performance measures, the maximum LTI will be
capped at 100%.
The Board has the discretion to reduce the number of performance rights and options vesting, even to zero, in
the event that relative TSR performance is met but absolute TSR is negative over the performance period.
(c) LTI - Options
Under the LTI scheme, certain executives are entitled to elect to take up to 60% of their LTI in the form of
options. The options 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.
IGO Annual Report 2023 142
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
29 Share-based payments (continued)
(c) LTI - Options (continued)
Equity settled awards outstanding
Set out below are summaries of options granted under the LTI scheme:
2023
2022
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
Options issued during the year
Outstanding at the end of the year
-
528,064
528,064
-
10.79
10.79
-
-
-
-
-
-
The share-based payments expense relating to options included in profit or loss for the year totalled $360,071
(2022: $nil).
Fair value of options granted
The fair value of the share rights granted during the year ended 30 June 2023 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
Grant date
Vesting date*
Share price at grant date
Exercise price
Fair value estimate at grant date
Expected share price volatility (%)
Expected dividend yield (%)
Expected risk-free rate (%)
Senior management
9 December 2022
1 July 2025
15.04
10.79
3.46
40.00
1.00
3.23
the options which vest will be available to exercise following completion of
* 50% of
the
performance conditions, and 50% will be subject to a one year holding lock and available to exercise on 1 July
2026.
the testing of
Vesting conditions of options granted
Vesting of the performance options granted to executives and other employees during the year is based on the
same performance hurdles detailed above for the performance rights.
(d) Service rights - STI scheme
Under the Group's short-term incentive (STI) scheme, Executives receive 40% of the annual STI achieved in
Notes to the consolidated financial statements
cash and 60% in the form of rights to deferred shares in IGO Limited (referred to as service rights). In previous
30 June 2023
financial years, Executives received 50% of the annual STI achieved in cash and 50% in the form of service
(continued)
rights. All other employees receive 50% of the annual STI achieved in cash and 50% in the form of service rights.
The service rights are granted following the determination of the STI for the performance year and vest in two
29 Share-based payments (continued)
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.
(d) Service rights - STI scheme (continued)
At vesting, each service right automatically converts into one ordinary share, with the employee having the option
to exercise at their discretion 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, and until such as
the vested service rights are exercised. 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.
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
143
29 Share-based payments (continued)
(d) Service rights - STI scheme (continued)
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
2023
2022
Number of
share rights
Weighted
average fair
value
Number of
share rights
Weighted
average fair
value
573,946
347,393
(406,487)
(26,052)
488,800
7.51
13.48
6.61
12.00
12.26
649,272
382,915
(410,615)
(47,626)
573,946
4.79
9.69
5.06
9.13
7.51
The share-based payments expense relating to service rights included in profit or loss for the year totalled
$4,520,224 (2022 $2,790,968).
(e) 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
2023
Number
35,696
2022
Number
25,594
Each participant was issued with shares worth $1,000 based on the weighted average market price of $12.07
(2022: $8.30). The share-based payments expense relating to ESOA included in profit or loss for the year totalled
$430,855 (2022 $212,302).
(f) 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 257,404 shares with an average price per share of
$13.86 (2022: 140,304 shares with an average price per share of $10.66).
The share rights issued under the EIP will not be subject to any further escrow restrictions once they have vested
to the employees.
(g) 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.
(h) 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.
IGO Annual Report 2023 144
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
29 Share-based payments (continued)
(i) 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.
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.
30 Related party transactions
(a) Transactions with other related parties
During the financial year, a wholly-owned subsidiary paid dividends of $380.0 million to IGO Limited (2022:
$590.0 million). 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
2023
$
5,518,942
213,368
315,361
1,924,343
7,972,014
2022
$
6,217,938
296,511
183,864
3,023,836
9,722,149
Detailed remuneration disclosures are provided in the remuneration report on pages 58 to 80.
