Annual 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 2 6 8 10 12 15 16 36 42 54 58 83 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 E L T e r u t n e V t n o J i I A D T B E a v o N A D T B E I i a n a t s e r r o F i n o i t a c e r p e D d n a n o i t a s i t r o m a e t a r o p r o C r e h t o d n a s t n e m y a p d e s a b - e r a h S I A D T B E s o m s o C n o i t a u a v e l d n a n o i t a r o p x E l s t n e m t s e v n i f o t n e m e v o m M T M s t s o c e c n a n i f t e N e s n e p x e x a t e m o c n I i g n y l r e d n U 3 2 Y F T A P N 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 i d e v e c e r s d n e d v D i i e t a r o p r o C r e h t o d n a A E L T m o r f n o i t a u a v e l , n o i t a r o p x E l s t n e m t s e v n i d n a i n o i t i s u q c a t e N n o i t a r g e t n i d n a d n a e c n a n i f t e N s t n e m y a p e s a e l t b e d f o t n e m y a p e R n o s d e e c o r p t e N s t n e m t s e v n i f o e a s l s d n e d v D i i i d a p i d a p x a t e m o c n I h s a c i g n s o C l FY23 Cash Flow Waterfall 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 $M 518 69 317 367 h s a c i g n n e p O e e r F a v o N l w o F h s a C l w o F h s a C i e e r F a n a t s e r r o F l w o F h s a C e e r F s o m s o C 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 . s e t a m i t s e e s e h t f o % 9 9 4 2 s . i t s e r e t n i ’ s O G I i . s s a b t s e r e t n i % 0 0 1 a n o d e t r o p e r e r a d n a 2 2 0 2 r e b m e c e D 1 3 r o f e v i t c e f f e d e m e e d e r a w o e b d e t a u b a t l l s e t a m i t s e s e h s u b n e e r G e h T s t i s o p e D e t i t a m g e P T C L e h t m o r f O 2 i L % 9 3 . 1 g n d a r g t i . M 4 9 0 d n a , t i s o p e D e d o L l a r t n e C e h t m o r f d e c r u o s O 2 i L % 3 7 2 g n d a r g t . i M 5 9 . 1 s a w 3 2 0 2 e n u J 0 3 o t y r a u n a J 1 m o r f s e h s u b n e e r G m o r f n o i t c u d o r p e r O s t l u s e r n o i t c u d o r p t a h t s n o i t u a c O G I t u b , d n e 3 2 Y F o t s h t n o m x s e h t i r o f s e t a m i t s e 2 2 Y C ’ s e h s u b n e e r G l f o n o i t e p e d e h t f o e v i t a c d n i i e r a s e d a r g d n a s e g a n n o t e s e h T . t i s o p e D 1 F S T . g n i t r o p e r 2 2 Y C e h t r o f e n o d s a w s a n o i t a i l i c n o c e r e l i l p k c o t s d n a n o i t e p e d y e v r u s e n m e s c e r p a e d v o r p t o n o d i i i e v i t a e R l c i t e m h t i r A ) 1 2 0 2 g u A 1 3 – 2 2 Y C ( e c n e r e f f i D 2 2 0 2 r e b m e c e D 1 3 1 2 0 2 t s u g u A 1 3 ) t s e r e t n i . % 9 9 4 2 s O G ’ I i f o e v s u c n l i i s s a b % 0 0 1 ( s e c r u o s e R l i a r e n M 2 2 Y C d n a 1 2 0 2 t s u g u A 1 3 s e h s u b n e e r G l : 1 e b a T n o C % 6 s s a M - % 4 - % 3 - % 4 - - - - - - - % 3 - % 2 - % 3 - - - - - - - - - - - % 7 2 - % 5 2 - 4 0 . 1 - - % 7 2 - % 4 2 % 4 % 1 2 - % 3 % 4 2 % 5 - % 3 - % 4 - - % 5 2 - % 0 3 % 2 - % 1 2 - % 6 - % 0 3 % 4 - % 2 - % 4 - - 4 0 . 1 - 7 0 0 . 4 0 0 . 6 0 0 - . 4 0 0 . 7 0 0 . 6 4 3 - . 4 5 0 - . 4 9 3 - . - - - - - 5 1 . 0 - - 5 1 . 0 - 1 0 0 . 1 0 0 . 1 0 0 - . 1 0 0 . 1 0 0 . 1 5 0 - . 8 0 0 - . 8 5 0 - . ) t M ( n o C % 6 - 5 4 2 - . 8 4 0 - . 4 9 2 - . - E C L ) t M ( 6 3 0 - . 7 0 0 - . 4 4 0 - . - O 2 i L ) t M ( 5 1 . 0 - 3 0 0 - . 8 1 . 0 - - - - - - - 6 0 0 - . 6 0 0 - . 4 0 0 0 . 2 0 0 0 . 4 0 0 0 - . 2 0 0 0 . 4 0 0 0 . . 1 2 0 - 3 0 0 - . 4 2 0 - . ) t M ( s s a M - . 0 6 - 9 . 1 - . 0 8 - - - - - - - . 6 4 - . 6 4 - . 2 0 1 . 0 - . 4 0 - . 3 0 - . 2 0 7 . 0 1 - . 3 2 - . 9 2 1 - n o C % 6 E C L ) t M ( t c u d o r P - 5 4 5 5 . 5 2 6 1 . 0 7 . 1 7 - 1 2 . 1 1 5 . 1 1 2 7 2 1 . - - 8 8 2 . 8 8 2 . 4 3 0 . 6 8 0 . 3 2 0 . 3 4 . 1 4 3 0 . 0 7 . 0 7 0 7 . 7 1 . 3 7 8 8 - 3 2 8 . 1 4 2 . 4 6 0 1 . - - 1 7 . 1 8 1 . 0 9 8 . 1 3 4 0 . - 3 4 0 . 5 0 0 . 3 1 . 0 3 0 0 . 1 2 0 . 5 0 0 . 3 6 2 . 7 1 . 3 1 9 4 0 1 . ) t M ( - - 3 3 3 . 8 9 0 . 0 3 4 . - 9 6 0 . 7 0 0 . 6 7 0 . - 7 1 . 0 7 1 . 0 2 0 0 . 5 0 0 . 1 0 0 . 9 0 0 . 2 0 0 . 4 2 4 . 6 0 . 1 2 3 5 . O 2 i L ) % ( - 8 . 1 0 . 1 5 . 1 - 8 . 1 9 . 1 8 . 1 - - 3 . 1 3 . 1 0 3 . 0 2 . 0 . 1 8 . 1 0 3 . 8 . 1 0 . 1 5 . 1 ) t M ( s s a M - . 8 3 8 1 . 6 2 0 1 . 5 6 8 2 - . 6 8 3 9 3 . . 5 2 4 - 7 . 3 1 - . 7 3 1 7 . 0 6 2 . 4 . 1 . 7 4 7 . 0 7 . 8 3 2 . 0 8 0 1 3 7. 4 3 n o C % 6 E C L ) t M ( t c u d o r P - 1 9 . 7 5 3 7 . 6 1 4 6 4 7 . - 1 2 . 1 1 5 . 1 1 2 7 2 1 . - - 2 9 3 . 2 9 3 . 7 2 0 . 2 8 0 . 9 2 0 . 9 3 . 1 7 2 0 . 6 1 . 4 7 4 2 8 1 . . 7 6 2 9 - 9 5 8 . 8 4 2 . 8 0 . 1 1 - - 1 7 . 1 8 1 . 0 9 8 . 1 8 5 0 . - 8 5 0 . 4 0 0 . 2 1 . 0 4 0 0 . 1 2 0 . 4 0 0 . 0 0 . 1 1 1 7 . 2 5 7 3 1 . ) t M ( - 7 4 3 . 0 0 . 1 8 4 4 . - 9 6 0 . 7 0 0 . 6 7 0 . - - 4 2 0 . 4 2 0 . 2 0 0 . 5 0 0 . 2 0 0 . 8 0 0 . 2 0 0 . 5 4 4 . 9 0 . 1 6 5 5 . O 2 i L ) % ( - 8 . 1 0 . 1 5 . 1 - 8 . 1 9 . 1 8 . 1 - - 3 . 1 3 . 1 . 2 3 9 . 1 0 . 1 7 . 1 . 2 3 8 . 1 0 . 1 5 . 1 ) t M ( s s a M - . 9 9 8 1 . 6 4 0 1 . 4 4 9 2 - . 6 8 3 9 3 . . 5 2 4 - . 3 8 1 - . 3 8 1 . 5 0 6 2 . 8 . 1 0 5 . . 5 0 . 4 9 4 2 . 3 0 1 1 . 