Independence Group Sustainability Report 2019

OUR ECONOMIC CONTRIBUTIONS We support economic development in the communities in which we operate by seeking to invest first locally, then regionally within Western Australia, then nationally and finally internationally. IGO’s economic contributions can be measured by the dividends we pay, salaries and other employment benefits we provide to our employees, the money we spend on contractors and consultants, taxes and royalties paid, and payments made through our Corporate Giving activities. Our direct economic impact is largely centred in Western Australia. Where possible, we buy goods and services locally. At the Nova Operation, the highest value contracts are for underground mining services, fuel, drilling services, haulage, binding agents for backfill and catering services. In FY19, our direct economic contribution comprised of: • $103.55M in payments to employees in salaries and wages, payables to governments in taxes and royalties, returns to shareholders, non- government payments and Corporate Giving contributions; • $275.28M of payments to suppliers for goods and services; and • $122.9M reinvested into business growth, such as mine properties and exploration assets. During the year we released our first Tax Transparency Report for the FY18 period, including detail on our approach to tax strategy and governance, effective tax rates and tax contribution summaries. The report adopts the Australian Government Voluntary Tax Transparency Code guidelines, as required for large and medium-sized businesses to publicly disclose tax information. As of FY18, IGO is categorised as a large-sized business as a result of aggregated turnover of greater than $500M. Our FY19 Tax Transparency Report will be published in November 2019 and made available on our website. The 2019 social impact assessment incorporated the broad economic impacts of IGO’s activities associated with the Nova Operation. The results of the economic impact study indicate that in addition to the direct financial benefits, projects like the Nova Operation make a significant contribution to improved regional infrastructure, business diversification and regional development. They can create a critical mass that supports new businesses to the benefit of third party users. With a value of production in 2017-18 of $766M, the total flow-on effect of the Nova Operation through the Western Australian economy is estimated at $1.99B. FY19 FINANCIAL SUMMARY IGO achieved record revenue and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) during the 2019 financial year. The successful delivery of the second year of commercial production at the Nova Operation exceeded production guidance, and the continuing strong performance from the Tropicana Operation comfortably met production guidance. The performance of our two core assets generated underlying free cash flow of $278M and net profit after tax of $76M. Our key financial highlights are summarised below. Further information about our FY19 financial performance are detailed on page 81 of this report and in the 2019 Annual Report. HIGHLIGHTS FY19 $ MILLION Total revenue and other income 793 Underlying EBITDA 341 Profit after tax 76 Net cash flow from operating activities 372 Underlying free cash flow 278 Total assets 2,190 Cash 348 Marketable securities 28 Total liabilities 341 Shareholders’ equity 1,849 Net tangible assets per share ($ per share) $3.13 Dividends per share paid – fully franked (cents) 4.0 64 — IGO SUSTAINABILITY REPORT 2019 SECTION 6 OPTIMISING THE BUSINESS VALUE

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