IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 28 Deed of cross guarantee Independence Group NL, Independence Nova Holdings Pty Ltd and Independence Nova Pty Ltd are parties to a deed of cross guarantee under which each company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report and directors' report under ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 (as amended) issued by the Australian Securities and Investments Commission. Independence Long Pty Ltd and Independence Jaguar Pty Ltd were also parties to the deed of cross guarantee until their divestment on 31 May 2019 and 31 May 2018 respectively. (a) Consolidated statement of profit or loss and other comprehensive income and summary of movements in consolidated retained earnings The above companies represent a 'closed group' for the purposes of the Legislative Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by Independence Group NL, they also represent the 'extended closed group'. Set out below is a consolidated statement of profit or loss and other comprehensive income and a summary of movements in consolidated retained earnings for the year ended 30 June 2019 of the closed group consisting of Independence Group NL, Independence Nova Holdings Pty Ltd and Independence Nova Pty Ltd. The results of Independence Long Pty Ltd and Independence Jaguar Pty Ltd are included until the date of their divestment on 31 May 2019 and 31 May 2018 respectively. Consolidated statement of profit or loss and other comprehensive income 2019 $'000 2018 $'000 Revenue from continuing operations 784,509 777,935 Other income 8,377 2,600 Mining, development and processing costs (262,851) (241,302) Employee benefits expense (53,234) (88,795) Share-based payments expense (3,123) (3,267) Fair value movement of financial investments (5,796) (587) Depreciation and amortisation expense (204,531) (234,845) Exploration and growth expense (29,412) (22,695) Royalty expense (30,506) (30,489) Ore tolling expense (57) (8,776) Shipping and wharfage expense (18,340) (19,787) Borrowing and finance costs (6,237) (10,302) Impairment and forgiveness of loans to subsidiaries (21,168) (21,718) Other expenses (11,207) (9,465) Profit before income tax 146,424 88,507 Income tax expense (52,794) (36,711) Profit after income tax for the period 93,630 51,796 Independence Group NL 57 Notes to the consolidated financial statements 30 June 2019 (continued) 28 Deed of cross guarantee (continued) (a) Consolidated tatement of profit or loss and other comprehensive income (continued) Other comprehensive income Items that may be reclassified to profit or loss Effective portion of changes in fair value of cash flow hedges, net of tax (1,054) 1,784 Other comprehensive (loss)/income for the period, net of tax (1,054) 1,784 Total comprehensive income for the period 92,576 53,580 Summary of movements in consolidated accumulated losses 2019 $'000 2018 $'000 Accumulated losses at the beginning of the financial year (77,338) (120,540) Profit for the year 93,630 51,796 Dividends paid (23,619) (11,736) Transfer from acquisition reserve - 3,142 Accumulated losses at the end of the financial year (7,327) (77,338) (b) Consolidated balance sheet Set out below is a consolidated balance sheet as at 30 June 2019 of the closed group consisting of Independence Group NL, Independence Nova Holdings Pty Ltd and Independence Nova Pty Ltd. Independence Long Pty Ltd is also included in the consolidated balance sheet at 30 June 2018. IGO ANNUAL REPORT 2019 — 117