2 0 6 3 l s s a c C R O J t i s o p e D d e r u s a e M e d o L l a r t n e C d e t a c d n i I d e t a c d n i I d e r r e f n I l a t o T d e r u s a e M a g n a p a K d e r u s a e M d e r r e f n I l a t o T 1 F S T d e t a c d n i I d e r r e f n I l a t o T d e r u s a e M s e l i p k c o t S d e t a c d n i I d e t a c d n i I d e r r e f n I l a t o T d e r u s a e M l a t o T d e r r e f n I l a t o T : s e t o N . s e s s o l y r e v o c e r l i a c g r u l l i i a t e m d n a g n n m d e t c e p x e r o f t n u o c c a t o n o d , h c u s s a d n a s e t a m i t s e u sit in e r a s e s s a m ) n o C % 6 ( e t a r t n e c n o c e n e m u d o p s O 2 i L % 6 a d n a ) E C L ( l i t n e a v u q e - e t a n o b r a c - m u h t i l i , ) O 2 i L ( a h t i L i . o r e z o t d n u o r t a h t l i s e u a v g n i t r o p e r d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h w d n a i l l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l . 1 F S T m o r f O 2 i L % 9 3 . 1 g n d a r g t i . M 4 9 0 d n a e d o L l a r t n e C e h t m o r f d e c r u o s O 2 i L % 3 7 2 g n d a r g t . i M 5 9 . 1 s a w e v s u c n i l i 3 2 0 2 e n u J 0 3 o t 3 2 0 2 y r a u n a J 1 m o r f n o i t c u d o r P . e d a r g a h t i l i d n a e g a n n o t r o f l i i a m c e d e n o o t g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l . l 2 e b a T n i d e t s i l ) s E R O ( s e t a m i t s e e v r e s e R e r O e h t i f o e v s u c n l i y l l a n o i t o n e r a d n a f f o - t u c l l . e d o m k c o b O 2 i L % 5 0 ≥ a g n s u d e t r o p e r e r a ) s E R M i ( s e t a m i t s e e c r u o s e R l i a r e n M e s e h T . 6 s e t a m i t s e s e h s u b n e e r G o t g n i t a e r n o i t a m r o f n l i e d o C C R O J l l u f r o f t r o p e R l l i a u n n A s h t o t e s a e e r n o n a p m o c X S A s O G i ’ I o t r e f e r d u o h s l s r e d a e R - - - - - - IGO Annual Report 2023 159 X S A s O G ’ I o t r e f e r d u o h s l s r e d a e R . 1 F S T m o r f O 2 i L % 9 3 . 1 g n d a r g t i . M 4 9 0 d n a e d o L l a r t n e C e h t m o r f d e c r u o s O 2 i L % 3 7 2 g n d a r g t . i M 5 9 . 1 s a w e v s u c n i l i 3 2 0 2 e n u J 0 3 o t 3 2 0 2 y r a u n a J 1 m o r f n o i t c u d o r P . e d a r g a h t i l i d n a e g a n n o t r o f l i i a m c e d e n o o t g n d n u o r y b d e t c e f f a e r a e g a r e v a d n a s a t o T l . o r e z o t d n u o r t a h t l i s e u a v g n i t r o p e r d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h w d n a i l l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l . 6 s e t a m i t s e s e h s u b n e e r G o t g n i t a e r n o i t a m r o f n l i e d o C C R O J l l u f r o f t r o p e R l i a u n n A s h t o t e s a e e r n o n a p m o c i l . s E R M e h t i f o e v s u c x e y l l l a n o i t o n e r a d n a f f o - t u c l l . e d o m k c o b O 2 i L % 7 0 ≥ a g n s u d e t r o p e r e r a s e t a m i i t s e e v r e s e R e r O e s e h T . s e s s o l y r e v o c e r l i a c g r u l l a t e m d e t c e p x e e h t i r e d s n o c t o n o d d n a u sit in e r a s e s s a m n o C % 6 d n a E C L , O 2 i L - - - - - e v i t a e R l c i t e m h t i r A ) 1 2 0 2 g u A 1 3 – 2 2 Y C ( e c n e r e f f i D n o C % 6 s s a M - - - - - % 6 - % 6 - % 6 2 - % 6 2 - % 4 2 % 4 % 9 % 4 2 % 5 - % 5 - - - - - - % 5 - % 5 - % 2 2 - % 2 2 - % 0 3 % 2 - % 3 % 0 3 % 5 - % 5 - - 1 6 2 - . . 1 6 2 - ) t M ( n o C % 6 - E C L ) t M ( 9 3 0 - . 9 3 0 - . - - - - . 1 6 0 - . 1 6 0 - 7 0 0 . 4 0 0 . 0 1 . 0 7 0 0 . 9 1 . 3 - 2 1 . 3 - - - - - 9 0 0 - . 9 0 0 - . 1 0 0 . 1 0 0 . 1 0 0 . 1 0 0 . 7 4 0 - . 6 4 0 - . O 2 i L ) t M ( - 6 1 . 0 - 6 1 . 0 - - - - - 4 0 0 - . 4 0 0 - . 4 0 0 0 . 2 0 0 0 . 1 0 0 . 4 0 0 0 . 9 1 . 0 - 9 1 . 0 - ) t M ( s s a M - . 3 6 - . 3 6 - - - - - . 2 2 - . 2 2 - . 2 0 1 . 0 - 1 . 0 . 2 0 . 6 8 - . 5 8 - n o C % 6 E C L ) t M ( t c u d o r P - . 2 6 3 4 . 2 6 3 4 - - 4 8 8 . 4 8 8 . 8 7 . 1 8 7 . 1 4 3 0 . 6 8 0 . 0 2 . 1 4 3 0 . 0 1 . 5 5 3 4 5 5 . - 7 4 6 . 7 4 6 . - - 1 3 . 1 1 3 . 1 6 2 0 . 6 2 0 . 5 0 0 . 3 1 . 0 8 1 . 0 5 0 0 . 8 1 . 8 3 2 8 . 2 2 0 2 r e b m e c e D 1 3 O 2 i L ) t M ( - - 2 6 2 . 2 6 2 . 3 5 0 . 3 5 0 . - 1 1 . 0 1 1 . 0 2 0 0 . 5 0 0 . 7 0 0 . 2 0 0 . 1 3 3 . 3 3 3 . ) % ( - - 0 2 . . 0 2 9 . 1 9 . 1 - 4 . 1 4 . 1 0 3 . 0 2 . 2 2 . 0 3 . 9 . 1 9 . 1 n o C % 6 E C L ) t M ( t c u d o r P ) t M ( s s a M - . 2 2 3 1 . 2 2 3 1 - 9 . 7 2 9 7. 2 - 9 . 7 9 7. 7 . 0 6 2 . 2 3 . 7 . 0 - . 3 2 6 4 3 2 6 4 . - - 4 8 8 . 4 8 8 . 0 4 2 . 0 4 2 . 7 2 0 . 2 8 0 . 9 0 . 1 7 2 0 . . 6 0 7 1 3 . 1 7 1 8 2 8 5 . 5 5 8 5 . - 6 8 6 . 6 8 6 . - - 1 3 . 1 1 3 . 1 6 3 0 . 6 3 0 . 4 0 0 . 2 1 . 0 6 1 . 0 4 0 0 . 5 6 8 . 9 6 8 . 1 2 0 2 t s u g u A 1 3 ) t M ( - - 7 7 . 2 7 7 2 . 3 5 0 . 3 5 0 . - 4 1 . 0 4 1 . 0 2 0 0 . 5 0 0 . 7 0 0 . 2 0 0 . 0 5 3 . 1 5 3 . O 2 i L ) % ( - 0 2 . . 0 2 - 9 . 1 9 . 1 - 4 . 1 4 . 1 . 2 3 9 . 1 1 . 2 . 2 3 0 2 . . 0 2 ) t M ( s s a M - . 5 8 3 1 . 5 8 3 1 - 9 . 7 2 9 7. 2 - 1 . 0 1 1 . 0 1 . 5 0 6 2 . 2 3 . . 5 0 . 2 9 7 1 . 7 9 7 1 l s s a c C R O J t i s o p e D d e v o r P e d o L l a r t n e C l e b a b o r P d e v o r P l a t o T l e b a b o r P d e v o r P l a t o T l e b a b o r P l a t o T a g n a p a K 1 F S T l e b a b o r P d e v o r P l a t o T l e b a b o r P l a t o T l a t o T : s e t o N d e v o r P s e l i p k c o t S s e v r e s e R e r O 2 2 Y C d n a 1 2 0 2 t s u g u A 1 3 s e h s u b n e e r G : l 2 e b a T ) t s e r e t n i . % 9 9 4 2 s O G ’ I i f o e v s u c n l i i s s a b % 0 0 1 ( IGO Annual Report 2023 160 d e m e e d e r a s e t i s e s e h t t a s e v r e s e R e r O d n a s e c r u o s e R l a r e n M i r o f s e t a m i t s e 3 2 Y F e h t l l A . a v o N d n a a n a t s e r r o F i , s o m s o C t a d n u o f e s o h t e d u c n l i s t i s o p e d e d h p u s i l l i e k c n c i t a m g a m s O G ’ I s t i s o p e D e d h p u S l i l i e k c N c i t a m g a M h c a e f o n o i t a m r o f n i r o t c e s l i a t e d s g n i t s i l t n e u q e s b u s e h T . s e t a m i t s e e d h p u s i l l i e k c n c i t a m g a m d e n b m o c d n a i l a t o t ’ s O G I f o s g n i t s i l l e r a w o e b s n o i t a u b a t o w l t t s r i f e h T . 