IGO Annual Report 2023 Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
145
31 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
Share-based payments reserve
(Accumulated losses)/retained earnings
Total equity
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
(b) Guarantees entered into by the parent entity
2023
$M
2022
$M
741.2
2,319.5
3,060.7
214.3
187.3
401.6
295.9
4,276.8
4,572.7
273.5
731.5
1,005.0
2,659.1
3,567.7
(2,659.1)
(3,567.7)
2,631.5
2,641.8
556.6
27.2
(556.2)
2,659.1
2023
$M
(758.2)
-
(758.2)
700.5
23.4
202.0
3,567.7
2022
$M
517.6
-
517.6
The parent entity has no unsecured guarantees in respect of finance leases of subsidiaries (2022: $nil).
There are cross guarantees given by IGO Limited, IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel
Holdings Pty Ltd, IGO Forrestania Limited, IGO Cosmos Pty Ltd, BioHeap Ltd and Western Platinum NL, as
described in note 32. 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 2023 or 30 June 2022.
(d) Contractual commitments for the acquisition of property, plant or equipment
The parent entity did not have outstanding contractual commitments relating to the acquisition of property, plant
and equipment at 30 June 2023 or 30 June 2022.
IGO Annual Report 2023 146
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
Notes to the consolidated financial statements
30 June 2023
30 June 2023
(continued)
(continued)
32 Deed of cross guarantee
32 Deed of cross guarantee
IGO Limited, IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel Holdings Pty Ltd, IGO Forrestania
IGO Limited, IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel Holdings Pty Ltd, IGO Forrestania
Limited, IGO Cosmos Pty Ltd, BioHeap Ltd and Western Platinum NL are parties to a deed of cross guarantee
Limited, IGO Cosmos Pty Ltd, BioHeap Ltd and Western Platinum NL 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
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
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
Corporations (Wholly-owned Companies) Instrument 2016/785 (as amended) issued by the Australian Securities
and Investments Commission.
and Investments Commission.
(a) Consolidated statement of profit or loss and other comprehensive income and summary of
(a) Consolidated statement of profit or loss and other comprehensive income and summary of
movements in consolidated retained earnings
movements in consolidated retained earnings
The above companies represent a 'closed group' for the purposes of the Legislative Instrument, and as there are
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
no other parties to the deed of cross guarantee that are controlled by IGO Limited, they also represent the
'extended closed group'.
'extended closed group'.
Set out below is a consolidated statement of profit or loss and other comprehensive income and a summary of
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 2023 of the closed group consisting of
movements in consolidated retained earnings for the year ended 30 June 2023 of the closed group consisting of
IGO Limited, IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel Holdings Pty Ltd, IGO Forrestania
IGO Limited, IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel Holdings Pty Ltd, IGO Forrestania
Limited, IGO Cosmos Pty Ltd, BioHeap Ltd and Western Platinum NL.
Limited, IGO Cosmos Pty Ltd, BioHeap Ltd and Western Platinum NL.
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of profit or loss and other comprehensive income
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 growth expense
Exploration and growth expense
Royalty expense
Royalty expense
Shipping and wharfage expense
Shipping and wharfage expense
Borrowing and finance costs
Borrowing and finance costs
Impairment of exploration and evaluation expenditure
Impairment of exploration and evaluation expenditure
Impairment of other assets
Impairment of other assets
Impairment of loans to subsidiaries
Impairment of loans to subsidiaries
Acquisition and other integration costs
Acquisition and other integration costs
Other expenses
Other expenses
Profit/(loss) before income tax
Profit/(loss) before income tax
Income tax expense
Income tax expense
Profit/(loss) after income tax for the year
Profit/(loss) after income tax for the year
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
Items that will not be reclassified to profit or loss
