IGO Interactive Annual Report 2018

DIRECTORS’ REPORT 30 JUNE 2018 Net profit after tax (NPAT) for the year was $52.7 million, compared to $17.0 million in the previous financial year. The primary driver for this is the inclusion of the Nova Operation in results, following declaration of commercial production on 1 July 2017. In addition, current year NPAT includes a gain in respect of an agreement with Dacian Gold Limited for the sale of the Jupiter mine royalty for consideration of $11.5 million. Below is a reconciliation of Underlying EBITDA to NPAT for FY18: Depreciation and amortisation expense of $252.1 million was significantly higher than the previous financial year of $89.8 million due to the inclusion of depreciation and amortisation from the Nova Operation into the results for the year. 250 200 150 100 50 0 $M 17 196 (49) 47 7 (162) 0 (2) (17) (4) 25 4 14 5 (11) (17) 53 Share-based payments expense NPAT FY17 Nova U’lying EBITDA FY18 Volume variance Price Variance Cost of Production D&A Corporate E & E expense MTM of investment E & E impairment in FY17 Acquisition costs in FY17 Gain on sale of investments Long C&M Costs Net finance costs Income tax expense NPAT FY18 NPAT VARIANCE FY18 VS FY17 $M 350 300 250 200 150 100 50 0 Underlying EBITDA Net finance costs Depreciation & amortisation Gain on sale of subsidiary Income tax expense Net profit after tax 339 (10) (252) 2 (26) 53 IGO ANNUAL REPORT 2018— 37