3 2 0 2 e n u J 0 3 e v i t c e f f e r o f t i s o p e d s h t i r o f d e t r o p e r s a w e t a m i t s e n a s a , y r a m m u s l l a r e v o e h t n i d e d u c n l i s i i t h g n K r e v l i S e l i h w t a h t e t o N l . s n o i t u b i r t n o c n o i t a c i f i s s a c e d o C C R O J d n a t i s o p e d c i f i c e p s ’ s e t i s . l e b a t r o p e r e d o C C R O J r e g n o l o n s i l d n a d e i f i s s a c e d n e e b s a h e t a m i t s e r o i r p e h t s a d e d u c n l i t o n s i l n o i t a u b a t c i f i c e p s e t i s 3 2 Y F a , 1 2 0 2 r e b m e c e D 1 3 o C u C l a t e M i N e v i t a e R l s s a M % 8 3 - % 0 4 - … … . . . . . . % 3 4 - % 5 4 - % 7 3 - % 6 5 - % 3 2 - % 3 3 - % 8 4 - % 2 7 - % 1 4 - % 6 4 - % 0 0 1 - % 0 0 1 - % 0 0 1 - % 0 0 1 - o C . 5 0 - 1 . 2 - … … . . . . . . u C 7 . 5 - 7 . 7 2 - . 6 2 - . 4 3 3 - i N . 9 0 1 - . 3 3 6 - . 0 4 2 1 - . 3 9 4 1 - 6 7. 4 3 - ) t k ( s s a m l a t e M c i t e m h t i r A ) t M ( s s a M . 4 0 - . 4 5 - . 9 8 - 2 . 7 2 - 9 . 1 4 - ) e t a m l i t s e d e t e p e d d e t r o p e r X S A r o i r p – 3 2 Y F ( e c n e r e f f i D o C - 5 3 . … … . 5 3 - u C 0 . 1 4 . . . . . . 0 . 1 4 i N - . 0 9 9 . 8 5 0 1 7 . 6 0 5 5 . 1 1 7 - o C - u C 0 6 0 0 . 1 7 . 0 … … 1 . 9 4 … … . . . i N - 4 8 . 1 8 2 . 7 2 . 1 5 4 . 1 ) t k ( s s a m l a t e M ) % ( s e d a r G s e c r u o s e R l 3 2 0 2 e n u J 0 3 i a r e n M 3 2 Y F d n a 2 2 Y F / 1 2 Y C t i s o p e d e d h p u s i l l i e k c n c i t a m g a m l a t o t s O G ’ I : l 3 e b a T ) t M ( s s a M - 8 5 . 5 3 . . 8 9 3 1 . 9 4 o C . 5 0 6 5 . … … 1 . 6 ) t k ( s s a m l a t e M ) % ( s e d a r G 2 2 2 0 2 e n u J 0 3 r o 1 1 2 0 2 r e b m e c e D 1 3 u C 7 . 5 7 . 8 6 … … i N . 9 0 1 1 . 9 6 1 . 0 3 2 2 . 0 6 5 6 . 4 4 7 . 0 9 5 0 , 1 o C 0 4 1 . 0 0 5 0 0 . u C 7 4 . 1 2 6 0 . … … … … … … i N 1 8 2 . 2 5 . 1 9 7 . 1 6 1 . 1 8 9 0 . ) t M ( s s a M 4 0 . 2 . 1 1 . 4 2 1 0 . 7 6 0 . 1 9 i 1 t h g n K r e v l i S i 2 a n a t s e r r o F 2 s o m s o C 1 a v o N n o i t a c o L l a t o T : s e t o N ) e t a m l i t s e d e t e p e d d e t r o p e r X S A r o i r p - 3 2 Y F ( e c n e r e f f i D … o C … u C % 1 4 - % 2 4 - … … % 1 4 - % 2 4 - i N % 6 7 - % 0 4 - % 4 0 . % 3 2 - s s a m l a t e M e v i t a e R l % 4 8 - % 7 3 - % 7 . 0 % 5 2 - s s a M … o C 8 . 1 - … 8 . 1 - c i t e m h t i r A 3 2 0 2 e n u J 0 3 ) t k ( s s a m l a t e M s s a M ) t k ( s s a m l a t e M ) % ( s e d a r G … u C 1 . 2 2 - … 1 . 2 2 - i N 6 . 1 4 - 7 . 8 4 - . 8 0 . 5 9 8 - ) t M ( . 4 2 - 7 . 2 - 7 0 0 . . 0 5 - … o C 6 2 . … . 6 2 … u C 1 . 0 3 … 1 . 0 3 i N . 4 3 1 . 5 4 7 . 3 2 1 2 1 . 0 0 3 … … … … … o C … u C 8 5 0 0 . 4 5 6 0 . i N 6 9 2 . 2 6 . 1 6 0 2 . 6 9 . 1 ) t M ( s s a M . 5 0 . 6 4 . 3 0 1 . 4 5 1 … o C . 5 4 … . 5 4 ) t k ( s s a m l a t e M ) % ( s e d a r G 2 2 2 0 2 e n u J 0 3 r o 1 1 2 0 2 r e b m e c e D 1 3 … u C 1 . 2 5 … 1 . 2 5 i N . 9 4 5 1 . 3 2 1 5 . 1 1 2 . 6 9 8 3 … o C … u C 2 6 0 0 . 2 7 . 0 … … … … i N 0 9 . 1 0 7 . 1 7 0 2 . 1 9 . 1 ) t M ( s s a M 9 2 . 3 . 7 . 2 0 1 . 4 0 2 i 2 a n a t s e r r o F n o i t a c o L 2 s o m s o C 1 a v o N l a t o T : s e t o N s e v r e s e R e r O 3 2 Y F d n a 2 2 Y F / 1 2 Y C t i s o p e d e d h p u s i l l i e k c n c i t a m g a m l a t o t s O G ’ I : l 4 e b a T . e d a r g t l a b o c r o f l i s a m c e d e e r h t d n a , e d a r g r e p p o c d n a l i e k c n r o f l i s a m c e d o w t , e g a n n o t r o f l i i a m c e d e n o o t g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l . r e g n i l l o B - a v o N r o f d e t a m l i t s e y n o e r a s a t e m e s e h t l s a s a t o t l l l a r e v o O G I r o f e v i t i d d a t o n e r a s e d a r g t l a b o c d n a r e p p o C . s e d a r g f f o - t u c g n i t r o p e r E R M w o e b n o i t u l l i d e d u c n l i y a m s E R O l t i e b a 4 e b a T n l i d e t s i l s E R O e h t i f o e v s u c n l i y l l a n o i t o n e r a s E R M l l A . 3 2 Y F r o f d e t r o p e r t o n s i h c u s l s a d n a d e i f i s s a c e d n e e b s a h s e t a m i t s e 1 2 Y C s t h g n K r e v i ’ l i S . 6 n o i t a m r o f n i e d o C C R O J l l u f l i r o f e s a e e r n o n a p m o c X S A E R O / E R M 3 2 Y F s O G ’ I o t r e f e r d u o h s l s r e d a e R . t i s o p e d d n a n o i t a c o l y b y r a v s f f o - t u c g n i t r o p e R . o r e z o t d n u o r t a h t l i s e u a v g n i t r o p e r d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h w d n a i l l o b m y s ‘ - ‘ i e h t g n s u d e t r o p e r e r a s e u a v o r e Z l . s e s s o l y r e v o c e r l i a c g r u l l i i a t e m d n a g n n m d e t c e p x e r o f t n u o c c a t o n o d s e t a m i t s e l a t e m E R M u sit n I - - - - - - - . e d a r g t l a b o c r o f l i s a m c e d e e r h t d n a , e d a r g r e p p o c d n a l i e k c n r o f l i s a m c e d o w t , e g a n n o t r o f l i i a m c e d e n o o t g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l . 