INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 30 Deed of cross guarantee (continued) (a) Consolidated statement of profit or loss and other comprehensive income (continued) Consolidated statement of profit or loss and other comprehensive income 2017 $'000 2016 $'000 Revenue from continuing operations 421,861 413,159 Other income - 2,342 Mining, development and processing costs (146,135) (139,931) Employee benefits expense (64,740) (66,975) Share-based payments expense (1,147) (819) Fair value movement of financial investments 4,362 2,396 Depreciation and amortisation expense (85,740) (105,872) Rehabilitation and restoration borrowing costs (979) (474) Exploration costs expensed (17,155) (17,875) Royalty expense (14,391) (12,557) Ore tolling expense (9,606) (10,092) Shipping and wharfage expense (12,092) (16,143) Borrowing and finance costs (26) (76) Impairment of exploration and evaluation expenditure (492) (2,985) Impairment of loans to and investments in subsidiaries 793 (1,960) Acquisition and other integration costs (3,910) (65,137) Other expenses (11,037) (11,121) Profit (loss) before income tax 59,566 (34,120) Income tax expense (18,802) (6,999) Profit (loss) for the period 40,764 (41,119) Other comprehensive income Items that may be reclassified to profit or loss Effective portion of changes in fair value of cash flow hedges, net of tax 241 404 Other comprehensive income for the period, net of tax 241 404 Total comprehensive (loss) income for the period 41,005 (40,715) Summary of movements in consolidated retained earnings (accumulated losses) 2017 $'000 2016 $'000 (Accumulated losses) retained earnings at the beginning of the financial year (17,317) 35,552 Adjustment on adoption of AASB 9, net of tax - 1,036 Restated (accumulated losses) retained earnings at the beginning of the financial year (17,317) 36,588 Profit (loss) for the year 40,764 (41,119) Dividends paid (17,601) (12,786) Retained earnings (accumulated losses) at the end of the financial year 5,846 (17,317) (b) Consolidated balance sheet Set out below is a consolidated balance sheet as at 30 June 2017 of the closed group consisting of Independence Group NL, Independence Long Pty Ltd, Independence Jaguar Pty Ltd, Independence Nova Holdings Pty Ltd and Independence Nova Pty Ltd. Independence Group NL 86 116 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017