INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

In Western Australia, the overall value of base metals (copper, lead and zinc) decreased by close to 16% to just below $1.4 billion in FY16. Copper dominated this group with sales of $1.2 billion, down 9% on the previous financial year. In comparison, revenue from the Jaguar Operation increased by 3% during the year with lower sales volumes more than offset by higher metal prices. Key price variances (net of treatment and refining charges) were 69% higher than the Australian dollar realised zinc price and 15% higher than the Australian dollar realised copper price. IGO’s payable zinc and copper production from Jaguar operation for FY17 were 27,067t and 4,377t respectively, resulting in a total revenue of $137.5 million. This is an increase on the FY16 total revenue of $133.0 million, and payable metal of 32,634t of zinc and 7,122t of copper. OPERATING PERFORMANCE In FY17, with one minor exception, IGO succeeded in meeting or exceeding all of its production and cash cost guidance statements. The exception was Jaguar, which was below production guidance. Tropicana Gold Mine produced a total of 431,625oz of gold (129,487oz being IGO’s share), milling 7,326Mt of ore at an average gold grade of 2.05g/t. The Long Operation generated 8,433t of nickel in concentrate and 592t of copper in concentrate, mining a total of 205,372t of ore at a head grade of 4.11% and 0.29%, respectively. The Jaguar Operation produced 4,565t of copper in concentrate and 32,638t of zinc in concentrate. A total of 444,700t of ore was milled with a copper and zinc head grade of 1.3% and 8.3%. FY17 FINANCIAL PERFORMANCE • Revenue from operations of $421.9 million was a good result. • Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA*) of $150.5 million. * Underlying EBITDA excludes impairments (A$25.0M), redundancy and retention costs (A$6.4M) and acquisition costs (A$3.9M). • Net profit/loss after tax for FY17 was $17 million, compared to a loss of $58.8 million in the previous financial year. • Cashflows from operating activities for IGO were $77.7 million, a result of lower production costs at Tropicana, combined with sound operating cashflows from Long and Jaguar. • At the end of the financial year, the Company had cash totalling $35.8 million and marketable securities of $15.3 million (2016: $46.3 million and $5.0 million, respectively). • Total fully franked dividends paid during FY17 were $17.6 million. The total amount the Company has returned to shareholders since incorporation in 2002 is in excess of $164.2 million by way of a combination of $154.5 million fully franked dividends and a $9.7 million share buyback in 2009. • During the reporting period, the Company conducted an equity raise of $274 million. • The Company repaid $71 million of debt, reducing the Company’s outstanding debt to $200 million, and cancelled a further $79 million of its Term Loan Facility. As at 30 June 2017, the Company’s facilities comprise $200 million in drawn term debt and a $200 million revolving credit facility, which remains undrawn at the end of the financial year. $366M CONTRACTOR AND SUPPLIER SPEND IN FY17 IGO SUSTAINABILITY REPORT 2017— 51