6 n o i t a m r o f n i e d o C C R O J l l u f l i r o f e s a e e r n o n a p m o c X S A E R O / E R M 3 2 Y F ’s O G I o t r e f e R . t i s o p e d d n a n o i t a c o l y b y r a v s f f o - t u c g n i t r o p e R . a v o N t a d e t a m l i t s e y n o e r a y e h t s a s a t o t l r o f e v i t i d d a t o n e r a s e d a r g t l a b o c d n a r e p p o c t a h t e t o N . s e i r e v o c e r l i a c g r u l l a t e m o t e u d s e s s o l d e t c e p x e r o f t n u o c c a t o n o d s e t a m i t s e l a t e m E R O u sit n I - - - - IGO Annual Report 2023 161 . l a t e m d n a e g a n n o t f o n o i t a i l i c n o c e r e v i t i s o p l l a m s a n i g n i t l u s e r , a i r e t i r c m o r f d e n m e r o d e i l l e d o m t o n e m o s h t i w s u e s s y d O f f o - t u c l i a n g r a m e h t g n i t e e m t u b , E R O e h t e d s t u o i i m o r f d e n m n e e b e v a h s e g a n n o t E R O r o n M i - s f f o - t u c l l i e d o m k c o b e h t g n s u d e t r o p e r e r a s E R O l l A - i n o n a p m o c e h t n i d n u o f e b n a c h c h w s e i r a m m u s i r o f t n u o c c a t o n o d s e t a m i t s e l a t e m E R O u sit n I . 6 t r o p e R l i a u n n A s h t o t e s a e e r X S A E R O / E R M l l 1 e b a T e d o C C R O J e v i t c e p s e r e h t n i d e b i r c s e d e r e h w d n a l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l i g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l l i d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n i i . s t c e f f e g n d n u o r o t e u d s o r e z g n i t r o p e r o t s e d a r g l i e k c n d n a l i a m c e d e n o o t s e g a n n o t l i . s a m c e d o w t . s e s s o l y r e v o c e r l i a c g r u l l a t e m d e t c e p x e - 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t u c g n i t r o p e r d e t r o p e r e r a d n a n a p e n m e h t n i l i e r a s t i s o p e d e s e h t e h t r o f t n u o c c a t o n o d s e t a m i t s e l a t e m E R M u sit n I . l n o i t a u b a t e h t n i d e t a c d n i i f f o - t u c e h t t a . s e s s o l y r e v o c e r l i a c g r u l l i a t e m d n a g n n m d e t c e p x e i o t s e d a r g l i e k c n d n a e c a p l l i a m c e d e n o o t s e g a n n o t i g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l l i d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n i . o r e z o t d n u o r t a h t l s e u a v g n i t r o p e r e r e h w d n a l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l s a s u e s s y d O r o 5 M A , 6 M A o t d e i l p p a t s e t E 3 P R o N t a d e s s e c o r p a / t M 4 d e m u s s a , . % 3 9 3 f o y r e v o c e r . . t / 8 4 4 $ f o s t s o c g n n m d n a i i , t / 0 8 2 2 $ . l i a c g r u l l a t e m , s n o i t p m u s s a X F / e c i r p E 3 P R g n s u i l l e h s n o i t a s m i i t p o t i p a o t d e t i m i l s i ’ E R M s e d o o G t M e h t r e p s a e r a s f f o - t u c g n i t r o p e r l e d o m k c o b e h T l . e m a n t i s o p e d h c a e w o e b g n i t s l i l - - - - - - s i s e t a m i t s e e s e h t r o f n o i t a m r o f n i e d o C C R O J l l u F - . s e c a p l l i a m c e d o w t o t X S A E R O / E R M i t r o p e r n o n a p m o c e h t n i d e l i a t e d . 6 t r o p e R l a u n n A s h t i , l 6 e b a T n i d e t s i l s E R O e v i t c e p s e r e h t i f o e v s u c n l i y l l a n o i t o n e r a s u e s s y d O d n a 6 M A r o f s E R M e h T - : s e t o N i N s s a M - - - - - - - - - % 0 . 1 - - % 1 . 0 - % 3 2 - % 7 4 - % 9 7 - % 6 4 - % 2 2 - % 8 1 - % 8 3 - % 3 2 - - - - - - - - - - - % 2 - % 1 . 0 % 1 3 - % 9 4 - % 9 7 - % 1 5 - % 0 3 - % 5 3 - % 5 6 - % 1 4 - i N ) t ( - - - - - - - - 7 . 1 8 . 1 - - 1 . 0 - 7 . 4 2 - . 0 5 7 - . 4 9 4 - . 2 9 4 1 - 1 . 3 2 - . 8 6 7 - . 4 9 4 - . 3 9 4 1 - ) t ( s s a M - - - - - - - - - 2 1 . 0 1 1 . 0 - 1 0 0 . . 2 4 - . 5 3 1 - . 5 9 - 2 7. 2 - 1 . 4 - . 6 3 1 - . 5 9 - 2 7. 2 - - ) t k ( . 4 9 5 - 7 . 1 1 . 1 6 . 2 8 2 . 6 0 4 . 8 8 6 7 . 1 . 9 2 7 1 . 4 4 2 . 0 9 9 1 0 . 1 8 7 . 3 8 . 0 3 1 7 7. 7 1 7 . 2 8 . 2 4 4 3 7 . 9 7 . 7 6 0 5 l e k c N i - ) % ( 6 0 2 . 5 4 . 1 3 0 2 . - 5 9 . 1 1 2 2 . 0 1 . 2 4 4 . 1 3 4 2 . 8 2 4 . 6 5 2 . 7 8 0 . 0 6 0 . 1 5 0 . 9 6 0 . 7 8 0 . 6 3 . 1 8 5 . 1 7 2 . 1 ) t M ( s s a M - 9 2 . 1 . 0 . 0 3 - 4 . 1 8 . 1 . 3 3 2 1 . 0 1 . 7 . 6 0 8 7. 4 9 . . 8 3 1 5 2 . . 7 5 2 5 9 . . 3 5 2 1 . 5 . 8 9 3 - ) t k ( . 4 9 5 - 7 . 1 1 . 1 6 - . 2 8 2 . 6 0 4 . 8 8 6 7 . 4 7 1 . 4 4 2 . 2 9 9 1 . 8 5 0 1 7 . 8 5 1 . 4 2 6 . 9 6 2 3 . 8 5 0 1 1 . 1 2 4 . 2 9 2 1 . 0 6 5 6 l e k c N i - ) % ( 6 0 2 . 5 4 . 1 3 0 2 . - - 5 9 . 1 1 2 2 . 0 1 . 2 2 4 2 . 8 2 4 . 6 5 2 . 8 7 . 0 8 5 0 . 2 5 0 . 2 6 0 . 8 7 . 0 8 0 . 1 9 8 0 . 8 9 0 . ) t M ( s s a M l s s a c C R O J ) f f o - t u c ( t i s o p e D - 9 2 . 1 . 0 . 0 3 - 4 . 1 8 . 1 . 3 3 - 2 . 7 . 6 0 8 7. . 6 3 1 4 . 7 2 . 0 2 1 . 9 2 5 . 6 3 1 . 9 8 3 . 5 4 1 0 7. 6 d e r u s a e M 6 M A d e t a c d n i I ) i N % 0 . 1 ≥ ( d e r r e f n I l a t o T d e r u s a e M 5 M A d e t a c d n i I ) i N % 0 . 1 ≥ ( d e r r e f n I l a t o T d e r u s a e M s u e s s y d O d e t a c d n i I ) i N % 5 . 