Items that will not be reclassified to profit or loss
Changes in the fair value of equity investments at fair value through other
Changes in the fair value of equity investments at fair value through other
comprehensive income
comprehensive income
32 Deed of cross guarantee (continued)
Other comprehensive income/(loss) for the year, net of tax
(a) Consolidated statement of profit or loss and other comprehensive income (continued)
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income/(loss) for the year
Total comprehensive income/(loss) for the year
Summary of movements in consolidated retained earnings
(30.9)
(30.9)
(39.1)
(39.1)
(963.3)
(963.3)
Notes to the consolidated financial statements
6.3
30 June 2023
6.3
(continued)
(8.2)
(8.2)
Retained earnings at the beginning of the financial year
Profit for the year
Transfer to distributable profits reserve
Accumulated losses at the end of the financial year
(106.7)
(924.2)
-
(1,030.9)
2023
2023
$M
$M
1,023.9
1,023.9
6.0
6.0
(305.5)
(305.5)
(102.3)
(102.3)
(11.8)
(11.8)
(7.6)
(7.6)
(287.1)
(287.1)
(48.2)
(48.2)
(41.0)
(41.0)
(22.8)
(22.8)
(44.0)
(44.0)
(4.9)
(4.9)
(968.5)
(968.5)
(46.5)
(46.5)
3.5
3.5
(40.6)
(40.6)
(897.4)
(897.4)
(26.8)
(26.8)
(924.2)
(924.2)
2022
2022
$M
$M
902.8
902.8
-
-
(170.4)
(170.4)
(59.7)
(59.7)
(6.3)
(6.3)
(4.0)
(4.0)
(175.6)
(175.6)
(27.3)
(27.3)
(37.5)
(37.5)
(20.8)
(20.8)
(6.0)
(6.0)
-
-
-
-
(19.2)
(19.2)
(71.1)
(71.1)
(9.3)
(9.3)
295.6
295.6
(108.9)
(108.9)
186.7
186.7
(1.4)
(1.4)
4.9
4.9
191.6
191.6
37.5
186.7
(330.9)
(106.7)
IGO Annual Report 2023 147
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
32 Deed of cross guarantee (continued)
(b) Consolidated balance sheet
Set out below is a consolidated balance sheet as at 30 June 2023 of the closed group consisting of IGO Limited,
IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel Holdings Pty Ltd, IGO Forrestania Limited, IGO
Cosmos Pty Ltd, BioHeap Ltd and Western Platinum NL.
2023
$M
2022
$M
ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Inventories
Financial assets at fair value through profit or loss
Derivative financial instruments
Current tax receivables
Total current assets
Non-current assets
Receivables
Property, plant and equipment
Right-of-use assets
Mine properties
Exploration and evaluation expenditure
Deferred tax assets
Investments in controlled entities
Financial assets at fair value through other comprehensive income
Other assets
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
Borrowings
Lease liabilities
Provisions
Deferred tax liabilities
32 Deed of cross guarantee (continued)
Total non-current liabilities
TOTAL LIABILITIES
(b) Consolidated balance sheet (continued)
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
775.2
89.6
136.2
53.2
1.2
74.3
1,129.7
635.4
57.5
62.4
498.0
357.4
70.8
79.9
37.6
3.9
1,802.9
2,932.6
158.6
178.4
29.1
-
41.7
407.8
367.1
119.3
82.4
107.2
49.0
-
725.0
1,830.6
193.2
68.5
1,225.0
365.4
74.3
79.9
81.6
0.8
3,919.3
4,644.3
142.4
176.5
26.3
83.3
17.2
445.7
713.5
Notes to the consolidated financial statements
30 June 2023
42.9
(continued)
82.2
94.2
179.5
45.1
93.6
54.4
372.6
780.4
2,152.2
2023
$M
2,631.5
551.6
(1,030.9)
2,152.2
932.8
1,378.5
3,265.8
2022
$M
2,641.8
730.7
(106.7)
3,265.8
IGO Annual Report 2023 148
Notes to the consolidated financial statements
30 June 2023
Notes to the consolidated financial statements
30 June 2023
(continued)
33 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:
Corporate advisory services
Other compliance and advisory services
2023
$
426,500
14,000
440,500
59,900
6,500
66,400
2022
$
223,750
10,500
234,250
24,950
11,000
35,950
Total services provided by BDO
506,900
270,200
34 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
2023 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)
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 Annual Report 2023 Directors’ declaration
30 June 2023
In the Directors' opinion:
149
Directors' declaration
30 June 2023
(a)
the financial statements and notes set out on pages 84 to 148 are in accordance with the Corporations Act
2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
giving a true and fair view of the consolidated entity's financial position as at 30 June 2023 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 identified in note 32 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 described in note 32.
