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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Annual Report 2016 109
Notes to the consolidated financial statements
30 June 2016
(continued)
24 Commitments and contingencies (continued)
(c) Gold delivery commitments
Gold for
physical
delivery
oz
Average
contracted
sale price
A$/oz
Value of
committed
sales
$'000
Within one year
72,600
1,641
119,126
Later than one but not later than five years
60,000
1,796
107,786
Total
132,600
1,711
226,912
The physical gold delivery contracts are settled by the physical delivery of gold as per the contract terms. The contracts
are accounted for as sales contracts with revenue recognised once gold has been delivered to the counterparties. The
physical gold delivery contracts are considered to sell a non-financial item and therefore do not fall within the scope of
AASB 139
Financial Instruments: Recognition and Measurement.
Hence, no derivatives have been recognised in
respect of these contracts.
(d) Contingencies
The Group had guarantees outstanding at 30 June 2016 totalling $1,315,000 (2015: $1,315,000) which have been
granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation bonds at
the various mine sites.
25 Events occurring after the reporting period
On 31 August 2016, the Company announced a fully franked dividend final dividend of 2 cents per share to be paid on
23 September 2016.
On 27 July 2016, the Company announced it was conducting a fully underwritten institutional placement (Placement) to
raise approximately $250,000,000. The Placement comprises an issue of 66,666,667 new shares in the Company and
was underwritten at a price of $3.75 per share (Placement Price).
The Company also conducted a non-underwritten Share Purchase Plan (SPP) to facilitate retail shareholder
participation of up to $15,000 per eligible shareholder a the Placement Price, subject to an overall cap of $30,000,000
(or approximately 8 million shares) (the Placement and SPP together being the Equity Raising). The SPP was
oversubscribed, however in recognition of the strong interest in the SPP by eligible retail shareholders, the Company's
Board resolved to accept all valid applications without any scale back. The SPP resulted in the issue of an additional
8,388,689 ordinary shares and raised $31.5 million.
The Company undertook the Equity Raising to strengthen its balance sheet and to provide greater financial flexibility to
fund growth initiatives. Specifically, the Equity Raising provided funding for the remaining development capital
expenditure for the Nova Project, reducing the requirement for further draw-down under the Company's existing debt
facilities. The Equity Raising will also provide additional funds for the payment of residual acquisition costs (stamp duty),
funding for debt repayment and general corporate purposes including working capital.
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 Director 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.
Independence Group NL
81