1 ≥ ( d e r r e f n I l a t o T d e r u s a e M e d o o G t M d e t a c d n i I ) i N % 4 0 ≥ ( . d e r r e f n I l a t o T d e r u s a e M l a t o T d e t a c d n i I d e r r e f n I l a t o T ) 2 2 Y F – 3 2 Y F ( e c n e r e f f i D e v i t a e R l c i t e m h t i r A 3 2 0 2 e n u J 0 3 2 2 0 2 e n u J 0 3 s e c r u o s e R l i a r e n M 3 2 Y F d n a 2 2 Y F s o m s o C : l 5 e b a T : s e t o N ) 2 2 Y F – 3 2 Y F ( e c n e r e f f i D s e v r e s e R e r O 3 2 Y F d n a 2 2 Y F s o m s o C : l 6 e b a T IGO Annual Report 2023 162 : s e t o N ) 2 2 Y F – 3 2 Y F ( e c n e r e f f i D s e c r u o s e R l i a r e n M 3 2 Y F d n a 2 2 Y F a n a t s e r r o F : 7 e b a T l i g n i t r o p e r E R M e h t l w o e b n o i t u l i d e d u c n l i y a m s E R O . s f f o - t u c e h t r e p s a e r a s f f o - t u c g n i t r o p e r l e d o m k c o b e h T l r o f t n u o c c a t o n o d s e t a m i t s e l a t e m E R M u sit n I . l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l . e m a n t i s o p e d h c a e n i l 8 e b a T n i l w o e b g n i t s i l . s e s s o l y r e v o c e r l i a c g r u l l i a t e m d n a g n n m d e t c e p x e i l i i d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h W i . s t c e f f e g n d n u o r o t e u d s o r e z g n i t r o p e r i g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l o t s e d a r g l i e k c n d n a l i a m c e d e n o o t s e g a n n o t l i . s a m c e d o w t e h t t i e b a l , l 8 e b a T n i d e t s i l s E R O d e t a c o s s a i y n a f o e v s u c n i l i y l l a n o i t o n e r a s E R M e h T - - - - - - s i s e t a m i t s e e s e h t r o f n o i t a m r o f n i e d o C C R O J l l u F - o t X S A E R O / E R M i t r o p e r n o n a p m o c e h t n i d e l i a t e d . 6 t r o p e R l a u n n A s h t i ) t M ( s s a M ) t k ( l e k c N i ) % ( ) t M ( s s a M e v i t a e R l c i t e m h t i r A 3 2 0 2 e n u J 0 3 2 2 0 2 e n u J 0 3 i N - - s s a M - i N ) t k ( % 0 0 1 - % 0 0 1 - . 9 3 - - - - - - - % 0 0 1 - % 0 0 1 - % 0 0 1 - % 0 0 1 - - - % 0 0 1 - % 0 0 1 - % 0 0 1 - % 0 0 1 - - - - - % 0 0 1 - % 0 0 1 - - - . 9 3 - 1 . 5 - - 1 . 5 - - 7 . 6 - - - . 7 6 - % 0 0 1 - % 0 0 1 - . 0 5 - - - - - % 4 2 - % 1 2 - % 0 0 1 - % 0 0 1 - - - % 0 2 - % 1 5 - % 1 2 7 % 2 0 - . - % 7 4 - % 2 8 - % 1 5 - - % 5 7 - % 2 9 - % 2 8 - - % 8 5 - % 6 4 - % 6 5 - - - % 5 1 - % 9 6 - % 8 2 3 % 8 - - % 3 4 - % 5 8 - % 8 4 - - % 7 8 - % 8 9 - % 1 9 - - % 0 7 - % 6 7 - % 2 7 - - . 0 5 - . 2 0 1 . 7 - - . 9 6 - 7 0 0 . 1 . 5 1 - . 9 4 1 1 . 0 - - . 8 9 1 - . 3 4 - . 0 4 2 - - . 5 9 3 - . 8 2 3 - . 2 2 7 - . 2 0 1 . 2 0 1 - 1 . 2 2 - . 0 4 2 1 - - - . 2 0 - - . 2 0 - . 2 0 - - - . 2 0 - . 5 0 - - - . 5 0 - . 6 0 - - . 6 0 - 1 . 0 - - 1 . 0 - 5 0 0 0 . 4 0 0 0 . - . 5 0 - 4 0 . 1 . 0 - - 3 . 1 - . 3 0 - 6 . 1 - . 2 3 - . 5 2 - . 7 5 - 1 0 0 . . 4 6 - . 5 2 - . 9 8 - - - - - - - - - - - - - - - - - . 2 0 4 5 . . 8 2 2 . 3 8 2 7 0 0 . . 4 4 1 0 . 7 1 5 . 1 3 - . 6 2 2 . 9 0 . 5 3 2 - . 0 3 1 8 2 . . 7 5 1 . 2 0 7 . 2 7 1 . 6 2 . 0 9 9 - - - - - - - - - - - - - - - - 2 0 3 . 8 0 6 . 0 7 . 3 9 3 5 . 6 7 . 1 6 0 . 7 4 3 3 . 9 3 4 . - - 3 3 . 1 9 4 . 1 3 3 . 1 4 7 . 2 5 6 4 . 5 9 2 . 6 4 2 . 4 6 2 . 6 3 3 . 0 8 2 . - - - - - - - - - - - - - - - - 4 0 . 1 . 0 5 0 . 5 0 0 0 . ) t k ( - 9 3 . - 9 3 . - 1 . 5 - - 1 . 5 - 7 . 6 - . 7 6 0 5 . - - 0 5 . . 9 9 2 4 5 . . 2 5 3 4 0 0 0 . - . 2 0 . 5 0 . 7 0 - 7 . 1 1 . 0 8 . 1 - . 5 0 1 . 0 5 0 . 7 . 2 . 8 0 . 5 3 1 0 0 . - . 5 9 2 1 . 2 5 . 1 3 . 4 2 4 2 5 . 6 7. 4 - . 4 2 5 . 5 5 3 9 7. 8 - . 8 4 7 1 . 2 8 4 . 0 3 2 2 l e k c N i - - ) % ( 0 0 2 . - - 0 0 2 . 9 7 . 2 - - 9 7 2 . 0 4 . 1 - 0 4 . 1 0 9 0 . - - 0 9 0 . 1 3 6 . 0 7 . 3 0 7 5 . - 8 4 4 . 4 7 . 1 6 0 4 . - - 2 4 . 1 6 2 . 1 0 4 . 1 3 4 . 1 8 3 . 1 1 4 . 1 - 0 9 . 1 8 4 . 1 9 7 . 1 ) t M ( s s a M l s s a c C R O J ) f f o - t u c ( t i s o p e D - - . 2 0 - 2 0 . . 2 0 - - 2 0 . . 5 0 - - 5 0 . . 6 0 - - . 6 0 . 5 0 1 . 0 . 6 0 - 7 . 0 1 . 0 8 0 . - 0 3 . 4 0 . 4 3 . - 7 . 3 6 2 . 2 6 . - . 2 9 . 3 3 . 4 2 1 d e r u s a e M l l u g a e S d e t a c d n i I ) i N % 0 . 1 ≥ ( d e r r e f n I l a t o T d e r u s a e M i y o B c m s o C d e t a c d n i I d e r u s a e M d e r r e f n I l a t o T d e t a c d n i I d e r r e f n I l a t o T ) i N % 0 . 1 ≥ ( l u f i t u a e B y a d n u S ) i N % 0 . 1 ≥ ( d e r u s a e M e z a H e p r u P l d e t a c d n i I d e r u s a e M d e r r e f n I l a t o T d e t a c d n i I d e r u s a e M d e r r e f n I l a t o T d e t a c d n i I ) i N % 0 . 1 ≥ ( ) i N % 0 4 0 ≥ ( . d e t t o p S l l o u Q ) i N % 0 4 0 ≥ ( . x o F g n y F l i d e r r e f n I l a t o T d e r u s a e M s r e g g D i d e t a c d n i I ) i N % 0 5 0 ≥ ( . d e r r e f n I l a t o T d e r u s a e M B D M N d e t a c d n i I d e r u s a e M d e r r e f n I l a t o T d e t a c d n i I d e r r e f n I l a t o T ) i N % 4 0 ≥ ( . l a t o T IGO Annual Report 2023 163 . s e d a r g t l a b o c r o f l i s a m c e d e e r h t d n a s e d a r g r e p p o c d n a l i e k c n r o f l i s a m c e d o w t , e g a n n o t r o f l i i a m c e d e n o o t g n d n u o r y b d e t c e f f a e r a e g a r e v a d n a s a t o T l i i . s t c e f f e g n d n u o r o t e u d s o r e z g n i t r o p e r d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h w d n a i l l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l . 6 t r o p e R l i a u n n A s h t o t X S A E R O / E R M i t r o p e r n o n a p m o c e h t n i d e l i a t e d s i s e t a m i t s e e s e h t r o f n o i t a m r o f n i e d o C C R O J l l u F . s e s s o l y r e v o c e r l i a c g r u l l a t e m d e t c e p x e e h t i r e d s n o c t o n o d s e t a m i t s e l a t e m l i e k c n u sit n I d n a s e c i r p l a t e m ) 0 5 p ( e l i t n e c r e p h t 0 5 1 2 Y C g n s u i , e r o t n e m p o e v e d r o f l t / 4 3 $ ≥ d n a , t s o c g n p o t s i l a t n e m e r c n i r o f t / 4 7 $ ≥ , i g n p o t s n e d r u b l l u f r o f f f o - t u c ) R S N ( n r u t e R - r e t l e m S - t e N t / 8 2 1 $ ≥ s i d e t r o p e r E R O 1 2 Y C e h T . s t s a c e r o f X F d n a s e c i r p l a t e m 0 5 p 3 2 Y F g n s u i , e r o t n e m p o e v e d r o f l t / 8 3 $ ≥ d n a , t s o c g n p o t s i l a t n e m e r c n i r o f t / 9 7 $ ≥ , i g n p o t s n e d r u b l l u f r o f f f o - t u c R S N t / 7 4 1 $ ≥ s i d e t r o p e r E R O 3 2 Y F e h T . s t s a c e r o f X F - - - - - - o C % 4 4 - % 6 7 % 1 4 - u C l a t e M % 6 4 - % 7 8 % 2 4 - i N % 3 4 - % 4 8 % 0 4 - e v i t a e R l s s a M % 0 4 - % 1 4 % 7 3 - o C 9 . 