INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 25 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 60,000 1,796 107,787 Later than one but not later than five years 47,988 1,859 89,200 Total 107,988 1,824 196,987 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 2017 totalling $1,281,000 (2016: $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. 26 Events occurring after the reporting period On 30 August 2017, the Company announced a fully franked final dividend of 1 cent per share to be paid on 22 September 2017. On 26 July 2017, the Company reported an interim Mineral Resource estimate for the Nova Operation based on improved geological understanding and results of close spaced diamond core ‘grade control’ drilling on the Nova deposit. The revised Mineral Resource estimate reported ~15% lower tonnage with marginally higher nickel and copper grades. 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. 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 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 Independence Group NL Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting of the Company in November 2016. The EIP incorporates both broad based equity participation for eligible employees as well as key executive incentive schemes designed to provide long-term incentives to senior management (including executive directors) to deliver long-term shareholder returns. The EIP replaced the previous Independence Group NL Employee Performance Rights Plan (PRP) which was approved at the Annual General Meeting of the Company in November 2011 and re-approved at the Annual General Meeting in November 2014. Any existing unvested performance rights issued under the PRP will continue in accordance with their terms under the PRP. Independence Group NL 80 110 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017