INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 14 Mine properties Mine properties in development $'000 Mine properties in production $'000 Deferred stripping $'000 Total mine properties $'000 Year ended 30 June 2017 Cost 1,355,722 627,098 118,579 2,101,399 Accumulated amortisation and impairment - (424,816) (63,664) (488,480) Net book amount 1,355,722 202,282 54,915 1,612,919 Movements Opening net book amount 1,197,011 239,076 34,764 1,470,851 Additions 144,626 20,766 39,920 205,312 Transfers from exploration and evaluation expenditure - 327 - 327 Transfers to property, plant and equipment - (1,004) - (1,004) Amortisation expense - (56,883) (19,769) (76,652) Borrowing costs capitalised 12,779 - - 12,779 Depreciation expense capitalised 1,306 - - 1,306 Closing net book amount 1,355,722 202,282 54,915 1,612,919 Year ended 30 June 2016 Cost 1,197,011 607,009 78,659 1,882,679 Accumulated amortisation and impairment - (367,933) (43,895) (411,828) Net book amount 1,197,011 239,076 34,764 1,470,851 Movements Opening net book amount - 271,724 31,576 303,300 Additions 200,273 28,418 18,639 247,330 Acquisition of subsidiary 984,776 - - 984,776 Transfers from exploration and evaluation expenditure - 10,586 - 10,586 Transfers to property, plant and equipment - (2,260) - (2,260) Amortisation expense - (69,392) (15,451) (84,843) Borrowing costs capitalised 11,055 - - 11,055 Depreciation expense capitalised 907 - - 907 Closing net book amount 1,197,011 239,076 34,764 1,470,851 (a) Recognition and measurement (i) Mine properties in development Mine properties in development represent the expenditure incurred when technical feasibility and commercial viability of extracting a mineral resource have been demonstrated, and includes the costs incurred up until such time as the asset is capable of being operated in a manner intended by management. These costs are not amortised but the carrying value is assessed for impairment whenever facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount. Independence Group NL 57 IGO ANNUAL REPORT 2017— 87 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017