IGO Interactive Annual Report 2018

DIRECTORS’ REPORT 30 JUNE 2018 FINANCIAL OVERVIEW The objective and strategy of the Group is to create long-term shareholder value through the discovery, acquisition, development and operation of low cost and high grade gold and base metals projects, with an emphasis on the production of metals and minerals that will link IGO into the energy storage supply chain. Since incorporation in 2002, and including the current financial year, the Company has returned to shareholders in excess of $176.0 million by way of a combination of $166.2 million fully franked dividends and a $9.7 million share buy back in 2009. The Company currently has 590,330,693 shares outstanding. The Group’s future prospects are dependent on a number of external factors that are summarised towards the end of this report. At the end of the financial year, the Group had cash and cash equivalents of $138.7 million and marketable securities of $24.3 million (2017: $35.8 million and $15.3 million respectively). Cash flows from operating activities for the Group were $277.8 million, compared to the FY17 year of $77.7 million. This was predominantly a result of the Nova Operation achieving commercial production from 1 July 2017, combined with strong operational cash flows from the Tropicana Operation, Long and Jaguar operations. Nova Operation generated $146.7 million cash flows from operating activities, which was a result of 14,074 tonnes of payable nickel sold, 8,455 tonnes of payable copper and 217 tonnes of payable cobalt sold during the year. Tropicana Operation generated cash from operating activities of $134.8 million off the back of 138,748 ounces of gold refined and sold. Cash flow from operating activities from Long Operation and Jaguar Operation were $19.9 million and $39.8 million respectively. Lastly, cashflow from operating activities include payments for exploration and growth expenditure and net borrowing costs amounting to $40.7 million and $7.2 million respectively. IGO ANNUAL REPORT 2018— 35