INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 3 Other income 2017 $'000 2016 $'000 Net foreign exchange gains - 907 Net gain on sale of investments - 1,433 Net gain on disposal of tenements - 1,522 - 3,862 4 Expenses and losses 2017 $'000 2016 $'000 Cost of sale of goods 235,134 233,880 Employee benefits expenses 64,740 66,975 Share-based payments expense 1,147 819 Exploration costs expensed 20,139 19,720 Rental expense relating to operating leases 1,597 1,473 Rehabilitation and restoration borrowing costs 1,232 707 Impairment of exploration and evaluation expenditure 24,891 35,518 Impairment of assets 135 - Net loss of sale of property, plant and equipment 613 219 Net foreign exchange losses 570 - Amortisation expense 76,652 84,843 Depreciation Depreciation expense 14,427 15,759 Less : amounts capitalised (1,306) (907) Depreciation expensed 13,121 14,852 Borrowing and finance costs Borrowing and finance costs - other entities 8,706 10,729 Amortisation of borrowing costs 4,099 402 Less: amounts capitalised (12,779) (11,055) Finance costs expensed 26 76 5 Income tax (a) Income tax expense 2017 $'000 2016 $'000 The major components of income tax expense are: Deferred income tax expense 41,471 17,087 Current income tax (benefit) expense (32,065) (17,529) Income tax expense (benefit) 9,406 (442) Deferred income tax revenue (expense) included in income tax expense comprises: Increase in deferred tax assets (29,247) (25,141) Increase in deferred tax liabilities 38,653 24,699 Deferred income tax expense (benefit) 9,406 (442) Independence Group NL 45 IGO ANNUAL REPORT 2017— 75 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017