The Directors have been given the declarations by the Acting 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.
Michael Nossal
Non-executive Chair
Perth, Western Australia
Dated this 30th day of August 2023
IGO Annual Report 2023 150
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
To the members of IGO Limited
INDEPENDENT AUDITOR’S REPORT
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
Report on the Audit of the Financial Report
To the members of IGO Limited
Opinion
We have audited the financial report of IGO Limited (the Company) and its subsidiaries (the Group),
Report on the Audit of the Financial Report
which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in
Opinion
equity and the consolidated statement of cash flows for the year then ended, and notes to the
We have audited the financial report of IGO Limited (the Company) and its subsidiaries (the Group),
financial report, including a summary of significant accounting policies and the directors’ declaration.
which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
statement of profit or loss and other comprehensive income, the consolidated statement of changes in
Act 2001, including:
equity and the consolidated statement of cash flows for the year then ended, and notes to the
Giving a true and fair view of the Group’s financial position as at 30 June 2023, and of its
(i)
financial report, including a summary of significant accounting policies and the directors’ declaration.
financial performance for the year ended on that date; and
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Act 2001, including:
(ii)
(i)
Basis for opinion
Giving a true and fair view of the Group’s financial position as at 30 June 2023, and of its
financial performance for the year ended on that date; and
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
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
Report section of our report. We are independent of the Group in accordance with the Corporations
Basis for opinion
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
Report section of our report. We are independent of the Group in accordance with the Corporations
ethical responsibilities in accordance with the Code.
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We confirm that the independence declaration required by the Corporations Act 2001, which has been
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
given to the directors of the Company, would be in the same terms if given to the directors as at the
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
time of this auditor’s report.
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
We confirm that the independence declaration required by the Corporations Act 2001, which has been
for our opinion.
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.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
our audit of the financial report of the current period. These matters were addressed in the context of
for our opinion.
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
Key audit matters
a separate opinion on these 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.
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, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
Finalisation of Provisional Accounting for the Western Areas Acquisition
Key audit matter
How the matter was addressed in our audit
During the year ended 30 June 2023,
Our work included but was not limited to the following
IGO finalised the accounting for the
procedures:
acquisition of Western Areas Limited.
Note 24 discloses the details of the
valuation report to critically assess the
acquisition, along with the fair value
determination of the fair values of assets and
adjustments recognised on the
liabilities associated with the acquisition;
• Obtaining a copy of management's external expert
finalisation of the business combination
accounting.
This has been identified as a key audit
matter due to the significance of the
transaction and the judgements and
estimates involved in identifying and
measuring the fair value of assets
acquired and liabilities assumed.
•
In conjunction with our internal valuation
specialists, our procedures included:
• Assessing the competency and objectivity
of the external valuers and considering the
valuation methodologies adopted;
• Assessing the accuracy and integrity of the
discounted cashflow for the mine models
supporting the valuations of the assets
being acquired;
• Challenging associated underlying forecast
cashflows and comparing key assumptions
including reserve estimates, commodity
pricing, discount rates and costs to
historical results, economic and industry
forecasts and market data;
• Assessing the calculation of taxes and the
recognition of deferred tax balances on the
transaction with assistance from internal tax
specialists; and
• Assessing the adequacy of the related disclosures
in Note 24 to the financial report.
2
IGO Annual Report 2023
Independent Auditor’s Report
151
Finalisation of Provisional Accounting for the Western Areas Acquisition
Key audit matter
How the matter was addressed in our audit
During the year ended 30 June 2023,
IGO finalised the accounting for the
acquisition of Western Areas Limited.
Note 24 discloses the details of the
acquisition, along with the fair value
adjustments recognised on the
finalisation of the business combination
accounting.
This has been identified as a key audit
matter due to the significance of the
transaction and the judgements and
estimates involved in identifying and
measuring the fair value of assets
acquired and liabilities assumed.