1 - 1 . 0 8 . 1 - ) t k ( l a t e M u C i N c i t e m h t i r A . 4 3 2 - 8 . 1 5 - 3 . 1 1 . 2 2 - 1 . 3 . 7 8 4 - ) 1 2 Y C – 3 2 Y F ( e c n e r e f f i D ) t M ( s s a M . 8 2 - 1 . 0 . 7 2 - o C 4 2 . . 2 0 . 6 2 ) t k ( l a t e M ) % ( s e d a r G u C 2 . 7 2 8 2 . 1 . 0 3 i N 7 . 7 6 8 6 . . 5 4 7 o C 7 5 0 0 . 3 6 0 0 . 8 5 0 0 . u C 4 6 0 . 7 7 . 0 5 6 0 . i N 0 6 . 1 3 8 . 1 2 6 . 1 . 2 4 4 0 . . 6 4 ) t M ( s s a M o C . 3 4 1 . 0 . 5 4 ) t k ( l a t e M ) % ( s e d a r G u C . 6 0 5 5 . 1 1 . 2 5 i N . 5 9 1 1 7 . 3 1 . 3 2 1 o C 2 6 0 0 . 0 5 0 0 . 2 6 0 0 . u C 2 7 . 0 8 5 0 . 2 7 0 . i N 1 7 . 1 0 4 . 1 0 7 . 1 0 . 7 . 3 0 3 7. ) t M ( s s a M 3 2 0 2 e n u J 0 3 1 2 0 2 r e b m e c e D 1 3 l s s a c C R O J l e b a b o r P d e v o r P l a t o T : s e t o N s e v r e s e R e r O 3 2 Y F d n a 1 2 Y C r e g n i l l o B - a v o N : 0 1 e b a T l o C % 6 3 - % 7 5 - % 1 8 - % 8 3 - u C l a t e M % 8 3 - % 9 6 - % 1 9 - % 0 4 - i N % 6 3 - % 8 5 - % 3 8 - % 7 3 - e v i t a e R l s s a M % 4 4 - % 7 7 - % 7 8 - % 8 4 - o C 9 . 1 - . 2 0 - 1 . 2 - 1 0 0 - . u C 1 . 4 2 - . 5 3 - 6 1 . 0 - 7 7. 2 - i N . 6 6 - . 4 6 5 - 9 3 0 - . . 3 3 6 - ) t k ( l a t e M c i t e m h t i r A ) 1 2 Y C – 3 2 Y F ( e c n e r e f f i D ) t M ( s s a M . 2 4 - 5 1 . 1 - o C . 3 3 . 2 0 . 4 5 - . 5 3 4 0 0 - . 3 0 0 0 . ) t k ( l a t e M ) % ( s e d a r G u C . 4 9 3 5 . 1 2 0 0 . 0 . 1 4 i N 0 . 1 0 1 7 . 4 1 . 0 . 8 5 0 1 o C 1 6 0 0 . 8 4 0 0 . 5 4 0 0 . 0 6 0 0 . u C 3 7 . 0 4 4 0 . 6 2 0 . 1 7 0 . i N 7 8 . 1 4 3 . 1 1 2 . 1 4 8 . 1 4 5 . . 3 0 0 0 . 8 5 . ) t M ( s s a M o C 2 5 . 4 0 . 6 5 . 2 0 0 . u C . 5 3 6 0 5 . . 2 0 . 7 8 6 i N 4 . 7 5 1 3 . 1 1 . 5 0 1 . 9 6 1 o C 4 5 0 0 . 6 2 0 0 . 1 3 0 0 . 0 5 0 0 . u C 6 6 0 . 3 3 0 . 7 3 0 . 2 6 0 . i N 4 6 . 1 5 7 . 0 6 9 0 . 2 5 . 1 ) t k ( l a t e M ) % ( s e d a r G ) t M ( s s a M 6 9 . 5 . 1 2 . 1 1 5 0 0 . 3 2 0 2 e n u J 0 3 1 2 0 2 r e b m e c e D 1 3 l s s a c C R O J d e r u s a e M d e t a c d n i I d e r r e f n I l a t o T : s e t o N . s t s a c e r o f X F d n a e c i r p l a t e m 3 2 Y F d n a R S N i . t / 5 8 5 $ ≥ g n s u d e t r o p e r E R M 3 2 Y F ’s O G I e l i h w , ) X F ( s e t a r e g n a h c x e n g e r o f d n a s e c i r p i l a t e m E R M 1 2 Y C d n a R S N i t / 4 5 $ ≥ a g n s u d e t r o p e r E R M 1 2 Y C . s a e r a e m o s n i f f o - t u c g n i t r o p e r E R M e h t l w o e b e b l l i w t a h t n o i t u l i d s e d u c n l i E R O e h t t i e b a l , l 0 1 e b a T n i d e t s i l s E R O e h t i f o e v s u c n l i y l l a n o i t o n s i E R M e h T . s e d a r g t l a b o c r o f l i s a m c e d e e r h t d n a s e d a r g r e p p o c d n a l i e k c n r o f l i s a m c e d o w t , e g a n n o t r o f l i i a m c e d e n o o t g n d n u o r y b d e t c e f f a e r a e g a r e v a d n a s a t o T l i i . s t c e f f e g n d n u o r o t e u d s o r e z g n i t r o p e r d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h w d n a i l l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l . 6 t r o p e R l i a u n n A s h t o t X S A E R O / E R M i t r o p e r n o n a p m o c e h t n i d e l i a t e d s i s e t a m i t s e e s e h t r o f n o i t a m r o f n i e d o C C R O J l l u F . s e i r e v o c e r l i a c g r u l l i i a t e m d n a g n n m o t e u d s e s s o l d e t c e p x e e h t i r e d s n o c t o n o d s e t a m i t s e l a t e m l e k c n u i sit n I - - - - - - X S A E R O / E R M n o n a p m o c e h t n i i d n u o f e b n a c h c h w i 6. t r o p e R l i a u n n A s h t o t e s a e e r l d e b i r c s e d e r a s f f o - t u c g n i t r o p e r l e d o m k c o b e h T l l s e i r a m m u s 1 e b a T e d o C C R O J e v i t c e p s e r e h t n i e h t r o f t n u o c c a t o n o d s e t a m i t s e l a t e m E R O u sit n I . l o b m y s ‘ - ‘ s a d e t r o p e r e r a s e u a v o r e Z l l i i d o v a o t d e s u e r a s a m c e d e r o m y r a s s e c e n e r e h W i . s t c e f f e g n d n u o r o t e u d s o r e z g n i t r o p e r i g n d n u o r y b d e t c e f f a e r a s e g a r e v a d n a s a t o T l o t s e d a r g l i e k c n d n a l i a m c e d e n o o t s e g a n n o t l i . s a m c e d o w t . s e s s o l y r e v o c e r l i a c g r u l l a t e m d e t c e p x e - - - - - i N - - % 7 6 - % 5 6 - % 3 4 - % 3 4 - - % 0 0 1 - % 0 0 1 - - % 6 7 - % 6 7 - s s a M - - % 1 6 - % 9 5 - % 8 3 - % 7 3 - - % 0 0 1 - % 0 0 1 - - % 5 8 - % 4 8 - i N ) t k ( 7 0 0 . . 6 2 - . 6 2 - . 2 0 1 . 9 - . 9 8 - - 1 . 0 3 - 1 . 0 3 - . 2 0 8 . 1 4 - 6 . 1 4 - ) t M ( s s a M 4 0 0 0 . 1 . 0 - 1 . 0 - 5 0 0 0 . - . 2 0 - . 2 0 - 1 . 2 - 1 . 2 - 1 0 0 . . 5 2 - . 4 2 - ) t k ( 7 0 0 . 3 . 1 4 . 1 . 2 0 8 . 1 1 . 0 2 1 - - - . 2 0 1 . 3 1 . 4 3 1 l e k c N i ) % ( 6 7 . 1 1 9 . 1 0 9 . 1 2 0 3 . 7 1 . 3 7 1 . 3 - - - 6 4 2 . 7 9 2 . 6 9 2 . ) t M ( s s a M 4 0 0 0 . 1 . 0 1 . 0 4 0 . 4 0 . 5 0 0 0 . - - - 1 0 0 . 4 0 . 5 0 . ) t k ( - 9 3 . 9 3 . - - . 9 0 2 . 9 0 2 - 1 . 0 3 1 . 0 3 . 9 4 5 . 9 4 5 l e k c N i - ) % ( 2 2 2 . 2 2 2 . - 5 4 3 . 5 4 3 . - 3 4 . 1 3 4 . 