IGO Interactive Annual Report 2018

2018 SNAPSHOT The 2018 financial year was a successful year for IGO with record revenue and underlying EBITDA as a result of the delivery of the first year of commercial production at Nova, strong operational performance at Tropicana and a rationalisation of our portfolio. KEY ACHIEVEMENTS FOR THE YEAR Overall contained nickel and copper production for Nova for the 2018 financial year (FY18) was 22,258 tonnes and 9,545 tonnes respectively. This fell slightly short of guidance. Tropicana production for FY18 was slightly better than the mid-point of the guidance range, with improved mill feed grades attributed to the grade- streaming strategy adopted late in FY18. This grade-streaming is expected to continue in FY19. At year end, our Long Operation had commenced care and maintenance after delivering nickel production better than the mid-point of guidance. During the year, IGO announced the divestment of the Jaguar Operation to CopperChem Pty Limited (CopperChem), a wholly owned subsidiary of Washington H. Soul Pattinson and Company Limited. This transaction was completed on 31 May 2018, for total consideration of $73 million. IGO also completed the divestment of the Stockman Project to CopperChem in December 2017 for proceeds of $32 million and a net smelter return royalty. FY18 was an exciting year for exploration and growth, with further consolidation of tenure on the Fraser Range. This was coupled with extensive regional exploration activities across the Fraser Range and at Lake Mackay, and entry into two new early stage projects. Total exploration and growth spend, including acquisitions in mineral interests and investments in growth opportunities, was $55 million. Our balance sheet was further strengthened throughout FY18, finishing the year with a cash balance of $139 million. Net debt at 30 June 2018 was $4 million. In addition, IGO renegotiated its debt facilities, resulting in improved terms and the cancellation of the Company’s $200 million revolving credit facility. IGO is well placed for a strong FY19, with both Nova and Tropicana poised to deliver improved productivity and value. In addition, IGO continues to make good progress with the major value enhancement projects including downstream processing of Nova nickel concentrate to produce nickel and  cobalt sulphates, and the Boston  Shaker underground study at Tropicana. 1 See Notes to Glossary of Terms for definitions FY18 $M FY17 $M FY16 $M Total revenue and other income 781 422 417 Underlying EBITDA 1 339 151 138 Profit (Loss) after tax 53 17 (59) Net cash flow from operating activities 278 78 102 Underlying Free cash flow 1 138 (113) (328) Total assets 2,175 2,208 2,007 Cash 139 36 46 Marketable securities 24 15 5 Total liabilities 396 476 552 Shareholders’ equity 1,779 1,733 1,456 Net tangible assets per share ($ per share) $3.03 $2.95 $2.85 Dividends per share paid – fully franked (cents) 2.0 3.0 2.5 HIGHLIGHTS FY18 FINANCIAL SUMMARY Nova’s first year of commercial production delivered 22,258t and 9,545t of nickel and copper respectively Total interim and final fully franked dividends of 3 cents for FY18 Nova downstream processing metallurgical testwork demonstrated proof of concept Completed Australia’s largest ever hard-rock 3D seismic survey Tropicana reached two million ounces of production in early January 2018 Balance sheet continued to strengthen with net debt reduced from $164M to $4M during FY18 Portfolio rationalisation, with Stockman and Jaguar divestments successfully completed 02 — IGO ANNUAL REPORT 2018