INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 8 Trade and other receivables 2017 $'000 2016 $'000 Trade receivables 50,047 21,561 GST Receivable 4,372 3,804 Sundry debtors 2,139 2,741 Prepayments 2,825 2,794 59,383 30,900 No balances within trade and other receivables contain impaired assets. The balance of trade receivables includes amounts of $1,547,000 (2016: $1,448,000) that are past due but not impaired. (a) Recognition and measurement (i) Trade receivables Trade receivables are generally received up to four months after the shipment date. The receivables are initially recognised at fair value. Trade receivables are subsequently revalued by the marking-to-market of open sales. The Group determines mark-to-market prices using forward prices at each period end for copper and zinc concentrates and nickel ore. (ii) Impairment of trade receivables Collectibility of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An allowance is made for doubtful debts based on credit losses expected over the life of the trade receivable taking into account information about past events, current conditions and forecasts of further economic conditions. On confirmation that the trade receivable will not be collectible, the gross carrying value of the asset is written off against the associated provision. 9 Inventories 2017 $'000 2016 $'000 Current Mine spares and stores - at cost 20,447 16,368 ROM inventory - at cost 29,516 19,513 Concentrate inventory - at cost 10,078 7,058 Work in progress - gold in process - 1,175 Gold in circuit 882 1,145 Gold dore 2,235 1,239 63,158 46,498 Non-current ROM inventory - at cost 20,077 31,995 20,077 31,995 (a) Classification of inventory Inventory classified as non-current relates to 0.6g/t to 1.2g/t grade gold ore stockpiles which are not intended to be utilised within the next 12 months but will be utilised beyond that period. Independence Group NL 51 IGO ANNUAL REPORT 2017— 81 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017