IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 23 Subsidiaries (continued) (a) Significant investments in subsidiaries (continued) Name of entity Note Country of incorporation Equity holding 2018 % 2017 % Independence Long Pty Ltd (a) Australia 100 100 Independence Newsearch Pty Ltd Australia 100 100 Independence Jaguar Pty Ltd (a),(b) Australia - 100 Independence Stockman Parent Pty Ltd Australia 100 100 Independence Stockman Project Pty Ltd Australia 100 100 Independence Jaguar Project Parent Pty Ltd (b) Australia - 100 Independence Jaguar Project Pty Ltd (b) Australia - 100 Independence Windward Pty Ltd Australia 100 100 Independence Europe Pty Ltd Australia 100 100 Independence Nova Holdings Pty Ltd (a) Australia 100 100 Independence Nova Pty Ltd (a) Australia 100 100 Independence Group Europe AB Sweden 100 100 Flinders Prospecting Pty Ltd (c) Australia 100 100 (a) These subsidiaries have been granted relief from the necessity to prepare 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 29. (b) Subsidiaries disposed of on 31 May 2018. (c) Independence Karlawinda Pty Ltd changed its name to Flinders Prospecting Pty Ltd during the year. (b) Sale of Independence Jaguar Pty Ltd On 25 May 2018, the Company announced that it had entered into an agreement with CopperChem Limited (CopperChem) to divest the Jaguar Operation for a total consideration of $73,200,000. The consideration comprised $25,000,000 in cash on completion of the transaction and an additional $48,200,000 in deferred cash payments. The transaction was completed on 31 May 2018, with the Company receiving a cash payment of $25,000,000, with three future cash payments of $16,100,000 receivable on each of the three anniversaries following the completion date. The discounted values (using a discount rate of 3.5%) of the outstanding cash proceeds of $15,520,000 and $29,480,000 are shown in current and non-current receivables respectively. The sale of the Jaguar Operation resulted in a net gain on sale before tax of $2,541,000, which is included in Other income in profit or loss. Cash proceeds of $25,000,000 and costs associated with the sale of the subsidiary of $1,860,000 are shown as Net cash proceeds on sale of Jaguar Operation in investing activities in the Statement of cash flows. (c) 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 (refer to note 31(c)(i)). 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. Independence Group NL 48 112 — IGO ANNUAL REPORT 2018 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018