IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 29 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 2018 $'000 2017 $'000 Revenue from continuing operations 777,935 421,861 Other income 2,600 - Mining, development and processing costs (241,302) (146,135) Employee benefits expense (88,795) (64,740) Share-based payments expense (3,267) (1,147) Fair value movement of financial investments (587) 4,362 Depreciation and amortisation expense (234,845) (85,740) Exploration costs expensed (22,695) (17,155) Royalty expense (30,489) (14,391) Ore tolling expense (8,776) (9,606) Shipping and wharfage expense (19,787) (12,092) Borrowing and finance costs (10,302) (1,005) Impairment of exploration and evaluation expenditure - (492) Impairment and forgiveness of loans to subsidiaries (21,718) 793 Acquisition and other integration costs - (3,910) Other expenses (9,465) (11,037) Profit before income tax 88,507 59,566 Income tax expense (36,711) (18,802) Profit after income tax for the period 51,796 40,764 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 1,784 241 Other comprehensive income for the period, net of tax 1,784 241 Total comprehensive income for the period 53,580 41,005 Summary of movements in consolidated retained earnings 2018 $'000 2017 $'000 Retained earnings (accumulated losses) at the beginning of the financial year 5,846 (17,317) Profit for the year 51,796 40,764 Dividends paid (11,736) (17,601) Transfer from acquisition reserve 3,142 - Retained earnings at the end of the financial year 49,048 5,846 (b) Consolidated balance sheet Set out below is a consolidated balance sheet as at 30 June 2018 of the closed group consisting of Independence Group NL, Independence Long Pty Ltd, Independence Nova Holdings Pty Ltd and Independence Nova Pty Ltd. Independence Group NL 57 IGO ANNUAL REPORT 2018— 121 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018