IGO Interactive Annual Report 2018

DIRECTORS’ REPORT 30 JUNE 2018 NOVA OPERATION The Nova Operation commenced commercial production on 1 July 2017, five years following discovery, with a significant portion of underground development completed at the Nova and Bollinger ore bodies. The mining activities and processing plant at the Nova Operation reached its nameplate 1.5 million tonnes per annum mining rate in early FY18 and finished the year strongly with a record mining rate of 1.8 million tonnes per annum, 20% above nameplate being achieved for a trial period. This was achieved underground through the improved availability of mining fronts, which included significant contribution of tonnes from the Bollinger ore body. Nickel metallurgical recoveries in the processing plant generally performed in line with modelled recoveries. Contained nickel and copper in concentrate produced for the period were 22,258 tonnes and 9,545 tonnes respectively. Nova revenue for the period was $348.8 million which was derived from nickel, copper and cobalt sales. Concentrate for the period was sold to Glencore International AG (Glencore), Trafigura Pte Ltd (Trafigura) and BHP Billiton Nickel West Pty Ltd (BHPB Nickel West), with sales amounting to 14,074 tonnes of payable nickel, 8,455 tonnes of payable copper and 217 tonnes of payable cobalt. Nickel cash costs per pound produced, which comprises the costs of producing nickel at the mine site and includes credit adjustments for copper and cobalt sales, were $2.78 per pound. NOVA OPERATION 2018 Total revenue $'000 348,792 Segment operating profit before tax $'000 35,623 Total segment assets $'000 1,374,188 Total segment liabilities $'000 747,011 Ore mined tonnes 1,511,920 Nickel grade % 1.83 Copper grade % 0.75 Cobalt grade % 0.06 Ore milled tonnes 1,427,072 Metal in concentrate - Nickel tonnes 22,258 - Copper tonnes 9,545 - Cobalt tonnes 740 Metal payable - Nickel tonnes 15,586 - Copper tonnes 8,666 - Cobalt tonnes 238 Nickel cash costs and royalties* A$/lb total Ni metal payable 2.78 * Includes credits for copper and cobalt 38 — IGO ANNUAL REPORT 2018