INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) Working Capital Provisions This section of the notes provides further information about the Group's working capital and provisions, including accounting policies and key judgements and estimates relevant to understanding these items. 7 Cash and cash equivalents 2017 $'000 2016 $'000 Cash at bank and in hand 35,733 46,235 Deposits at call 30 29 35,763 46,264 The Group has cash balances of $108,000 (2016: $2,360,000) not generally available for use as the balances are held by the Tropicana Joint Venture and may only be used in relation to joint venture expenditure. The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 21. (a) Reconciliation of profit (loss) after income tax to net cash inflow from operating activities 2017 $'000 2016 $'000 Profit (loss) for the period 17,011 (58,770) Depreciation and amortisation 89,773 99,695 Impairment of exploration and evaluation expenditure 24,891 35,518 Impairment of assets 135 - Net (gain) loss on sale of non-current assets 613 (2,736) Fair value of movement of financial investments (4,343) (2,374) Non-cash employee benefits expense - share-based payments 1,147 819 Amortisation of borrowing expenses - 27 Amortisation of lease incentive (78) (72) Foreign exchange gains (losses) on cash balances 223 (907) Change in operating assets and liabilities: (Increase) decrease in trade receivables (10,425) (6,488) (Increase) decrease in inventories 635 (12,914) (Increase) decrease in deferred tax assets (29,445) (25,264) (Increase) decrease in other operating receivables and prepayments (955) 2,254 (Increase) decrease in derivative financial instruments - 3,359 (Decrease) increase in trade and other payables (58,517) 44,851 (Decrease) increase in deferred tax liabilities 38,850 24,822 (Decrease) increase in other provisions 8,163 240 Net cash inflow from operating activities 77,678 102,060 (b) Non-cash investing and financing activities There were no non-cash investing and financing activities during the current or previous year. (c) Recognition and measurement Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included within borrowings in current liabilities on the balance sheet. Independence Group NL 50 80 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017