IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) Unrecognised items This section of the notes provides information about items that are not recognised in the financial statements as they do not yet satisfy the recognition criteria but could potentially have an impact on the Group's financial position and performance. 23 Commitments and contingencies (a) Capital commitments Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: 2019 $'000 2018 $'000 Mine properties in development 30,666 - 30,666 - (b) Commitments (a) Leasing commitments 2019 $'000 2018 $'000 Operating lease commitments Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 10,635 10,264 Later than one year but not later than five years 37,397 39,093 Later than five years 26,080 35,019 Total minimum lease payments 74,112 84,376 (c) Gold delivery commitments Gold for physical delivery oz Average contracted sale price A$/oz Value of committed sales $'000 Within one year 76,020 1,818 138,182 Later than one but not later than five years 49,320 1,814 89,452 Total 125,340 1,816 227,634 The physical gold delivery contracts are settled by the physical delivery of gold as per the contract terms. The contracts are accounted for as sales contracts with revenue recognised once gold has been delivered to the counterparties. The physical gold delivery contracts are considered to sell a non-financial item and therefore do not fall within the scope of AASB 139 Financial Instruments: Recognition and Measurement. Hence, no derivatives have been recognised in respect of these contracts. (d) Contingencies The Group had guarantees outstanding at 30 June 2019 totalling $1,131,000 (2018: $1,311,000) which have been granted in favour of various third parties. The guarantees primarily relate to environmental and rehabilitation bonds at the various mine sites. Independence Group NL 50 110 — IGO ANNUAL REPORT 2019