Our work included but was not limited to the following
procedures:
• Obtaining a copy of management's external expert
valuation report to critically assess the
determination of the fair values of assets and
liabilities associated with the acquisition;
•
In conjunction with our internal valuation
specialists, our procedures included:
•
•
Assessing the competency and objectivity
of the external valuers and considering the
valuation methodologies adopted;
Assessing the accuracy and integrity of the
discounted cashflow for the mine models
supporting the valuations of the assets
being acquired;
• Challenging associated underlying forecast
cashflows and comparing key assumptions
including reserve estimates, commodity
pricing, discount rates and costs to
historical results, economic and industry
forecasts and market data;
•
•
Assessing the calculation of taxes and the
recognition of deferred tax balances on the
transaction with assistance from internal tax
specialists; and
Assessing the adequacy of the related disclosures
in Note 24 to the financial report.
2
IGO Annual Report 2023
152
Independent Auditor’s Report
Impairment of Mine Properties and Associated Assets (Cosmos and Forrestania)
Other information
Key audit matter
How the matter was addressed in our audit
As disclosed in Notes 15 and 16, IGO
recognised an impairment of the
Forrestania Operation and Cosmos
Project cash generating units (CGUs).
Determining the impairment of these
CGUs requires management to make
significant judgements and estimates of
key assumptions within the mine
models including:
•
•
•
•
commodity price forecasts
reserve estimates
discount rates and
future operating and capital
costs.
This is a key audit matter due to the
quantum of the impairment recognised
and the significant judgement and
estimates involved in management's
assessment of the recoverable amounts
of these CGUs.
• Our work included but was not limited to the
following procedures:
•
•
Assessing the appropriateness of the CGU
identification and the allocation of assets and
liabilities to the carrying value of each CGU;
Assessing the integrity of the mine models;
• Challenging key inputs used within the mine
models, including the following:
•
In conjunction with our valuation
specialist:
•
•
•
comparing the commodity pricing
data used to independent industry
forecasts;
comparing the foreign exchange
rate data utilised by management
to current market information;
evaluating the appropriateness of
the discount rates applied;
•
•
Engaging our audit expert to challenge the
appropriateness of management’s reserve
estimate by assessing the significant
assumptions, methods and source data
used;
Evaluating forecasted
processing/production costs against the
board approved model;
•
Assessing the adequacy of the related disclosures
in Note 15 and 16 to the financial report.
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 2023 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.
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.
3
4
IGO Annual Report 2023
Independent Auditor’s Report
153
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 2023 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.
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.
4
IGO Annual Report 2023
154
Independent Auditor’s Report
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 58 to 80 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of IGO Limited, for the year ended 30 June 2023, 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
Ashleigh Woodley
Director
Perth
30 August 2023
5
IGO Annual Report 2023
155
Image above: Underground at Nova
Image: Nova Operation Portal
156
Mineral Resources
and Ore Reserves
For FY23, IGO is reporting Mineral Resource and Ore
Reserves estimates for its:
• 100% owned Cosmos Project (Cosmos), which is in project
development to produce saleable nickel concentrates, with
some minor cobalt credits
• 100% owned Nova Operation (Nova), which produces
saleable concentrates containing nickel, copper, and cobalt
• 100% owned Forrestania Operation (Forrestania), which
produces a saleable nickel concentrate that also has some
cobalt credits; and
• IGO’s 24.99% indirect interest in the Greenbushes Lithium
Mine (Greenbushes), which produces saleable lithia
concentrates.
All of IGO’s FY23 estimates are reported in accordance with
Australian Securities Exchange (ASX) Chapter 5 listing rules1,
and also meet the requirements of the 2012 Edition of the
JORC Code2. The FY23 estimates for Cosmos and Forrestania
are reported effective 30 June 2023, with these estimates
reconciled to IGO’s prior FY22 reporting for these sites3.
The estimates for Nova, however, are reconciled to IGO’s
CY21 resource and reserve report, which was the last
JORC Code Public Reporting of mining depleted estimates
for this operation4. Some estimates at Forrestania and
Cosmos were reported in FY22 in accordance with a now
superseded 2004 version of the JORC Code. However, for
FY23 reporting, all the prior 2004 JORC Code estimates have
either been declassified and no longer reported or have
been re-estimated in a manner that meets JORC Code
2012 requirements.
