IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) Unrecognised items This section of the notes provides information about items that are not recognised in the financial statements as they do not yet satisfy the recognition criteria but could potentially have an impact on the Group's financial position and performance. 24 Commitments and contingencies (a) Capital commitments Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: 2018 $'000 2017 $'000 Mine properties in development - 1,667 - 1,667 (b) Commitments (i) Leasing commitments 2018 $'000 2017 $'000 Operating lease commitments Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 1,848 1,599 Later than one year but not later than five years 3,557 4,859 Total minimum lease payments 5,405 6,458 (c) Gold delivery commitments Gold for physical delivery oz Average contracted sale price A$/oz Value of committed sales $'000 Within one year 47,988 1,859 89,200 Later than one but not later than five years 43,200 1,788 77,220 Total 91,188 1,825 166,420 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 2018 totalling $1,311,000 (2017: $1,281,000) which have been granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation bonds at the various mine sites. Independence Group NL 49 IGO ANNUAL REPORT 2018— 113 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018