1 - 0 9 . 1 0 9 . 1 - . 2 0 2 0 . - . 6 0 . 6 0 - 1 . 2 1 . 2 - 9 2 . . 9 2 ) t M ( s s a M e v i t a e R l c i t e m h t i r A 3 2 0 2 e n u J 0 3 2 2 0 2 e n u J 0 3 l s s a c C R O J l e b a b o r P d e v o r P l a t o T ) f f o - t u c ( t i s o p e D x o F g n y F l i l e b a b o r P d e v o r P l a t o T l e b a b o r P d e v o r P l a t o T l e b a b o r P l a t o T s r e g g D i l a t o T d e v o r P l l o u Q d e t t o p S s e c r u o s e R l i a r e n M 3 2 Y F d n a 1 2 Y C r e g n i l l o B - a v o N : l 9 e b a T : s e t o N ) 2 2 Y F – 3 2 Y F ( e c n e r e f f i D s e v r e s e R e r O 3 2 Y F d n a 2 2 Y F a n a t s e r r o F : i l 8 e b a T 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 NOMINEESLIMITED J P MORGAN NOMINEES AUSTRALIA PTY LIMITED CITICORP NOMINEES PTY LIMITED YANDAL INVESTMENTS PTY LTD NATIONAL NOMINEES LIMITED BNP PARIBAS NOMS PTY LTD BNP PARIBAS NOMINEES PTY LTD FRASERX PTY LTD 248,510,981 169,532,959 90,922,701 65,103,153 36,989,670 18,491,539 15,043,005 13,415,188 HSBC CUSTODY NOMINEES LIMITED 5,785,048 CITICORP NOMINEES PTY LIMITED ARGO INVESTMENTS LIMITED PERTH SELECT SEAFOODS PTY LTD PERTH SELECT SEAFOODS PTY LTD NETWEALTH INVESTMENTS LIMITED MR KENNETH JOSEPH HALL BNP PARIBAS NOMS (NZ) LTD BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD FARJOY PTY LTD CPU SHARE PLANS PTY LTD 5,553,970 3,930,970 2,062,116 1,937,884 1,839,365 1,353,918 1,209,681 1,203,905 1,176,472 1,118,523 969,174 20. UBS NOMINEES PTY LTD Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total) Total Remaining Holders Balance Distribution of shareholders Range 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 Over Rounding Total 686,150,222 71,117,591 90.61 9.39 Total Holders Units % Units 16,146 7,119 1,313 930 86 5,816,642 16,790,212 9,522,380 21,336,591 703,801,988 0.77 2.22 1.26 2.82 92.94 -0.01 25,594 757,267,813 100.00 The number of shareholders holding less that a marketable parcel of fully paid ordinary shares is 1,355. 32.82 22.39 12.01 8.60 4.88 2.44 1.99 1.77 0.76 0.73 0.52 0.27 0.26 0.24 0.18 0.16 0.16 0.16 0.15 0.13 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. IGO Annual Report 2023 166 The Company has received the following notices of substantial shareholding (Notice): Substantial Shareholder Mark Creasy FIL Limited T. Rowe Price Group, Inc. BlackRock, Inc. Relevant Interest per the Notice – No. of Shares 80,518,341 66,044,141 57,830,911 40,672,227 Voting Rights: The voting rights of the fully paid ordinary shares are one vote per share held. Unquoted securities IGO has 1,934,189 Performance Rights, 488,800 Service Rights and 528,064 Options on issue. The number of beneficial holders of Performance Rights, Service Rights and Options are 164, 86 and 11 respectively. Important Dates Please note that the dates below are subject to change. Please check the IGO website nearer the time to confirm dates. 2023 30 October 2023 16 November 2023 2024 31 January 2024 30 April 2024 30 July 2024 September 2023 Quarterly Activities Report and Investor Webcast Annual General Meeting DoubleTree by Hilton Perth Waterfront and via live webcast FY24 Half Yearly Financial Statements (incorporating December 2023 Quarterly Activities Report) and Investor Webcast March 2024 Quarterly Activities Report and Investor Webcast June 2024 Quarterly Activities Report and Investor Webcast IGO Annual Report 2023 167 Mtpa NPAT Ni oz Million metric tonnes per annum Net Profit After Tax Nickel Ounce RC drilling Reverse Circulation drilling t TGP TRP Metric tonnes Technical Grade Plant Tailings Retreatment Plant Tropicana Tropicana Gold Mine Underlying EBITDA Underlying Free Cash Flow Underlying NPAT USD Zn $ Is a non-IFRS measure and comprises net profit or loss before finance costs, depreciation and amortisation and income tax, and after any earnings adjustment items including asset impairments, gains/losses from sale of subsidiaries and joint ventures, redundancy and restructuring costs, acquisition and transaction costs and foreign exchange and hedging gains/losses attributable to acquisitions. Comprises Free Cash Flow (Net Cash Flow from Operating Activities and Net Cash Flow from Investing Activities) adjusted to exclude acquisition costs, proceeds from investment sales (including Tropicana) and payments for investments and mineral interests. Underlying NPAT is a non-IFRS measure and comprises net profit after tax adjusted to exclude once-off or abnormal items, including acquisition costs, impairments and gain or loss on sale of investments (including joint ventures and subsidiaries). United States dollars Zinc Australian dollars. All currency amounts in this report are Australian Dollars unless otherwise stated $M Million Australian dollars Glossary AC Ag AUD BCM CGP Co Air core usually in the context of drilling or drill holes Silver Australian dollar Bulk cubic metres Chemical Grade Plant Cobalt COGS Cost of Goods Sold Cu DD EBITDA Copper Diamond Drilling Earnings Before Interest, Tax, Depreciation and Amortisation EM Electromagnetic EM conductors Electromagnetic conductors returned from EM surveys ESG FLEM Environment, Social and Governance Fixed-Loop electromagnetic Greenbushes Greenbushes Lithium Mine HPGR HPM IFRS IGO lb Kwinana Refinery LCT LiOH Li2O LTIFR MLEM Mt High Pressure Grinding Rolls High precious metal International Financial Reporting Standards IGO Limited Pound Kwinana Lithium Hydroxide Refinery Lithium Caesium Tantalum Lithium hydroxide Lithium oxide Lost time injury