The decision to report Cosmos ORE depleted for minor
development production against the FY22 ORE has been
adopted because IGO is currently undertaking a
comprehensive review of the Cosmos Project. This review
is covering the mine plan and production schedule,
development delays and the effect of higher capital and
operating costs5. This process may change the ORE reported
in this report, but it is not currently advanced enough for IGO
to provide a new Ore Reserve estimate which will be released
around end of the fourth quarter of calendar year 2023.
IGO is reporting estimates for Greenbushes effective
31 December 2022. Additionally, Greenbushes production is
reported for the period 1 January 2023 to 30 June 2023 to
inform investors of the approximate depletion of those
estimates over the six months to the end of FY23.
Nova Core Yard
1 ASX Listing Rules. Chapter 5. Additional reporting on mining and oil and gas production and exploration activities
2 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 Edition)
3
4
5
IGO ASX release 30 August 2022 “FY22 Cosmos and Forrestania Resources and Reserves “
IGO ASX release 31 January 2022 “CY21 Annual Resources and Reserves Update”
IGO ASX release 17 July 2023 “Non-cash impairment of assets acquired from Western Areas and Cosmos Project update”
IGO Annual Report 2023 157
Reporting Governance
Financial inputs and RP3E
IGO’s corporate governance process for resource and reserve
reporting follows the JORC Code’s guiding principles of
competence, transparency and materiality. IGO implements
multiple quality controls for Public Reporting of its estimates
to the ASX, including competency assessment, reconciliation
assessment, financial input review, assessment expectations
of eventual extraction, final report peer review, optional
external auditing where deemed material, and compliance
with ASX listing rules. These items are discussed below.
Competence
IGO’s Public Reporting quality control processes ensure that
a Competent Person who is taking responsibility for the
reporting of an IGO estimate to the ASX has:
• Provided IGO with verifiable evidence that they hold
a membership to a professional organisation that is
recognised in the prevailing JORC Code framework and
that the membership was current over the period that the
estimate is being reported
• At least five years of industry experience that is relevant
to the style of mineralisation and reporting activity for
which they are acting as a Competent Person
• Signed a Competent Person consent letter that states that
the estimates that are reported in the final version of IGO’s
Public Report to the ASX, agree in form and context with
the Competent Person’s supporting documentation
• Additionally confirmed in writing any perceived material
conflict of interests relating to the reporting activity for
which they are taking responsibility, or otherwise stating
there are no material conflicts reportable; and
• Prepared supporting documentation for estimates to a
level consistent with normal industry practices and provided
the documentation for peer review by IGO’s senior technical
staff – including the JORC Code Table 1 Checklists for any
estimates that IGO is reporting under the JORC Code
2012 framework.
Reconciliation
Where an operation or development project is directly
controlled by IGO, IGO’s reconciliation quality control process
is to ensure that the precision of estimates, which are used
for production forecasts and market guidance, are compared
or reconciled to the actual production data. These reconciliation
results are then used to improve the precision of future forecasts
through estimation process modifications as needed.
IGO also ensures where it has operational control, that its
estimates are annually reviewed in terms of the key financial
inputs of product sale price(s) and foreign exchange rate.
IGO’s in-house experts source these forecasts from reputable
and industry well known forecasters such as Consensus
Economics and Bloomberg Terminal Services.
For Mineral Resource estimates, IGO also ensures that
the estimates have been tested to meet the JORC Code
requirement that all estimates reported have “Reasonable
Expectations of Eventual Economic Extraction” (RP3E). Note
that Ore Reserve estimates implicitly have RP3E, otherwise
they would not be considered JORC Code reportable.
Peer review
No matter the quantity of IGO’s interest in a mineral asset all
Public Report tabulations of estimates are peer reviewed and
fact checked by IGO’s senior technical staff before being finally
reviewed by IGO’s key leadership team members. Following
these reviews the results are presented to IGO’s Board for
final review approval for subsequent ASX announcement.
External review
IGO has an optional governance policy whereby any estimates
and results IGO deems market sensitive or production critical
may also be audited by suitably qualified external consultants
to confirm and/or endorse the precision, correctness and
veracity of the reported estimates and/or the estimation
methodology.
ASX compliance
The estimates detailed in the following sections of this Annual
Report are effectively a re-issuing of IGO’s estimates reported
in a concurrent market release6. This release contains the fully
detailed JORC Code Public Reporting information, such as
each estimate’s JORC Code Table 1 information. As such, and
in accordance with ASX Listing Rule 5.23, IGO confirms that
for all Mineral Resources or Ore Reserves reported below, that
all material assumptions and technical parameters
underpinning each estimate continue to apply at the effective
dates of reporting and have not materially changed from
those described in the concurrent market release.
6
IGO ASX release 31 August 2023 “FY23 Mineral Resources and Ore Reserves Statement & Exploration Results Update”
IGO Annual Report 2023 158
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IGO Annual Report 2023
164
Competent Persons Statements
Information in this report that relates to Exploration Targets,
Exploration Results, Mineral Resources or Ore Reserves is
based on the information compiled by the Competent
Persons listed in the table below, 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 for the ASX release dated 31 August 2023, as 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 or otherwise
described items that could be perceived as a conflict.
Competent Persons for IGO’s FY23/CY22 ASX reports
Activity
reporting
Competent
Person
Professional
association
Membership
Number
Role
Employer
Location reporting
and period
responsibilities
Resources
Daryl Baker
MAusIMM
221170 Geology Superintendent Talison
Greenbushes CY22
Paul Hetherington MAusIMM
209805 Senior Consultant
Cube Consulting Nova FY23
Andre Wulfse
FAusIMM
228344 Group Manager Mineral
IGO
Resources
Cosmos/Forrestania
FY23
Reserves
Gregory Laing
MAusIMM
206228 Principal Mining Engineer
IGO
Nova FY23
Marco Orunesu
Preiata
MAusIMM
305362 General Manager
IGO
Operations Support
Cosmos/Forrestania
FY23
Andrew Payne
MAusIMM
308883 Mine Planning
Talison
Greenbushes CY22
Superintendent
FY23 report Mark Murphy
MAIG/ RPGeo
2157 Manager Geological
IGO
Annual Report FY23
Services
The information in this report that relates to Mineral Resources or Ore Reserves is based on the information compiled by the relevant Competent Persons
and activities listed in Table 4 where:
- MAusIMM is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), FAusIMM is a Fellow level member of the AusIMM, and
- MAIG/RPGeo is a Registered Professional Geoscientist Member of the Australian Institute of Geoscientists.
- All IGO personnel listed are full-time employees of IGO and all Talison personnel are full-time employees of Talison.
- Andre Wulfse, Gregory Laing, and Mark Murphy are minor IGO shareholders.
- Paul Hetherington is a full time employee of Cube Consulting and provides his consulting services on a professional fee basis.
- 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 reported, and the activity being undertaken with respect to the responsibilities listed against each person 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.
- Each Competent Person listed above has provided to IGO by e-mail:
-
-
-
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.
Confirmation that there are no issues other than those listed above that could be perceived by investors as a material conflict of interest in
preparing the reported information.
Listing Rule Statement
As per the requirements of ASX Listing Rule 5.24, IGO confirms that:
• The Mineral Resources and Ore Reserves in this Annual Report are based on, and fairly represents the information and
supporting documentation prepared by each Competent Person listed in the Competent Person tabulation above
• The Mineral Resources and Ore Reserves statements as a whole has been approved by the relevant Competent Person’s
listed in the Competent Person tabulation above; and
• The Mineral Resources and Ore Reserves reported are issued only with the prior written consent of each Competent Person
listed in the Competent Person tabulation above as to the form and context which the estimates appear in this Annual Report.
IGO Annual Report 2023
165
Additional ASX Information
Shareholding
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 14 August 2023.
Twenty Largest Holders of Ordinary Shares
Ordinary Shareholders
No. of
shares held
Percentage
held
HSBC CUSTODY NOMINEES
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