frequency rate per million hours worked Moving-loop electromagnetic surveys Million metric tonnes Forward-looking statements Cash costs and cost of goods sold (COGS) This document may include forward-looking statements. forward-looking statements include, but are not limited to, statements concerning IGO’s planned production and planned exploration program and other statements that are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are Forward-looking statements. Although IGO believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. All cash costs quoted include royalties and are net of by-product credits unless otherwise stated. Cost of Goods Sold include on-site and off-site expenses inclusive of expensed deferred waste stripping costs, inventory accounting adjustments, credit adjustments for tantalum sales and royalties. Currency All currency amounts in this report are Australian Dollars unless otherwise stated. IGO Annual Report 2023 168 Company Directory Directors Michael Nossal Non-executive Chair Trace Arlaud Non-executive Director Debra Bakker Non-executive Director Samantha Hogg Non-executive Director Justin Osborne Non-executive Director Keith Spence Non-executive Director Xiaoping Yang Non-executive Director Perth Office Suite 4, Level 5 South Shore Centre 85 South Perth Esplanade South Perth WA 6151 Postal PO Box 496 South Perth WA 6951 Telephone +61 8 9238 8300 Facsimile +61 8 9238 8399 Email contact@igo.com.au Website www.igo.com.au External Auditor BDO Audit (WA) Pty Ltd Level 9, Mia Yellagonga Tower 25 Spring Street Perth WA 6000 Telephone +61 8 6382 4600 Share Registry Computershare Investor Services Pty Limited Executive Leadership Team As at 18 September 2023, Computershare’s new address will be: Matt Dusci Acting CEO Kate Barker Chief Legal Officer Kathleen Bozanic Chief Financial Officer Sam Retallack Chief People Officer Company Secretary Joanne McDonald Level 17, 221 St Georges Terrace Perth WA 6000 Telephone 1300 850 505 (within Australia) Telephone +61 3 9415 4000 (outside Australia) Facsimile +61 3 9473 2500 Email www.investorcentre.com/contact Website www.computershare.com Shares Listed on Australian Securities Exchange (ASX) ASX Code: IGO ADR Code: IIDDY Shares on Issue: 757,267,813 ordinary shares Website Through the use of the internet, we have ensured that our corporate reporting is timely, complete ASX releases, investor presentations, financial statements and other information are available on our website. www.igo.com.au IGO is proud to report the Australasian Reporting Awards (ARA) awarded IGO's 2022 Annual Report a Gold Award in the 2023 ARA General Award for the second year running. IGO Annual Report 2023 Cautionary Notes and Disclaimer This annual report has been prepared by IGO Limited (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to those securities in any jurisdiction. This annual report contains general summary information about IGO. The information, opinions or conclusions expressed in this annual report should be read in conjunction with IGO’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available on the IGO website. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in this presentation. This annual report includes forward looking information regarding future events, conditions, circumstances and the future financial performance of IGO. Often, but not always, forward looking statements can be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue” and “guidance”, or other similar words and may include statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond IGO’s control, which may cause actual results and developments to differ materially from those expressed or implied. Further details of these risks are set out below. All references to future production and production guidance made in relation to IGO are subject to the completion of all necessary feasibility studies, permit applications and approvals, construction, financing arrangements and access to the necessary infrastructure. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as any Competent Persons’ Statements included in periodic and continuous disclosure announcements lodged with the ASX. Forward looking statements only apply at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information IGO does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. There are a number of risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO and the value of an investment in IGO including and not limited to economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations and mining development, construction and commissioning risk. The production guidance in this report is subject to risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO. Mineral Resources Ore Reserves The information in this annual report that relates to Mineral Resources or Ore Reserves is extracted from the Mineral Resource and Ore Reserve Statement released to the Australian Securities Exchange on 31 August 2023 and for which Competent Persons’ consents were obtained. The Competent Persons’ consents remain in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcements discussed above and, in the case of estimates or Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original ASX announcement. Featured on cover left to right Callum Head of Field Operations and Optimisation Exploration (Exploration) Lily Talent Advisor - People and Culture (Corporate) Ian Exploration Manager - Brownfields (Exploration) igo.com.au